Project Update

30 Nov 2006 07:01

Hambledon Mining PLC30 November 2006 HAMBLEDON MINING PLC Recent progress (All references to "£" are to the British Pound and "ounces" are to troy ounces) Hambledon Mining plc ("Hambledon" or the "Group" or the "Company"), anAIM-listed mining and exploration company developing precious metal deposits inKazakhstan, reports progress on its Sekisovskoye project. Highlights •Mining activities in the year to date have been more than double the planned rate. •Initial ore stockpiles for process plant commissioning have been established. •Foundations for the mill building, warehouse and major equipment (ball mills, leach tanks, crushers) have been completed. •Construction of mill building well advanced with all materials on site. Construction of main arches of warehouse completed. •All major equipment has been procured and some 90% of contracts for final construction let. €110 kV powerline and substation nearing completion three months ahead of schedule. •Excavation of the "starter" tailings dam nearing completion and geomembrane liner received at site. •Start of commissioning of process plant on schedule for the second quarter 2007. •Diamec diamond drill rig previously used underground has been modified for surface use; drilling with this unit commenced at Tserkovka in October and will continue throughout the winter. Nicholas Bridgen, Chief Executive of Hambledon Mining plc, commented: "As a result of the skilled local workforce and better than expectedproductivity of the equipment, mining operations have exceeded all ourexpectations. We have now shifted all the site earthworks to our own mining teamwhich will reduce the costs significantly. "Progress to date is ahead of schedule and we remain on course towards start-upof the process plant, as previously estimated, in the second quarter of 2007". Sekisovskoye Update Mining activities at Sekisovskoye commenced in early June. The volume ofmaterial mined so far in 2006 is some 107% in excess of that submitted in themining plans approved by the State Mining Committee. This material includes themining and stockpiling of over 22,000 tonnes of ore from previously unidentifiedore zones, which can be used for the commissioning of the process plant in 2007.As expected from this type of deposit, ore is being found in zones previouslythought to be waste, and this should have a positive impact on future strippingratios and total ore tonnage. Pit development has focused on the expansion of the existing North Pit toprovide construction material for the processing plant as well as advance accessto the high grade No.2 orebody and to the top of Sedukha Hill to allow for thephased development of the Main Pit in 2007. Drilling and blasting in hard rockareas of the open pit have begun using the Company's Atlas Copco blasthole rigand a local blasting contractor. The mining activities have been so successful that construction work planned tobe undertaken by local earthmoving contractors will now be carried out by theSekisovskoye mining team at much lower cost. This work includes topsoilstripping, access road construction and construction of the process planttailings dam. These higher than planned mining volumes have been achieved inpart due to the much higher than planned productivity of the Hitachi Zaxis 850excavators and the fleet of Belaz trucks, as well as the contribution of theequipment trainers from Altas Copco in Sweden and a Mine Training Consultantfrom Perth, Australia, in enhancing the already high skill level of the localemployees. Foundations for the mill building and major equipment (ball mills, leach tanks,crushers) are essentially complete. Indeed, concrete pouring at Sekisovskoye hasstretched the capabilities of the local concrete suppliers in Ust Kamenogorsk.The first of the two 1.2 megawatt ball mills is on track for shipment in earlyDecember as is a modular boiler house, with installation to commence immediatelyupon receipt. The second large ball mill is expected to be shipped in January.Site construction activities are continuing on a 24-hour, 7-day basis. Construction of the 110 kilovolt substation and 4.5 km overland powerline isahead of schedule and will be completed as soon as the main transformer isdelivered. Excavation of the starter tailings dam is nearing completion and wallconstruction is well advanced. Installation of the geomembrane is to becompleted in the spring of 2007 immediately prior to commissioning. Exploration activities are also continuing as per our commitments toshareholders. The Diamec drill rig that was purchased for underground drillinghas been converted to a winterized surface unit, with drilling initiated in lateOctober in the Tserkovka licence area. Overall, the mine preparation is ahead of schedule and the Directors are verypleased with the progress made to date. Note to editors Hambledon Mining plc is an AIM-listed mining and exploration company which isdeveloping an open pit mine and constructing an 850,000 tonnes per yeartreatment plant at its Sekisovskoye gold deposit in East Kazakhstan. After thestart of open pit processing, the Company plans to develop the much largerunderground resources. Production from the open pit will average over 40,000 ounces per annum for fiveyears, though this is expected to rise to around 100,000 ounces when the highergrade underground ore is added to the feed. The Company also holds the rights toand is exploring the adjacent Tserkovka licence territory which includes severalareas of interest including the Tserkovka deposit itself. Enquiries Hambledon Mining plcNicholas Bridgen, Chief Executive Telephone +7 701 733 8915 Bankside ConsultantsMichael Spriggs / Michael Padley Telephone +44 207 367 8888 This information is provided by RNS The company news service from the London Stock Exchange