AVM.L Regulatory News (AVM)

6 Jul 2005 07:00

Avocet Mining PLC06 July 2005 Avocet Mining PLC7th Floor 9 Berkeley StreetLondon W1J 8DWTel +44 (0) 20 7907 9000Fax +44 (0) 20 7907 9019E-mail avocetmining@avocet.co.ukwww.avocet.co.uk 6 July 2005 Avocet Mining Plc ("Avocet" or "the Company") CONTINUED SIGNIFICANT DRILL INTERCEPTS POINT TO ADDITIONAL EXPANSION OF THE RESOURCE BASE AT PENJOM, MALAYSIA Avocet Mining is pleased to announce continued significant drilling results fromits wholly owned Penjom gold mine in Malaysia. In December 2004 we announced a 27% increase in Penjom's gold resources. Thisfollowed a successful infill drilling campaign designed to improve ourconfidence in the mine's resource model which led to an interim increase in openpit reserves. This programme also improved our understanding of the geologicalcontrols on the deeper parts of Penjom's ore bodies and of the potential forexpanding open pit mining with the possibility of an underground operation.Underground mining was shown to be viable with the completion in March 2005 ofthe E-Drive into the east wall of the main Kalampong pit which also facilitatedthe exploration of areas difficult to drill from surface. Since the December 2004 announcement we have conducted an additional 21,943metres of reverse circulation drilling up to the end of May 2005. This has beendesigned to evaluate extensions to the open pit reserve beneath the central andnorthern portions of the current Kalampong pit. This drill programme is ongoingand is expected to be completed in August this year. Drilling has identified several high-grade zones of mineralisation controlled byNS- and NW-striking faults beneath the Penjom Thrust. Table 1 summarises theresults, above 20 gram metres, from this drilling programme that lie up to 100metres below the current pit design. These include 4m at 45.6 g/t Au, 6m at 38.8g/t Au, 3m at 56.9 g/t Au and 6m at 25.7 g/t Au (reported using a top cut of 100g/t Au). Table 2 summarises the better drilling intercepts, above 20 gram metres, withinthe current pit design. These results continue the trend of the last two yearswhere additional drilling has shown higher grades than modeled. These include 9mat 37.8 g/t Au, 7m at 32.4 g/t Au, 9m at 18.1 g/t Au and 11m at 12.8 g/t Au(reported using a top cut of 100 g/t Au). We anticipate that the current drilling programme will result in a significantexpansion to the resource and open pit reserve at Penjom which we hope toconfirm during the second half of 2005. It is worth noting that the Company hasincreased Penjom's resources by 367,100 ounces and its reserves by 245,300ounces since the commencement of the first comprehensive exploration programmetwo years ago and thereby replaced production during that period. This equatesto a 54 per cent increase in resources and a 58 per cent increase in thelife-of-mine production schedule since 31 March 2003, when there was 423,650ounces still to be mined. It also highlights the large portion of resourceincreases converted to reserves for future gold production. The Company has also been reviewing the gold