Altyngold Regulatory News (ALTN)

10 Jan 2011 10:33

Hambledon Mining Plc

("Hambledon" or "the Company")

10 January 2011

The issuer advises that the following replaces the announcement No. 0109005025 made today at 07.00 which incorrectly stated some of the figures in the table of production. Given below is the full text of the corrected announcement.

The Company reports its production for the three months from 1 October 2010 to 31 December 2010.

PROCESSING

The 4th quarter of 2010 consolidated the performance of the Sekisovskoye operation as the metallurgical plant achieved good production and sustained higher levels of gold recovery. Mining activities were primarily from the main open pit, with modest amounts of ore extracted from the north pit. The phase 1 refurbishment of the two main hydraulic excavators was undertaken during the quarter, matched to ore inventory levels, so that production from the open pit mine was not hampered.

The performance of the metallurgical plant has been improved with recovery levels averaging 84.7% for Q4, and YTD 83% for gold, and for silver 86% in Q4, and 84% YTD. Work is ongoing to improve the grinding of the ore prior to cyanidation and to improve the dissolved oxygen levels in the cyanide circuit. With this we aim to improve plant recovery to a sustainable 85%-90% recovery of both gold and silver. GBM Minerals Engineering Consultants Ltd.,London, have been engaged to assist with the plant optimisation programme. The mined gold grade at Sekisovskoye remains erratic and is predicted to remain volatile until the open pit mine is deepened further.

Phase 1 winterisation of the crushing and screening plant was completed prior to the onset of the harsh winter period. This infrastructure has helped to mitigate the impact of the cold weather on plant operations. Phase 2 winterisation, combined with upgrading of the surface infrastructure will be undertaken in 2011, in conjunction with construction works associated with the underground mine project.

The cold continental climate is predicted to be harsh in Q1 2011 and whilst the Sekisovskoye operation has remedied the most sensitive components of the surface infrastructure, gold output is budgeted to be less during this winter period.

UNDERGROUND

Development of the underground infrastructure and access tunnels is progressing well, and on schedule to extract ore in December 2011. To date, the infrastructure installed includes electrical substations, dewatering stations, explosives magazines and electrical reticulation for ventilation and construction equipment. The tunneling contractor continues to achieve its driveage targets and maintain a good safety record.

The diamond drilling programme to delineate the resources for the underground mine has commenced. A programme of some 25,000 meters is planned, which will be completed during the second half of 2011. The information from the drilling and sampling will validate the Soviet resource statement, allow detailed mine planning and extraction scheduling as well as upgrade a portion of the resources from inferred to JORC Measured and Indicated. A revised mineral resource and ore reserve statement will be prepared in Q1 2011 reflecting the increased geological knowledge.

Engineering and mine design studies undertaken by consultants AMC of Australia have been completed and additional studies by Golders Associates UK are now focused on the detailed engineering studies relating to the operational design and strata control aspects of the underground operation.

The project will be using a combination of contract mining services and the Company's own resources to further develop the underground operations at Sekisovskoye.

INFRASTRUCTURE

A review of the Life of Mine project cost base (Open Pit and Underground) has highlighted that to meet long term security of electrical supply, lowest process waste capital and unit costs, maintenance of environmental compliance and a continuation of the low social and environmental impact of the operation; upgrading of the surface infrastructure is required. These works will take place in 2011 in order that the underground project development and construction works can be carried out symbiotically and at lowest construction cost.

GBM Minerals have been engaged to undertake various studies and provide site based staff to assist in the development of the mineral process plant and surface infrastructure. Golders Associates UK have been engaged to integrate the design of the process plant waste handling facility with the underground backfill and strata control plant and machinery.

ENQUIRIES:

HAMBLEDON MINING:

Telephone +44 (0)207 233 1462

Charles Zorab

FAIRFAX I.S. PLC:

Telephone +44 (0)207 598 5368

Ewan Leggat

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