Slide 1: Sukhoi Log Update and Pre-feasibility study results
Sukhoi Log Update AND Pre-feasibility study results november 2020
Slide 2: Asset overview
Asset overview By JORC Irkutsk region reserves 6 km №1 globally Sukhoi Log Verninskoye Kropotkin Close proximity to other Polyus assets Сreates JORC P&P opportunities for: reserves 145 km 40 moz at 2.3 g/t Potential economies Utilisation of existing Alluvials of scale infrastructure Bodaybo JORC res
Slide 3: Sukhoi Log consolidation
sukhoi log consolidation 2016–2017 2017–2020 2020 In 2016, Polyus and “Rostec Business Polyus entered into a number of cash In September 2020, Polyus Development” (“RT”) established SL Gold and equity option agreements with RT exercised its right to accelerate in order to participate in the Sukhoi L
Slide 4: Drilling campaign outcomes
Drilling campaign outcomes 1
Slide 5: Dataset for R&R estimates
dataset for R&R estimates Drilling Dataset / Estimate Base 2017 2017–2018 2018–2019 2020 Historic Drilling polyus verification polyus exploration TOTAL driling program driling program drilling 324 km drilling 46 km drilling 158 km drilling 528 km 1,185 drillholes 111 drillholes 523 drillholes 1,819
Slide 6: MI&I Resources and P&P reserves estimates
MI&I Resources and P&P reserves estimates MI&I Resources 2017 2020 TonNes Grade gold Tonnes Grade gold 887 mt 2.03 g/t 58 moz 1,110 mt 1.9 g/t 67 moz Indicated 668 mt 2.1 g/t 46 moz Inferred 441 mt 1.5 g/t 21 moz 100% Inferred 69% Indicated 31% Inferred P&P REserves 2017 2020 Tonnes Grade gold No da
Slide 7: Verification and exploration: resource category upgrade
Verification and exploration Resource category upgrade 2017 2020 N N Verification and exploration drilling produced more comprehensive data on the structure and distribu- Inferred tion of the gold in the ore body Inferred Indicated A higher density of drillholes and modern analytical techniques ap-
Slide 8: Verification and exploration: ore body review
Verification and exploration Ore body review 2017 2020 N N The North-Western part of the ore body was not included into the ultimate pit due to increased depth and lower grades vs historic data 2017 model pit 2020 model pit N N The depth of the central part of the ore body extended by 100 m in a Nor
Slide 9: Geotechnical & hydrogeological drilling & surveys
Geotechnical & hydrogeological drilling & surveys In December 2019, the Company completed 18.3 km drilling for the engineering and geological surveys Geotechnical drilling Hydrogeological drilling The geotechnical drilling and survey were conducted to establish The hydrogeological drilling and surve
Slide 10: Drilling – Next steps: 2020 programme
Drilling – Next steps: 2020 programme In 2020, drilling has been continued with further in-fill drilling and deep level and flank exploration In-fill drilling Deep-level drilling AND flank exploration 35 km drilling pattern 50х50 m 25 km drilling pattern 400х200 m In 3Q’20, Polyus completed its in-f
Slide 11: Pre-feasibility study highlights
Pre-feasibility study highlights 2
Slide 12: Pre-feasibility site layout
Pre-feasibility- site layout A conceptual site layout was developed for the PFS and will be developed further at the later stages of the project’s feasibility assessment NORTH WASTE DUMP CRUSHING BUILDING MAINTENANCE BUILDING DRY TAILINGS STORAGE OPEN PIT TAILINGS STORAGE FACILITY SOUTH WASTE DUMP P
Slide 13: Open pit overview
Open PIT Overview Key mining metrics The PFS determined the key features of the main pit to enable high volume mining: 168 mtpa 33.2 mtpa 3.252 t:t 2.33 g/t up to 2.4 g/t Material Plant Strip ratio Average grade Plant feed Dimensions of 3.5 km along strike Mining rate, feed rate (Waste-to-ore) in mi
Slide 14: Mining equipment
mining equipment 50 m3 nominal payload Shovels 300t truck Highly cost-efficient Utilized at peer gold assets Available from all major suppliers Highly Supplied by Hitachi, CAT, Widely used globally, mainly on copper and reliable for 15 m benches (Penasquito, Cortez, Blackwater) (P&H (Komatsu), WK an
Slide 15: Mining equipment comparison
mining equipment comparison The mining fleet assumed in the Sukhoi Log PFS is expected to be one of the largest in terms of capacity globally. This reflects a combination of high bench height and high overall mining rate (168 mtpa) Shovels Bench Height, m 15 15 15 15 15 15 Shovel’s average 12 12 12
Slide 16: Processing flowsheet design
Processing flowsheet design Conventional gravity - flotation scheme Ball mill 33.2 average annual mt throughput capacity Cyanidation pebble crusher (SABC) Flotation 92 % average recovery rate SAG mill Gravity Flash flotation Carbon-in-leach 2.3 average grade g/t in ore processed (P&P reserves) Elect
Slide 17: Process plant design
Process plant design 3d Process plant model ORE PREPARATION COARSE ORE STOCKPILE PROCESS PLANT GRINDING FLOTATION CYCLONING & GRAVITY SEPARATION FLOTATION TAILINGS THICKENING DESORPTION / RECOVERY DESORPTION / RECOVERY 17
Slide 18: Comminution scheme
Comminution scheme nominal Throughput 33.2 mtpa Primary crushing Secondary crushing The PFS assumed the application of gyratory A conventional Semi-Autogenious Ball Pebble-Crusher scheme was selected crushing based on the potential size of operations, for the PFS based on the hardness of the ore and
