First Ore Mining Company JSC (FOMC, a Rosatom subsidiary in charge of mining operations) has reported a maiden public Mineral Resource estimate for the Pavlovskoye deposit. The data was reported by AMC Consultants Pty Ltd (“AMC”) in accordance with the guidelines set out in the JORC Code.

As of February 2021, the Mineral Resources of the Pavlovskoye deposit are estimated at 55 million tonnes with an average zinc grade equivalent to 4%. The Mineral Resources contain an estimated 2 million tonnes of zinc, 430,000 tonnes of lead, and 30.3 million ounces of silver.

Igor Semenov, Executive Director of FOMC, commented:
“We are satisfied with the results of our exploration program at Pavlovskoye. The publication of the first mineral resource estimate is an important stage in the Company's long-term development strategy and in confirmation of status of Pavlovskoye as one of the largest zinc deposits in the Russian Federation.

We continue to focus on the next stages of the development of the Project. We plan to prepare a Pre-Feasibility Study with an Ore Reserve estimate this year. Currently, FOMC is negotiating with a number of interested parties, including inter alia the conclusion of long-term off-takes and the NSR royalty agreement.”

A 2020 verification drilling programme provided sufficient confidence to generate a Measured and Indicated Mineral Resources report and to better define the distribution of minerals in the near-surface zone of Pavlovskoye’s potential future open pit, where first-priority mining is expected to take place. As part of the verification drilling, the company also carried out a geotechnical drilling program with core orientation to help define the potential mining operation.

FOMC is planning further drilling operations to improve confidence levels for Inferred Mineral Resources and test down-dip extensions. The company will also continue its geotechnical drilling programme.