HGM.L Regulatory News (HGM)

30 Jan 2008 12:30

Highland Gold Mining Limited30 January 2008 Highland Gold Mining Limited 30 January 2008 Progress Made at Three Highland Gold Mining limitedExploration Properties Highland Gold Mining Limited ("Highland Gold", or the "Company") is pleased toannounce that exploration results from 3 of its exploration properties which arein advanced stage of work indicate strong development potentials. At Belaya Gora, a total of 13,000 metres of diamond drilling have been completedin 2007 at the two targets Pologaya and Stockwork. Assay results received todate are in line with our previous expectations and corroborate the property'sresource potential which is estimated to be within the C1+C2 Russian reservecategory at 22 million tonnes grading 1.68 g/t of gold. Resource delineationdrilling is now continuing at Stockwork with an additional 7,500 metres plannedto be completed by mid-year 2008. Metallurgical testing on two 300kg bulksamples from both targets is also in progress and preliminary results point tohigh recovery rates by gravitation alone. A pre-feasibility report including acut-off grade study and a report with reserves calculation is being compiled andwill be submitted for state approval by year-end 2008 as set out in the licenseagreement. At the Lyubov property in the Chita region, the 2007 exploration programmefocused on two targets, the Lyubov gold trend in the south and the Khaverga orefield in the north of the license area. At the Lyubov gold trend our drilltesting programme identified a stockwork-type mineralization within the Evgrafzone which hosts a potential resource of (C1+C2) + P2 category of 28 milliontonnes grading 1.5 g/t of gold, based on drilling results from previousexplorers and our own results to date. In 2008 an additional 9,500 metres ofdiamond drilling is planned on the Evgraf zone and its western extension inorder to delineate the zone's overall resource potential estimated at 4-5 Moz.of gold (C1+C2+P1). At the Khaverga ore field the analysis of our 2007 geochemical soil-samplingsurvey revealed a 4 km long and 1.5 km wide zone ofdistinct gold anomalies with high gold grades of 0.03-8.0 g/t occurring withinunconsolidated sediments. The geochemical anomalies spatially coincide with avery favourable geological setting marked by a regional fracture zone which wasidentified also during our geophysical survey work in the area. The Companyconsiders that the mineral resource potential of the Khaverga could becomparable to that of the Lyubov trend. A trenching and sampling programme isplanned for 2008 to delineate targets for follow-up drilling. In 2007 the Company completed the preliminary stage of geological exploration atits Unkurtash project in Kyrgyzstan and the adjoining Sarytube and Karytubeprospects. Based on these results the overall resource potential has beenestimated and the type and volume of future exploration works formulated in anew "Exploration Project" as per the regulatory requirement. Accordingly, awidespread gold mineralization occurs in parallel zones of steeply dippingstockworks which form an elongated belt 4,000m long and 250-500 metres wide witha vertical extent of at least 350 metres. Extrapolating from the most exploredareas, results of our own and previous works indicate a total resource potential(C1+C2+P1) for the exploration properties of 200 million tonnes grading 1.5 g/tof gold. The 2008 exploration programme allocates 12,000 metres of drilling forpotentially delineating resources of 60 tonnes of