Russian precious metal miner Polymetal announced on October 7, 2020 it would continue its USD80 million Kutyn gold project after the approval of the company’s board.

The Kutyn deposit is located in the Tugur-Chumikan district of the Khabarovsk oblast in the Far East of Russia. It is located 114 kilometers northwest of the Albazino mine.

Pre-stripping will begin at Kutyn in the third quarter of next year and the first ore will be mined in 2022.

Albazino is an integral part of Polymetal’s biggest project, the POX Hub Amursk.

Polymetal announced the Kutyn plant’s production and financial results will be released as part of the Albazino-Amursk segment.

The company is targeting gold production at Kutyn in the second quarter of 2023. The mine is expected to produce about 90,000 ounces of gold per year, with the total cost (AISC) at USD590 per ounce.

Polymetal pointed out that management had decided not to carry out a project to double the underground production capacity at Albazino to 1.2 million tons per annum (Mtpa).

Polymetal’s chairman of the board Vitaly Nesis said, “Following a thorough review, the board of directors has concluded Kutyn is part of Polymetal’s investment portfolio. The key factors in this decision are the rapid capital-saving path to significant free cash flows and the potential for a lengthy mine life as part of the Albazino hub.”

The company estimates life-of-mine (LOM) gold production to be 575,000 ounces.