Polyus Gold has acquired a gold exploration and mining license in Apsakanskaya area.

Polyus Gold has acquired a gold exploration and mining license in Apsakanskaya area.

Polyus Gold OJSC has acquired an exploration and mining license in the Apsakanskaya prospect in the Amur Region, the Company says.

The license was bought by Polyus CJSC, a subsidiary of Polyus Gold, upon the auction held on November 17, 2006. The once-only payment for the subsoil use totaled RUB 6.3 mln following the results of the auction.

The Apsakanskaya area (242 sq.m.) is situated in the south-east part of the Apsakansky ore cluster. According to author estimations, expected resources in the area total 7.3 tons under P1 category, 3 tons under P2, 158 tons under P3.

In 2007-2010, Polyus Gold plans to carry out prospect evaluation survey, upon which its reserves are expected to increase considerably. The survey will want some RUB 200 mln of investments.

Polyus Gold is a leading Russian gold producer and one of the world’s largest gold producers in terms of raw materials base and production. Polyus Gold was established as a result of a spin-out of gold-mining assets from the Norilsk Nickel Mining Company (Polyus CJSC and its subsidiaries) into an independent public company. The Company’s asset portfolio includes ore and placer deposits in the Krasnoyarsk Territory, Irkutsk, Magadan and Amur Regions, in the Republic of Sakha (Yakutia). In 2005, the Company increased its proved and possible gold reserve 1.9 times to 25.1 million ounces from 13.3 million ounces.

Polyus Gold’s earnings in 2005 under IFRS grew by 7% to $473.18 million. Its profit totaled $115.397 million against $15.05 million in 2004, its pretax profit rose to $166.665 million from $71.572 million.

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