16th Jul 2007 07:00
Aurum Mining PLC16 July 2007 For immediate release 16 July 2007 AURUM MINING PLC ("Aurum" or "the Company") Pre-close Update Aurum Mining plc (AIM: AUR), the gold-mining company focussed on the FormerSoviet Union (FSU), is pleased to announce an update on progress at theCompany's gold and copper asset in the Kyrgyz Republic, ahead of theannouncement of its preliminary results for the year ended 31 March 2006. Significant progress has been made in the preparatory work for the constructionof the open-cast mine at Zone 1 of the Andash licence area. The detailed designwork, to meet the requirements of the Company's Mining Licence and to enable thestart of the physical construction of the mine, is progressing well. Preparationfor the construction of the access road to the mine is moving ahead, withroadbuilding equipment and contractors having already been sourced. In addition,the Company is finalising the sourcing of the ball mills for grinding ore whenZone 1 enters production, which remains on track to begin in the second half ofnext year. The Company's balance sheet remains strong, with £28.3 million of net cash atthe year end. As the current year progresses, the Company is incurring someexpenditure based on requirements and taking into account the lead timesinvolved in sourcing heavy equipment and plant. As recently announced, theCompany has successfully identified significant savings in the forecast capitalexpenditure at the mine, with capital expenditure expected to be in the regionof $48.5 million, compared with the Bankable Feasibility Study estimate of $55.5million. It is expected that Aurum's preliminary results will be announced in September2007. Mark Jones, Aurum Mining's Chief Executive, said: "The Kyrgyz Republic remains ademanding environment in which to operate in view of which we are pleased withthe progress we have made to date at Andash. We look forward to the start ofproduction in the second half of next year and to Aurum making the transitionfrom an exploration company to a gold producer." For further information: Aurum Mining plc Tel: 020 7478 9050Mark Jones, Chief Executive Officer Chris Eadie, Chief Financial Officer Arbuthnot Securities Tel: 020 7012 2000Neil Kirton John Toll Buchanan Communications Tel: 020 7466 5000Mark Court / Rebecca Skye Dietrich Notes to editors Aurum Mining, which joined the AIM market of the London Stock Exchange in May2004, is a mining company focussed on gold opportunities in the Former SovietUnion. Its principal asset is an exploration licence over the Andash gold andcopper project in the Kyrgyz Republic. A mining licence for Andash Zone 1 wasawarded by the Kyrgyz authorities in 2006. The bankable feasibility studycompiled by Wardell Armstrong International, also in 2006, confirmed a measuredand indicated resource base of 19.2 million tonnes at 1.1 grams per tonne ofgold and 0.4% copper, which equates to 1.1 million ozs of gold and goldequivalent. Initial production at Andash Zone 1 is expected in 2008. The Andashproject also includes Zone 2 and Zone 3 along with Tokhtonysay, Nakhodka andthree other additional exploration areas. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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