Altyngold Regulatory News (ALTN)

19 Jan 2005 07:00

Hambledon Mining PLC19 January 2005 HAMBLEDON MINING PLC Interim Drilling and Feasibility Study Results Hambledon Mining Plc ("Hambledon") is an AIM-listed mining and explorationcompany developing precious metal deposits in Kazakhstan. It holds rights to theSekisovskoye gold and silver deposit, on which a feasibility study is at anadvanced stage. Hambledon is pleased to announce the results of its recentlycompleted diamond drilling programme at Sekisovskoye.Highlights: • Overall resource grades and continuity at Sekisovskoye confirmed: open pit resources expected to show significant increase• Discovery of additional dilation zones containing large tonnages of mineralised resource• Potentially significant gold mineralisation to North and West of deposit intersected• Geotechnical study complete, showing high degree of pit wall stability• Environmental base-line study completed• Hydrogeological study nearing completion• Mine planning commenced• Metallurgical programme and process design in preparation Nicholas Bridgen, Chief Executive, Hambledon Mining Plc, commented: "The drilling programme at Sekisovskoye has disclosed unexpectedly wide orezones within the open pit which open up new strategic options for HambledonMining beyond those outlined in the initial prospectus. "We now have a greater opportunity to accelerate the project by focusing on theopen pit project to provide cash flow more quickly and to a greater level thanexpected. Planning for the underground mine is now also on a firmer basis andthis should significantly enhance Hambledon's progress in the years ahead." 19th January 2005 ENQUIRIES: Hambledon Mining Plc Tel: +44 870 111 8778Nicholas Bridgen, Chief Executive Seymour Pierce Limited Tel: 020 7107 8000Jonathan Guy/Ewan Leggat Bankside Consultants Tel: 0207 444 4140Michael Spriggs/Michael Padley 07887 998 252 Drilling programmeAssay results from the recently concluded diamond drilling programme showoverall increases in contained gold mineralisation. The objectives of the diamond drilling programme were: • Demonstrate continuity of the gold zones, as previously delineated from more widely spaced drill holes.• Obtain core samples for additional metallurgical test work.• Geotechnical core sampling for slope stability studies of the planned open pit, including some holes that were also used as infill holes to validate delineated zones of mineralisation.• Drilling to assess possible extensions to the limits of the current resource model. An additional 1,140 metres of sterilisation drilling was carried out in order toensure that the facilities will not be built over recoverable gold deposits.Planning for additional in-fill and sterilisation drilling is already underwayfor an early spring start. Forty surface diamond drill holes were completed, representing 4,100m of coredrilling with depths ranging from 24m to 400m. Gold assay results for 3,292 coresamples, totalling over 3000 linear metres, have so far been received. Theoutstanding assays relate mainly to the geotechnical and infill programmes andwill be reported on later. Assaying for silver and other base metals will becompleted in the next few weeks. An update of the modelling and overall resourcestatement is now being carried out, with completion scheduled for mid-February. Twenty holes on a 10m wide grid pattern were drilled to detail the continuitycharacteristics of the gold mineralisation, as defined by relatively widelyspaced historical drilling, along 40 metres of strike. Assay results showed goldranges up to a maximum of 64.2g/t and confirmed that the zones of mineralisationare continuous. Detailed comparison with the resource model has indicated a new subsurface zoneof dilation, which is a wide zone of mineralisation representing a focal pointfor high grade gold. One drill intersection, hole CONT14, shows an extensivethickness of 23m, at 3.6g/t within which one 7 metre wide subzone contains aweighted grade of 7.5g/t. This drilling demonstrates that such zones of dilationtend to contain large tonnages of higher grade gold though with more limitedcontinuity than the normal planar zones of mineralisation. Overall, the resultswithin this area show a marked increase in the contained gold accessible fromopen pit mining. Although the geotechnical drilling was primarily for the study of slopestability, additional zones of mineralisation were intersected. There are stilla number of assay results outstanding and a full assessment will be concludedlater. Gold grades of up to 18.4 g/t confirm the resource estimates. Drill holeGEO97 defined a new subsurface 7 metre wide zone grading at 2.4 g/t. Drill holeGEO92 intersected a zone of dilation, representing a drilled thickness of 11metres, though the original resource model only indicated 2 narrow zones of goldmineralisation. The three metallurgical drill holes, dipping vertical to sub vertical, weretargeted at clusters of mineralised zones at depth. Generally, assay resultssupported the validity of the resource model but a few intersections exhibitedmore erratic gold distributions than normal.Assay results from the extension drilling show noteworthy gold mineralisationtrends beyond the currently defined deposit limits. On the west side of thedeposit, drill holes INF1 and INF2 intersected new zones of gold mineralisationin an area where historical drilling was absent. However, many assay results arestill outstanding and additional zones can be expected. Drill hole INF4, drilledfrom the east wall of the old open pit, intersected an unexpected 15 metre zonegrading 2.66g/t (including a 5 metre subzone grading 5.9g/t) and, only 5 metresdistant, a further 16 metres at 3.5g/t where only several narrower zones hadbeen expected. These intersections are immediately below the existing pit andsuggest that the pit limit could be extended. INF3 drilled 100 metres NW of thepit and confirmed historical drill results that additional mineralisation existsbeyond the northern limits of the deposit. In conclusion, this drilling has shown that additional gold mineralisationwithin and beyond the limits of the deposit can be significant. Dilation zonesappear to be