Shearwater Regulatory News (SWG)

8 Jan 2008 07:00

Aurum Mining PLC08 January 2008 For immediate release 8 January 2008 AURUM MINING PLC ("Aurum" or "the Company") Excellent Gold and Copper grades revealed from first drill hole at Tokhtonysay New exploration targets discovered Aurum Mining plc (AIM: AUR), the Company formed to acquire gold and othermineral extraction projects in the Former Soviet Union (FSU), is delighted toannounce excellent results from the initial hole drilled at the Tokhtonysayexploration target and to announce the discovery of new and exciting explorationtargets within the Company's Andash licence area. The initial drill hole at Tokhtonysay hit mineralisation from the surface to adepth of 85m with a remarkable intersection from 15m to 72m of 1.48g/t of goldand 1.41% copper, which includes 2.01g/t Au and 2.2% Cu from 15m to 41m. Theseexcellent gold and copper grades come from an exploration programme that beganin Tokhtonysay in September 2007 with the initial hole drilled vertically into apreviously identified IP anomaly. This IP anomaly is 600m by 300m in size. Its characteristics are typical ofporphyry systems and are similar, though extending over a larger area, to Zone1, which has a JORC Measured and Indicated resource of more than 17 milliontonnes, containing 624,000 ozs of gold and 72,000 tonnes of copper. Tokhtonysay comprises seven outcropping mineralised zones, four of which aresituated within the Andash exploration licence area. The remaining three arewithin the adjacent Korgontash licence area, which is held by Lero GoldCorporation (TSX: LER.V). Tokhtonysay is situated close to the Zone 1 mine, which is currently underconstruction, and it therefore has the potential to significantly increase theresource base, prolong the mine life and enhance the profitability of the Andashasset. Details of the high grade intersection from the initial drill hole atTokhtonysay are tabulated below: Intersection in meters Sample ID from to length Au g/t Cu % T36-13 15.0 16.0 1.0 0.33 0.3 T36-14 16.0 17.0 1.0 1.62 1.7 T36-15 17.0 18.0 1.0 1.63 2.7 T36-16 18.0 19.0 1.0 1.37 1.1 T36-17 19.0 20.0 1.0 1.55 2.5 T36-18 20.0 21.0 1.0 1.25 0.9 T36-19 21.0 22.0 1.0 6.31 5.4 T36-20 22.0 23.0 1.0 5.17 5.2 T36-21 23.0 24.0 1.0 4.55 1.0 T36-22 24.0 25.0 1.0 0.61 0.4 T36-23 25.0 26.0 1.0 1.32 2.3 T36-24 26.0 27.0 1.0 1.11 1.3 T36-25 27.0 28.0 1.0 2.28 3.0 T36-26 28.0 29.0 1.0 2.38 1.6 T36-27 29.0 30.0 1.0 1.65 1.7 T36-28 30.0 31.0 1.0 1.19 1.9 T36-29 31.0 32.0 1.0 2.33 2.1 T36-30 32.0 33.0 1.0 0.95 2.3 T36-31 33.0 34.0 1.0 3.67 4.5 T36-32 34.0 35.0 1.0 1.60 3.9 T36-33 35.0 36.0 1.0 3.86 3.0 T36-34 36.0 37.0 1.0 4.49 3.2 T36-35 37.0 38.0 1.0 1.06 3.7 T36-36 38.0 39.0 1.0 1.17 1.8 T36-37 39.0 40.0 1.0 0.65 1.2 T36-38 40.0 41.0 1.0 0.56 1.2 New exploration targets discovered In addition to the drilling programme at Tokhtonysay, an extensive programme ofgeophysics by independent consultants, as well as the re-interpretation ofhistorical geophysical data, were completed on the Andash licence, which issubdivided into Zones 1, 2 & 3, and which also includes the Nakhodka,Chonkyshtoo and Tokhtonysay exploration areas. At Nakhodka, re-interpretation of historical IP data, allied to the new workcompleted in 2007, resulted in the identification of a further polarizedanomaly. It is located 350m to the north from Zone 1 and at a depth of 20m to40m. This anomaly is also evident 200m to the east at a depth of 20m to 50m,where it continues to dip downwards to 100m to150m. It is similar to ore bodyZone 1 and may lead to the discovery of a 'blind' target with similar parameterslocated within the contour of the designed open pit. It is intended to instigatea drilling campaign to delineate the extent of mineralisation later this year. In addition a 'compact' anomaly was discovered some 800m to the southeast of theNakhodka target. Again this is a 'blind' target, but is detected to a depth of150m, over a width of 100m, and shows similar characteristics to the Zone 1 orebody. It is intended to investigate this anomaly initially by one vertical drillhole to a depth of 150m. Commenting on these exploration results, Mark Jones, Aurum's Chief Executive,said: "The excellent drill hole result with high grades and good intersections,has confirmed our supposition that the grades of gold and copper at Tokhtonysaycould be as good or better than those at Zone 1 where production is on track tocommence later this year. The Tokhtonysay prospect is close to the Zone 1 mineand therefore brings the opportunity of extending the mine's life. We are alsovery encouraged by the extensive programme of geophysical work throughout theAndash licence area, which has created new exploration targets and furtherenhanced the value of the Andash asset." Dr Philip Newall from Wardell Armstrong International has reviewed thisstatement as a qualified person as defined by the AIM Rules and has authorisedits release. For further information: Aurum Mining plc Tel: 020 7478 9050Mark Jones, Chief Executive Chris Eadie, Chief Financial Officer Arbuthnot Securities Tel: 020 7012 2000John Prior 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 feasibility study compiled byWardell Armstrong International, also in 2006, confirmed a measured andindicated resource base of 19.2 million tonnes at 1.1 grams per tonne of goldand 0.4% copper, which equates to 1.1 million ozs of gold and gold equivalent.Initial production at Andash Zone 1 is expected in the second half of 2008. TheAndash project also includes Zone 2 and Zone 3 along with Tokhtonysay, Nakhodkaand three other additional exploration areas. This information is provided by RNS The company news service from the London Stock Exchange