Dukat

In IQ 2006, the company continued assembly and construction work and purchasing equipment for stage II of the plant. Putting stage II of the plant into operation will increase the processing capacity of the plant to 1 mln. tpa.

During the reported period, the company started re-equipping the underground mine. Due to the increase in ore being mined underground, the company plans to purchase additional tunneling equipment from Atlas Copco.

Lunnoye

During the reported period, the company completed designing a project for stage II of the Lunnoye deposit (underground mining).

In IQ 2006, Polymetal fulfilled work for starting to develop an underground road. The company plans to construct the first stripping adit in IIQ 2006. The company started to construct additional new 8th and 9th cyanidation containers to improve precious metals" recovery.

Polymetal completed preparing the design for mining the satellite Arylakh deposit. Combined underground mining works at the Lunnoye deposit and open-pit mining at the Arylakh deposit will provide the Lunnoye plant with 300 th. tpa of ore to process. In IQ of this year, the company purchased new loading and transport equipment; carried out initial works to expand the working camp and to construct the road to the Arylakh deposit. The first stripping and mining works (at Arlyakh) are planned for the IV quarter of 2006.

Vorontsovskoye

In the reported quarter, the company completed several steps to stabilize the work of plant 2, focused on increasing recovery rates.

To increase the recovery of metal using the heap leaching process (plant 1), the company launched a project to re-excavate old-year heaps by dragline.

Khakanjinskoye

To help boost production capacity to 600 th. tpa, the company completed the project and started reconstructing the unit of the plant focused on ore pretreatment and pounding, including introducing a new filtration tailing unit. This will increase the production capacity to 75 tons per hour. In IQ 2006, the company assembled and put into operation a SAG mill.