resources at its 100 per cent ownedBuffalo Reef prospect, approximately 40km from Penjom. Table 3 summarises thesignificant intercepts from a 3,223-metre drill programme conducted in the firstquarter of 2005. These include: 12m at 5.19 g/t Au, 10m at 4.67 g/t Au, 8m at4.94 g/t Au and 3m at 10.6 g/t Au. The primary objective of this drilling was tocollect bulk samples of primary ore for metallurgical test work. This test workis ongoing. Elsewhere in Malaysia, district and regional scale exploration has been ongoingsince the second half of 2004 with a review of large-scale geochemical,geophysical, geological and remote-sensed databases. The Company has nowidentified several promising targets and conducted preliminary exploration atthe most prospective. This has resulted in the discovery of one new deposit withup to 3.73 g/t Au in quartz veins over an extensive area and the flagging offive other properties worthy of further exploration. It also highlights theprospectivity of peninsular Malaysia. Avocet is a mining company listed on the AIM market of the London StockExchange. The Company's principal activities are gold mining and exploration inMalaysia (as 100% owner of the Penjom mine, the country's largest goldproducer), Tajikistan (as 75% owner of JV Zeravshan LLC, Tajikistan's principalgold mining company), and Indonesia (as 80% owner of the North Lanut mine inNorth Sulawesi). The Company will be announcing its preliminary results for theyear ended 31 March 2005 on 13 July 2005.________________________________________________________________________________ For further information please contact: Avocet Mining PLC John Catchpole (Chief Executive)Jonathan Henry (Finance Director)020 7907 9000www.avocet.co.uk Table 1: Recent significant drillhole intersections beneath the current design pit at Penjom Hole From To Length Grade Grade Hole From To Length Grade Grade ID (m) (m) (m) (g/t (g/t ID (m) (m) (m) (g/t (g/t Au) Au Au Au cut) cut) cut) KEP108 41.0 44.0 3.0 12.3 12.3 KEP336 81.0 83.0 2.0 47.8 47.8 and 45.0 47.0 2.0 10.8 10.8 incl 81.0 82.0 1.0 93.0 93.0 KEP109 64.0 65.0 1.0 144 100 KEP339 135.0 137.0 2.0 25.4 25.7 KEP158 67.0 69.0 2.0 43.7 43.7 incl 135.0 136.0 1.0 50.4 50.4 KEP172 72.0 74.0 2.0 42.3 42.3 and 149.0 151.0 2.0 11.7 11.7 incl 73.0 74.0 1.0 83.2 83.2 KEP339 150.0 151.0 1.0 21.7 21.7 KEP180 45.0 47.0 2.0 14.1 14.1 KEP340 157.0 160.0 3.0 17.0 17.0 incl 45.0 46.0 1.0 26.9 26.9 incl 157.0 158.0 1.0 42.7 42.7 KEP206 90.0 92.0 2.0 33.3 33.3 and 162.0 164.0 2.0 11.2 11.2 KEP212 98.0 100.0 2.0 38.6 38.6 KEP342 78.0 80.0 2.0 39.7 39.7 incl 98.0 99.0 1.0 73.9 73.9 incl 79.0 80.0 1.0 77.1 77.1 KEP221 136.0 140.0 4.0 5.68 5.68 and 81.0 85.0 4.0 5.34 5.34 KEP222 114.0 120.0 6.0 4.88 4.88 and 112.0 115.0 3.0 13.9 13.9 KEP227 119.0 120.0 1.0 20.7 20.7 incl 112.0 113.0 1.0 35.2 35.2 KEP230 166.0 168.0 2.0 38.5 38.5 and 127.0 132.0 5.0 11.7 11.7 and 177.0 186.0 9.0 3.81 3.81 incl 130.0 131.0 1.0 30.1 30.1 incl 184.0 186.0 2.0 10.8 10.8 KEP347 107.0 108.0 1.0 88.7 88.7 KEP243 29.0 31.0 2.0 17.0 17.0 KEP348 91.0 93.0 2.0 11.6 11.5 KEP254 18.0 20.0 2.0 13.6 13.6 KEP354 