gold of C1+C2 category and 120tonnes of P1 category. Mr. Werner Klemens, Director Exploration at Highland Gold has reviewed andverified the information contained in this release. Mr. Klemens holds a Ph.D. inGeology from the University of Toronto. He has 11 years of experience in mineralexploration and is fellow of the Geological Association of Canada. - A rigorousquality assurance programme complying to international standards is in effect atall exploration projects and includes duplicate sampling, insertion of standardsand check assaying at external laboratories. Commenting on today's announcement, Henry Horne, Managing Director said: "Thesepositive results underline the Company's strong commitment to continue with itsextensive exploration programme and highlights the potential that lies in ourportfolio. Work at these as well as other prospects should contribute to theCompany's growth going forwards." Enquiries:Highland Gold MiningHenry Horne, Managing Director, Moscow - +7 495 777 5529Dmitry Yakushkin, Director of Communications - +7 495 777 3155Dominic Palmer-Tomkinson - +44 207 7239 0140 Fin Public RelationsAlex Glover - +44 (0) 207 608 2280 JPMorgan CazenoveMichael Wentworth-Stanley, Managing Director(Nominated Adviser) - +44 (0) 207 588 2828 Highland Gold Mining Limited trades under the ticker, HGM.Lwww.highlandgold.com * * *Belaya Gora project. - New assay results from drilling and trenching at the twotargets Pologaya and Stockwork. Belaya Gora - Target Pologaya - Drilling - Fire AssaysDrill Hole ID From (m) To (m) Intersect Avg. grade Au Length (m) (g/t)7201 12.3 24.2 11.9 3.3 Belaya Gora - Target Pologaya - Trenching - Fire AssaysDrill Hole ID From (m) To (m) Intersect Avg. grade Au Length (m) (g/t)TR70 46 70 24 8.11TR80 27 44 17 1.96 Belaya Gora - Target Stockwork - Drilling - Fire AssaysDrill Hole ID From (m) To (m) Intersect Avg. grade Au Length (m) (g/t)4502 163 188.0 25.0 1.24005 29.7 47.5 17.8 2.05 55.5 78.7 23.2 1.134503 106 135 29.0 1.626509 7.2 60.2 53.0 10.766007 118.0 144.0 26.0 5.725003 110.3 133.5 23.2 2.984506 56.8 72.8 16.0 3.57 86.8 114.0 27.2 0.95 120.0 138.0 18.0 1.645503 2.2 8.3 6.1 1.10 14.6 32.3 17.7 5.50 63.5 104.3 40.8 1.66 135.4 188.9 53.5 1.554008 32.8 47.1 14.3 1.745506 74.0 144.7 70.7 3.77 Belaya Gora - Target Stockwork - Drilling - Spectroscopic Assays(XRF)Drill Hole ID From (m) To (m) Intersect Avg. grade Au Length (m) (g/t)4008bis 28.8 37.8 9.0 1.31 45.8 67.1 21.3 1.775006 104.8 157.4 52.6 4.556009 55.7 110.8 55.1 3.28 Lyubov project, Evgraf prospect. - Significant assay results from drilling andunderground sampling from Highland Gold's 2007 programme and previousexploration. +----------------------------------------------------------------------+ |Lyubov - Target Evgraf East - Drilling - Fire Assays - HGM (2007) | +-------------+-------------+-------------+--------------+-------------+ |Drill Hole ID|From (m) |To (m) |Intersect |Avg. grade Au| | | | |Length (m) |(g/t) | +-------------+-------------+-------------+--------------+-------------+ |BGL-211 |42.1 |76.6 |34.5 |1.3 | +-------------+-------------+-------------+--------------+-------------+ |BGL-211 |108.6 |119.6 |11.0 |1.6 | +-------------+-------------+-------------+--------------+-------------+ |BGL-213 |59.0 |97.2 |38.2 |1.3 | +-------------+-------------+-------------+--------------+-------------+ |BGL-214 |4 |28 |24.0 |1.7 | +-------------+-------------+-------------+--------------+-------------+ |BGL-221 |45.4 |62.4 |17.0 |1.4 | +-------------+-------------+-------------+--------------+-------------+ |Lyubov - Target Evgraf East - Drilling - Fire Assays - Previous (1996)| +-------------+-------------+-------------+--------------+-------------+ |C-849 |75.0 |92.0 |17 |1.6 | +-------------+-------------+-------------+--------------+-------------+ |C-850 |36.0 |87.0 |51.0 |2.9 | +-------------+-------------+-------------+--------------+-------------+ |C-850A |22.0 |53.0 |31.0 |1.4 | +-------------+-------------+-------------+--------------+-------------+ |C-859 |6.0 |44.0 |38.0 |1.4 | +-------------+-------------+-------------+--------------+-------------+ Lyubov - Target Evgraf - Underground - Fire Assays - Previous(1996) Drill Hole ID From (m) To (m) Intersect Avg. grade Au Length (m) (g/t)ug 1210-10 3.88 18.48 14.60 0.65ug 1210-10 28.39 41.69 13.30 1.02ug 1210-10 51.03 71.31 20.28 2.15ug 1210-1 0.00 84.24 84.24 5.21ug 1210-29 3.68 19.15 15.47 1.14ug 1210 - 9 5.23 7.19 1.96 1.68ug 1210 - 9 13.88 27.55 13.67 1.02ug 1210 - 9 33.43 41.74 8.31 0.88ug 1280-13 2.18 73.65 71.47 1.52 Lyubov - Target Evgraf - Trenching - Fire AssaysDrill Hole ID From (m) To (m) Intersect Avg. grade Au Length (m) (g/t)Tr-10 15.21 33.27 18.06 0.40Tr-10 39.92 74.14 34.22 1.59Tr-10 83.64 87.44 3.80 0.60Tr-10 115.01 137.82 22.81 0.65Tr-10 147.32 148.27 0.95 2.40Tr-10 153.98 307.00 153.02 0.96Tr-11 0.00 76.94 76.94 0.65Tr-11 85.61 216.72 131.11 1.42Tr-11 229.73 265.48 35.75 1.13 Unkurtash project. - Significant assay results from drilling and undergroundsampling from Highland Gold's 2007 programme and previous exploration.Unkurtash - Target Unkurtash - Trenching - Fire Assays - Previous(1990) Drill Hole ID From (m) To (m) Intersect Avg. grade Length (m) Au (g/t)-30 14.50 23.50 9.00 1.57-30 37.00 80.80 43.80 3.35-30 127.50 148.60 21.10 1.29-31 106.00 174.00 68.00 5.24-31A 22.50 55.50 33.00 0.85-31A 65.50 74.50 9.00 2.63-31A 91.50 94.50 3.00 2.40-31A 112.50 114.00 1.50 12.30-31A 123.00 143.00 20.00 28.57-31A 168.00 176.00 8.00 1.50 Unkurtash - Target Unkurtash - Underground - Fire Assays - Previous(1990) Drill Hole ID From (m) To (m) Intersect Avg. grade Length (m) Au (g/t)Drift1, west 7.00 97.00 90.00 1.92wallDrift 4, 7.50 10.00 2.50 1.28x-cut 4, eastwallDrift 4, 23.00 58.00 35.00 1.70x-cut 4, eastwallDrift 4, 74.00 102.00 28.00 2.54x-cut 4, eastwallUnkurtash - Target Unkurtash - Drilling - Fire Assays - Previous(1990) Drill Hole ID From (m) To (m) Intersect Avg. grade Length (m) Au (g/t)-4 188.00 192.00 4.00 1.17-4 206.00 216.00 10.00 1.14-4 284.00 296.00 12.00 1.90-4 378.00 428.00 50.00 0.90-5 48.70 61.50 12.80 0.75-5 71.50 74.40 2.90 1.74-5 87.40 138.30 50.90 1.17-5 183.50 204.80 21.30 0.90-5 229.00 237.50 8.50 2.03-5 262.00 270.50 8.50 0.78-5 281.00 308.00 27.00 1.15-5 353.00 360.00 7.00 1.29-5 366.60 369.70 3.10 1.30-7 1.00 44.00 43.00 0.99-7 50.00 64.00 14.00 0.69-7 74.00 97.00 23.00 1.50-7 133.50 161.00 27.50 0.85-7 178.50 202.00 23.50 1.29 Unkurtash - Target Unkurtash - Drilling - Fire Assays - Barrick/Highland (2005-2007) BG-U-1 0.00 2.00 2.00 1.64BG-U-1 9.00 17.20 8.20 0.58BG-U-1 35.70 57.60 21.90 0.63BG-U-1 63.40 76.50 13.10 0.51BG-U-1 95.40 147.90 52.50 1.17BG-U-1 155.90 172.90 17.00 2.08BG-U-1 178.90 231.00 52.10 0.86BG-U-1 236.90 248.80 11.90 0.62HG-U-5 1.00 54.00 53.00 1.29HG-U-7 0.00 46.00 46.00 1.27HG-U-7 52.00 58.00 6.00 3.14HG-U-7 65.00 116.00 51.00 2.14 Note: all intervals in the above tables have been calculated using a minimum 5mwaste interval and Au cut-off grade of 0.5g/t. This information is provided by RNS The company news service from the London Stock Exchange