Polymetal and Dolfinflip to sell Dolinnoye property in Kazakhstan

15 March 2018 (Last Updated March 15th, 2018 12:53)

Polymetal International and its partner Dolfinflip have signed an agreement to divest 100% stake in the Dolinnoye gold property in the Republic of Kazakhstan to JSC AK Altynalmas.

Polymetal International and its partner Dolfinflip have signed an agreement to divest 100% stake in the Dolinnoye gold property in the Republic of Kazakhstan to JSC AK Altynalmas.

The property has been declared non-core and is situated in Kazakhstan’s Aktogay district.

It is jointly owned by Polymetal and Dolfinflip on an equal basis.

The partners have agreed to transfer their respective 50% interests in the Dolinnoye property’s licence holder, Aktogai Mys, to Altynalmas for a total consideration of $33.5m.

“The partners have agreed to transfer their respective 50% interests in the Dolinnoye property’s licence holder, Aktogai Mys, to Altynalmas for a total consideration of $33.5m.”

The Dolinnoye deposit comprises JORC-compliant ore reserves of 5.1 million tonnes (Mt) at 2.4g/t gold for 400,000oz of gold contained.

In addition, the deposit has estimated additional mineral resources of 11.7Mt at 2.6g/t for 1Moz of gold contained.

Polymetal International group CEO Vitaly Nesis said: “Dolinnoye became manifestly non-core after Komar fully supplanted it as a source of ore for Varvara.

“We will continue to consider other steps to optimise our asset portfolio to focus on high-margin, long-life assets.”

Polymetal was previously involved in multiple rounds of acquisitions to buy stake in the Dolinnoye property during 2015-2016 with the aim of securing ore for the Varvara processing hub.

Ore from the property was used to produce 400,000oz of gold at Varvara last year.

The partners originally ceased production activities at the property late last year as a result of advancing negotiations with Altynalmas.

The completion of the sale is anticipated in the second half of this year, subject to statutory approvals and other customary conditions.