49.0 53.0 4.0 7.79 7.79 incl 18.0 19.0 1.0 25.0 25.0 KEP357 21.0 23.0 2.0 84.4 51.0 KEP263 41.0 46.0 5.0 9.61 9.61 incl 21.0 22.0 1.0 164 100 incl 44.0 46.0 2.0 15.2 15.2 KEP358 20.0 22.0 2.0 10.9 10.8 and 70.0 74.0 4.0 5.59 5.59 KEP362 56.0 66.0 10.0 4.71 4.71 KEP264 50.0 52.0 2.0 23.6 23.6 KEP375 78.0 80.0 2.0 14.8 14.8 KEP265 61.0 64.0 3.0 8.83 8.83 KEP393 39.0 48.0 9.0 7.28 7.28 and 68.0 70.0 2.0 10.4 10.4 KEP395 56.0 60.0 4.0 174 45.6 KEP275 52.0 54.0 2.0 41.7 41.7 KEP404 44.0 45.0 1.0 22.7 22.7 incl 52.0 53.0 1.0 82.3 82.3 KEP412 5.0 6.0 1.0 65.9 65.9 KEP276 59.0 63.0 4.0 7.70 7.70 KEP415 153.0 154.0 1.0 80.8 80.7 incl 60.0 61.0 1.0 26.9 26.9 and 163.0 166.0 3.0 16.4 16.4 KEP279 38.0 40.0 2.0 18.6 18.6 incl 164.0 165.0 1.0 43.3 43.3 incl 38.0 39.0 1.0 35.8 35.8 KEP421 31.0 37.0 6.0 25.7 25.7 KEP296 30.0 33.0 3.0 15.8 15.1 incl 32.0 33.0 1.0 88.7 88.7 KEP297 29.0 33.0 4.0 5.05 5.1 incl 33.0 35.0 2.0 27.0 27.0 KEP300 30.0 36.0 6.0 5.26 5.3 KEP422 24.0 28.0 4.0 21.5 21.5 and 100.0 101.0 1.0 119 100 incl 24.0 25.0 1.0 71.9 71.9 KEP305 75.0 80.0 5.0 4.39 4.39 and 129.0 132.0 3.0 24.4 24.4 KEP307 94.0 95.0 1.0 114 100 incl 131.0 132.0 1.0 60.6 60.6 and 96.0 99.0 3.0 60.9 56.9 KEP423 129.0 134.0 5.0 4.91 4.91 KEP308 76.0 77.0 1.0 20.5 20.5 KEP427 103.0 105.0 2.0 26.6 26.6 and 78.0 80.0 2.0 24.9 24.9 and 117.0 122.0 5.0 14.0 14.0 KEP309 40.0 45.0 5.0 13.1 13.1 incl 118.0 121.0 3.0 22.5 22.5 incl 41.0 42.0 1.0 60.6 60.6 KEP428 51.0 52.0 1.0 26.2 26.2 KEP311 117.0 121.0 4.0 10.8 10.8 and 92.0 102.0 10.0 6.92 6.92 incl 118.0 120.0 2.0 17.8 17.8 incl 95.0 96.0 1.0 27.4 27.4 KEP317 155.0 157.0 2.0 10.1 10.1 and 103.0 113.0 10.0 7.61 7.61 KEP318 149.0 153.0 4.0 8.10 8.07 incl 104.0 107.0 3.0 12.7 12.7 and 154.0 157.0 3.0 12.9 12.9 incl 108.0 110.0 2.0 12.5 12.5 incl 155.0 156.0 1.0 23.6 23.6 KEP430 38.0 46.0 8.0 7.35 7.35 KEP319 74.0 76.0 2.0 35.5 35.4 incl 42.0 44.0 2.0 20.0 20.0 KEP320 171.0 173.0 2.0 80.9 50.8 KEP431 38.0 41.0 3.0 47.3 36.4 incl 171.0 172.0 1.0 160 100 incl 39.0 40.0 1.0 133 100 KEP321 45.0 51.0 6.0 7.92 7.92 and 44.0 47.0 3.0 7.25 7.25 incl 46.0 49.0 3.0 12.7 12.7 KEP433 67.0 68.0 1.0 20.7 20.7 KEP322 58.0 66.0 8.0 4.74 4.74 KEP435 129.0 130.0 1.0 46.0 46.0 KEP323 79.0 82.0 3.0 13.4 13.4 KEP455 48.0 51.0 3.0 12.8 12.8 KEP324 46.0 49.0 3.0 27.4 27.4 KEP462 72.0 78.0 6.0 42.7 38.8 incl 47.0 48.0 1.0 72.9 72.9 incl 72.0 74.0 2.0 34.3 34.3 KEP332 105.0 111.0 6.0 17.5 17.8 incl 75.0 77.0 2.0 18.4 76.8 incl 108.0 109.0 1.0 55.1 55.1 KEP464 97.0 100.0 3.0 6.96 6.96 KEP333 96.0 99.0 3.0 7.17 7.17 KEP467 38.0 42.0 4.0 34.3 28.0 and 129.0 136.0 7.0 4.19 4.19 incl 38.0 39.0 1.0 125 100 KEP334 26.0 28.0 2.0 10.1 10.1 and 59.0 65.0 6.0 6.72 6.72 and 40.0 42.0 2.0 17.0 17.0 KEP468 48.0 55.0 7.0 6.09 6.09 incl 41.0 42.0 1.0 32.5 32.5 and 60.0 65.0 5.0 11.90 11.9 and 57.0 58.0 1.0 34.1 34.1 incl 60.0 61.0 1.0 29.6 29.6 KEP335 48.0 52.0 4.0 7.33 7.33 KEP469 20.0 21.0 1.0 33.60 33.6 incl 48.0 49.0 1.0 20.50 20.5 KNP037 79.0 80.0 1.0 37.90 37.9 Table 2: Recent significant drillhole intersections within the current design pit at Penjom Hole From To Length Grade