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Mangazeya Mining Ltd. announces its production results for the fourth quarter and year ended December 31 th , 2021

Publish date: 29.04.2022

Print version

TORONTO, ONTARIO, April 29th, 2022 – Mangazeya Mining Ltd. (“Mangazeya” or the “Company”) (NEX:MGZ.H) announces its production results for the fourth quarter and year ended December 31
th, 2021:

Q4 2021 Q4 2020 Change, % 2021 2020 Change, %
Total rock moved, ‘000 m3 1,555 783 98.6% 5,350 3,205 66.9%
Savkino 101 101
Kochkovskoye 571 2 28450.0% 1,827 1,281 42.6%
Nasedkino 883 781 13.1% 3,422 1,924 77.9%
Stripping, ‘000 m3 1,371 674 103.4% 4,640 2,684 72.9%
Savkino 01 101
Kochkovskoye 516 1,605 1,028 56.1%
Nasedkino 754 674 11.9% 2,934 1,656 77.2%
Ore mined, kt 498 303 64.4% 1,894 1,344 40.9%
Kochkovskoye 137 5 2640.0% 529 596 -11.2%
Nasedkino 361 298 21.0% 1,365 748 82.5%
Stripping ratio, m3/t 2.75 2.23 23.3% 2.45 2.00 22.5%
Kochkovskoye 3.77 3.03 1.72 6.2%
Nasedkino 2.09 2.27 -7.9% 2.15 2.21 -2.7%
Average grade in ore mined, g/t 2.49 2.18 14.2% 2.00 1.56 28.2%
Kochkovskoye 1.47 1.34 9.7% 1.56 1.48 5.4%
Nasedkino 2.87 2.20 30.5% 2.17 1.62 34.0%
Gold in ore mined, kg 1,239 661 87.4% 3,787 2,092 81.0%
Kochkovskoye 202 7 2785.7% 825 880 -6.3%
Nasedkino 1,037 654 58.6% 2,962 1,212 144.4%
Ore processing, kt 388 327 18.7% 1,353 1,341 0.9%
Savkino 59 -100.0%
Kochkovskoye 73 149 -51.7% 505 923 -45.3%
Nasedkino 315 178 77.0% 848 359 136.2%
Gold in ore processed, kg 1,200 651 84.3% 3,204 2,142 49.6%
Savkino 61 -100.0%
Kochkovskoye 92 225 -59.1% 761 1,363 -44.2%
Nasedkino 1,108 426 160.1% 2,443 240.3%
Average grade in ore processed, g/t 3.10 1.99 55.8% 2.37 1.60 48.1%
Savkino 1.03
Kochkovskoye 1.28 1.51 -15.2% 1.51 1.48 2.0%
Nasedkino 3.52 2.40 46.7% 2.88 2.00 44.0%
Gold production, ounces 37.05 17.32 113.9% 87.87 51.57 70.4%
Savkinskoye 0.38 -100.0% 5.17 -100.0%
Kochkovskoye 3.47 6.36 -45.4% 13.56 29.56 -54.1%
including
Gold from hard-rock deposit 3.19 6.20 -48.5% 13.05 28.48 -54.2%
Gold from placers 0.28 0.16 75.0% 0.51 1.08 -52.8%
Nasedkino 33.58 10.58 217.4% 74.31 16.84 341.3%
Refining gold, ounces 37.73 21.07 79.1% 86.43 50.73 70.4%
Savkinskoye 1.42 -100.0% 5.26 -100.0%
Kochkovskoye 4.78 8.00 -40.3% 13.86 29.46 -53.0%
including
Gold from hard-rock deposit 4.50 7.69 -41.4% 13.43 28.39 -52.7%
Gold from placers 0.28 0.31 -9.7% 0.43 1.07 -59.8%
Nasedkino 32.95 11.65 182.8% 72.57 16.01 353.3%
Gold sold, ounces 36.81 20.99 75.4% 85.91 51.99 65.2%
Savkinskoye 1.42 -100.0% 6.86 -100.0%
Kochkovskoye 4.15 7.62 -45.5% 13.82 29.13 -52.6%
including
Gold from hard-rock deposit 4.15 7.47 -44.4% 13.51 28.22 -52.1%
Gold from placers 0.15 100.0% 0.31 0.91 -65.9%
Nasedkino 32.66 11.95 173.3% 72.09 16.00 350.6%

