Shearwater Regulatory News (SWG)

27 Jun 2007 07:01

Aurum Mining PLC27 June 2007 27 June 2007 AURUM MINING PLC ("Aurum" or "the Company") Capital Expenditure Saving at Andash Zone 1 Mine Aurum Mining plc (AIM: AUR), the gold-mining company focussed on the FormerSoviet Union (FSU), is pleased to announce that, following detailed engineeringand design study work, the Company has successfully identified significantsavings in the forecast capital expenditure at its Andash gold and copperproject. It is now expected that capital expenditure on the Zone 1 mine will be in theregion of $48.5 million, compared with the Bankable Feasibility Study estimateof $55.5 million. Aurum have significantly reduced the costs of the processplant through the identification of local equipment, both new and second handand it is anticipated that managing the build of the operation internally willalso keep costs down. The new estimate retains the contingency of the earlierestimate and has been calculated on the same basis. Aurum continues to work closely with the Kyrgyz Government and other relevantauthorities to ensure production from the mine in the second half of next year.Full production is expected in 2009. Mark Jones, Aurum Mining's Chief Executive, said: "Following our successfulfundraising earlier this year, we have worked hard towards delivering a reducedcapex forecast. By improving our efficiencies we should be able to delivergreater returns to our stakeholders." For further information: Aurum Mining plc Tel: 020 7478 9050Mark Jones, Chief Executive OfficerChris Eadie, Chief Financial Officer Arbuthnot Securities Tel: 020 7012 2000Neil KirtonJohn Toll Buchanan Communications Tel: 020 7466 5000Mark Court / Rebecca Skye Dietrich Notes to editors Aurum Mining, which joined the AIM market of the London Stock Exchange in May2004, is a mining company focussed on gold opportunities in the Former SovietUnion. Its principal asset is an exploration licence over the Andash gold andcopper project in the Kyrgyz Republic. A mining licence for Andash Zone 1 wasawarded by the Kyrgyz authorities in 2006. The bankable feasibility studycompiled by Wardell Armstrong International, also in 2006, confirmed a measuredand indicated resource base of 19.2 million tonnes at 1.1 grams per tonne ofgold and 0.4% copper, which equates to 1.1 million ozs of gold and goldequivalent. Initial production at Andash Zone 1 is expected in 2008. The Andashproject also includes Zone 2 and Zone 3 along with Tokhtonysay, Nakhodka andthree other additional exploration areas. This information is provided by RNS The company news service from the London Stock Exchange