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2021-07-22

KOPY GOLDFIELDS PUBLISHES Q2 2021 OPERATIONAL UPDATE

Kopy Goldfields AB (publ) (“Kopy Goldfields” or “the Company”) hereby announces an operational update for the second quarter 2021. The Q2 gold equivalent (GE*) production increased by 69% on a quarter-by-quarter basis. The 2021 production guidance is unchanged. COVID-19 continued to affect the gold production primarily due to a shortage of qualified mining personnel.

Highlights:

  • The total gold equivalent (GE*) production during Q2 2021 from the Company´s two bedrock and two alluvial mines in the Khabarovsk region of Russia totalled 13.01 koz (404.59 kg), which represent a 69% growth over Q1 2021 results (7.69 koz or 239.06 kg), however it is 7% lower compared to 14.04 koz (436.7 kg) in Q2 2020. Q2 2021 GE production includes 17.73 koz (551.58 kg) of silver which is an equivalent of 0.26 koz (8.1 kg) of gold.
  • Gold sales for Q2 2021 amounted to 9.37 koz (291.56 kg), compared to 10.99 koz (341.91 kg) in Q1, 2021 and 12.29 koz (382.16 kg) in Q2 2020.
  • The Company confirms 2021 gold production guidance of 56-59 koz (unchanged) supported by expected production growth from the alluvial and heap leach operations in the second half of the year.
  • Gold production in Q2 2021 was influenced by personnel shortages and other effects caused by the COVID-19 pandemic. Although the Company’s own operations at the Yubileyniy site were restored to initial capacity, the Company is still affected by an industry-wide shortage of qualified mining personnel at the mine sites while travel restrictions and lockdowns within Russia and neighboring countries extend the procurement and maintenance for the mining and Investment activities.
  • The Company’s actions that were initiated in Q1 2021 to increase capacity and stabilize processing and underground mining operations at the Yubileyniy project resulted in 69% sequential production growth compared to Q1. The Company has taken further actions to strengthen the recruitment program and changing for shift-based employment system to further address understaffing of mining operations.
  • The Perevalnoe project is in transition from open pit to underground mining (UG). During Q2 2021, the Priyatnoe open pit was mined to its limit and completed while the Brekchiyevaya open pit was still in production. The Company commenced preparations for underground mining at Brekchiyevaya, developing the initial 107 meters of decline.
  • In Q2 2021, the Company’s gold production was affected by seasonal variations since alluvial mining operations commenced only in May and delivery of concentrates from Perevalnoe to Yubileyniy was affected by unstable weather conditions in the spring. Transportation of concentrates from the Perevalnoe site to the Yubileyniy processing plant takes place primarily during the winter season. During the absence of the winter roads, flotation concentrate is accumulated at the Perevalnoe site and gravity concentrate is transported to the Yubileyniy plant by helicopters subject to weather conditions,
  • The Company has commenced alluvial mining at two placer mines, Byor and Khayarylakh. The Q2 2021 gold production from the two placers totalled 1.8 koz (55.96 kg), a decrease of 11% compared to Q2 2020.
  • The Company continues with quarantine and other precaution measures to prevent COVID-19 incidents on the mine sites. The Company strongly supports vaccinations and offer free and priority service to the employees.

“During the second quarter we successfully advanced all our CAPEX projects at Yubileyniy, Perevalnoe and Maluytka. In May we commenced alluvial mining at our two placers, one of which, Khayarylakh, will be first year in production. Gold production grew significantly on a quarter-by-quarter basis despite the continued influence of the COVID-19 pandemic since last year and we remain devoted to our 2021 production target.”, said Mikhail Damrin, CEO of Kopy Goldfields.

* Varies based on relation between actual gold and silver prices: for Q2 2021 the applied average conversion ratio for silver was 1:69 Ag/Au.

Yubileyniy project
During Q2 2021, GE production totalled 3.72 koz (115.77 kg), a decrease of 11% compared to Q2 2020. The decrease in production was explained by lower volume (-6%) of ore processed and lower recovery rate due to extended maintenance shutdowns because of shortage of service staff.

The gold grade of the ore mined increased by 2% during Q2 2021 and by 8% since the start of the year compared to relevant periods of 2020. This is in line with the most recent CPR report, published in October 2020, which shows an increase of grade and thickness of ore bodies down dip. In 2021, the Company develops underground mining operations to the deeper horizons where ore gold grade is increasing. This underpins the plans to increase capacity of the Yubileyniy mine and mill to 250 ktpa in Q4 this year.

During Q2 2021, 6.72 kt of ore were stacked for Heap leach (HL) operations at Yubileyniy, with first gold production to be reported in Q3 2021.

Yubileyniy project Q2ChangeYear to dateChange

20212020
20212020
CIP





Underground ore mined, 000'tons37.3740.64-8%63.3389.52-29%
Underground development, meters409.60525.20-22%939.801,101.70-15%
Underground ore grade, g/t4.774.672%4.474.158%
Ore processed, 000'tons31.8033.86-6%54.2764.48-16%
Average grade, g/t5.565.158%4.954.950%
Gold produced CIP, kg115.77130.35-11%188.68239.40-21%
Gold produced CIP, koz3.724.19-11%6.077.70-21%







Heap Leach (HL)





Ore stacking, 000'tons6.72

6.72

Grade, g/t3.31

3.31

Gold in ore stacked, kg22.24

22.24

Gold produced HL, kg0

0

Gold produced HL, koz0.00

0.00  

Gravity and flotation concentrates produced at the Perevalnoe plant are also leached to Dore bars at the Yubileyniy plant. During Q2 2021, a total of 84.33 tons of gravity concentrate and 1,745.23 tons of flotation concentrate from the Perevalnoe project were leached at the Yubileyniy plant, producing 7.23 koz (224.76 kg) of gold, wh...

Författare MFN