Shearwater Regulatory News (SWG)

15 Jun 2009 16:21



15 June 2009

AURUM MINING PLC

("Aurum")

Extended time frame to Mining Licence commitments

Aurum is delighted to announce that following an application to the Kyrgyz State Agency for Geology and Mineral resources, the Agency has extended the Company's deadlines for the completion of key commitments outlined in its Andash Zone 1 mining licence.

While the Company's mining licence for the Andash Zone 1 mine in Kyrgyzstan is valid until 2017, there are various requirements contained within the licence that need to be met. The key requirement was that the Company had to have the Zone 1 mine constructed by March 2010 - this deadline has now been pushed back to June 2011.

This is a very significant step for Aurum, particularly since the Company returned £16m to Shareholders earlier in 2009 which effectively meant there was no possibility of meeting the March 2010 deadline. The key first step in the redevelopment of the Andash asset was therefore obtaining these extensions to the licence commitments. 

The variations to the mining licence conditions highlight the effectiveness of Aurum's working relationship with its local partner and they represent a major development in the Company's strategy to deliver significant value for Shareholders from the Andash asset.

For further information: 

Notes to editors 

Aurum Mining, which joined the AIM market of the London Stock Exchange in May 2004, is a mining company focused on gold opportunities in the Former Soviet Union. Its principal asset is an exploration licence over the Andash gold and copper project in the Kyrgyz Republic. A mining licence for Andash Zone 1 was awarded by the Kyrgyz authorities in 2006. The feasibility study compiled by Wardell Armstrong International, also in 2006, confirmed a measured and indicated resource base of 19.2 million tonnes at 1.1 grams per tonne of gold and 0.4% copper, which equates to 1.1 million ozs of gold and gold equivalent. The Andash project also includes Zone 2 and Zone 3 along with Tokhtonysay, Nakhodka and three other additional exploration areas.