A mine at Sukhoi Log – the world’s largest untapped gold deposit – would require a capital investment of $3.3-billion, London-listed Polyus said on Thursday, announcing the prefeasibility study (PFS) results for the Russian project.
The 2020 PFS study targets processing capacity of 33.2-million tons a year, compared with 30-million tons a year in the 2018 scoping study, with a recovery rate of 92%. The yearly production forecast increased from 1.6-million ounces a year to 2.3-million ounces a year at a total cash cost of $390/oz.
The scoping study scenario had a price tag of $2.3-billion.
“Sukhoi Log is a greenfield project of unparalleled quality and scale,” said Polyus CEO Pavel Grachev, adding that the mining company would develop the deposit in a disciplined and efficient way.
The PFS was completed by an in-house team, in partnership with international consultants. Polyus is now progressing to the feasibility study stage, during which time a more precise technical and financial analysis of the project will be done.
The company plans to release the feasibility study results in the second half of 2022, followed by the final investment decision, and assume hot commissioning and the first gold being poured in 2027.