Last checked at 22 Feb 2011 07:00
Hambledon Mining Plc
("Hambledon" or the "Company")
Underground Capital Costs
Hambledon announces indicative capital costs derived from the ongoing strategic review of the Sekisovskoye operations based on the planned increase in underground output from 500,000 tpa to 850,000 tpa.
Further to the announcement of 8 February 2011, Hambledon announces that the revised indicative capital requirement to establish the 850,000tpa underground project and to complete the initial mining phase in 2012 will be approximately US$31 million. This compares with the figure of US$22million for the 500,000 tpa underground project previously announced on 9 June 2008. The output from underground in 2012 is expected to be approximately 23,000 oz.
Upgrades to the surface infrastructure were outlined by the Company in the announcement on 10 January 2011 and costs of US$5.8million will be incurred during 2011 in relation to these.
The estimated costs of US$31 million include approximately US$5.5 million spent during 2010. The requirement in the current calendar year will be approximately US$7 million with the remaining cost being incurred in 2012 to complete the initial phase. The final cost for achieving the 850,000 tpa output from the underground project is subject to completion of technical studies (due to complete in Q3 2011) and further announcements will be made in due course.
The Sekisovskoye underground project design has not only been modified to increase output, but also to take advantage of lower operating costs by incorporating the additional benefits of shaft based ore and waste handling and paste backfill.
CEO Tim Daffern stated
'The modified underground development plan at Sekisovskoye integrates long term planning, cost reduction programmes, expanded annual gold production and a basis for technology application which well suited to the Kazakhstan mining culture. The underground project has been designed such that, following completion of the initial phase, the capital costs are incrementally paid for out of cash flow'
ENQUIRIES:
HAMBLEDON MINING:
Telephone +44 (0)207 233 1462
Charles Zorab
FAIRFAX I.S. PLC:
Nominated Adviser and Broker
Telephone +44 (0)207 598 5368
Katy Birkin/Ewan Leggat
Copyright Business Wire 2011