11th Jan 2006 07:01
Peter Hambro Mining PLC11 January 2006 11 January 2005 ACQUISITION OF KULIINSKIY AND BUKHTINSKIY ORE FIELDS BY JOINT VENTURE OMCHAK Peter Hambro Mining PLC ("PHM" or the "Group") announces that its 50% JointVenture Omchak ("Omchak") acquired combined exploration and mining licences forthe Kuliinskiy and Bukhtinskiy gold properties in the Chita Region of Russia, inan auction held by the Federal Subsoil Agency in Chita. Omchak paid RuR 11million (c. US$390,000) for the licence in respect of the Kuliinskiy propertyand RuR 6.4 million (c.US$225.000) for the license in respect of the Bukhtinskiyproperty. One of the three ore occurrences at the Kuliinskiy ore field is estimated tocontain gold reserves of c.11,285 oz at 6.2 g/t in Russian category C2, P1resources of c.1.125 m oz at 12 g/t and P2 resources of c.0.965 m oz at 10 g/t. For the Bukhtinskiy ore field, estimated P2 resources to a depth of 100 m wereat 0.804 m oz with average grades of 10 g/t. Both deposits are hard rock type deposits suitable for a combined open pit andunderground development. For both deposits, the licences are issued for 25years. Peter Hambro, Chairman of Peter Hambro Mining Plc, commented: "This is a fine acquisition by our Joint Venture Omchak, which forms an integralpart of its asset development programme. The Joint Venture is planningsubstantial exploration works across the newly acquired properties, which webelieve have significant potential." - ends- Enquiries:Alya Samokhvalova Peter Hambro Mining Plc +44 (0) 207 201 8900 Tom Randell Merlin +44 (0) 207 653 6620 +44 (0) 777 587 5847 Further information: The Kuliinskiy ore field is located in the Mogochinskiy district of the ChitaRegion, 120 km from the district centre Mogochi. An all-year road connects thedeposit with the local railroad station which is located c. 20 km away. A highpower electrical line runs along the railroad. The Kuliinskiy ore field contains3 ore occurrences and 6 prospective sites of gold-quartz-sulphidemineralization. Gold mineralization is connected with quartz and sulphide-quartzvein types of mineralization located in crush-breccia zones. Mineralised zoneshave been explored by trenches on the surface and by a sparse grid of inclineddrill holes. The most prospective ore occurrence has been explored byunderground working. The potential productive ore zones vary in size between 50and 200 m along strike and between 50 and 300 m down dip. Average thickness is1.4 m with grades varying from 1g/t to 145 g/t, averaging 16.4 g/t. The C2 reserve estimate was approved by the Chita Committee on NaturalResources. The P1 and P2 resource estimates were calculated by the RussianInstitute ZNIGRI. The Bukhtinskiy ore field is located in the Tungiro - Olekminskiy area in theChita Region, c. 60 km from the nearest railroad station. A high powerelectrical line runs adjacent to the rail road. Six ore occurrences ofgold-quartz-sulphide mineralization were identified in this field. Goldmineralization is associated with zones containing veins and veinlets ofsulphide-quartz, quartz-carbonate and quartz-tourmaline and also stockworks. Thetwo most prospective sites of the ore field have been explored by trenches. Thelength of gold bearing zones is 1.2-1.5 km along strike with thickness 50-200 m.The thickness of zones with potentially economic mineralization vary between 1and 7 m. Gold grades vary between 0.8 g/t and 32 g/t. The P2 resource estimate was calculated by the ZNIGRI Institute. All information on the deposits was provided by the Federal Subsoil Agency whichconducted the auction. The Omchak Joint Venture produced 88,900 oz of gold in 2004 of which 57,000 ozwere attributable to Peter Hambro Mining. Through its subsidiaries Berelekh andNelkobazoloto, Omchak currently operates two enterprises producing gold throughunderground and alluvial mining. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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