Grade Hole From To Length Grade Grade ID (m) (m) (m) (g/t Au (g/t Au ID (m) (m) (m) (g/t (g/t cut) cut) Au Au cut) cut) KEP101 17.0 20.0 3.0 45.1 45.1 KEP312 4.0 11.0 7.0 4.03 4.03 incl 17.0 23.0 6.0 23.6 23.6 KEP324 4.0 5.0 1.0 20.3 20.3 and 24.0 25.0 1.0 53.9 53.9 KEP325 4.0 9.0 5.0 17.1 17.1 incl 24.0 29.0 5.0 12.0 12.0 incl 7.0 8.0 1.0 45.5 45.5 KEP106 7.0 10.0 3.0 8.50 8.50 KEP328 14.0 18.0 4.0 24.8 24.8 KEP108 15.0 17.0 2.0 64.5 64.5 incl 14.0 16.0 2.0 47.8 47.8 incl 15.0 22.0 7.0 19.9 19.9 KEP332 0.0 2.0 2.0 20.6 10.6 KEP159 48.0 49.0 1.0 39.4 39.4 incl 0.0 1.0 1.0 38.1 38.1 KEP179 1.0 4.0 3.0 20.1 20.1 KEP332 5.0 11.0 6.0 3.62 3.62 KEP180 0.0 11.0 11.0 12.8 12.8 KEP333 14.0 21.0 7.0 4.07 4.07 incl 0.0 4.0 4.0 22.2 22.2 KEP334 9.0 11.0 2.0 12.8 12.8 incl 5.0 7.0 2.0 18.7 18.7 incl 9.0 10.0 1.0 21.7 21.7 KEP209 2.0 10.0 8.0 6.82 6.82 KEP336 16.0 20.0 4.0 7.26 7.26 incl 6.0 7.0 1.0 26.8 26.8 KEP353 30.0 34.0 4.0 9.08 9.08 KEP213 9.0 10.0 1.0 23.3 23.3 incl 32.0 33.0 1.0 24.8 24.8 KEP219 90.0 96.0 6.0 7.63 7.63 KEP354 27.0 30.0 3.0 28.0 28.0 incl 91.0 93.0 2.0 19.8 19.8 and 37.0 46.0 9.0 18.1 18.1 KEP229 0.0 1.0 1.0 21.3 21.3 KEP355 0.0 7.0 7.0 46.3 32.4 and 5.0 9.0 4.0 8.73 8.73 KEP359 0.0 8.0 8.0 7.22 7.22 and 31.0 38.0 7.0 6.07 6.07 KEP361 17.0 24.0 7.0 31.0 26.0 incl 35.0 36.0 1.0 28.8 28.8 KEP401 47.0 53.0 6.0 4.88 4.90 KEP232 29.0 30.0 1.0 60.9 60.9 incl 47.0 48.0 1.0 19.5 19.5 and 31.0 35.0 4.0 41.1 41.1 KEP408 59.0 63.0 4.0 5.68 5.68 KEP235 7.0 15.0 8.0 7.45 7.45 and 74.0 77.0 3.0 9.30 9.30 incl 7.0 9.0 2.0 20.7 20.7 incl 76.0 77.0 1.0 26.0 26.0 KEP249 7.0 9.0 2.0 30.4 30.4 KEP415 4.0 8.0 4.0 10.6 10.6 incl 7.0 8.0 1.0 60.0 60.0 incl 6.0 7.0 1.0 33.5 33.5 KEP256 0.0 2.0 2.0 15.8 15.8 KEP416 7.0 11.0 4.0 6.10 6.10 incl 0.0 1.0 1.0 27.9 27.9 KEP423 5.0 9.0 4.0 28.6 28.6 KEP263 36.0 38.0 2.0 11.7 11.7 incl 6.0 7.0 1.0 87.0 87.0 KEP264 24.0 33.0 9.0 192 37.8 KEP427 12.0 15.0 3.0 16.6 16.6 incl 24.0 30.0 6.0 287 56.0 KEP428 17.0 21.0 4.0 11.0 11.0 KEP264 28.0 29.0 1.0 1345 100 incl 19.0 20.0 1.0 32.5 32.5 KEP267 24.0 28.0 4.0 17.6 17.6 KEP430 16.0 19.0 3.0 51.6 51.6 incl 25.0 27.0 2.0 32.3 32.3 incl 17.0 19.0 2.0 74.7 74.7 KEP268 21.0 30.0 9.0 33.8 17.0 KEP435 5.0 8.0 3.0 11.6 11.6 incl 22.0 23.0 1.0 29.1 29.1 incl 5.0 6.0 1.0 24.0 24.0 KEP268 25.0 26.0 1.0 252 100 KEP436 0.0 2.0 2.0 23.3 23.3 and 33.0 38.0 5.0 10.4 10.4 incl 0.0 1.0 1.0 37.4 37.4 KEP268 37.0 38.0 1.0 46.7 46.7 and 9.0 10.0 1.0 30.5 30.5 KEP272 3.0 10.0 7.0 10.60 10.6 KEP466 0.0 2.0 2.0 25.4 25.4 incl 3.0 5.0 2.0 26.4 26.4 KEP474 29.0 36.0 7.0 3.87 3.87 Table 3: Recent significant drillhole intersections from Buffalo Reef Hole From To Length Grade ID (m) (m) (m) (g/t Au) BRP004 15.0 18.0 3.0 3.53 BRP005 44.0 55.0 11.0 2.83 BRP012 3.0 10.0 7.0 2.97 and 34.0 39.0 5.0 2.20 and 49.0 57.0 8.0 4.94 BRP015 96.0 99.0 3.0 10.6 incl 97.0 98.0 1.0 22.4 BRP017 29.0 30.0 1.0 10.4 and 76.0 86.0 10.0 4.67 BRP019 46.0 52.0 6.0 2.28 and 54.0 61.0 7.0 3.68 BRP020 54.0 66.0 12.0 5.19 BRP027 21.0 24.0 3.0 4.34 This information is provided by RNS The company news service from the London Stock Exchange