Nov 13 (Reuters) - Russia’s gold and silver producer Polymetal says:
* Reports initial ore reserve estimate for the Nezhda gold property in Russia, with total capital costs estimated at $249 million, including $15 million capitalised pre-stripping costs, with approximately $30 million to be invested in 2018;
* Expects Nezhda’s average annual production at 150,000 troy ounces of payable gold in concentrate with all-in sustaining cash costs in the range of $650-710/oz of gold equivalent, a mixture of gold and other metals;
* Polymetal envisages the following conceptual development timeline for the project: completion of feasibility study and investment decision in Q4 2018, start of construction in Q4 2018 subject to positive investment decision, pre-stripping to start in 2019, first production - in 2022 and full capacity - in 2023;
* Nezhda’s open-pit ore reserves are estimated at 15.5 million tonnes of ore with an average gold equivalent (GE) grade of 4.0 g/t for 2.0 million ounces of GE contained;
* Additional mineral resources are estimated at 55.9 million tonnes of ore with an average GE grade of 5.0 g/t for 8.9 million ounces of GE contained;
* The project’s IRR (internal rate of return) is expected to be 20 percent with an NPV (Net Present Value) of $132 million (using a 10 pct discount rate, $1,200/oz gold price, $16/oz silver price and RUB/USD exchange rate of 60).
* Production start date, currently projected during first half of 2022 subject to a positive investment decision, would be after the ramp-up of Kyzyl, Polymetal’s other project, and consolidation of 100-percent ownership in the Nezhda property.
* Polymetal describes Nezhda as the fourth largest gold deposit in Russia, located in northeastern Yakutia, approximately 480 km from the city of Yakutsk. The property is remote with access by an all-season unpaved road and no grid connection. Source text for Eikon: Further company coverage: (Reporting by Moscow Newsroom)