General analysis

  • In the 4th quarter of 2021 the Company continued the mining and production of gold started at Nasedkino
    and Kochkovskoye deposits, also the stripping works at Savkino have been resumed.
  • The average stripping ratio in the 4th quarter was 2.75 m3/t and and for the year 2021 – 2.45m3/t. The
    increase by 23% compared to the previous year is due to the higher ratio at Kochkovskoye deposit.
  • The gold in ore mined in the 4th quarter 2021 was 1,239 kg which is 87% more than in the same quarter of
    the previous year due to the increase in ore mined by 64% as well as the increase of the average gold grade
    in ore mined by 14% in respect of the 4 th quarter of the previous year. During 2021 there were in total
    3,787 kg of gold mined, 81% more than in 2020. The ore mined in 2021 was 41% higher than in the previous
    year, in the total amount of 1,894 tones.
  • The gold production in the 4th quarter of 2021 and for the year 2021 amounted to 37.1 and 87.9 thousand
    of ounces respectively. The increase of the production as compared to the same period of the previous year
    was due to higher volumes produced at Nasedkino deposit.
  • The gold sales in 3Q 2021 in the 4 th quarter of 2021 and for the year 2021 amounted to 36.8 and 85.9
    thousand of ounces respectively. The increase in respect of the same periods of the prior year is attributed
    to higher mining and production volumes.

Nasedkino deposit

  • The volume of mining in 2021 was 1 365k tons which exceeds by 83% the level of the previous year. The
    increase is due to the fact that in 2020 the mining works started in April, while in 2021 they were carried
    throughout the whole year, as well as because the full operational capacity of the processing plant was
    achieved in 2021.
  • The average gold grade in ore mined is 2.9 g/t in the 4
    th quarter of 2021 and 2.2 g/t in 2021 that is higher
    than the indicators of the previous period (2.2 and 1.6 g/t respectively). This is related to the development
    of the blocks with a higher concentration of gold.
  • 315k tons of ore were processed in the 4
    th quarter of 2021 and 848k tons during the year 2021 which is by
    77% and 136% higher than the corresponding periods of the previous year. The increase is related to the
    fact that in the previous year the processing plant started operations from June 2020 in start-up mode until
    reaching the estimated capacity in the beginning of 2021. The gold grade in ore processed is 3.5 and 2.9 g/t
    for the 4th quarter and the year 2021 respectively that is higher than in the previous period (2.4 and 2.2 g/t
    respectively). The higher concentration in ore processed is in line with the higher gold grade in ore mined
    in the current period.
  • The volume of gold production and sales increase is related to the increase in the volumes of mining and
    processing.

Kochkovskoye deposit

  • The volume of mined ore in 2021 was 529k tons, which is by 11% lower than in the same period of the
    previous year due to completion of the field in the part of oxidized ore.
  • The average gold grade in ore mined for the 4th quarter and the year 2021 was 1.5 and 1.6 g/t respectively
    (for the 4th quarter and the year 2020 – 1.3 and 1.5 g/t respectively).
  • In the 4th quarter and in the year 2021 73k and 505k tons of ore respectively were stacked, representing a
    decrease of 52% and 45% respectively against the corresponding comparative periods of the previous year.
    The decrease is attributed to the lower amount of ore mined as well as to processing in 2020 of the
    amounts of ore mined in the previous periods.
    The average gold grade in ore stacked was 1.3 and 1.5 g/t in the 4th quarter and in the year 2021
    respectively (in the 4th quarter and in the year 2020 – 1.5 g/t).
  • The reduction in production and sales volumes is related to lower volume of processing.

Savkino deposit

  • In the 4th quarter of 2021 mining and stripping works in the amount of 101 thousand of m3 have been
    performed.
  • It is planned to continue with the mining and stripping works as well as to perform the processing and
    production activities in 2022.

About Mangazeya Mining Ltd.
Mangazeya Mining Ltd. is a NEX-listed mining and exploration company, focused on the development of mineral resources in the Russian Federation.

Contact:
Anton Grigoryev
Corporate Secretary
Mangazeya Mining Ltd.
a.grigoryev@mangazeya.ru