29th Jun 2005 07:00
Hambledon Mining PLC29 June 2005 HAMBLEDON MINING PLC JORC resource up 45% Project update Hambledon Mining Plc ("Hambledon" or the "Group" or the "Company), an AIM-listedmining and exploration company developing precious metal deposits in Kazakhstan,announces a significant increase in its gold resource, and further developmentswith its Sekisovskoye and Tserkovka deposits. Highlights: • Overall resource increased to approximately 3.5 million ounces, previously 2.8 million ounces • 45% increase in JORC resource to 1.4 million ounces • Significant progress toward realisation of open pit project • Underground resource yet to be updated The successful 2004 mineralogical continuity drilling results have led toimprovements in our understanding of the resource and a resultant increase inits size. An updated modelling approach that better reflects the geostatisticalgrade trends has been applied to the open pit resource and is currently beingapplied to the deeper levels. The total contained gold at Sekisovskoye for the combined open pit andunderground resource, presented on a western (JORC) basis, is 1.3 millionounces, a 45% increase from the 2004 resource figures, plus 2.2 million ouncesof silver. In addition, an estimation of the Soviet prognosticated (P1) categoryresource in extensions along strike and at depth has increased from 1.1 millionounces to 1.4 million, an increase of 27%. Significant additional potential on the newly acquired Tserkovka licenceterritory amounts to some 740,000 ounces, mostly in the Soviet prognosticated(P1) category. The reporting of the resources in the central zone at Sekisovskoye, includingboth the upper and lower levels as described below, is based on the guidelinesendorsed by the well-established Australian Code for Reporting of MineralResources and Ore Reserves (JORC) Hambledon continues to report former Sovietprognosticated (P1) resources where insufficient information is available toenable an update to be made under JORC guidelines, or where it is necessary inorder to show the likely future potential, in accordance with the practice ofsimilar western companies operating in the former Soviet Union. Soviet categoryresources below the level of P1 (for example, P2 or P3) have not been reportedbecause the confidence level associated with such categories is too low to bemeaningful. Combined resource table: JORC JORC C2 P1 Total Indicated Inferred Oz Oz Oz Oz OzSekisovskoye- openpit & underground 1,110,304 248,528 - 1,400,000 2,758,832Tserkovka - - 145,000 241,000 386,000Other explorationareas - - - 354,000 354,000 Total 1,110,304 248,528 145,000 1,995,000 3,498,832 Figures include silver at gold equivalent (one ounce of silver = 0.0166 ouncesof gold) Further details are set out in the Annual Report which has been sent toshareholders and will be made available from the Company's web-site atwww.hambledon-mining.com Tserkovka contract signed The winning of the tender for the Tserkovka licence territory was announced inNovember 2004. The related Subsoil Use Contract was signed on 24 June 2005 bythe government of Kazakhstan. 2005 drilling Some 800 metres of core-drilling has been carried out at Sekisovskoye, mostlytargeting open pit ore zone extensions. Although no assay results have yet beenreceived, core logging has confirmed a near-surface extension of the Orebody 10breccia zone. This is likely to translate into a somewhat larger open pit thanoriginally planned for start-up next year. Planning for underground drilling isalso currently underway. Now that the Tserkovka Subsoil Use contract has been signed, drilling isexpected to begin in the next few days. Open pit project Design and optimisation of the mine plan for the Sekisovskoye open pit iscontinuing. The preliminary optimised open pit shell, announced in March,indicated that approximately 183,000 ounces would be mined over a six year life.Whilst this was, itself, an 83% increase on the figure indicated at the time ofour flotation in June 2004, the eventual size may be larger still once thisseason's drilling is concluded and the new modelling incorporated. Optimisation test-work for the design of the process plant is now nearingcompletion and a local firm to carry out the engineering, design andconstruction will be selected next month. Detailed design of the tailingsstorage facility has been started by a local company. Options for the supply ofpower to the site have been reviewed and negotiations with the preferredsupplier are now taking place. Preparation of submissions to the Kazakhstan State Committee on Ore Reserves isunderway. Underground resource For underground exploitation, the change in approach to the modelling of themineralised higher grade zones is nearing completion and results are expectedwithin the next few weeks. Appointments Mr Neil Stevenson, 43, recently Mining Manager and acting General Manager ofGolden Star Resources' Bogoso, Prestea and New Century Mines, has accepted theposition of Operations Manager and will join the team in August. Neil is amining engineer with a post graduate diploma in business administration from theUniversity of Queensland. He has a wealth of experience of both underground andopen pit operations which will first be put to use in the continued evaluationof open pit options. A local underground mine design engineer has also accepteda position with the group, beginning in July. Mr Ian Petts, 28, has been appointed Group Financial Controller, to work in ourAlmaty and Ust Kamenogorsk offices. Ian has an MSc (with distinction) inEconomics and has worked in Pakistan, Zimbabwe and Bulgaria. More recently, hetrained with Deloitte as a Chartered Accountant and has worked with PriceWaterhouse Coopers since qualifying. Nicholas Bridgen Chief Executive, of Hambledon Mining Plc commented: "The 2004 drilling results and the new modelling approach have resulted in agreater appreciation of the open pit potential of the upper levels of thedeposit. For this reason, the upper levels have been modelled with a 0.5 grammeper tonne cut-off grade down to a depth of 240 metres (to the "250 metrelevel"). Grade and tonnage estimations for gold and silver show significantgains in contained metal This new resource statement is the formalquantification of what we've known qualitatively since the 2004 drilling resultswere obtained - the more we look at this deposit, the more gold we realise itcontains, and we are confident that there's still a lot more to come." ENQUIRIES: 29th June 2005 Hambledon Mining Plc Tel: +44 87 111 8778Nicholas Bridgen, Chief Executive or +7 300 733 8915 Bankside Consultants Tel: 0207 367 8888Michael Spriggs/Michael Padley About Hambledon Hambledon Mining plc is an AIM listed mining and exploration company which hasannounced the development of an open pit project at its Sekisovskoye deposit inEast Kazakhstan, prior to the development of the larger underground resources.Initial production from the open pit will be around 30,000 ounces per year,rising to around 100,000 ounces when wholly underground ore is processed.The Group also holds the rights to and is exploring the adjacent Tserkovkalicence area, which contains the areas known as Tserkovka, Feodulikha, Area 4and Area 5. It is likely that any ore from these areas will be treated in anexpanded plant at Sekisovskoye. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Altyngold