Russian gold and silver producer Polymetal said it was taking 100% control of the Lichkvaz property in Armenia, Digital Look reports.

Polymetal said it had bought the remaining 75% of the property's holding company for 1.08m Polymetal shares equal to $9.7m.

It said the move was taken after successful results of exploration drilling performed during surveying season 2015.

Drilling has been completed, with 15,800 metres drilled across 70 diamond drill holes. To date, samples taken from 20 drill holes have been analysed, Polymetal said.

Based on the first data obtained, nine productive intersections have been discovered with the average grade of 6.4 grammes per tonne.

Polymetal said it planned to further analyse exploration data obtained during 2015 and release a resource estimate in the second quarter of 2016.

Lichkvaz is located in the Meghri area of the Syunik province of southern Armenia, 380 km south of Yerevan.