14th Dec 2007 07:01
Peter Hambro Mining PLC14 December 2007 Technical Audit by Wardell Armstrong International ("WAI") Peter Hambro Mining PLC (the "Company"), announces the Technical Audit of theCompany mining and mining related assets, which it commissioned from WardellArmstrong International ("WAI") has now been completed. The WAI Audit Reportcan be found on the Company's website at www.peterhambro.com. WAI concluded: •Company Measured and Indicated Mineral Resources (as defined by the JORC Code (2004)) are 118Mt at an average grade of 1.15g/t Au containing 4.4 million ounces of gold; Inferred resources are 82.7Mt at an average grade of 1.33g/t Au, containing 3.5 million ounces of gold; •The total Mineral Resources, reviewed by WAI, inclusive of those resources evaluated in accordance with the Russian classified scheme are 344Mt at an average grade of 1.73g/t Au, containing 19 million ounces of gold; WAI audit supports the resource figures published in the PHM 2006 annual report as summarised in the table below. The Company believes that its intensive exploration and drilling programme willfurther substantiate its resources and reserves and enable it to meet itsproduction targets. Reserves and Resource Estimates In undertaking the audit, WAI has reviewed the reserve and resource estimatesfor the Company's principal assets. Where no Micromine(R) models were availableother assets were reviewed in accordance with Russian classification scheme. A comparison of the results of this review with the reserve and resourceestimates published in the Company's 2006 Annual Report is provided in the tablebelow: Comparison of WAI Technical Audit with PHM Annual Report 2006 WAI 2007 JORC Code (2004) PHM 2006 Annual Report Deposit Category Tonnage Grade Metal Category Tonnage Grade Metal (kt) (g/t Au) (oz Au) (Russian (kt) (g/t Au) (oz Au) Classification) Pokrovskiy JORC Measured 5,050 2.29 371,975 C1 6,376 3.08 809,826 Indicated 7,406 1.74 413,449 C2 420 2.59 35,011 Inferred 6,613 2.11 449,425 C1 (low grade) 8,759 1.04 294,076 C2 (low grade) 23 1.35 996 C1 (stockpiles) 3,262 1.37 143,678 C1 (stockpiles, 3,947 0.75 956,784 low grade) Russian C1(RIP 5,347 0.42 77,803 C1 (RIP tailings, 5,347 0.42 72,080 tailings, low grade) low grade) Production (1,380) 3.17 (140,591) 1.1.07 - 30.6.07 Total 24,414 1.66 1,306,835 Total 26,754 1.52 1,310,755 Pioneer JORC Measured 17,517 0.86 486,365 Indicated 35,315 0.82 981,185 C2 (Main zones) 69,073 1.39 3,090,804 Inferred 42,108 1.34 1,809,530 P1 (Main zones) 14,810 1.57 747,809 C2(Andreevskaya) 543 32.87 573,813 Russian P1(Andreevskaya) 5,883 3.80 718,166 P1(Andreevskaya) 600 14.83 286,135 P1(Main zones) 7,092 1.36 310,697 P1(Bakhmutflanks) 7,956 1.76 450,260 P1 (Other zones) 2,119 1.13 187,733 P1 (Other zones) 7,000 1.34 300,763 Total 118,000 1.28 4,943,936 Total 92,026 1.69 4,999,325 Malomir JORC Measured 44,207 1.31 1,860,488 Indicated 8,633 1.15 319,988 Inferred 34,046 1.16 1,268,639 C2 27,448 1.75 1,546,222 Russian P1 14,250 1.55 711,833 P1 58,514 1.55 2,914,365 Total 101,136 1.28 4,160,949 85,962 1.61 4,460,587 Other Amur C1 9279 1.62 482,667 C1 3,932 3.25 410,588 assets C2 23,268 1.76 1,318,728 C2 21,522 1.63 1,126,292 P1 30,638 2.48 2,446,968 P1 31,977 2.92 2,735,239 Total 63,185 2.09 4,248,363 Total 57,431 2.46 4,272,118 Yamalassets C1 7,630 2.13 521,897 C1 - - - C2 7,448 1.58 379,312 C2 11,973 1.87 717,942 P1 22,430 5.10 3,689,277 P1 20,270 1.61 1,049,698 Total 37,508 3.80 4,590,486 Total 32,243 1.71 1,767,639 GRAND TOTAL 344,243 19,250,569 294,416 16,810,424 Total Measured and Indicated resources estimated in accordance with JORC Code(2004) are 118Mt at an average of 1.15g/t Au, containing 4.4 million ounces ofgold; Inferred resources are 82.7Mt at an average grade of 1.33g/t Au,containing 3.5 million ounces of gold. WAI also reviewed additional resources,estimated in accordance with the Russian classification scheme, summarised asfollows: •C1 category: 22Mt at an average grade of 1.50g/t Au, containing 1.1 million ounces of gold; •C2 category: 30Mt at an average grade of 1.71g/t Au, containing 1.7 million ounces of gold, and •P1 category: 90Mt at an average grade