Altyngold Regulatory News (ALTN)

30 Nov 2007 07:00

Hambledon Mining PLC30 November 2007 PRESS INFORMATION 30 November 2007 HAMBLEDON MINING PLC Production commences at Ognevka Hambledon Mining plc ("Hambledon" or the "Group" or the "Company"), theAIM-listed gold mining and processing company operating in Kazakhstan, ispleased to announce that production has started at its Ognevka treatment plant. After a period of commissioning, the plant was started on 26th November 2007and, following the resolution of some minor faults, full time treatment ofclinker commenced on 29th November 2007. The Ognevka processing plant isdesigned to produce concentrates containing gold, silver, copper, iron and cokefrom the re-treatment of zinc smelter residues. First indications are that the plant is operating as planned. The processingfacility is configured to treat up to 350,000 tonnes per year of copper, goldand silver-containing residues (sinter slag or "clinker") from the zincsmelters. The initially targeted rate of production will be 240,000 tonnes peryear while the optimum operating parameters are assessed. Initial production will involve the re-treatment of 150,000 tonnes of high gradetailings of previously treated clinker. Thereafter, clinker will be procuredfrom other companies that have large stockpiles, for which they currently payenvironmental penalties. At the expected metallurgical recoveries and currently available prices, therevenue from each tonne of clinker treated, including by-products, is expectedto be over $75. Toll-treatment options are being investigated which are likelyto improve this figure to around $125 per tonne, though, the increase would bepartly offset by the toll treatment charge. The flexibility of the plant also allows for the treatment of various otherfeedstocks, including feldspar tailings (recovery of saleable feldspar, lithiumand tantalum concentrates), pegmatite ores (tantalum, tin, mica and feldsparconcentrates) or other slag via gravity, magnetic separation or flotationmethodologies. Nick Bridgen, Chief Executive, commented: "The plant and related infrastructure at Ognevka have been stripped down andrefurbished from top to bottom in just five months: a very creditableachievement by the entirely local management. "Hambledon is now entering a new era of production and profitability which willbe enhanced when the Sekisovskoye gold mine commences production next month." Enquiries Hambledon Mining plcNicholas Bridgen, Chief Executive Telephone: +7 701 733 8915 +44 7791 327180 Bankside ConsultantsMichael Spriggs / Michael Padley Telephone: +4420 7367 8888 Seymour PierceNicola Marrin Telephone: +4420 7107 8018 Note to editors Hambledon Mining plc is an AIM-listed gold mining and exploration company whichis developing the Sekisovskoye gold deposit and owns the Ognevka processingplant, both of which are close to Ust Kamenogorsk in East Kazakhstan. At Sekisovskoye, the Company is mining from an open pit and constructing an850,000 tonnes per year treatment plant. Production from the open pit willaverage over 40,000 ounces per annum. After the start of open pit processing,the Company plans to develop the much larger underground resource that isexpected to lead to a combined production rate of around 100,000 ounces peryear. The Ognevka processing plant is producing concentrates containing gold, silver,copper, iron and coke from the re-treatment of zinc smelter residues. ENDS This information is provided by RNS The company news service from the London Stock Exchange