AVM.L Regulatory News (AVM)

24 Oct 2006 07:01

Avocet Mining PLC24 October 2006 AVOCET UPGRADES RESOURCE AT PENJOM, MALAYSIA Avocet Mining PLC ("Avocet" or "the Company") is pleased to announce continuedgrowth of the gold resource at its wholly owned Penjom gold mine in Malaysia.Following the updating of the resource model, using grade data and geologicalcontrols on mineralisation, revised resources are estimated to be at anhistorical high of in excess of one million ounces of gold. This includes drilldata from the latest drilling programme, as previously announced on 11 October2006. This work has produced total Measured, Indicated and Inferred resources of 9.02million tonnes with a grade of 3.53 g/t, above the economic cut-off of 0.8 g/tAu used at the mine, for a total resource of 1,024,400 ounces includingstockpiles. This includes Inferred resources of 3.15 million tonnes grading 3.93g/t Au and containing 397,500 ounces of gold. These resources are classifiedaccording to the definitions outlined in the JORC Code of 2004 (AustralasianJoint Ore Reserves Committee). The model is based on the topographic surface atthe end of September 2006. The table below summarises the distribution ofresources by category. Tonnes Grade Attributable (millions) (g/t Au) Ounces (1)Measured 1.27 3.87 158,300Indicated 3.39 3.60 390,800Stockpiles 1.23 1.97 77,800Measured + Indicated 5.88 3.32 626,900Inferred 3.15 3.93 397,500Total (30 September 2006) 9.02 3.53 1,024,400Depletion 0.27 6.17 54,000Resource (31 March 2006) 7.40 3.94 937,100Change 1.89 (0.41) 141,300 (1) The Company owns 100% of Avocet Gold Limited, the owner of the Penjom mine The resource has expanded in the Manik-Janik area south of the main Kalampongpit and at depth below this pit. Mine production is expected to continueout-performing resource estimates in terms of grade and ounces due to the natureof the orebody. Discrete veins hosting nuggetty gold are difficult to sample inexploration drill holes. Consequently, mining in these areas should deliverhigher grades than modelled to the mill, which is consistent with theperformance of the ore body over the last ten years. Any low grademineralisation will be stockpiled for processing at a later date. The updated Penjom resource represents an increase of 141,300 ounces, afterdepletion, or 15% on that reported in the 2006 annual report. This resource doesnot include Buffalo Reef, a wholly owned project located to the west of Penjom.The Company is revising the resource estimate in light of recent geologicalmodelling. An updated resource for Buffalo Reef will be announced in duecourse. Avocet is currently conducting an open pit optimisation review at Penjom usingcurrent costs and revenue parameters. The resulting optimal pit will form thebasis of a designed pit and the reporting of Proven and Probable reserves. TheCompany plans to finalise this work and report the reserves by December 2006. Jonathan Henry, Chief Executive Officer, commented: "Penjom continues to exceed our expectations. The resource at Penjom has grownmore than 100% over the last four years. We anticipate further drilling willcontinue to add value and look forward to announcing a revised and extended minelife from the most recent phase of drilling". Avocet also confirms that it will be announcing its results for the six monthperiod to 30 September 2006 on Wednesday 15 November 2006. A group analystmeeting will take place at 9.30am on the day of the results at the offices ofBuchanan Communications, 45 Moorfields, London EC2Y 9AE. All references to resources and exploration results have been approved forrelease by Mr Peter Flindell, BSc (Hons) MAusIMM, Chief Geologist for Avocet,who has more than 20 years experience in the field of activity concerned and isa Competent Person as defined by the JORC Code (2004). He has consented to theinclusion of the material in the form and context in which it appears. ________________________________________________________________________________ For further information please contact: Avocet Mining PLC Buchanan CommunicationsJonathan Henry (Chief Executive) Bobby Morse, Director020 7907 9000 Ben Willey, Associate Directorwww.avocet.co.uk Tel: 020 7466 5000 www.buchanan.uk.com Notes to Editors Avocet is a mining company listed on the AIM market of the London Stock Exchange(Ticker: AVM). The Company's principal activities are gold mining andexploration in Malaysia (as 100% owner of the Penjom mine, the country's largestgold producer), Tajikistan (as 75% owner and operator of ZGC, Tajikistan'sprincipal gold mine), and Indonesia (as 80% owner of the North Lanut gold minein North Sulawesi). The Company has a number of advanced mining and explorationprojects in Asia and owns 26% of Dynasty Gold Corporation, a Canadian listedexploration company active in Western China. This information is provided by RNS The company news service from the London Stock Exchange