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Peter Hambro Mining (POG)

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Thursday 02 June, 2005

Peter Hambro Mining


Peter Hambro Mining PLC
02 June 2005

2 June 2005


The Peter Hambro Mining Group ("PHM" or the "Group") announces that its 65%
Joint Venture Omchak has been successful in the auction of the combined
exploration and mining licence over the Verkhne-Alliinskiy gold property in
Chita Region of Russia, held in Chita on 30 May 2005.

Omchak paid RuR 60 million (c.US$2.2m) for the licence, which is estimated to
contain gold reserves and resources of 76,000 oz and 593,000 oz in Russian
categories C1 and C2 respectively and silver reserves and resources of 138,000
oz and 752,000 oz in Russian categories C1 and C2 respectively.

The deposit is located 30 km east of the town of Baley in the Chita Oblast,
Russia, with which it is connected by road. The nearest railroad station is
located c.50 km from the deposit.

The licence area covers 15.6 km2, with mining contemplated to a maximum depth of
450m. The deposit was discovered in 1980 and preliminary exploration was carried
out in 1984-85. The deposit comprises steeply dipping quartz-sulphide veins and
mineralised zones. Three principal zones of potential economic interest were
explored by trenching and drill holes to a depth of 400m. Underground
exploration, by adits and crosscuts, has been carried out on two of the zones.
Gold grades at the deposit vary from 0.8 to 332 g/t. The ore zones are open at

Russian category reserves and resources for Verkhne-Alliinskiy deposit have been
estimated from existing exploration data by the geological institute
Chitageologiya in 1990 as follows:-

                          Category           Ore             Gold Content
                                           ('000 t)        (kg)      ('000 oz)
 ------------            ----------        --------     ----------   --------
Gold                         C1              201           2,360          76
                             C2            1,401          18,460         593
Silver                       C1                            4,300         138
                             C2                           23,400         752

Grades (all in grammes per tonne)
Gold                         C1                            11.7
                             C2                            13.2
                           Total                           13.0
Silver                       C1                            21.4
                             C2                            16.7
                           Total                           14.6
 ------------            ----------                     ----------

Detailed exploration will be required to further delineate the three principal
ore zones already defined and to investigate the more than 50 additional mineral
anomalies which have been identified within the licence area, on some of which
gold grades up to 5g/t have been recorded. Metallurgical tests have shown that
recoveries of 96% of gold and 91% of silver can be achieved, but development of
an extraction method will be required, to produce low-arsenic concentrates.

All information on the deposit was provided by Federal Subsoil Agency which
conducted the auction in accordance with the auction plan published earlier this

Peter Hambro, Chairman of Peter Hambro Mining plc, commented:
"This is an interesting acquisition by our Joint Venture Omchak and is part of
its acquisition programme for assets with which to diversify and expand."

The Omchak Joint Venture produced last year 88,900 oz of gold of which 57,000 oz
were attributable to Peter Hambro Mining. Through its subsidiaries Berelekh and
Nelkobazoloto, Omchak currently operates two enterprises producing gold through
underground and alluvial mining.

Alya Samokhvalova                               Peter Hambro Mining PLC
                                                +44 (0) 20 7201 8900

Tom Randell / Maria Suleymanova                 Merlin 
                                                +44 (0) 20 7653 6620

                      This information is provided by RNS
            The company news service from the London Stock Exchange