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Russian firm Polyus moves forward with the world's largest gold mine

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(Kitco News) - Russia's biggest gold miner Polyus is said to be working on securting 100% ownership of a project with estimated reserves of 540 million tonnes of ore, containing 40 million troy ounces of gold, in the Sukhoi Log gold deposit in Siberia.

The firm has said Thursday that its undeveloped Siberian deposit Sukhoi Log is the largest in the world, with 40m ounces of proven reserves.  This comes around a month after Polyus agreed to pay $128.2 million to accelerate the buyout of its partner in Sukhoi Log.

Pavel Grachev, Polyus chief executive stated: “We are pleased with the results yielded by our exploration programme at Sukhoi Log. The publication ... confirms Sukhoi Log’s position as one of the world’s highest-calibre gold deposits,”. The additional 40 million ounces of gold secures Polyus’ position as the world’s second-biggest gold mining company by attributable reserves.

Polyus previously forecast the cost of the project at around $2-2.5 billion. Last month the firm said it would buy the remaining 22% stake in the giant deposit that it does not already own from project partner Rostec for $128 million.

As you can see from the daily chart below the share price has been performing well recently. There is a bull flag pattern forming and a break to the upside could see the high once again tested marked by the red resistance line. 

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