Polyus to produce first gold at Sukhoi Log in 2028

By Rhod Mackenzie

The Russian gold mining ginat Polyus plans to produce the first batch of gold at Sukholozhskaya gold processing plant in Irkutsk by 2028, according to Roman Engelgardt, the company's director for government affairs in the region.

"Once the Sukhoi Log mill achieves its designated capacity, it's anticipated to yield roughly 70 tonnes of precious metal annually. It's important to acknowledge that this objective might not be fulfilled right away. Nevertheless, we aim to produce the plant's first gold by 2028."

In the promotional material published in a local newspaper by Polyus Sukhoi Log LLC, a subsidiary of Polyus, it was stated that alongside the construction of essential infrastructure including access roads, substations, and power lines at the Sukhoi Log field, the company is finalizing the project for the construction of the primary mining and processing complex facilities. Moreover, next year, testing grounds and the rotational employee camps will undergo construction.

Engelhardt stated that in November, Polyus presented a proposal for the construction of a bridge over the Vitim river to Glavgosexpertiza. The company expects to receive approval at the beginning of 2024. Polyus acts as the client for the design, whilst the Directorate of Highways of the Irkutsk Region serves as the developer. The bridge will exceed a 450-metre span, with approaches of up to 6 kilometres.

Polyus anticipates that the renovation of the airstrip in Bodaibo will conclude by 2025, facilitating the landing of SSJ-100 planes. At the outset of 2023, Polyus revealed its plan to alter the schedule for the Sukhoi Log gold mine in the Irkutsk area by postponing the accomplishment of its banking feasibility study due to the ongoing geopolitical situation.

The Sukhoi Log deposit is situated in the Bodaibinsky district of the Irkutsk region. Its primary reserves, as of 31st May 2020, are estimated to be 40 million ounces (1244 tonnes) of gold, with resources at 67 million ounces (2084 tonnes) according to JORC. The deposit contains 540 million tonnes of ore, with an average precious metal content of 2.3 g/t and resources of 1.11 billion tons of ore with an average gold content of 1.9 g/t.

Polyus has estimated that initial capital costs for the Sukhoi Log project will be around $3.3 billion. According to the pre-feasibility study, the deposit will yield 2.3 million ounces (71.5 tonnes) of gold annually.

Polyus is the biggest gold producer in Russia and one of the world's top gold mining firms by production and mineral resource base. The key operations and projects of the group are located in Krasnoyarsk,, Irkutsk and Magadan regions, as well as Yakutia. In 2022, Polyus decreased gold output by 6%, to 2.541 million ounces (79 tonnes).