important targets for exploitation and these sources are likely tobe major contributors to the reserve. The overall resource grades have beenconfirmed and appreciable increases in the gold resource amenable to open pitmining can be expected when detailed modelling has been carried out. Tserkovka licence areaFollowing the successful tendering of the Tserkovka licence area in November,the geological staff (now numbering nine geologists and technicians) has beenaugmented to locate, assess and digitise information from previous Sovietexploration efforts on Tserkovka, Area 4, Area 5 and Feodolikha deposits. Aspreviously reported, these deposits are thought to be extensions of Sekisovskoyeand are likely to provide ore for treatment in the same Sekisovskoye treatmentplant. A Minimum Work Programme has been prepared for submission to the Ministry ofGeology as part of the procedure for agreeing a full subsoil-use contract. Geotechnical studyA full assessment of the geotechnical aspects of open pit mining of theSekisovskoye deposits has been undertaken. The results indicate that the highlycompetent rock associated with the Sekisovskoye ore and waste will allow formuch steeper pit walls than had been assumed in the pre-feasibility study. Thiswill result in reduced stripping ratios and associated mining costs. Assessment of geotechnical aspects from an underground mining perspective iscontinuing but preliminary indications suggest that there will be minimalrequirements for support structures for ground control in shafts, tunnels andstopes. Ecology and Social The Project environmental and social baseline study has been completed byAsiaEcoLink (a local environmental firm) and reviewed by Wardell ArmstrongInternational (UK), whose recommendations are now being addressed. Additionalbaseline and other pertinent data are being obtained and/or collected on acontinuing basis to ensure that the overall Project will meet or exceed Westernenvironmental standards. Initiation of the next step in the local permittingprocess will occur in February as input from other aspects of the feasibilitystudy become available. HydrogeologyAn assessment of available hydrogeological data has indicated that sufficientdata are available from previous exploration activities for design andpermitting purposes. The hydrogeological system is now understood andrequirements for underground dewatering will be low. Pumped water, plus otheravailable ground water, will be sufficient for process water make-uprequirements. Mining EngineeringThe mining study is underway by GeoMine Solutions of Johannesburg aftercompletion of site visits and meetings with various suppliers, contractors, etc.Final development of open pit mining plans is contingent on completion of theorebody modelling. Processing and InfrastructureMetallurgical testwork is currently underway both in Kazakhstan and Australia.The programs will develop all process parameters based on standardcarbon-in-pulp (CIP) or carbon-in-leach (CIL) technology. Gravity recovery ofcoarse gold will also be evaluated. Preliminary indications suggest that the orewill be highly amenable to such processing, with gold recoveries of over 95%.Additional testwork will focus on environmental and related parameters for usein tailings storage facility design and environmental considerations. Process design has been instituted using Barrier Mining Services (Perth). Anin-house investigation into power supply options is currently underway. About Hambledon Mining plcHambledon Mining Plc was formed in 1997 to acquire mining rights and developprecious metal deposits in Kazakhstan. Currently, it holds the rights to theSekisovskoye gold and silver deposit in the Altai region of East Kazakhstan. InNovember it won the tender for the mining rights to the adjacent territory knownas Tserkovka, which includes not only the Tserkovka deposit itself but alsothree other mineralised zones known as Feodolikha, Area 4 and Area 5, containedwithin a territory of some 29 square kilometres. These additional areas arethought to be extensions of the Sekisovskoye mineralisation and the likelihoodof further such areas subcropping between Sekisovskoye and Tserkovka is thoughtto be high. The resources contained in the main mineralised zones at Sekisovskoye have beenassessed on a western JORC basis, but the resources for the other areas, andextensions of Sekisovskoye, are based on the former Soviet classifications. Noaccount has yet been taken of the latest drilling results referred to above. JORC JORC Soviet Soviet Total Indicated Inferred C2 P1 Resource (ozs) ------- -------- -------- -------- --------Sekisovskoye open pit 90,000 21,000 - - 111,000Sekisovskoye underground 751,000 97,000 - 1,100,000 1,948,000Tserkovka - - 145,000 241,000 386,000Feodolikha, Areas 4 & 5 - - - 354,000 354,000 ------- -------- -------- -------- -------- Total 841,000 118,000 145,000 1,695,000 2,799,000 Note: Troy oz = 31.10348g All figures rounded Silver included at goldequivalent (1/60) Previous Soviet studies and work carried out by Hambledon have previouslyindicated that the ore is free milling and easily treated by conventionalgravity and CIL processing, giving over 95% recovery. The ore is environmentallyclean. Mining will take place initially from open pit and subsequently fromunderground. The site is 40 kilometres from the regional capital, UstKamenogorsk and is well served by road and other infrastructure. Initialeconomic analysis estimated gold cash production costs at US$150 - US$200 perounce, and a very low initial capital cost reflecting the high degree ofexisting infrastructure, the simplicity of the proposed process plant and thelack of any overburden requiring pre-stripping. In June 2004, Hambledon Mining raised 2.5 million and was listed on AIM,enabling the Company to carry out the feasibility study at Sekisovskoye which isongoing. Dependent upon the speed at which certain permits and approvals can be obtained,construction is expected to start in 2005 and production in 2006. Furtherexpansions are anticipated once the Tserkovka and other new areas have beenexplored. This information is provided by RNS The company news service from the London Stock Exchange