Hambledon Mining PLC - Interims; Resource update.

(From AFX CNF)

RNS Number:5286J Hambledon Mining PLC 27 September 2006 HAMBLEDON MINING PLC Interim results and resource estimate update (All references to "AGBP" are to the British pound and "ounces" are to troy ounces) Hambledon Mining plc ("Hambledon" or the "Group" or the "Company"), the AIM-listed mining and exploration company developing precious metal deposits in Kazakhstan, announces its interim results for the six months ended 30 June 2006. Highlights aAGBP10.4 million raised in March. a42 per cent expansion in planned process plant capacity to 850,000 tonnes per year. aGeneral Resource Estimate approved by Kazakh authorities in April. aMining operations commenced in June with own mining fleet. aJORC resource estimate increased to 2.6 million ounces (88 per cent higher than the beginning of the period). aMine plan now shows an initial mining reserve estimate of 226,700 ounces of mainly open pittable ore. aWork on the underground mine plan is continuing and significant reserve increases are expected as detailed design progresses. a162 staff now employed. aConstruction of process plant underway. Nicholas Bridgen, Chief Executive of Hambledon Mining plc, commented: "In reviewing the half year, we are very pleased with what has been achieved, with good progress on all fronts. The JORC resource has almost doubled and as a result we are building a bigger process plant and have decided that it is more cost effective to operate our own mining fleet. The approval of the General Resource Estimate, which is the essential precursor of all other detailed approvals, was obtained and we are well on the way to recruiting our full complement of staff" "Since the end of the half year, we have completed the open pit mine plan and a plan for the development of the westerly Orebody 11 from underground and can now announce initial mining reserves of 226,700 ounces." Note to editors Hambledon Mining plc is an AIM-listed mining and exploration company which is mining an open pit and stockpiling ore in readiness for completion of an 850,000 tonnes per year treatment plant at its Sekisovskoye gold deposit in East Kazakhstan. After the start of processing, the Company will start to develop the much larger underground resources. Production from the open pit will average over 40,000 ounces per annum for five years, but total annual output will rise to around 100,000 ounces as the higher grade underground ore is added to the feed. The Group also holds the rights to and is exploring the adjacent Tserkovka licence territory which includes several areas of interest including the Tserkovka deposit itself. The Company has also been notified that it is to be awarded the nearby Glinka and Krugliachka areas. Any ore from these additional areas will be treated in an expanded plant at Sekisovskoye. Enquiries Hambledon Mining plc Telephone + 7 701 733 8915 Nicholas Bridgen, Chief Executive +44 7791 327180 Bankside Consultants Michael Spriggs / Michael Padley Telephone +44 207 367 8888 Chairman's Statement I am pleased to announce our financial results for the six months to 30 June 2006. Consistent progress has been achieved throughout the period. The increased size of the resource indicated that the pit would have a much longer life and that accordingly a much larger design capacity would be beneficial. To this end, the Group raised AGBP10m (after expenses) in March 2006 to fund the construction of an 850,000 tonnes per year plant, 42 per cent larger than previously planned, and the purchase of our own mining fleet, which is now operating. In March 2006, the Group concluded a 4,000 metre drilling programme from the existing 440 level adit. The purpose of the programme was to drill into the open pit area to define further the geological model and resolve previous uncertainty. Significant new mineralisation was intercepted and additional data on existing ore zones was obtained. These have enabled us to produce a much more robust model. Comparison of the new data with old Soviet data has enabled us to statistically demonstrate that Soviet data consistently underestimated grade by around 19 per cent. Despite this, the current resource estimate has not been adjusted and, to the extent that it is based on Soviet data, a significant uplift in actual mined grades is likely in practice. Furthermore, approximately 15 per cent (over 6 per cent within the planned open pit) of the drilled gold intercepts have not been incorporated into the new model due to our limited understanding of the geological structure in those areas. This can be …