Information  X 
Enter a valid email address

Peter Hambro Mining (POG)

  Print      Mail a friend       Annual reports

Wednesday 11 January, 2006

Peter Hambro Mining

Acquisition

Peter Hambro Mining PLC
11 January 2006


11 January 2005

              ACQUISITION OF KULIINSKIY AND BUKHTINSKIY ORE FIELDS
                            BY JOINT VENTURE OMCHAK

Peter Hambro Mining PLC ("PHM" or the "Group") announces that its 50% Joint
Venture Omchak ("Omchak") acquired combined exploration and mining licences for
the Kuliinskiy and Bukhtinskiy gold properties in the Chita Region of Russia, in
an auction held by the Federal Subsoil Agency in Chita. Omchak paid RuR 11
million (c. US$390,000) for the licence in respect of the Kuliinskiy property
and RuR 6.4 million (c.US$225.000) for the license in respect of the Bukhtinskiy
property.

One of the three ore occurrences at the Kuliinskiy ore field is estimated to
contain gold reserves of c.11,285 oz at 6.2 g/t in Russian category C2, P1
resources of c.1.125 m oz at 12 g/t and P2 resources of c.0.965 m oz at 10 g/t.

For the Bukhtinskiy ore field, estimated P2 resources to a depth of 100 m were
at 0.804 m oz with average grades of 10 g/t.

Both deposits are hard rock type deposits suitable for a combined open pit and
underground development. For both deposits, the licences are issued for 25
years.

Peter Hambro, Chairman of Peter Hambro Mining Plc, commented:

"This is a fine acquisition by our Joint Venture Omchak, which forms an integral
part of its asset development programme. The Joint Venture is planning
substantial exploration works across the newly acquired properties, which we
believe have significant potential."
                                    
                                     - ends-

Enquiries:
Alya Samokhvalova                             Peter Hambro Mining Plc
                                              +44 (0) 207 201 8900

Tom Randell                                   Merlin
                                              +44 (0) 207 653 6620
                                              +44 (0) 777 587 5847

Further information:

The Kuliinskiy ore field is located in the Mogochinskiy district of the Chita
Region, 120 km from the district centre Mogochi. An all-year road connects the
deposit with the local railroad station which is located c. 20 km away. A high
power electrical line runs along the railroad. The Kuliinskiy ore field contains
3 ore occurrences and 6 prospective sites of gold-quartz-sulphide
mineralization. Gold mineralization is connected with quartz and sulphide-quartz
vein types of mineralization located in crush-breccia zones. Mineralised zones
have been explored by trenches on the surface and by a sparse grid of inclined
drill holes. The most prospective ore occurrence has been explored by
underground working. The potential productive ore zones vary in size between 50
and 200 m along strike and between 50 and 300 m down dip. Average thickness is
1.4 m with grades varying from 1g/t to 145 g/t, averaging 16.4 g/t.

The C2 reserve estimate was approved by the Chita Committee on Natural
Resources. The P1 and P2 resource estimates were calculated by the Russian
Institute ZNIGRI.

The Bukhtinskiy ore field is located in the Tungiro - Olekminskiy area in the
Chita Region, c. 60 km from the nearest railroad station. A high power
electrical line runs adjacent to the rail road. Six ore occurrences of
gold-quartz-sulphide mineralization were identified in this field. Gold
mineralization is associated with zones containing veins and veinlets of
sulphide-quartz, quartz-carbonate and quartz-tourmaline and also stockworks. The
two most prospective sites of the ore field have been explored by trenches. The
length of gold bearing zones is 1.2-1.5 km along strike with thickness 50-200 m.
The thickness of zones with potentially economic mineralization vary between 1
and 7 m. Gold grades vary between 0.8 g/t and 32 g/t.

The P2 resource estimate was calculated by the ZNIGRI Institute.

All information on the deposits was provided by the Federal Subsoil Agency which
conducted the auction.

The Omchak Joint Venture produced 88,900 oz of gold in 2004 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.




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