Altyngold Regulatory News (ALTN)

26 Apr 2006 07:01

Hambledon Mining PLC26 April 2006 HAMBLEDON MINING PLC Permit received for development of Sekisovskoye Project Update Hambledon Mining Plc ("Hambledon"), the AIM-listed mining and explorationcompany developing precious metal deposits in Kazakhstan, announces that theState Commission for Mineral Reserves of the Republic of Kazakhstan has approvedthe General Resource Estimate of reserves at the central zones of theSekisovskoye gold deposit, together with various associated mining parameters assubmitted by Hambledon's 100% owned subsidiary, TOO Sekisovskoye ("Company"). Highlights: •General Resource Estimate at Sekisovskoye has been approved by the State Commission for Mineral Reserves of the Republic of Kazakhstan •Underground drilling programme of more than 4,000m at Sekisovskoye completed - significant new mineralisation identified •Four 45 tonne BelAZ haul trucks delivered to mine site out of an eventual total of seven •Two Hitachi Zaxis 850H excavators en route from Vladivostok to the mine site; expected to arrive next week •Manufacture of crushers and related equipment substantially complete by Shenyang Sanland, China. Delivery expected in mid June •Ball mills under construction by JSC "Tjazhmash" in Syzran City, Russia, for delivery in early June •Renovation of 780 square metres of office, laboratory and kitchen facilities at Sekisovskoye now complete. Relocation of staff from Ust Kamenogorsk commenced •Recruitment of staff underway: more than 100 employees in place •On schedule to commence mining in June Nick Bridgen, Chief Executive of Hambledon Mining Plc, commented: "The preparation and submission of the General Resource Estimate involved amassive amount of work by our team of geologists over many months. We havereceived the approval much faster than we anticipated which shows that, if wefulfil our responsibilities, the authorities are very helpful in getting thingsdone quickly. This is a fundamental step and represents the most significant andtime consuming hurdle in the process by which mining operations in Kazakhstanare approved. "Following the raising of further equity finance in March, all the majorequipment items have now been ordered. Other progress has been excellent, thoughthe spotlight is now on how quickly the final detailed engineering work can becompleted and approved." 26th April 2006 ENQUIRIES: Hambledon Mining Plc Tel: +7 300 733 8915 Nicholas Bridgen, Chief Executive Bankside Consultants Tel: 0207 367 8888 Michael Spriggs / Michael Padley General Resource Estimate The Kazakhstan approval process requires that an estimate of resources besubmitted, together with mining, processing and other information, broadlyequivalent to a western style feasibility study, for approval by the StateCommission on Reserves. This estimate is reviewed by experts appointed byVosKazNedra, the appointed body in East Kazakhstan oblast, and by the Ministryof Energy and Mineral Resources. The effect of the approval is that theresources have been entered into the State Balance and allows the Company toprogress to the mining stage of the subsoil use contract. This is a fundamental step and represents the most significant and timeconsuming hurdle in the process by which mining operations in Kazakhstan areapproved. Further approvals will still be required, principally concerning theenvironmental impact, the tailings dam and detailed design. The approved resources of the central Sekisovskoye zones amount to 827,000ounces (gold equivalent) of which 482,000 ounces are in the category C1 and345,000 ounces are in category C2. The estimate is based on the geologicalinformation to hand at the date of submission and excludes the results of theunderground drilling programme that has just been completed. This approval does not affect the resources which the Company reports on aWestern JORC basis. Analysis of the results of recent drilling is ongoing and arevised open pit resource and reserve, on a Western JORC basis, will beannounced in due course. Underground drilling programme Over the winter period December to March the company completed a 4,000 metreunderground drilling programme from the existing 441 (adit) level of theSekisovskoye deposit. The purpose of the programme was to further define themineralisation at the deeper levels of the proposed open pit. All gold assayshave now been received and a new resource model of the open pit zone is beingprepared. Significant new mineralisation has been intercepted but the effect onthe overall open pit resource is not yet known. Equipment procurement Following the raising of further equity finance in March all the major equipmentitems have now been ordered. Four (out of an eventual total of seven) BelAZ 45tonne haul trucks have been delivered to the mine site and two Hitachi Zaxis850H (85 tonne) excavators are already in transit from Vladivostok by rail. Theexcavators are expected to arrive at the mine site in about a week and will beused for site preparation prior to the start-up of mining in June. The two mainball mills have been ordered from JSC "Tjazhmash" in Syzran City, Russia, withdelivery scheduled for early June. Shenyang Sanland, the Chinese manufacturersof the crushers and related equipment have notified the Company that theequipment is substantially complete and will be ready for despatch in May withexpected arrival on site in mid June. Engineering Following the earlier than expected approval of the General Resource Estimate,the critical path has now moved to completion of detailed engineering design.This work was originally intended to have been partly carried out in Perth,Australia, but delays due to the lack of availability of design engineers havecaused the Company to source more of the work locally. Good engineers have beenlocated but similar delays are now being experienced in Kazakhstan. The Projectdoes remain on schedule but firm completion dates have not yet been established. Mine planning Mine planning was previously undertaken on the basis of the former resourceestimates existing prior to the underground drilling programme. Updated mineplanning will begin on the basis of the new resource estimates now underpreparation as well as the current higher gold price. Office and laboratory facilities The company has acquired a disused building of 1,350 square metres (plusbasement) in the village of Sekisovka, about a kilometre from the mine site, foruse as offices, kitchen facilities and assay laboratory. Up to now, theCompany's employees have been housed in offices in Ust Kamenogorsk, 40 km fromthe mine site, with only a residential house for use as a site explorationoffice. The first stage of renovation, including the roof, services and 780square metres of office space, has been completed and the transfer of staff hasbegun. A separate wing of the building is to be prepared for use as a laboratoryfor assay of grade control samples during mining operations. Appropriateequipment for sample preparation and assaying has been ordered. Recruitment The company has been recruiting appropriate staff and workers to carry theproject forward into the operating phase. Since the beginning of 2005, thecomplement has moved from just 20 employees to the current level of over 100.Most senior positions have now been filled with well qualified and experiencedlocal personnel. The full complement is expected to total over 250. Note for editors' 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 40,000- 45,000 ounces per annum, rising to over 100,000 ounces when the higher gradeunderground ore is processed. The Company also holds the rights to and is exploring the adjacent Tserkovkadeposit and has been notified that it is to be awarded the nearby Glinka andKrugliachka areas. Any ore from these areas is expected to be treated in anexpanded plant at Sekisovskoye. ENDS This information is provided by RNS The company news service from the London Stock Exchange