Polymetal’s (LON:POLY) impressive drilling results from recently acquired Maminskoye have dramatically improved the gold project’s scope and potential, according to brokers.
The Russian miner said gold grades from the latest step-pit drill programme had been consistently high across good widths and at a range of depths.
Best intersections included 40 metres (m) at 8.3 grams per tonne, or g/t (from 177m depth), 8m at 6.6g/t (from 18m), and 5m at 10g/t (from 33m).
Broker Canaccord described the results “as among the most impressive gold intercepts we have seen reported in the last 12 months.”
The drill results were likened to the high grade Albazino (200,000 ounces a year) mine by the company and may transform the original plans for its development, said Canaccord.
Polymetal paid US$77mln for Maminskoye in February. The JORC reserve is 730,000 ounces at an average grade of 1.9g/t.
According to Canaccord, Polymetal had intended to develop a 2-3million tonnes per annum (Mtpa) open pit and heap leach operation producing 80-120,000 ounces pa.
The new intersections revealed on Thursday, however, were at depths suitable for open pit mining but are likely to expand the reserves to a level that supports a stand-alone CIP mill versus the previous heap leach plan.
Canaccord has a 920p price target and buy rating for Polymetal shares, which it says have been held back recently by the prospect of it leaving the FTSE 100 in the next review.
Shares rose 3.4p today to 680p.