16th May 2007 07:01
Peter Hambro Mining PLC16 May 2007 16th May 2007 Publication of Reserves and Resources Information Peter Hambro Mining Plc (the "Company" or "PHM") is today pleased to provideadditional information on the Company's exploration activities at its Pioneerasset. Set out below is detailed information on recent assay results fromdrill-holes and trench sampling. This information supplements the information inthe Group's 2006 Annual Report which is based on the Russian State Committee onReserves ("GKZ") classification system. The Company is aware of ongoing discussions between certain (non-Russian)companies and the Russian regulatory authorities (including Rosprirodnadzor)regarding the comparability of estimates of mineable reserves and thereconciliation of reserves prepared under non-Russian classifications with thosesubmitted for approval to GKZ. In light of the desirability of having comparability of GKZ and JORC reservesand resources estimates the Company has decided to defer the finalisation,independent review and publication of JORC estimates for its Pioneer asset untillater in the year. PHM currently expects to be able to publish JORC estimatesfor Pioneer, along with a reconciliation of those estimates to the GKZclassification, by the fourth quarter of 2007. In developing this reporting initiative the Company has closely consulted withthe representatives of Rosprirodnadzor and the Company is pleased to announcethat its approach on this matter has met with their full support. Geological Data Given this delay, and in order that the market should be as fully informed aspossible in the interim period, the Board has decided to publish raw data onassay results from drill-holes and trench sampling at Pioneer without anyadditional assessment of their significance by the Company's management. Theseare set out below. Pioneer Exploration Data After acquiring the deposit in 2001, extensive exploration work has beenundertaken by the Group, and three main ore bodies were delineated, details ofwhich were communicated to the market. A 3 km long mineralised zone isintersected by faults which gives rise to a number of high grade columns at theintersections. To date, a total of 13 high grade ore columns have been predictedat the intersections of these three ore bodies and subsequently confirmed byseveral drill holes. At present detailed exploration works have now been completed at three ore zoneson the Pioneer licence area: Yuzhnaya, Promezhutochnaya, Bakhmut and intensiveexploration works are underway at a fourth ore zone, Andreevskaya, which wasdiscovered in 2006. Where ore zones have been evaluated previously, the resource and reserveestimates have been computed to a depth of 200m from surface. Following thePioneer site visit in 2006 by representatives of GKZ it has been agreed thatfuture reserve and resource estimation will be carried out to a depth of 300m.So far all ore zones and ore columns explored have been found to be open atdepth. In some of the ore columns, on which less exploration has been carriedout, the actual depths of intersections are identified below. Yuzhnaya Ore Zone Initial geochemical and geophysical works at the Yuzhnaya zone identified thepresence of three ore columns. As a result of subsequent exploration works afurther four high grade ore columns were established. Two of these have beenstudied the most (7-10 ore intersections), and five have been intersected byseveral drill holes and/or trenches. From the south to the north these columnshave the following characteristics: Yuzhnaya Column No.1 The column was opened by one drill hole on profile 72; as a result gold grade of25.4g/t over a thickness of 0.7m at a depth of 85m was established. Yuzhnaya Column No.2 Situated 170m to the north from the previous column, it was intersected by threedrill holes on one profile. The maximum gold grade is 186.15g/t on a 5.1mthickness at a depth of 205m. Yuzhnaya Column No.3 Situated 80m to the north and intersected by two drill holes. At 5.0g/t cut offgrade its thickness changes from 1.0 to 3.2m. The maximum gold grades, up to26.8g/t, were established for a thickness of 3.2m. Yuzhnaya Column No.4 Situated 80m to the north and intersected by one drill hole and one trench. Thiscolumn was predicted previously and it is characterised (at a cut-off grade of5.0g/t) by gold grades 11.9g/t at 1.2m thickness and 13.6g/t at 5.9m thickness. Yuzhnaya Column No.5 Situated 380m to the north, at the bend of the ore zone and earlier predicted.Over a length of 55m it is intersected by six drill holes and one trench (40-80x 80m). Its visible thickness ranges from 1.0 to 8.8m and the gold grades (at acut-off grade of 5.0g/t) vary from 6.1g/t to 39.0g/t. The highest average gradesof 25.1-39.0g/t are recorded on a thickness of 1.2-1.5m, and lower averagegrades over greater thicknesses (6.1g/t at 8.8m; 