5th Sep 2006 07:03
Aurum Mining PLC05 September 2006 For immediate release 5 September 2006 AURUM MINING PLC ("Aurum" or "the Company") Andash resource exceeds expectations: JORC estimate upgraded to Measured and Indicated with improved metal grades Aurum Mining plc (AIM: AUR), the company formed to acquire gold and othermineral extraction projects in the Former Soviet Union (FSU), is pleased toannounce an updated resource estimate for its Andash gold and copper project inthe Kyrgyz Republic. This latest estimate, following the completion of thein-fill drilling programme, uses JORC standards and was compiled by theindependent consultant Wardell Armstrong International (WAI). The estimatetransfers almost the entire resource into Measured and Indicated categories, andprovides the resource classification required for the detailed feasibility studycurrently under completion. The latest estimate gives a Measured and Indicated resource of 17.1 milliontonnes, leaving only a further 200,000 tonnes in the Inferred category. Totalmetal content has increased, giving improved grades when calculating theresource using a cut-off of 1.25g/t of gold and gold equivalent. The resourcenow has 624,000 oz of gold (19.42t) and 72,000 tonnes of copper. The JORC Resource: Andash Resources @ 1.25g/t Aueq Cut-Off (September 2006)Category Type Tonnage (kt) Au (g/t) Cu (%) Au (kg) Cu (kt)Measured Oxide 835 0.89 0.51 741 4.2Measured Sulphide 2,980 1.21 0.47 3,599 14.1 Total Measured 3,815 1.14 0.48 4,340 18.3Indicated Oxide 855 0.85 0.42 726 3.6Indicated Sulphide 12,400 1.16 0.40 14,353 50.0 Total Indicated 13,255 1.14 0.40 15,080 53.6 Total Measured + Indicated 17,070 1.14 0.42 19,420 71.9Inferred Sulphide 200 0.95 0.27 190 0.5 This resource estimate is based on original Soviet drilling and sample data andon the results of Aurum's recent in-fill drilling programme, the latterrepresenting around 42 per cent of the data used in the calculations. WAI isawaiting the results of some further check assays of the copper content of theAndash resource, though the homogenous nature of the Andash orebody suggeststhat it is unlikely to differ significantly from the above estimates. This latest resource estimate will form a central part of the detailedfeasibility study, which is currently being compiled by WAI. The transfer of themajority of the resource into Measured and Indicated significantly strengthensthe Proven and Probable Mining Reserve opportunity, which will be included inthe feasibility study. This study, which will form the basis of discussions forthe project financing of the Andash mine, is expected to be completed by the endof this calendar year. It was initially expected that the study would becompleted at the end of September but some additional work is being done on analternative to the tailings dam configuration with the objective of reducingcosts and improving the operating margin of the mine. Mark Jones, Aurum Mining's Chief Executive, said: "This latest JORC resourceestimate marks a major milestone for the Company as the Andash resource is nowalmost entirely in Measured and Indicated categories which will make the Westernfeasibility study, currently under preparation, additionally persuasive. We areparticularly pleased in getting increased metal content as the improved gradeincreases the attractiveness of the Andash project." For further information: Aurum Mining plc Tel: 020 7478 9050Mark Jones, Chief Executive Arbuthnot Securities Tel: 020 7012 2000Graham Swindells Buchanan Communications Tel: 020 7466 5000Mark Court/Amy Rajendran Notes to editors Aurum Mining joined the AIM market of the London Stock Exchange in May 2004 withthe strategy of seeking, evaluating and acquiring gold and other mineralextraction projects in the Former Soviet Union (FSU). In January 2005 theCompany completed its first acquisition, giving the Company an explorationlicence over the Andash gold and copper project in the Kyrgyz Republic. In itsState Register, the State Commission of Resources of the Kyrgyz Republic hasincluded 21.7 million tonnes of C1 and C2 reserves from the project, amountingto gold and gold equivalent of more than 1.5 million ozs. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Shearwater