Altyngold Regulatory News (ALTN)

19 Feb 2008 12:31

Hambledon Mining PLC19 February 2008 HAMBLEDON MINING PLC (AIM: HMB) Boiler accident at Sekisovskoye - update Hambledon Mining plc ("Hambledon" or the "Group" or the "Company"), theAIM-listed gold mining and processing company operating in Kazakhstan, announcesthat the investigation into the boiler accident at the process plant of its goldmine at Sekisovskoye on 12 February 2008 is ongoing and is likely to becompleted in the next few days. The boiler in use was the same as those used for the same purpose in severalother mining companies' gold plants in Kazakhstan and the cause of the accidentis still unclear. The damage to the processing facility was relatively minor and can be rectifiedby maintenance crews whilst a replacement boiler is procured. A suitable boilerhas been located in Russia and could, if necessary, be air-freighted toSekisovskoye, though preference will be given to a local supplier. The order fora new boiler will only be placed once the result of the investigation is knownso that any lessons learned or recommendations arising from it can be followed.Once the inquiry is completed and orders can be placed, it is expected that theplant could be closed for up to a further five weeks. This period could bereduced if a suitable boiler can be sourced locally. Prior to the accident, operations had been progressing well. Metallurgicalrecovery had reached 85% and would have been expected to reach the design levelof 92% upon the commissioning of the Falcon gravity concentrator, which wasready and waiting for the Falcon commissioning engineers to arrive. During the shut-down, the workforce have been redirected to other site-work andrectification of the remaining crusher problems with the intention that theplant will operate at design capacity when it restarts. Nick Bridgen, Chief Executive, commented: "Our thoughts and sympathy are with the family of the operator who wastragically killed. We have always made it our priority to make sure that theplant is safe and will do everything in our power to ensure that no accidentlike this happens again." Enquiries Hambledon Mining plc Telephone: +44 7791 327 180Nick Bridgen Bankside ConsultantsMichael Padley Telephone: +44 20 7367 8888 Seymour PierceNicola Marrin Telephone: +44 20 7107 8000 Note to editors Hambledon Mining plc is an AIM-listed gold mining and exploration company, whichis operating the Sekisovskoye gold mine and the Ognevka processing plant, bothof which are close to Ust Kamenogorsk in East Kazakhstan. At Sekisovskoye, the Company is mining from an open pit and has constructed 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. This information is provided by RNS The company news service from the London Stock Exchange