HGM.L Share News (HGM)

LONDON (Dow Jones)--Highland Gold Mining Limited (HGM.LN), a gold exploration company announced Monday that exploration programs at its two properties, Unkurtash and Kassan, in Kyrgyzstan are progressing well and according to plan. MAIN FACTS: -The drilling program target of 17,000 meters includes reverse circulation or RC and diamond core drilling or DD which, along with significant underground exploration development, is expected to conclude by the year-end. -At Unkurtash the exploration project received regulatory approval and the license agreement has recently been renewed. -From the start of 2010 a total of 4,000 meters of drilling have been completed and preliminary drilling results obtained to date underpin the previously established potential of the property for hosting a large open-pit mineable resource with an average grade in the range of 1.4 - 1.7 grams per ton or g/t. -Metallurgical test work including a full process flow sheet is being performed on a 1,600 kg bulk sample, the results of which are expected by the end of 3Q, 2010. -Previous metallurgical test results confirm that the gold mineralization is amenable to conventional processing and direct cyanidation with expected gold recoveries exceeding 90%. -Based on exploration results obtained to date a pre-feasibility study and resource estimation is now underway and has indicated positive economics. -The positive results received at the Unkurtash property have significantly raised the company's confidence in the potential of its adjacent Kassan property and warrants a future drilling program for resource delineation. -In continuation of the company's exploration efforts at the property during the previous years a new property license has been issued with exploration terms which will fully accommodate anticipated time requirements for in- depth exploration at Kassan. -Within the Kassan property, the Karatube prospect hosts oxidized gold skarn mineralization which is potentially amenable for heap leaching. -The Sarytube prospect (also within the Kassan license) compares favorably with the gold mineralization and resource potential of Unkurtash. -Pending approval of the new exploration project by the Kyrgyzstan Regulatory Authorities more than 3,000 meters of exploration drilling are budgeted at Kassan this year. -Advancing the company's exploration projects in Kyrgyzstan to development project status will substantially increase the resource base of the company and its asset value in the long term. -Shares closed Friday at 123 pence -By Zechariah Hemans, Dow Jones Newswires; 44-20-7842-9411; zechariah.hemans@dowjones.com (END) Dow Jones Newswires August 02, 2010 02:36 ET (06:36 GMT)