8.7g/t at 4.0m). Yuzhnaya Column No.6 Situated 240m to the north-east, where we had earlier predicted the presence ofmineralisation. Over a length of 70m it is intersected by eight drill holes andtwo trenches (20x20-40m). Its visible thickness ranges from 1.0 to 11.0m, withgrades from 5.7 to 94.8g/t. The greatest thickness is characterised (at acut-off grade of 5.0g/t) as follows: 12.1g/t at 4.9m; 12.9g/t at 6.0m; 5.7g/t at11.0m. Yuzhnaya Column No7 This is situated 240m from the last column. It was intersected by a trench whichexposed high grades: 21.0g/t at a thickness of 1.5m. Drilling here has been doneacross 80-100m. Promezhutochnaya Ore Zone Three ore columns were predicted here and confirmed by drilling. Promezhutochnaya Column No.8 Situated 240m north-east from the last ore column of the Yuzhnaya zone. At alength of 160m it was explored by three drill holes (40m x 60m), and high gradesof 22.9 - 47.8g/t over a thickness 1.4 - 1.5m were established. Promezhutochnaya Column No.9 Situated 120m north-east and explored by seven drill holes (40m x 40m). Gradesof 7.1g/t at a 3.9m thickness and 36.3 g/t at a 1.4m thickness were established.Maximal thickness of rich ores (cut-off 5.0g/t) is up to 4.0m (15.5g/t). Promezhutochnaya Column No.10 This ore column was forecast by initial exploration works. It is situated 120mto the north-east. An interval of 80m rich mineralization has been identified by18 drill holes (20m x 20m). The thickness of rich ores varies between 1.0 - 8.5mwith grades between 5.6 - 67.3g/t including eight cross sections with grades5.6g/t at thickness 5.4 - 8.5m. Rich mineralization is open to the east. Themost Easterly drill hole, No187, shows a grade of 21.2g/t at 2m thickness. Bakhmut Ore Zone Bakhmut Column No.11 120m to the east of drill hole No187 as a result of exploration works on a gridof 80m x 60m high grade mineralization was identified by one drill hole. At 2.2mthickness gold grades are 12.1g/t. Bakhmut column No.12 This is the most explored ore column (previously reported as Apophysis No1). Itis explored by a pit to a depth of 40m on a grid 10m x 10m. Average grade hereis 10g/t. As a result of detailed exploration the Group's initial estimates ofgold content at this ore column were confirmed. Bakhmut column No.13 It is situated 150m to the east and it was explored by three drill holes withthe following results: 11.6 - 16.1g/t at 0.9 - 2.2m thickness (40m x 60mexploration grid). This information can be summarised in the following table: Name of Ore Distance along No. of holes/ Grades Indicated Column zone from the trenches that Thickness southern edge of intersected the the Yuznaya zone column (at cut-off 5.0g/t)Yuzhnaya zone - Ore Column No.1 200m North 1 25.4g/t 0.7mYuzhnaya zone - Ore Column No.2 370m North 3 186.15g/t 5.1mYuzhnaya zone - Ore Column No.3 450m North 2 26.8g/t 1.0-3.2mYuzhnaya zone - Ore Column No.4 530m North 1/1 11.9g/t 1.2m 13.6g/t 5.9mYuzhnaya zone - Ore Column No.5 910m North 6/1 6.1 - 39.0g/t 1.0m-8.8mYuzhnaya zone - Ore Column No.6 1205m North-East 8/2 5.7 - 94.8g/t 1.0m-11.0mYuzhnaya zone - Ore Column No.7 1515m 1/1 21.0g/t 1.5mPromezhutochnaya zone - Ore Column No.8 1755m North-East 3 22.9-47.8g/t 1.4m-1.5mPromezhutochnaya zone - Ore Column No.9 2035m North-East 7 7.1-36.3g/t 3.9m / 1.4mPromezhutochnaya zone - Ore Column No.10 2155m North-East 18 5.6-67.3g/t 1.0m - 8.5m(includingDrill Hole 187) 21.2g/t 2.0mBakhmut zone -Ore Column 11 2275m East 1 12.1g/t 2.2mBakhmut zone -Ore Column 12 2435m East pilot-scale pit 11.6 - 16.1g/t 2.2mBakhmut zone -Ore Column 13 2585m East 3 11.6 - 16.1 g/t 0.9 - 2.2m On the advice of its geological and mining teams, the Group has decided not toexplore these columns further for reserve definition purposes, preferring tofinalise the detailed evaluation of this material in the mining plan in duecourse. Accordingly it is possible that the mining results may exceed the basecase predictions. Andreevskaya Ore Zone Last year a new, fourth ore body, Andreevskaya, previously predicted bygeochemical and geophysical models was identified. It has been traced for 2 kmout of which 870 m has been explored on a grid of 60-100 x 25-50 m, by 9trenches and 31 drill holes. Mineralization has been encountered to a depth of140-160m and is open in all directions. Variable gold grades, between 0.9g/t and 368.4g/t along the evaluated section,have been identified. Maximum grades (up to 1,225.0g/t) have been found in thecentral area of the explored part of the zone. To date, drill holes and trenching works on 450m, of the known 2km strike; showan average grade of 32g/t to a depth of 90m over a 6m width. Significant silvergrades are also present, with grades of some samples greater than 1,000g/tsilver. Andreevskaya Column No.1 It is explored along a length of 190m by three trenches and nine drill holes toa depth of 140-160m yielding