Shearwater Regulatory News (SWG)

16 Mar 2005 07:01

Aurum Mining PLC16 March 2005 For immediate release 16 March 2005 AURUM MINING PLC ("Aurum" or "the Company") Update on progress at the Andash gold and copper property Aurum Mining plc (AIM: AUR), the company formed to acquire gold and othermineral extraction projects in the Former Soviet Union, is pleased to announceto shareholders an update on progress at its Andash gold and copper explorationproject in the Kyrgyz Republic. Aurum secured its exploration licence to theAndash property through the acquisition, in January 2005, of Kaldora CompanyLtd. This update includes the results of four new drill holes at the property, whichshow significant mineralisation, and preliminary results of independentmetallurgical analysis. In addition it outlines planned steps in the furtherdevelopment of the property. Key points • A programme of technical works carried out at the Andash project since June 2004 has included diamond core drilling and various geophysical techniques. Selected samples of core have been sent to the Wardell Armstrong International (WAI) testing laboratories in the UK for independent metallurgical testing. • The latest results have given a much greater understanding of the genesis of the deposit and will allow Aurum to analyse core samples obtained for mineralogy, metallurgy, rock strength and grade distribution of gold and copper throughout the economic ore zones in orebody No.1. • Four diamond drill holes have been successfully completed to target depth for a total of 624m of which 560m contained significant mineralisation, the results of which are summarised below. All the holes showed mineralisation from surface to the base of orebody No.1. Mineralised thickness of this orebody varied from 111m to 175m of continuous gold/copper mineralisation. Drill hole From - To Au g/t Cu %TX 1 0 - 111m 0.937 0.466TX 2 0 - 150m 1.95 0.66TX 3 0 - 175m 1.52 0.475TX 4 0 - 124m 0.956 0.465 • The results show correlation between gold and copper through the mineralised zones, but the drilling has also identified much higher grade gold and copper occurrences within the surrounding disseminated zones. • These data have also shown correlation between high grade gold-copper mineralisation and massive magnetite mineralisation, which is important for targeting orebody extensions as the geophysical surveys have shown numerous magnetic and other geophysical anomalies both close to the main ore zone and elsewhere on the licence area of some 50km2. • An additional three diamond core drill holes are presently being drilled at the site targeting samples for rock strength testing for optimum pit slope design and to confirm the boundary of orebody No.1. • The electronic drill assay database for orebodies 1, 2 and 3 has been sent to WAI who will carry out independent orebody modelling, ore resource calculations and preliminary open pit designs for economic assessment of the project and to determine additional in-fill drilling requirements for all three deposits by mid 2005. • WAI has also been commissioned to carry out preliminary metallurgical tests on oxide and sulphide ores from orebody No.1 and results to date show more than 85% recovery of gold to direct cyanidation followed by flotation to recover the copper mineralisation. This testing will lead to the taking of larger samples from the remaining drill core being shipped to WAI to develop the optimum processing path for the Andash ores by mid 2005. • Andash Mining Company, Aurum's Kyrgyz subsidiary, will be filing shortly with the Kyrgyz authorities to obtain a mining licence categorisation for Andash orebody No.1. • A preliminary feasibility study for mining and processing of orebody No.1 has been initiated by Aurum using both in-house staff and independent engineering contractors experienced with project development in the Kyrgyz Republic. This exercise will allow Aurum to collect and develop the technical and economic database for handing over to independent consultants to allow a full feasibility study to be carried out by late 2005. Commenting, John Webster, Aurum Mining's Managing Director, said: "I amdelighted by progress at the Andash property and particularly by the consistencyand level of mineralisation revealed by the drill holes. We look forward tofurther advancing the project and to identifying the optimum method forproducing gold and copper at Andash." For further information please contact: Aurum MiningJohn Webster, Managing Director Tel: 020 7478 9050Haresh Kanabar, Business Development Director Tel: 020 7070 7283 WH IrelandTim Cofman Tel: 0121 616 2101 Buchanan Communications Tel: 020 7466 5000Mark Court/Charlie Howard This information is provided by RNS The company news service from the London Stock Exchange