14 Nov 2012 07:00
KLEN GOLD PROJECT UPDATE
14 November 2012 - Highland Gold Mining Limited ("Highland Gold", or the "Company") announces the delivery of equipment and materials for the newly acquired Klen Gold project, in Chukotka, North Eastern Russia.
Management is focused on a rapid project development at Klen and the timely delivery of supplies represents an important milestone given the region's limited navigation season. Plant and mine design work commenced in Q3 2012 and exploration activity at the adjacent Verkhne-Krichalskaya (VK) property is under way.
The earth moving equipment and building materials, which arrived at Pevek in late October - early November, will make it possible to prepare the site for mine and plant construction which is scheduled to commence in 2013. Further deliveries of equipment will follow, which will subsequently be deployed in mining operations. The preliminary camp will accommodate more than 100 employees.
The project will be an open pit operation allied to a conventional gravity and cyanidation process plant. It is expected to produce 50,000 - 60,000 oz of gold per annum with 300,000 - 400,000 tonnes of ore being processed each year, having an average head grade of 5.1 g/t.
Geochemical work has been expedited on the adjacent 996 km² VK licence during 2012 in order to delineate drilling and trenching targets for the 2013 field season and beyond. Preliminary estimates indicate the potential for significant organic resource growth.
For further information please contact:
Highland Gold Dmitry Yakushkin, Head of Communications
+ 7 495 424 95 21
Duncan Baxter, Non-Executive Director
+ 44 (0) 1534 814 202
Numis Securities Limited (Nominated Adviser and broker)
Alastair Stratton / Stuart Skinner, Nominated Adviser
+44 (0) 207 260 1000
James Black, Corporate Broking
+44 (0) 207 260 1000