Cerillion Regulatory News (CER)

15 Feb 2007 07:01

Celtic Resources Holdings PLC15 February 2007 FOR IMMEDIATE RELEASE 15 February 2007 Celtic Resources Holdings Plc Trading Update Celtic Resources ("Celtic"; ticker "CER") is pleased to provide an update on2006 gold production and recent events, in advance of its full year resultsexpected to be announced in May. • Total group gold production increased by 62% to 61,520 ounces (2005; 37,991 ounces) o Suzdal (100% owned) gold production increased by 152% to 51,785 ounces, which includes 2,552 ounces of gold inventory (2005; 20,585 ounces). The increase was due to greater plant availability following the commissioning of the new air supply system for the BIOX plant and overall improvements in plant operation; o Zherek (75% owned) gold production was 9,735 ounces (2005; 17,416 ounces), a 44% decrease due to lower grade oxide and transitional ores delivered to the heap. These will be depleted this year and studies are continuing on developing the underlying sulphide ores. • Total attributable gold production for 2006 was up 75% to 59,086 ounces (2005; 33,639 ounces) • Average realised gold sales price was US$609.21 per ounce • Eureka Mining plc, acquired in December 2006, has continued to develop in line with management expectations: o Shorskoye Molybdenum Deposit (50% owned) in Kazakhstan which, following commissioning in May 2006, produced 577,710 lbs of molybdenum in concentrate in 2006, of which 445,610 lbs has been sold for a total of US$7,900,676 and 132,100 lbs of molybdenum in concentrate has been stockpiled awaiting sale; o In late January 2007, Celtic announced a Joint Venture agreement with Anime Global Limited, a company associated with the ICT Group of companies for the development of the Miheevskoye Project. Polymetal Engineering, a wholly owned subsidiary of Polymetal, has been contracted to execute the plans of the JV and discussions regarding the strategy of the resource are continuing. Commenting on the results, Kevin Foo, Managing Director of Celtic Resourcessaid, "We are at last seeing our efforts at Suzdal bear fruit and a 150%increase in production to more than 50,000 ounces is satisfactory. We areseeking further group gold production increases in 2007. We also intend to makesignificant progress on the Miheevskoye and Tominskoye copper-gold projects andto increase production at the Shorskoye molybdenum project." For further information please contact: Kevin Foo / Jonathan Scott-Barrett Leesa Peters/ Laurence ReadKate Dexter-SmithCeltic Resources Holdings Plc Conduit PRTel: + 44 (0)20 7921 8800 Tel: +44 (0)20 7429 6600/ 0781 215 9885Investors@celticresources.com leesa@conduitpr.com Frank Moxon / Simon EdwardsEvolution Securities LimitedTel: +44 (0) 20 7071 4300www.celticresources.com This information is provided by RNS The company news service from the London Stock Exchange