The Novepet resource is estimated to contain 2.4Moz of gold-equivalent at an average grade of 8.0 grams per tonne, comprising comprises 9.2 million tonnes of mineralised material with an average gold equivalent grade of 8.0 g/t.

The value of the resource is 37% copper, 35% gold, 23% zinc, and 6% silver.

The mineral resource was estimated using US$7,700/t copper, US$ 2,200/t zinc, US$ 1,500/oz gold, and US$ 20/oz silver prices. A cut-off grade of 1.9 g/t of gold equivalent was applied.

"Novopet is the first convincing proof for Polymetal's strategy of teaming up with exploration juniors. The asset fits our long-term strategy perfectly. It has a high grade, low environmental footprint, and huge growth potential. It also more than doubles Polymetal's exposure to copper", said Vitaly Nesis, Group chief executive of Polymetal.

Polymetal holds a 75% share in the Novopet JV, with a seven-year call option to buy out the remaining 25% stake in the project from the JV partner Rosgeo.

"It's important to mention that this resource is very favourably located," Polymetal's chief financial officer Maxim Nazimok told Mining Journal.

Novopet is located in Bashkortostan, in the Ural region of Russia. Nazimok noted that the deposit's location, with good logistics as well as local labour availability and the high grade of the resource, promised lower costs than other projects further east.

"This is something truly outstanding to find, in the well-developed part of the world," Nazimok said. "We are really happy with exploration in this part of Russia, which is typically perceived as very well known and well developed. Gaps such as these represent value-added opportunities."

Polymetal will conduct additional drilling to define the resource and to add value by exploring along the open strike zone.

Polymetal shares were down 7.4% at 1,130.50 London time. Russian equities are under pressure from increased fears over the situation in Ukraine, with Russian troops gathering on the border.