OREANDA-NEWS. On January 20, 2009 JSC “Polymetal” (LSE, MICEX, RTS: PMTL) (“Polymetal” or the “Company”), through its subsidiary OAO “Omolon Gold Mining Company”, won the auction for exploration and mining license on Burgali prospective area located in the Severo-Evensk district of the Magadan region, 67 kilometers from Kubaka, a deposit acquired by Polymetal from Kinross Gold Corporation in 2008, reported the press-centre of Polymetal.

The auction took place in Magadan on January 20, 2009, and Polymetal’s winning bid amounted to 7.7 million roubles (US0.2m).

According to the Federal Subsoil Agency (Rosnedra), resources of the Burgali area amount to 40 tons (c. 1.3Moz) of gold with average grade of 15.7 g/t according to the Russian P3 category, and the established type of mineralization indicates the possibility of discovery of a Kubaka-type deposit in the area.

The license covering the area of 91 square kilometers will expire 25 years after its issuance in 2009. The licensing agreement stipulates that Polymetal will have to drill not less than 4,000 meters during the four years after the license is issued.

“Burgali area is an excellent addition to our exploration portfolio in the Magadan region”, said Vitaly Nesis, CEO of Polymetal. “Its proximity to Kubaka suggests that exploration success, if achieved, will transfer into exponential growth of its value”.

Polymetal operates tree predominantly silver mines in the region (Dukat, Lunnoye, and Arylakh, a satellite of Lunnoye), owns seven additional exploration and mining licenses covering the area of 3,087 square kilometers, and is in the process of acquiring the Goltsovoye silver deposit from a subsidiary of Ovoca Gold Plc.