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Polymetals Mining Expects Net Profit Of Up To A$6.1m For 2012

Polymetals Mining (ASX: PLY) has forecast a net profit after tax of between A$5.7 million and $6.1 million for fiscal 2012.

The company is scheduled to release its full year results before 31 August 2012.

Polymetals remains focused on extending the production life of its White Dam gold mine, and has drilled 41 holes totalling 3,505 metres in 10 prospect areas near the mine as it seeks to add to production there.

This work at the Drew Hill project is focused on discovering shallow open pittable gold mineralisation and has also indicated the potential for iron oxide copper gold ore (IOCG) style mineralisation.

White Dam production

Mining operations at White Dam are now complete with mining activity at Vertigo, 2 kilometres to the southwest of the Hannaford pit, completed in mid-May.

Around 65% of Vertigo ore was crushed to improve recovery rates.

Total gold production for the June quarter was 4,428 ounces with Polymetals' share being 1,841 ounces.

Cumulative total production to date totals 134,713 ounces, equating to a gold recovery rate of 73.8% of final stacked ounces.

This rate will increase over the coming months as remaining gold is recovered from the leach pad.

Polymetals generated revenue of $1.9 million during the June quarter on the sale of 1,165 ounces of gold at an average price of A$1,601 per ounce.

Lower cash costs

During the June quarter total C1 cash costs were lower than the previous March quarter due to the completion of mining at the Vertigo deposit.

C1 cash costs of $984 per ounce reflect the transition from Vertigo mining into production and should decline substantially in the coming months now that mining has concluded.

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