Peter Hambro Mining PLC
28 February 2005
28th February 2005
ACQUISITION OF THE MALOMIR DEPOSIT
The Peter Hambro Mining Group ("PHM" or the "Group") announces that it has been
successful in the auction of the combined exploration and mining licence over
the Malomir gold property in the North East of the Amur Region, Far East Russia,
held in Blagoveshensk on 24th February 2005.
PHM paid RuR22m (c.US$0.79m) for the licence, which is estimated to contain
open-pittable reserves of 45.1 tonnes (1.5 million oz) of category C2 reserves
with an average grade of 2.4 g/t and 120 tonnes (3.9million oz) of resource
category P1 with an average grade of 2.2 g/t. The deposit also contains silver,
platinum and palladium.
The Group acquired the licence for two areas adjacent to Malomir in 2003. The
exploration of the area was started during 2004 with geophysical and geochemical
surveys over 20km2. Exploration works were undertaken by the Russian geological
exploration company "Urangeology" which will now continue exploration on the
whole territory of the deposit.
DESCRIPTION OF MALOMIR DEPOSIT
Malomir is located in one of the oldest and richest gold producing areas of the
Amur Region. The deposit is located in the same gold belt as PHM's other North
East assets Tokur and Voroshilovskoye, known as the Verkhneselemdginsky region
and is part of the Mongolia-Okhotsk thrust system. The deposit is located 35km
from the nearest town of Stoyba which is connected with the Baikal Amur Railway
by 85km of road.
The deposit was discovered in 1966 and has subsequently had detailed state
operated exploration. Exploration was undertaken primarily by two State agencies
Dalgeology and Amurgeology using geophysiscs, aerial geophysics, geochemistry
and detailed geological mapping (to a scale of 1:10,000). Exploration work
includes 150,000m3 of trenching on intervals of 80-640m and 52 drill holes
totalling 12,700m to a maximum depth of 350m. V.A. Buryak, the prominent Russian
geologist, in a State commissioned report, reported that Malomir is of a large
gold-platinum black shale mineralisation type. Approximately 94% of Malomir's
current reserves and resources occur in the area which has benefited from the
largest amount of work, the 'Diagonal Zone' imbrecate thrust-belt. The 'Diagonal
Zone' at present remains open in all directions.
Evaluation of the 'Diagonal Zone' at a cutoff grade of 1 g/t generates a C2
reserve of 45.1 tonnes (1.45 million oz) with an average grade of 2.4g/t (NTS
Amurgeolkom January 1994). Further preliminary work on the zone show P1
resources of 120 tonnes (3.9 million oz) at an average grade of 2.2g/t. A high
grade core to the orebody is delineated by increasing the cutoff grade to 3g/t,
generating a C1-P1 resource of 33 tonnes (1.1 million ounces) at a grade of 4.9g
/t. The reserve and resource estimates do not include the flanks of the orezone
which continue, per geochemical and geophysical data, for a further 4km as well
as further high grade mineralisation, per nearby drill results of 7-15g/t.
Bulk sampling and assay analysis have been undertaken to assess the amenability
of the deposit to traditional open pit mining and processing. Gold is contained
mainly in quartz (80-85%) and the balance in in arsenopyrites and pyrites. Bulk
sampling analysis gives a gold recovery ranging from 70-95%, depending on the
level of oxidisation of the ore and the use of gravitation-flotation circuit on
the primary non-oxidised ore.
Malomir ore also contains a number of different elements, the economics of
extraction of which are presently being analysed and whose potential credit has
not been taken into account for the above reserve and resource estimates.
Elements contained: Silver 1.00g/t; Platinum up to 10.0g/t; and Palladium up to
PHM intends to undertake a comprehensive exploration programme of the deposit
over the next 18 months with a feasibility study commencing during early 2006.
"Urangeology" is currently carrying out trenching work on the flanks of the
deposit and intends to mobilise drill rigs by June 1st 2005 to begin
confirmation and exploration drilling at Malomir. As part of the exploration
work PHM intends to commission a programme of at least 50,000m of drilling.
Peter Hambro, Chairman of Peter Hambro Mining plc, commented:
"Malomir has always been at the very top of our wish-list for the Amur Region -
particularly given its geological similarities to several well-known deposits.
For that reason we acquired exploration areas surrounding it last year, prior to
Now that we have the whole deposit, we have completed our acquisition strategy
for the Amur North East belt. The addition of 1.45 million ounces of C2 reserves
to our Group total is beneficial, especially since the Malomir deposit is at a
relatively advanced exploration stage and relatively well served by transport
Jay Hambro Peter Hambro Mining PLC
+44 (0) 20 7201 8900
Tom Randell / Maria Suleymanova Merlin
+44 (0) 20 7653 6620
Further details regarding the location of the assets can be found on the Group's
website at: www.peterhambro.com
This information is provided by RNS
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