Last checked at 23 Jun 2010 07:43
Hambledon Mining plc
("Hambledon" or "the Company")
AGM Statement
23 June 2010
At today's Annual General Meeting of the Company, George Eccles, Chairman, will make the following statement:
"As you will have read in the results statement of 12 May 2010 and in the annual report, much investment and management time has been spent on improving our operations at Sekisovskoye. The steps taken have paid off and since the end of March, when the severe winter weather relented, we have witnessed improved results.
Production in the second quarter has significantly increased. To recap: in April 2010, 68,317 tonnes were treated through the mill, and 2,048 ounces of gold were produced. In May 2010, a total of 75,402 tonnes was milled producing 2,631 ounces of gold. Up to 20 June 2010 and despite a planned shutdown of 2.5 days for a mill reline, 44,406 tonnes have been milled and 1,708 ounces produced.
Our decision to treat Beskempir ore has, as anticipated, been profitable and we are pleased with the result. We treated 4,406 tonnes of ore in April 2010 and 4,962 tonnes in May 2010. On 19 May 2010 we announced a second contract for the shipment of 10,000 tonnes and the delivery and treatment of this material commenced in mid-June. Further contracts are expected in due course.
Whilst the improvements at the open pit have been significant, we are also conscious that the focus at Hambledon has always been the development of the underground mine. We are therefore very pleased to have made a real start on this area of the Sekisovskoye deposit. The refurbishment of the existing surface shaft is progressing on schedule. After completion of this first phase of the development, we will carry out a 10,000m drilling programme to further define the upper level reserves and permit detailed design of the mine. Drilling is scheduled to commence in August 2010 and be completed by May 2011. Construction of the surface infrastructure for the main underground workings has commenced and a local contractor will start excavating the decline at the end of this month, once the portal has been completed. The first stoping operations should commence around the end of 2011. Current projections indicate that the Company should be able to finance the development from cash flows.
We are therefore looking forward to the next chapter at Hambledon with confidence."
Enquiries:
Hambledon Mining:Telephone +44 (0)20 7233 1462Charles Zorab
Fairfax I.S. PLC: Telephone +44 (0)207 598 5368Nominated Adviser and BrokerEwan Leggat
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