31st Jan 2006 07:02
Peter Hambro Mining PLC31 January 2006 31 January 2006 Chagoyansk Joint Venture Termination In January 2004 Peter Hambro Mining Plc ("PHM" or "the Group") signed a Letterof Understanding covering a joint venture in respect of the Chagoyansk propertywith Rio Tinto Mining and Exploration Limited ("Rio Tinto"). The Groupinitiated and won the auction process for the property following Rio Tinto'sreview of the area. Two years of work were directed towards the confirmation ofthe complex E-W trending aero-geophysical anomalies. None of the assay resultsreceived to date are indicative of significant economic gold mineralisation. Themaximum gold grade, in rare isolated samples, reached 0.5-2.3 g/t. In light of these results, PHM and Rio Tinto have agreed that they will not beprogressing with their proposed joint venture in relation to the Chagoyanskproperty. Rio Tinto will reimburse PHM for all exploration expenditure incurredto date pursuant to agreed annual work programmes and budgets. A representative from Rio Tinto added: "I would like to place on record the very good relationships we have developedin designing and implementing the work programmes, the professionalism shown andthe openness and hospitality that PHM's team extended to us. We would be morethan happy to work with PHM on other projects in Russia and remain keen toreview other properties that may have the potential to meet Rio Tinto's targetcriterion." Commenting on the announcement, Peter Hambro, Executive Chairman of the PeterHambro Mining said:- "It has been a valuable experience working with Rio Tinto and I am sad that thejoint venture asset did not meet the investment criteria required to continuework on the asset." Enquiries: Alya Samokhvalova, Director of External Communications +44 (0) 207 201 8900or Marianna Adams www.peterhambro.comPeter Hambro Mining David Simonson or Tom Randell +44 (0) 207 653 6620Merlin This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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