JOHANNESBURG (miningweekly.com) – Gold miner Polymetal and its partner Dolfinflip have agreed to sell the Dolinnoye property in the Aktogay district of Kazakhstan to local miner Altynalmas for $33.5-million.
Polymetal and Dolfinflip owned equal shares in the gold project and would split the consideration receivable, the London-listed miner said on Wednesday.
Polymetal acquired its stake in Dolinnoye in a series of transactions in 2015 and 2016, with the aim of establishing the project as one of several sources of ore for the Varvara processing hub. Mining started last year, with 4 000 oz of gold produced at Varvara from Dolinnoye ore; however, activities were ceased at the end of the year when negotiations with Altynalmas were under way.
Polymetal CEO Vitaly Nesis said that Dolinnoye had become noncore after the Komar mine supplanted it as a source of ore for Varvara.
The company said last year that it would mine, transport and process about two-million tonnes a year of ore from Komar at the Vavara processing plant, following an updated reserve estimate for the deposit.
The Dolinnoye deposit has ore reserves of 5.1-million tonnes at 2.4 g/t gold for 400 000 oz of gold contained. Additional resources are estimated at 11.7-million tonnes, at a grade of 2.6 g/t for one-million ounces.
Polymetal said that its production and cost guidance would not be affected by the sale.
The transaction will close in the second quarter and is subject to statutory approvals and other conditions.