Kopy Goldfields reports updated Mineral Resources and Ore Reserves estimatesInside information: Kopy Goldfields AB (publ) ("Kopy Goldfields" or the "Company") provides a Mineral Resources and Ore Reserves update for the newly acquired business Amur Zoloto ("AZ"). A total of 1,859 koz of gold in the Measured, Indicated and Inferred categories for hard rock and placer assets are estimated, corresponding to a 32% increase compared to the previous resource estimate made in 2019. This amount includes 1,187 koz of gold contained in Probable Ore Reserves, which is 22% higher than previously reported. Adding the attributable reserves and resources of the Krasny project, Kopy Goldfields' new total estimated M, I&I Mineral Resources amount to 2,756 koz of gold, including total new Probable Ore Reserves of 1,313 koz of gold. The updated resource statement is effective as of July 1, 2020 and was issued by SRK Consulting (Russia) Limited ("SRK"). The new Competent Persons Report ("CPR") comprises SRK's independent technical review of the mineral assets attributable to AZ.
- For hard rock assets, the new Mineral Resources include 1,470 koz of gold at 2.9 g/t average grade in the Measured and Indicated categories and 308 koz of gold at 5.6 g/t average grade in the Inferred category for open pit and underground mining operations. In addition, 3,353 koz of silver in the Measured, Indicated and Inferred categories are reported for hard rock assets.
- For placer assets, the CPR estimates 80.5 koz of gold in the Indicated and Inferred categories.
- Hard rock Ore Reserves are estimated at 1,162 koz of gold in the Probable category and Placer Ore Reserves are estimated at 25 koz of gold also in the Probable category. Ore reserves are reported as part of the Mineral Resources. Please refer to Tables 1, 2, 3 and 4 in the Appendix for more details.
- In accordance with the CPR, production of the reported Ore Reserves, both hard rock and alluvial may generate 1,456 MUSD revenue during 2020-2029 at 54% EBITDA margin and 675 USD/oz unit cash costs, based on provided pricing assumptions.
"We are very pleased with the recent exploration results in Amur Zoloto. The 22% increase of the total gold reserves has already off-set gold production in 2019-2020 and will support our production growth plans. Simultaneously, the increase of mineral resources confirms excellent exploration potential of our existing projects as well as organic growth opportunities and will lead to a organic extension of life-of-mine for existing operations. The updated production model reports stronger revenues and lower unit production costs compared with the previous estimate as result of both higher gold prices and increased future gold production", says Mikhail Damrin, CEO of Kopy Goldfields AB.
The Mineral Resources and Ore Reserves have increased primarily due to successful exploration campaign during 2019 and 2020 at Krasivoe underground gold deposit which is part of Yubileyniy project. Importantly, this reserve increase at Krasivoe deposit supports the Company's target to increase capacity of the Yubileyniy processing plant from the current 130,000 tons per annum (tpa) to 400,000 tpa by 2025.
The Competent Persons Report on the Mineral Resources and Ore Reserves of the Amur Zoloto business will be published on the Company's website.
"We have been reviewing the development of Amur Zoloto's projects over a number of years. Although there are a number of risks generally inherent to the mining industry, including the stability of the markets, uncertainties related to Mineral Resource and Ore Reserve estimation, equipment and production performance, SRK considers that AZ has several strengths:
- AZ has good experience of finding and developing deposits in the Far East region.
- There are opportunities of further increasing the Ore Reserve at Krasivoe, where reserves are currently constrained to the Indicated Resources above the 750 m horizon;
- The increase in Ore Reserves at Krasivoe will support expansion to at least 250 kta;
- There is good upside potential from the optimization of heap leach recoveries at Malyutka",
said David Pearce, Managing Director of SRK Consulting (Russia) Ltd
Competent person
Alexander Polonyankin, a Competent person under JORC and member of Australasian Institute of Mining and Metallurgy, MAusIMM (CP), has reviewed and approved the technical information relating to operations covered in this press release.
Responsible party
Kopy Goldfields is obliged to make public this information in accordance with the (EU) Market Abuse Regulation 596/2014. The information in this press release has been made public through the agency of the responsible persons set out below for publication at the time stated by Kopy Goldfields news distributor beQuoted at the publication of this press release.
For the complete press release including tables see attached document. For more information, please contact:
Mikhail Damrin, CEO, +7 916 808 12 17, [email protected]
Tim Carlsson, CFO, + 46 702 31 87 01, [email protected]
The following documents can be retrieved from beQuoted
Kopy Goldfields Pressrelease 2020-10-16.pdf About Kopy Goldfields
Kopy Goldfields is a leading Swedish gold exploration and production company operating in the most renown gold mining regions of Russia. Kopy Goldfields' strategy is to combine Russian geologic knowledge and science with international management, "best industry practices" and modern and efficient technology to identify and develop mineral deposits in a cost-efficient, safe and transparent way. The Company is listed on NASDAQ First North Growth Market in Stockholm.
Kopy Goldfields applies International Financial Reporting Standards (IFRS), as approved by the European Union. Hagberg & Aneborn Fondkommission acts as Certified Adviser, contact number: +46 8 408 933 50, e-mail: [email protected].
The Share
Ticker: KOPY
http://www.nasdaqomxnordic.com/shares/microsite?Instrument=SSE77457
Outstanding shares: 886,005,575
Forward-looking statements
This press release contains forward-looking statements that reflect the Company's and the company group's intentions, beliefs, or current expectations about and targets for the Company's and the company group's future results of operations, financial condition, liquidity, performance, prospects, anticipated growth, strategies and opportunities and the markets in which the Company and the group operates. Forward-looking statements are statements that are not historical facts and may be identified by words such as "believe", "expect", "anticipate", "intend", "may", "plan", "estimate", "will", "should", "could", "aim" or "might", or, in each case, their negative, or similar expressions. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions. The forward-looking statements are subject to a number of risks and uncertainties, including, but not limited to, (i) changes in the economic, regulatory and political environments in the countries where Kopy Goldfields operates; (ii) changes relating to the geological information available in respect of the various projects undertaken; (iii) Kopy Goldfields' continued ability to secure enough financing to carry on its operations as a going concern; (iv) the success of its potential joint ventures and alliances, if any; (v) exchange rates, particularly between the Russian rouble and the U.S. dollar. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurances that they will materialize or prove to be correct. Because these statements are based on assumptions or estimates and are subject to risks and uncertainties, the actual results or outcome could differ materially from those set out in the forward-looking statements as a result of many factors, including but not limited to risks and uncertainties surrounding any gold production and exploration company at an early stage of its development. Such risks, uncertainties, contingencies and other important factors could cause actual events to differ materially from the expectations expressed or implied in this press release by such forward-looking statements. The Company does not guarantee that the assumptions underlying the forward-looking statements in this press release are free from errors and readers of this press release should not place undue reliance on the forward-looking statements in this press release. The information, opinions and forward-looking statements that are expressly or implicitly contained herein speak only as of its date and are subject to change without notice. Neither the Company nor anyone else undertake to review, update, confirm or to release publicly any revisions to any forward-looking statements to reflect events that occur or circumstances that arise in relation to the content of this press release, unless it is not required by law or Nasdaq First North Growth Market rule book for issuers.
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