Russia’s Polyus will this year make a final investment decision on the giant Sukhoi Log gold project, CEO Pavel Grachev reported on Tuesday, adding that the group is continuing with a bankable feasibility study (BFS).

The company has already finalised openpit geotechnical parameters, defined the parameters of the main technological equipment of the processing plant and is currently in the final stages of mine planning, as well as the general layout, infrastructure, processing plant and tailings storage facility design as part of the BFS.

According to 2020 estimates, Sukhoi Log’s gold reserves stand at more than 40-million ounces of gold, while its resources are estimated at 67-million ounces of gold.

A 2020 prefeasibility study targets processing capacity of 33.2-million tons a year and production of 2.3-million ounces a year at a total cash cost of $390/oz. The price tag for the mine is $3.3-billion.

Besides Sukhoi Log, Polyus will also proceed with the execution of its large-scale brownfield projects – the construction of Mill-5 at Blagodatnoye and the throughput capacity expansion at Kuranakh – along with further activities to enhance the performance of its existing operations.

During 2021, Polyus made progress with its growth projects. Grachev reported that the group had completed the capacity expansion project at Verninskoye ahead of the initial schedule.

Debottlenecking initiatives also drove up yearly ore processed volumes at Olimpiada and Natalka to 15.1-million tonnes and 12.4-million tonnes, respectively, Grachev reported.

Polyus produced 2.72-million ounces of gold in 2021, which was 2% less than in 2020, but in line with the group’s guidance. Fourth-quarter output was down 4% quarter-on-quarter and 11% year-on-year to 684 200 oz.

“While temporarily lower head grades at our largest asset, Olimpiada, had a negative impact on gold output at the group level, this was partially offset by a stronger year-on-year performance at Natalka and Verninskoye,” said Grachev.

Polyus expects total gold production to increase in 2022, primarily driven by a head grade improvement at Olimpiada.

“We reiterate our full-year production guidance at approximately 2.8-million ounces of gold.”