of 2.89g/t Au, containing 8.5 million ounces of gold The differences between the Annual Report figures and the WAI report figures forOther Amur assets and for Yamal assets reflect exploration and re-evaluationbetween 1st January 2007 (the annual report resource cut-off date) and 1stSeptember 2007 (the cut-off date for the WAI report). The comparison shows a good overall correlation between the Russian-classifiedresources published in the 2006 Annual Report and the updated combined JORC/Russian resources quoted in the WAI report. It demonstrates 99.9% conversion ofC1 and C2 to JORC Code (2004) at Pokrovskiy, and 91% for those parts of Malomirand Pioneer which were included in the resource model prepared in accordancewith JORC Code (2004). It should be noted, however, that to achieve a balanced view of the Company'sassets WAI has: - •Taken the mineral resources prepared in accordance with the Russian classification scheme for those assets where no JORC Code (2004) estimates are available; •For the Andreevskaya Zone (Pioneer deposit) where the Russian conventional resource estimate was considered to be more robust than the Micromine(R) computer model, utilised the Andreevskaya conventional resource estimate for the purpose of this report; •Reviewed Russian classification estimates for Andreevskaya Zone (Pioneer), Albyn, Quartzite and Ozhidaemoye (Malomir deposit) together with estimates for the Pokrovskiy flanks, in order to give an expert opinion on which part of these resources can be classified as Mineral Resources as defined by the JORC Code (2004). Highlights of specific deposits Pokrovskiy and flanks • The Company's resource estimate is supported by a positive reconciliation against production records; • The Pokrovskiy plant operations are run efficiently and in line with best international practice; • The environmental management carried out at the site is well organised and appropriate; • The Pokrovka-2 deposit represents an exciting target which is being aggressively explored by PHM in order to better understand the structure and mineralisation. WAI believes that this deposit has the potential to host a significant gold and silver resource. Pioneer • WAI considers that the Micromine(R) resource model provides an adequate global resource estimate for Pioneer which can be utilised for long term planning; • The mining schedule proposed for Pioneer is optimised to balance ore mining, waste mining and average grade each year. Mining will take place from three separate open pits with single combined processing facilities. WAI considers the proposed schedule to be both practical and achievable given PHM's experience and management expertise gained through the Pokrovskiy operations; • High grade pay shoots ("ore columns"), such as those at Andreevskaya Zone (Pioneer), which are not yet fully explored and evaluated by the Company, carry the potential for additional production during the deposit's exploitation. Malomir • The development and mining schedule for Malomir is ambitious but realistic and achievable, given PHM's experience in developing and mining Pokrovskiy and in commissioning the Pioneer project. Other Amur region Assets • WAI considered the portfolio of 10 additional hard rock assets which are being developed by the Company in the Amur region and found the development plans to be strategically sound with many of these assets having the potential for the discovery of significant gold resources. All the projects are potentially amenable to open pit mining and are being actively developed and have a potential to contribute to the Company's production schedule and to assist it to meet its production targets over the coming years. These projects all require further exploration and geological modelling work before a meaningful reserve can be established; • One of the most promising deposits, Albyn, appears encouraging for the development of an open-pittable resource. The relatively simple mineralogy and geologic continuity make the Albyn property both an exciting project and one which is worthy of continued exploration and development. The Company expects to report further on this in Q3 