Slide 19: Milling rate benchmarking
MILLIng RATE BENCHMARKING Throughput capacity (MtPA) Primary commodity: Gold Copper Porphyry The configuration and size of the mills for secondary crushing (2 x 40ft SAG and 4 x 25ft Ball mills) proposed in the PFS are conventional – all major SAG mill (ft*quantity) manufacturers supply large SAG mi
Slide 20: Gold extraction
Gold extraction Sukhoi Log flowsheet includeS best-in-class technologies for processing this type of ore gravity and flash flotation flotation and CIL Gravity Flash flotation flotation Carbon-in-leach concentrators flash flotation units flotation machines CIL tanks x24 x 8 x10 of 630 m 3 x 8 of 2,00
Slide 21: Recovery estimate based on testwork programme
Recovery estimate based on testwork programme Recovery (after derating), % The samples for testwork originated from Average grade contiguous drill core samples to specifically cover 100 2.05 g/t as much of the entire ore body as possible and include the expected range of grades the processing plant
Slide 22: Sukhoi Log vs currently operating Polyus mines
Sukhoi log vs currently operating polyus mines The scale of operations at Sukhoi Log is comparable with currently operating Polyus mines Total rock moved, Throughput capacity, Average annual production, mln m3 mtpa moz The amount of total rock moved at Designed throughput capacity at Sukhoi Log is 4
Slide 23: Sukhoi Log vs other greenfields
Sukhoi log vs other greenfields … 1 Sukhoi Log is the largest greenfield …With strong production profile, Long life asset in terms of gold resERVES… of mine and one of the highest grades globally P&p Average Lom annual Grade in p&p RESERVES production LOM RESERVES Moz Moz Years2 G/Tonne 10 7 rosia m
Slide 24: Sukhoi Log vs currently operating gold mines
Sukhoi log vs currently operating gold mines 1 Sukhoi log’s reserve base is one of sukhoi log possesses leading annual the largest among both under- production capacity along with high ground and open pit operations grade in reserves P&p Average Lom annual Grade in p&p RESERVES production LOM RESERV
Slide 25: Economic parameters
ECONOMIC PARAMETERS | Bg
Slide 26: Key project economic metrics
Key Project Economic metrics based on pre-feasibility study1 Preliminary Gold production profile Grade in ore base through- processed, mining rate avg. waste- g/t (at peak) to-ore ratio put capacity 2.4 2.4 2.4 2.4 2.4 2.4 2.4 1.8 2.2 2.3 2.3 2.3 g/t 168 mtpa 3.252 t/t 33.2 mtpa Average first 10y Pr
Slide 27: Capital costs breakdown
Capital Costs breakdown The Estimated Initial Construction CAPEX is estimated with Pre-Feasibility Study Class Capital costs are in real USD terms, CAPEX is in the range of $3.3 bln 4 estimate with the level of accuracy +/-20% as of the end of 2019 project initial construction capex CAPEX COMPONENTS
Slide 28: CAPEX: estimate evolution
CAPEX: estimate evolution from scoping study to pre-feasibility + $ 1.0 bln Mining capacity Flowsheet Tailings Inflation & Infrastructure $ 0.2 bln $ 3.3 bln $ 0.2 bln $ 0.2 bln $ 0.1 bln Inflation from 2017 $ 0.3 bln Flowsheet modification: Increased mining and processing capacity to 2020 $ 2.3 bln
Slide 29: Sukhoi Log capex intensity
Sukhoi Log Сapex intensity 1 based on Pre-Feasibility estimate of capital expenditures, Sukhoi Log ranks favourably in CAPEX intensity and life of mine compared to other greenfield projects Bubble size represents LoM Terms of Life of Mine, avg. Au only production years 60 KSM New Prosperity 40 Fried
Slide 30: PFS estimates vs Scoping study
PFS estimates vs Scoping study Scoping Study PFS Throughput capacity 30.0 mtpa 33.2 mtpa Recovery 88–90 % 92 % TCC $ 420-470 /oz $ 390 /oz initial construction capex $ 2.3 bln $ 3.3 bln average annual gold production, LOM 1.6 Moz 2.3 1 Moz 1 – As per JORC reserve estimate 30
Slide 31: Infrastructure development
Infrastructure development 4
Slide 32: Off-site infrastructure overview
Off-site infrastructure overview Irkutsk region Chertovo Koryto Power grid Airport transport LOGISTICS Existing electricity facilities Polyus owns a 61% stake in a local Polyus has completed the (~3 MW) enable Polyus to launch airport, Bodaybo, ~145 km Sukhoi Log assessment of logistic the construct
Slide 33: Sukhoi Log power supply chain
Sukhoi Log Power Supply chain Power Supply Infrastructure Requirements Sukhoi Log Peleduy Vitim Substation 5 km Verninskoye NPS-9 Generation Kropotkin NPS-7 Scope Ust-Ilimskaya Hydro Power Plant Ust-Ilimskaya Peleduy Ring Local grid Hydro Power Plant Bodaybo and connection Current Status to long-dis
Slide 34: Update project timeline
Update project timeline 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Engineering Initiation Scoping study Pre-feasibility Feasibility study Investment decision Final investment decision Project Design Documentation Regulatory procedures, GGE Plant construction permit Detailed Design Procur
Slide 35: Next steps
Next steps Feasibility & complex Pilot Pilot Plant engineering studies, ESIA testing 3d design With the PFS being completed, Polyus Polyus has fully replicated the is instantly moving to the Feasibility flowsheet developed in the PFS at its Study stage to proceed with more R&D center in Krasnoyarsk