Aurum Mining PLC
16 July 2007
For immediate release 16 July 2007
AURUM MINING PLC
('Aurum' or 'the Company')
Pre-close Update
Aurum Mining plc (AIM: AUR), the gold-mining company focussed on the Former
Soviet Union (FSU), is pleased to announce an update on progress at the
Company's gold and copper asset in the Kyrgyz Republic, ahead of the
announcement of its preliminary results for the year ended 31 March 2006.
Significant progress has been made in the preparatory work for the construction
of the open-cast mine at Zone 1 of the Andash licence area. The detailed design
work, to meet the requirements of the Company's Mining Licence and to enable the
start of the physical construction of the mine, is progressing well. Preparation
for the construction of the access road to the mine is moving ahead, with
roadbuilding equipment and contractors having already been sourced. In addition,
the Company is finalising the sourcing of the ball mills for grinding ore when
Zone 1 enters production, which remains on track to begin in the second half of
next year.
The Company's balance sheet remains strong, with £28.3 million of net cash at
the year end. As the current year progresses, the Company is incurring some
expenditure based on requirements and taking into account the lead times
involved in sourcing heavy equipment and plant. As recently announced, the
Company has successfully identified significant savings in the forecast capital
expenditure at the mine, with capital expenditure expected to be in the region
of $48.5 million, compared with the Bankable Feasibility Study estimate of $55.5
million.
It is expected that Aurum's preliminary results will be announced in September
2007.
Mark Jones, Aurum Mining's Chief Executive, said: 'The Kyrgyz Republic remains a
demanding environment in which to operate in view of which we are pleased with
the progress we have made to date at Andash. We look forward to the start of
production in the second half of next year and to Aurum making the transition
from an exploration company to a gold producer.'
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