2008; • WAI has examined PHM's strategy of expanding alluvial gold production and briefly reviewed a number of the Company's placer projects in Amur region. It has concluded that the strategic rationale and projections appear sound and, if successful, will provide PHM with significant and increasing incremental gold production. Yamal region Assets • WAI has reviewed the exploration work undertaken by PHM at Novogodnee Monto deposit and considers that this deposit potentially has a substantial gold and iron resource base able to support a mining project; • The position of the Novogodnee Monto deposit in relation to the railway line and the vast increase in the need for construction materials as a result of the regional activity in the oil and gas sector mean that the aggregates from this deposit may considerably enhance the project's economics; • WAI believes that there is considerable potential to increase the resources for Novogodnee Monto deposit, given the number of positive indications identified and exploration results achieved to date; • WAI has reviewed the exploration data for work undertaken on the Toupugol-Khanmeishorsky licence area to date and is satisfied that it is a promising exploration asset with the potential to establish a mineral resource similar to those identified at Novogodnee Monto and Petropavlovskoye; • Ozernoye has the potential to become a sizeable polymetallic deposit. Exploration is ongoing, and WAI considers that if the geological structure and grade distribution of this area can be properly understood, there are real possibilities for tracing PGM mineralisation along the pyroxenite belt south-westwards for some tens of kilometres from the Ozernoye deposit, through Pyatirechenskoye exploration area (itself not yet explored in detail) and beyond; • WAI believes that there is considerable potential to improve the resource position at Rudniye Gorki, given the favorable exploration results achieved to date; • As an exploration portfolio of assets, WAI considers the Yamal assets to be strategically valuable, with many properties having the potential for the discovery of significant gold resources as well as PGMs and other minerals. Irgiredmet • The Irgiredment Insitute has an established reputation and is proving an excellent acquisition for PHM. The Institute provides invaluable assistance in the preparation of technical studies, particularly in relation to State legislation compliance. Disclosure The contents of this announcement have been approved for release by Dr. P.Newall, BSc, PhD, CEng, FIMMM, of Wardell Armstrong International. Dr. P. Newallhas consented to the inclusion of the material in the form and context in whichit appears. Executive Chairman's comments: Peter Hambro, Executive Chairman of Peter Hambro Mining plc, commented: "The JORC total of 8 million ounces is an excellent basis from which to assessthe minimum future potential of the Company and the grand total of 19 millionounces, taking Russian and JORC ounces together, compares very favourably withthe 17 million ounces shown in the Company's Annual Report. The very goodcorrelation between WAI's opinion of Peter Hambro Mining's reserves andresources and the Company's published view is reassuring. Having confirmation under the JORC Code of the prospects for our existing andnear-term production assets will, I trust, give shareholders used to Westernstandards even greater confidence in PHM's future profitability." Enquiries: Alya Samokhvalova / Rachel Tuft +44 (0) 20 7201 8900www.peterhambro.comPeter Hambro Mining Plc Ian Hannam / Patrick Magee www.jpmorgancazenove.com +44 (0) 20 7155 2828JPMorgan Cazenove David Simonson / Tom Randell / Anastasia Ivanova +44 (0) 20 7653 6620www.merlinpr.comMerlin This release has been reviewed by Dr. Stephen Henley, who is an independentgeological advisor to the Board of Directors of Peter Hambro Mining Plc. Dr.Henley is qualified to act in the capacity of a Competent Person for thepurposes of this statement. 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. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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