Aurum Mining PLC
27 June 2007
27 June 2007
AURUM MINING PLC
('Aurum' or 'the Company')
Capital Expenditure Saving at Andash Zone 1 Mine
Aurum Mining plc (AIM: AUR), the gold-mining company focussed on the Former
Soviet Union (FSU), is pleased to announce that, following detailed engineering
and design study work, the Company has successfully identified significant
savings in the forecast capital expenditure at its Andash gold and copper
project.
It is now expected that capital expenditure on the Zone 1 mine will be in the
region of $48.5 million, compared with the Bankable Feasibility Study estimate
of $55.5 million. Aurum have significantly reduced the costs of the process
plant through the identification of local equipment, both new and second hand
and it is anticipated that managing the build of the operation internally will
also keep costs down. The new estimate retains the contingency of the earlier
estimate and has been calculated on the same basis.
Aurum continues to work closely with the Kyrgyz Government and other relevant
authorities to ensure production from the mine in the second half of next year.
Full production is expected in 2009.
Mark Jones, Aurum Mining's Chief Executive, said: 'Following our successful
fundraising earlier this year, we have worked hard towards delivering a reduced
capex forecast. By improving our efficiencies we should be able to deliver
greater returns to our stakeholders.'
For further information:
Aurum Mining plc Tel: 020 7478 9050
Mark Jones, Chief Executive Officer
Chris Eadie, Chief Financial Officer
Arbuthnot Securities Tel: 020 7012 2000
Neil Kirton
John Toll
Buchanan Communications Tel: 020 7466 5000
Mark Court / Rebecca Skye Dietrich
Notes to editors
Aurum Mining, which joined the AIM market of the London Stock Exchange in May
2004, is a mining company focussed on gold opportunities in the Former Soviet
Union. Its principal asset is an exploration licence over the Andash gold and
copper project in the Kyrgyz Republic. A mining licence for Andash Zone 1 was
awarded by the Kyrgyz authorities in 2006. The bankable feasibility study
compiled by Wardell Armstrong International, also in 2006, confirmed a measured
and indicated resource base of 19.2 million tonnes at 1.1 grams per tonne of
gold and 0.4% copper, which equates to 1.1 million ozs of gold and gold
equivalent. Initial production at Andash Zone 1 is expected in 2008. The Andash
project also includes Zone 2 and Zone 3 along with Tokhtonysay, Nakhodka and
three other additional exploration areas.
This information is provided by RNS
The company news service from the London Stock Exchange