Matrosov Mine

The Magadan business unit of Polyus Group has been established in 2004 on the basis of Matrosov mine facilities. 

Matrosov mine holds exploration and production licenses for Natalka gold deposit as well as Vostochnaya (Tokichanskaya), Degdekan, Tchay-Yurja and Omchak prospecting areas in Magadan region.

Natalka deposit was known since 1944. In 2004 operations at Matrosov mine were shut down as economically non-viable. 

Polyus Gold's vision of Natalka provided for unique exploration opportunities and high possibility of substantial increase of its reserves.

In 2004 vast exploration programme at Natalka were launched to build grounds for large scale open pit operations on the deposit. Advanced exploration technologies as well as innovative approach to reserves evaluation were brought in.

Through 2004-2006 exploration programme at Natalka were carried out, including

• 118 900 m of diamond drilling
• 3 808 m of underground workings
• 654 500 cubic m of trenches
• 49 855 of geological samples

During the period new Datamine® model was assembled, and independent audit of reserves was carried out in 2005, 2006.

Total budget amounted US$100 million.

In January 2007 the State Reserves Committee (GKZ Rosnedra) of the Ministry of Natural Resources of the Russian Federation had completed its expertise of the scoping study for Natalka deposit.

The expertise resulted in the state listing of 1500.8 tonnes (48 m oz) of gold in Russian B+C1+C2 categories in pit outline at the average grade 1.7 g/t, including 1282.9 tonnes (41,2 m oz) of B+C1. In addition to this, the state expertise confirmed 335.3 tonnes (11 m oz) as off-balance reserves outside the pit outline.

The scoping study is based on the open pit mining. The production of gold at Natalka is scheduled to commence in 2012. The annual gold production will amount to approx. 1 million oz on reaching full project capacity.

The investments into the projects are estimated as US$1.5 billion.

CJSC Polyus Gold has completed an international audit of ore reserves at Natalka deposit in September 2007.  It was calculated that the total proved and probable resources at CJSC Polyus Gold amount to 68.6 mln. oz.  The audit of the reserves was completed by MICON International Ltd, in accordance with the requirements of the international code JORC.   According to the reports of the auditors, the P&P reserves at Natalka deposit total to 40.8 mln oz. of gold, with an average gold content of 1.13 g/t.  The estimation of the reserves was conducted using a gold price of $625 per ounce; a content of 0.3 g/t; depletion at a rate of 7% and an average extraction rate of 87%.  In December 2006, the reserves at the Natalka deposit were confirmed by ГКЗ РФ as a total of 1500.8 tons in the categories of B+C1+C2, from which the reserves of B+C1 amount to 1282.9 tons.  Accordingly, 99% of the Russian reserves B+C1were transferred to the category of P&P reserves by JORC classification, which is very unique for deposits such as Natalka.  According to the auditors, the deposit has a large potential for an increase in the reserves after the refinement of the geological survey data.