HGM.L Share News (HGM)

LONDON (Dow Jones)--Highland Gold Mining Ltd (HGM.LN) said Monday it has acquired a license for exploration and mining rights for an area of 33 square kilometer, or km sq, surrounding the company's Belaya Gora deposit in the Khabarovsk region. MAIN FACTS: -The acquisition was made in an open auction on July 15 in Khabarovsk for a bid price of RUB5.520 million (U.S.$180,752). -The Belaya Gora Flanks, or BGF, license covers an area which encapsulates the Belaya Gora deposit and represents excellent near-mine exploration potential for planned operations there. -The Belaya Gora mine is currently undergoing a JORC compliant resource audit of the GKZ-registered C1+C2 reserve of 820,000 oz contained in 7.3 million tons of ore with an average grade of 3.5 g/t of gold. -The Belaya Gora development project remains on track to deliver ore to the MNV processing plant during second half of 2010 with 100,000 tons of high grade ore being trucked to MNV contributing approximately 15 000 oz of gold to the company's planned annual production in 2010. -The BGF license area was partially explored in the past and historical data notes a reported prognostic resource estimate of 200,000 oz of gold; The area hosts several known prospects with linear zones of vein-type and stockwork gold mineralization with reported grades ranging between 1g/t and 3g/t and noted highlights up to 20 g/t. -In addition the BGF license covers a number of under explored hydrothermally altered intrusives potentially hosting similar gold mineralization as at Belaya Gora representing primary exploration targets. -License terms for the BGF property include exploration and development for a total license period of 20 years; A multi-disciplinary exploration program is being designed which will include trenching and drilling programs for verifying and expanding the known mineralized prospects as well as testing of unexplored areas. -Shares on Friday closed at 135.8 pence, valuing the company at GBP441.5 million. -By Tapan Panchal, Dow Jones Newswires. Tel +44(0)207-842 9448, tapan.panchal@dowjones.com (END) Dow Jones Newswires July 19, 2010 02:48 ET (06:48 GMT)