Oxus Gold Plc Regulatory News (OXS)

12 Oct 2005 10:09

Oxus Gold PLC12 October 2005 news release For immediate release: 12 October 2005 Oxus pours first silver from new mine First metal from Vysokovoltnoye Heap Leach Project LONDON: 12 October 2005 - Oxus Gold plc is pleased to report that it hasproduced the first bar of silver from the Vysokovoltnoye gold and silver heapleach project in Uzbekistan. Mining of ore started in early September, following the first mine blast on 24August, and was initially stockpiled pending the commissioning of the processplant. The ore was placed on the heap leach pads at the beginning of this monthand mineralised solution was fed to the plant last week. Full production isscheduled for next month and planned mine production is 21,035 ounces of goldand 2,469,083 ounces of silver per annum. The capital cost of the project is $9.1 million, which has been kept to aminimum due to the existing infrastructure at AGF. It is expected that the cashcosts of metal production will be approximately $160 per ounce. Vysokovoltnoye has mineable reserves of 1.66 million tonnes at grades of 127g/tAg and 1.13g/t Au for ore body number 7 and 2.33 million tonnes at grades of 27g/t Ag and 1.24g/t Au for ore body number 4. Ongoing work aimed at definingextensions of the zones may increase the resource base for future growth. Bothore bodies have very low stripping ratios Vysokovoltnoye is an open pit mine and is located within the AmantaytauGoldfields' (AGF) licence area and is 30 kms away from AGF's existing Amantaytaumining operations, Oxus's first mine in Uzbekistan. AGF is owned jointly byOxus and the Uzbekistan Government. Mr Bill Trew, chief executive of Oxus, said today: "We are very pleased to haveproduced our first silver from Vysokovoltnoye so quickly, after starting oreproduction less than two months ago. This is a notable achievement and a keystep in our strategy of developing five mines in five years." "We are also on the way to becoming a significant silver producer. Between AGFand Marakand Minerals, the Group has total resources of more than 704 millionounces of silver, and reserves of over 45 million ounces. We expect to producemore than 3 million ounces in 2006." Directors' Shareholdings Oxus announces that on 7 October 2005 the Company issued for nil considerationoptions over ordinary shares of 1p par value to directors as set out below: Director Options granted Exercise price Total shares under option William Trew 2,000,000 54p 4,000,000 Jonathan Kipps 1,300,000 54p 2,600,000 Richard Wilkins 1,300,000 54p 2,600,000 Oliver Prior 250,000 54p 500,000 Douglas Sutherland 250,000 54p 500,000 Adjusting for the issue of ordinary shares following the exercise of theseoptions, the new issued share capital would be 297,808,821 and the newshareholding in the Company for each director would be as follows: Director Total % William Trew 10,338,872 3.47% Jonathan Kipps 5,642,756 1.89% Richard Wilkins 6,716,239 2.26% Oliver Prior 556,420 0.19% Douglas Sutherland 658,420 0.22% The new options are exercisable 50% at any time following the first gold pour atthe Jerooy project in the Kyrgyz Republic and 50% at any time followingcumulative Group gold production of 500,000 ounces until 9 October 2010. End Enquiries: Bill Trew, CEO Oxus Gold: Tel: +44 (0)20 7907 2000 Keith Irons, Bankside: Tel: +44 (0)20 7367 8873 /07885 356 639 This information is provided by RNS The company news service from the London Stock Exchange