Business
Pre-close Update
Pre-close Update.
About this update from Shearwater Group Plc
[{"type":"text","content":"\n Aurum Mining PLC\n16 July 2007\n\n\nFor immediate release 16 July 2007\n\n\n AURUM MINING PLC\n\n ('Aurum' or 'the Company')\n\n\n Pre-close Update\n\n\nAurum Mining plc (AIM: AUR), the gold-mining company focussed on the Former\nSoviet Union (FSU), is pleased to announce an update on progress at the\nCompany's gold and copper asset in the Kyrgyz Republic, ahead of the\nannouncement of its preliminary results for the year ended 31 March 2006.\n\n\nSignificant progress has been made in the preparatory work for the construction\nof the open-cast mine at Zone 1 of the Andash licence area. The detailed design\nwork, to meet the requirements of the Company's Mining Licence and to enable the\nstart of the physical construction of the mine, is progressing well. Preparation\nfor the construction of the access road to the mine is moving ahead, with\nroadbuilding equipment and contractors having already been sourced. In addition,\nthe Company is finalising the sourcing of the ball mills for grinding ore when\nZone 1 enters production, which remains on track to begin in the second half of\nnext year.\n\n\nThe Company's balance sheet remains strong, with £28.3 million of net cash at\nthe year end. As the current year progresses, the Company is incurring some\nexpenditure based on requirements and taking into account the lead times\ninvolved in sourcing heavy equipment and plant. As recently announced, the\nCompany has successfully identified significant savings in the forecast capital\nexpenditure at the mine, with capital expenditure expected to be in the region\nof $48.5 million, compared with the Bankable Feasibility Study estimate of $55.5\nmillion.\n\n\nIt is expected that Aurum's preliminary results will be announced in September\n2007.\n\n\nMark Jones, Aurum Mining's Chief Executive, said: 'The Kyrgyz Republic remains a\ndemanding environment in which to operate in view of which we are pleased with\nthe progress we have made to date at Andash. We look forward to the start of\nproduction in the second half of next year and to Aurum making the transition\nfrom an exploration company to a gold producer.'\n\n\n\nFor further information:\n\nAurum Mining plc Tel: 020 7478 9050\nMark Jones, Chief Executive Officer\n\nChris Eadie, Chief Financial Officer\n\nArbuthnot Securities Tel: 020 7012 2000\nNeil Kirton\n\nJohn Toll\n\nBuchanan Com...