A new mineral resources audit of the deposit in Armeniaestimated the property has 4.3 million tonnes of indicated and inferredresources containing 582,000 gold equivalent ounces, precious metals groupPolymetal InternationalPlc confirmed April 29.

The estimate, by consultants CSA Global Pty Ltd, was basedon data from 15,800 meters of drilling across 70 diamond drill holes, and shouldenable the London-listed Russian group to progress plans to produce aJORC-compliant reserve estimate and a mine plan for both Lichkvaz and nearbyKapan by thethird quarter of next year.

The company wants to mine ore from Lichkvaz and transport itfor processing to Kapan, located 70 kilometers distance. Kapan, which Polymetalagreed to buy inMarch, has an underground mine and a concentrator with sufficient capacity toprocess production from both sites.

According to Vitaly Nesis, CEO of Polymetal, the mineralresources audit showed "consistently high grades" across the deposit,as well as "simple geology." It also showed significant potential forfurther exploration, he said.

"This is an important contribution towards ourproduction expansion at the nearby Kapan concentrator," he was quoted assaying in the statement.

Polymetal increased its holding in the Lichkvaz deposit'sproject company to 100% lastNovember. The project is located 380 kilometers south of Yerevan,the Armenian capital.