Shearwater Regulatory News (SWG)

7 Mar 2006 07:02

Aurum Mining PLC07 March 2006 For immediate release 7 March 2006 AURUM MINING PLC ("Aurum" or "the Company") Independent analysis confirms quality of Andash orebody Aurum Mining plc (AIM: AUR), the company formed to acquire gold and othermineral extraction projects in the Former Soviet Union (FSU), is pleased toannounce further details of analysis work being carried out by the leading UKindependent mining consultant Wardell Armstrong International (WAI) on samplestaken from the Company's Andash project in the Kyrgyz Republic. At the time of the Company's full year results, released on 29 September 2005,it was highlighted that WAI had confirmed a JORC resources estimate for one ofthe Andash orebodies of 1.15 million ozs of gold and gold equivalent. At thetime it was also highlighted that further drilling work would be carried out toenhance the resources estimate and to facilitate the completion of a FeasibilityStudy for the project. As part of this work WAI was last year sent a 2100 kg bulk sample from HolesTX-1 to TX-4, where a programme of scoping tests was undertaken on Hole TX-3 toconfirm the initial testwork findings. Results show that the head grades of thesamples tested was consistent with the initial sample at 0.51% Cu and 1.3 g/tAu. The scoping test work programme demonstrated improved recoveries of copper andgold. The Sulphide Composite demonstrated that gold recovery to a combinedgravity and flotation concentrate was predicted to be 70% during continuousprocessing, and copper recoveries of up to 80% were achievable to a saleableflotation concentrate after one stage of cleaning. A further 25% of gold can berecovered by cyaniding the flotation tailings, giving a total gold recovery of95%. Work is continuing to refine the process to improve economics through increasingflotation recoveries and reducing reagent consumption with a view toestablishing a flow sheet to meet the requirements of the Feasibility Study. Mark Jones, Chief Executive of Aurum Mining, commented: "I am delighted by theselatest study results, which highlight the quality of the resource at Andash. Wenow have confidence that the metallurgy at Andash will allow us to extract goldand copper economically. Our next step is to put together an extraction processflow sheet that will form the basis of our future plant design. This, along withother work currently ongoing under the guidance of WAI, will form the basis ofthe Feasibility Study for our mining licence application to the Kyrgyzauthorities." For further information: Aurum Mining plc Tel: 020 7478 9050Mark Jones, Chief Executive Arbuthnot Securities Tel: 020 7012 2000Graham Swindells Buchanan Communications Tel: 020 7466 5000Mark Court Notes to editors Aurum Mining joined the AIM market of the London Stock Exchange in May 2004 withthe strategy of seeking, evaluating and acquiring gold and other mineralextraction projects in the Former Soviet Union (FSU). In January 2005 theCompany completed its first acquisition, giving the Company an explorationlicence over the Andash gold and copper project in the Kyrgyz Republic. In itsState Register, the State Commission of Resources of the Kyrgyz Republic hasincluded 21.7 million tonnes of C1 and C2 reserves from the project, amountingto gold and gold equivalent of more than 1.5 million ozs. This information is provided by RNS The company news service from the London Stock Exchange