HGM.L Regulatory News (HGM)

7 Jun 2007 12:11

Highland Gold Mining Limited07 June 2007 HIGHLAND GOLD ANNUAL GENERAL MEETING 7 June 2007 - Highland Gold Mining Limited ("Highland Gold", or the "Company")confirmed today at the Annual General Meeting of the Company that all theordinary resolutions were passed. The Company also provided an update on thedevelopment of some of its projects. Commenting on today's announcement, Henry Horne, Managing Director said: "Wehave made significant progress since December in a number of key areas.Following a wide ranging operational and technical audit MNV is now operatingwell and, at current levels, we anticipate strengthened production results forthe second half of the year leading to the achievement of our target for 2007 of160-170,000 ozs. The longer term result of the audit should produce a 10%increase in production year on year continuing into 2008 and 2009. Good progressis being made at Novo which is on schedule for start-up in 2H 2008. Someencouraging results are available from our drilling programme at Belaya Gora.The Mayskoye feasibility study will be available during the latter part of thisyear. Metallurgical test work at Taseevskoye is ongoing and we expect to be ableto announce our plans for Darasun in the near future." Mnogovershinnoye (MNV) On the completion earlier this year of a full operational and technical audit atMNV, well over 100 business critical initiatives aimed at increasing productionand decreasing costs have been identified. On a prioritised basis theimplementation of these initiatives has already started with positive results.This process will be on-going throughout 2007 with the top 62 initiatives (80%of the identified value) being implemented by year end. Improvements include the completion of the transfer of equipment from theDarasun mining complex to MNV as well as the deployment of new equipment for theunderground operation. As an interim result, mining recoveries and productivity have improved andstripping and ore mining in key development zones has been accelerated. Inaddition the transfer of equipment from Darasun has resulted in the cancellationof planned capital equipment orders in 2007 and allows the retirement ofobsolete and inefficient equipment. These initiatives will lead to significant operating flexibility, higherproduction and reduction in future operating costs. Novoshirokinskoye Since the joint venture agreement with Kazzinc was signed at the end of 2006,considerable progress has been made in the preparation for the start up of theNovoshirokinskoye Mine scheduled for 2H 2008, with development mining scheduledfor 4Q this year. These include: •approval obtained from the Federal Russian authorities to proceed with underground mine development •two separate general contractors have been engaged to complete the infrastructure construction •major components for the plant are already in place. Belaya Gora Significant progress has been made with the ongoing drilling programme at thetwo targets "Pologaya" and "Stockwork" which are being explored for abulk-mineable low-grade gold resource hosted in altered volcanic rocks.Exploration work includes: •a programme of 12,000m of drilling and selected trenching is on schedule and aimed at further delineating resources and defining average grades for the two target areas •at Pologaya, 42 shallow drill holes totalling 2,680m have been completed. All holes intersected strongly oxidised tuffs over an area of 400x300m. The majority of holes returned significant gold intersects indicating a tabular near-surface open pittable mineral resource with ore intervals average grade ranging from 2.0 to 9.3g/t •at Stockwork, 16 holes totalling 4,605m have been completed to date for which partial fire assays for 9 holes have been received. All drill holes intersected intermittent stockwork-type sulphide mineralisation which is oxidised to a depth of 50m from surface - most of these holes yielded significant gold intersects in the 1- 2g/t range over several tens of metres. For further informationplease contact: Henry Horne, Managing Director Dmitry Yakushkin, Director of Communications Moscow: + 7 (495) 777 3155 Dominic Palmer-Tomkinson, Head of Investor Relations London: +44 (0) 207851 6400 Or, WMC Communications, Alex Glover on +44 20 7930 9030 Or,JPMorgan Cazenove (Nominated Adviser) Michael Wentworth-Stanley +44 20 7588 2828 This information is provided by RNS The company news service from the London Stock Exchange