OAO Polyus, which mines a fifth of Russia's gold, will seek to prove this year that it holds the world's third-largest reserves of the precious metal, Chief Executive Officer Yevgeny Ivanov said.
The miner, operating in five regions across Russia, expects to show it has more than 67.8 million ounces in reserves, ranking it third globally behind Barrick Gold Corp. (ABX) of Canada and Newmont Mining Corp. (NEM:US) of the U.S., Ivanov said today. The gains will come from new reserves at the Natalaka deposit in Russia's Far East region of Magadan, he said.
Natalka has about 1,283 metric tons, or 41.25 million ounces, of gold calculated under Russian standards, which ``practice shows convert into proved and probable reserves'' under international standards, Ivanov said today at an Adam Smith Institute conference in Moscow.
Polyus already counts some of Natalka's gold, listing its reserves as 50.8 million ounces under Australasian Joint Ore Reserves Commission, or JORC, rules. The company plans to spend $6.50 on proving each additional ounce of gold, and $55 million on further geological exploration, Ivanov said.
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