the following parameters: thickness 2.8-19.3m; goldgrades 5.4-119.5 g/t. High grades of gold were identified both in trenches (55.8 g/t at 12.0 mthickness), and in drill holes (119.5 g/t at 2.80m thickness; 26.0 g/t at 19.3mthickness). Rich mineralisation is intersected by lower grade material (1.0-2.8g/t at 1.6-6.7m thickness). Further to the east 40-50m interval of lower grade ores (1.1-1.3 g/t gold at1,7-9,0m thickness) has been identified by 1 trench and 3 drill holes. Andreevskaya Column No.2 This ore column was explored along a length of 150m by two trenches and threedrill holes to a depth of 90m. The mineralisation has the following characteristics: 4.2-368.8 g/t gold at3.9-9.9m thickness. The highest grades were established in drill hole 337(368.8g/t at 9.9m thickness), at a depth of 60m. In trenches 20.75g/t over athickness of 4.0m; 12.7g/t at 6.0m thickness. Further to the east an area of mineralization 240m in length was followed butnot explored in detail. Two isolated drill holes and a trench identified 0.8-0.9g/t gold grades at 0.7-5.0m thickness. Andreevskaya Column No.3 This column intersected by one drill hole to a depth of 40m, is located 270m tothe east of ore column No2. Gold grades identified: 32.8g/t at 6.3 m thickness. It would seem that the ore body contains a number of high grade ore columns,three of which have been identified so far, with the following parameters: Name of Ore Distance No. of Holes that Average Grade Indicated Column Along Zone intersected the column Thickness From profile 81Andreevskaya zone - OreColumn No.1 150m East 9 5.4-119.5 g/t 2.8-19.3 m Andreevskayazone - OreColumn No.2 380m East 3 4.2-368.8 g/t 3.9-9.9 m Andreevskaya zone - OreColumn No.3 530m East 1 32.8 g/t 6.3 m Competent Persons' Report Peter Hambro Mining is now commissioning the preparation of a Competent Persons'Report over its principal assets. It is intended that the results of this willbe published at the same time as the GKZ numbers are submitted, currentlyestimated to be early in the autumn of 2007. Key Points on the Group's GKZ estimates The Group has hitherto reported its reserves and resources according to theRussian Reserves and Resources classification system which was approved by theState Committee on Reserves ("GKZ") in 1965 (as amended in 1981) since this isits functional reporting system ("The Russian System"). Licence holders must register A, B, C1, and C2 category reserves with GKZ to beable to extract them depending upon the structural complexity class of thedeposit. Gold deposits are usually in complexity class 3 or 4 for whichcategories C1 and/or C2 are only available; categories A and B are rarely ifever recorded for such deposits. Part of the Group's C1 and C2 reserves are as yet unregistered. Failure toregister does not impose any sanctions on any Group company. It should be noted that of the P Category resources, based on managementestimates, P1 is supported by drilling, and P2 is supported by some or all ofgeological, geochemical, and geophysical evidence. This release has been reviewed by Dr. Stephen Henley, who is an independentgeological advisor to the Board of Directors of Peter Hambro Mining Plc. DrHenley is qualified to act in the capacity of a Competent Person for thepurposes of this statement. Dr. Henley has consented to the inclusion of the material in the form andcontext in which it appears. Dr Stephen Henley holds a PhD in Geology (University of Nottingham, 1970). Heis a Fellow of the Geological Society, a Fellow of the Institution of Materials,Minerals and Mining, and a Chartered Engineer. He is also a Charter Member ofthe International Association for Mathematical Geology. He has been employed inexploration, mining, academic, and geological consultancy posts since 1970 andhas participated in Competent Person studies on a variety of different mineralsand types of deposit, including gold, polymetallic, and chromite projects. Dr Henley is currently Chairman of PERC (the Pan-European Reserves and ResourcesReporting Committee, European equivalent of the Australasian JORC), and aconvenor and secretary of a CRIRSCO working group on harmonisation of Russianand international reserve reporting systems. He owns no direct or, to the bestof his knowledge, indirect interests in the shares or securities of Peter HambroMining Plc or of any of its associated or subsidiary companies and does notexpect to receive direct or indirect interest in any of the Company's projectsor in the shares and securities of the Company. Enquiries:Alya Samokhvalova Director of External Communications +44 (0) 20 7201 8900Marianna Adams Investor Relations +44 (0) 20 7201 8900 Tom Randell/Maria Suleymanova Merlin +44 (0) 20 7653 6620 Patrick Magee JPMorgan Cazenove +44 (0) 20 7155 4525 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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