Altyngold Regulatory News (ALTN)

24 Nov 2005 07:01

Hambledon Mining PLC24 November 2005 HAMBLEDON MINING PLC Drilling results and project progress Hambledon Mining Plc ("Hambledon" or the "Company), an AIM-listed mining andexploration company developing precious metal deposits in Kazakhstan, announcesthe results from the recent drilling programme and other progress with theSekisovskoye project. Highlights: •Drilling results show significant extensions within open pit area •New zones identified in upper levels •New lower level resource statement adds 2.4% to resource (upper levels not yet updated for 2005 results) •Two new mineralised areas, Glinka and Krugliachka, being acquired •Environmental assessment for mill facility completed and submitted to the state Environmental Protection Department •Tailings location study and environmental assessment completed •Processing plant preliminary design completed; upgrading of access roads underway Nick Bridgen, Chief Executive of Hambledon Mining Plc, commented: "The very high rate of discovery at Sekisovskoye has continued. We are stillfinding more gold and we expect to increase our resources further with theadditional underground drilling that will be carried out over winter. Progress with the permitting process has been good and we are on track forproducing gold next year.In addition, we also expect to be granted the adjacent territories to Tserkovka,Glinka and Krugliachka, to add to our excellent expansion opportunities atSekisovskoye." 24th November 2005 ENQUIRIES: Hambledon Mining Plc Tel: 07791 327180Nicholas Bridgen, Chief Executive Bankside Consultants Tel: 0207 367 8888Michael Spriggs / Michael Padley 2005 Drilling Review The planned 2005 surface exploration diamond drilling programme for theSekisovskoye Project has been concluded and final assay results have beenreceived. Overall, 32 holes with an average depth of 115m and a maximum of 175mwere drilled to determine possible extensions to and continuity of themineralised zones and also for upgrading confidence levels by infill drilling.In all, 3,392 samples, representing over 3.3 linear kilometres of core, werefire assayed for gold with grades ranging from 0 to 90.4g/t. The highlight of the programme was represented by Drillhole GEO131 thatintersected 20m of Orezone 2 at a grade 3 times greater than expected at 9.26g/t, just 15m beneath the existing pit floor. Positive results from the extensiondrilling show that fringe areas of the deposit have additional potential bothalong the strike and dip. A small number of intersections, where drillhole spacing was too wide foraccurate modelling, showed lower grades than expected though additional goldzones continued to be found in this area. Geologically, this drilling wasimportant in helping to better define the breccia contact zones and wassuccessful in providing sufficient information for a complete update of Orezone2, situated to the north of the main deposit. The drilling was successful in locating additional gold zones. Exploration willbe continued by a new underground diamond drill rig which will shortly bedrilling from the 440m level, targeting both open pit and underground goldoccurrences. Specifically, a number of drillhole intersections are highlighted below toillustrate mineralisation trends identified from this year's drilling results: • GEO108, situated near the limiting breccia contact zone, intersected a possible dilation zone 33.7m wide from 31.5 to 65.2m at 2.37g/t. Although this drillhole intersected the up dip limit of Orezone 6, the drilled thickness was expected to be only 14m wide at a grade of 1.0g/t. As a result, the contained gold is 5.7 times greater than estimated. In the same hole, from 81.6 to 92.6m there is an unexpected 11m wide drilled intersection at 2.65g/t and is an up dip extension of Orezone 6 at depth. • GEO115 delineated an unexpected surface zone of mineralisation, from surface down to 13m at 1.25g/t, situated 12m northwest beyond Orezone 2. • GEO119, adjacent to GEO108, defined an up dip extension of Orezone 1.5, from 81.9m to 97.5m and representing 15.6m at 0.85g/t with a grade similar to estimated grades but twice the expected the thickness. • GEO126, situated in the south western area of the deposit, intersected 43m of Orezone 1.3 at 1.43g/t, from 39.6m to 82.6m,and here the thickness was only predicted to be 29m, though the mean sample grade is similar to the estimate. • GEO112 intersected the isolated Orezone 7, situated about 170m northwest along strike from the main deposit, and here the intersection was twice the thickness and twice the estimated grade for this zone, from 98.1m to 114.5m, 16.4m at 1.59g/t. Former Soviet underground exploration sampling also discovered gold in this area, as did some former Soviet drillholes. This hole illustrates very interesting potential for strike extensions to the mineralisation. • GEO118 intersections match the predicted grade and thickness of Orezone 6 at this point, being 41.2m at 0.9g/t from 54.8m to 96.0m and, although overall it is of relatively low grade, such mineralisation is ideal for open pit exploitation. • GEO117 intersected 7.4m at 5.1g/t centred at only 7m below surface, but restricted to faulted diorite beyond the breccia contact. It is expected that additional contact zones similar to this type of mineralisation will be found. Further planned exploration The company has purchased an Atlas Copco Diamec 252 underground drill rig toenable it to drill from the existing 440 (adit) level. Work to clean and preparethis level is nearing completion. Further drilling will take place from theexisting 320 level, 120m below surface, when the existing shaft has beenequipped. The successful results on extensions at Sekisovskoye have necessitated follow updrilling to determine their limits. This is planned for spring next year. New territories The Company has sought to expand the exploration base into nearby prospectswhich are similar to Sekisovskoye and may be treated in the same or expandedtreatment plant. Two further mineralised areas, Glinka and Krugliachka, coveringa combined area of approximately 10 square kilometres, have been identifiedand a formal application has received a positive response. Krugliachka lies 8 km to the northwest of Sekisovskoye and appears to have thepotential to be another deposit of the Sekisovskoye type, though exploration isat an early stage. Grab samples on surface of up to 5 g/t gold were discoveredby former Soviet geologists who concluded that the site was worthy of furtherexploration. They recommended trenching and shallow drilling in the hope ofdiscovering zones of secondary enrichment below the oxidised cap, similar to thehigh grade area of Sekisovksoye