Last checked at 8 Nov 2011 07:00
8 November 2011
Hambledon Mining Plc
("Hambledon" or "the Company")
Underground mining commences at Sekisovskoye
Hambledon Mining Plc (AIM: HMB), the Kazakhstan gold mining and development company, today announces that it has commenced underground mining at its 100% owned Sekisovskoye gold project located in eastern Kazakhstan. This was achieved one month ahead of schedule.
The initial underground production levels are anticipated to be modest but are scheduled to increase steadily throughout 2012. The grade of the ore being mined is expected to average 5.5 g/t Au after dilution. The ore is being extracted initially by a modified room and post pillar method and is being undertaken by mining contractors using their own machinery. Mining will continue through 2012 using a combination of room and pillar and bulk mining methods as the architecture and character of the host rock and ore zones are further understood. Optimisation of the mining method will allow the cost of production to be minimised, lowering the Company's overall cost per ounce.
Development of the main decline continues, together with infrastructure such as de-watering stations and exploration drill chambers.
The engineering study for the design of the further development of the underground mine at Sekisovskoye is currently being completed by Golders Associates. The operation is based on a long term target of approximately 850,000tpa, to be reached in around 2017, equating to a target of 100,000 oz per annum.
CEO Tim Daffern stated:"The successful commencement of underground mining marks a significant milestone in the development of Sekisovskoye and is the next step in expanding Hambledon's long term gold production. I would like to thank our dedicated operations and mining teams who have worked diligently to deliver the underground project ahead of schedule. The underground mining will increase gold production and cash generation thereby underpinning the Company's objective of profits growth in Kazakhstan."
Enquiries;
HAMBLEDON MINING:Telephone +44 (0)207 233 1462Charles Zorab
FAIRFAX I.S. PLC (NOMAD AND BROKER):Telephone +44 (0)207 598 5368Ewan Leggat/Katy Birkin
TAVISTOCK COMMUNICATIONS:Telephone +44 (0)207 920 3150Ed Portman/Jos Simson
Copyright Business Wire 2011