that was mined in Soviet times. Glinka lies some four kilometres to the north-east of Tserkovka where the localpopulation has mined kaolin clay. Samples taken from the kaolin pit wallsindicate the possible presence of payable gold-polymetalic mineralisation. The Company has been informed by the Ministry of Energy and Mineral Resourcesthat these areas can be considered to be part of the Sekisovskoye-Tserkovka oretrend and therefore will be granted as an extension of the Tserkovka areawithout a tender. We are now awaiting the formal grant. Resource statement As reported earlier, analysis of new drilling results and of previous Soviet erawork has indicated that a significant halo of lower grade material exists aroundthe previously modelled high grade zones. On 30 September 2005 we announced theresults of an analysis of this low grade resource occurring in the upper levels,potentially suitable for open pit mining. We have now completed a similarmodelling exercise for the lower levels, below the 250m elevation level (morethan 150m from surface). Whilst this material is subeconomic as a specifictarget for underground exploitation, in conjunction with the associatedhighergrade zones, such mineralisation could be economically mined usingcheaper, bulk mining techniques.. The marginal cost of mining this additionalwidth is likely to be low, meaning that quite low grade material may be asignificant contributor to profits. The revised resource statement, including the lower grade material, modelled toa cut off grade of 0.5 grammes per tonne, is shown below. No change has beenmade to the resource statement for the upper levels for which an update wasissued in June 2005 Resource statement JORC JORC Soviet Soviet Total Indicated Inferred C2 P1 Resource (ounces)Sekisovskoye 1,020,245 371,379 _ 1,400,000 2,791,624open-pit &underground Tserkovka _ _ 145,00 241,000 386,000Feodulikha Areas 4 & 5 _ _ _ 354,000 354,000 Total (ounces) 1,020,245 371,379 145,000 1,995,000 3,531,624 Troy oz = 31.10348g Silver included at a gold equivalent of 1:60 Open pit GeoMine Solutions (Johannesburg) have completed pit optimisation, mine designand ore scheduling to feasibility study standard. The results, based on thegeological model that was available at the time, have supported work donein-house and previously announced and have given the directors confidence in thework being carried out by TOO Sekisovskoye's local Kazakh open pit mine planningteam. The detailed plan will be further enhanced by drilling results alreadyreceived and by the underground drilling soon to be started. Permitting The Company already has permission in principle to build a process plant and tostart mining on a test basis. In order to do this, it has to submit a detaileddesign of the proposed facilities and mine plan for approval. The advantage ofthis is that construction can commence in advance of the much more onerous usualprocedure which will be carried out in parallel to enable full and sustainedproduction to take place in due course. The most important first step in the usual process is the submission of theTechnical-Economic Basis ("TEO"). This might be compared with a westernfeasibility study but must be prepared in a prescribed format and must beapproved by the relevant authorities. In the case of a mining project, it isnecessary to submit what is known as a "TEO Conditions" which is similar to thefinal TEO but is a preliminary step which includes a geological resourceestimate and financial models carried out at various cut-off grades. The purposeof this is to show that the correct mining parameters, such as cut-off gradesand minimum mining thicknesses, have been selected for the more detailed finalTEO. A separate TEO is required for mining, treatment plant, tailings dam andany other separable component, though the work undertaken for each of these isalso used in each of the others. The final TEO will then be submitted, includingthe final resource calculation prepared using the parameters agreed after theTEO Conditions submission. Sekisovskoye has itself obtained licences permitting it to prepare its owngeological and financial parts of the TEO and to carry out various explorationand production activities. Further licences will be acquired as the projectprogresses. The geological resource estimates have been prepared and a draft ofthe TEO Conditions has been completed. Initial discussions with the authoritieshave already begun. The final version of the environmental assessment for the milling facilities hasbeen issued and accepted by the Company. It has now been presented to the StateEnvironmental Protection Department for review along with the baseline studycompleted earlier in the year. Mill facilities and associated infrastructure Metallurgical optimisation and variability testing have now been completed inAustralia and are consistent with previous test data. The processing facilitypreliminary design has been completed using parameters obtained from the testand engineering work carried out in Kazakhstan and Australia but adapted tolocal regulatory requirements. Negotiations are underway with local designinstitutes to complete the final design which will carry on to construction. Upgrading of access roads will be completed this month. A large 1,350 squaremetre former school building has been purchased in Sekisovskoye village and isbeing renovated for use as offices and site storage. A grader, suitable for useas part of the open pit mining fleet, has been ordered early so that it can beused over winter for snow clearance purposes and preparation of the site forconstruction to commence in early 2006. A suitable second-hand but unused ball-mill has been located in the Ukraine andis being inspected by the Company's engineers. A contract is being negotiatedfor the purchase of a crushing plant which will be commissioned early to producematerial for construction purposes or for sale. An electrical transformer hasbeen installed to provide power for underground drilling and site construction. About Hambledon Mining plc Hambledon Mining plc is an AIM listed mining and exploration company which hasannounced the development of an open-pit project at its Sekisovskoye deposit inEast Kazakhstan, prior to the development of the much larger undergroundresources. Initial production from the open-pit is expected to be around 30,000- 35,000 ounces per annum, rising to around 100,000 ounces when the higher gradeunderground ore is processed. The Company also holds the rights to and is exploring the adjacent Tserkovkadeposit. Any ore from these areas will be treated in an expanded plant atSekisovskoye. This information is provided by RNS The company news service from the London Stock Exchange