ALTN Altyngold Plc

RNS Number:6977P
Hambledon Mining PLC
10 March 2008


                              HAMBLEDON MINING PLC
                                   (AIM: HMB)


      Sekisovskoye Update - Inquiry conclusions and restart of operations


Hambledon Mining plc ("Hambledon" or the "Group" or the "Company"), the
AIM-listed gold mining and processing company operating in Kazakhstan, announces
the partial restart of operations at its gold mine at Sekisovskoye.  This
follows the conclusion of the investigation into the boiler accident on 12
February 2008.  A replacement boiler has been ordered and this is expected to be
on site and installed in time for the overall plant to be in full operation by
mid April.


Conclusions of the investigation


The committee appointed by the Department of Labor and Social Protection
Ministry of the Republic of Kazakhstan in Eastern Kazakhstan Region (the "
Committee") has completed its investigations.


The Committee found that, although there had been a comprehensive testing of
equipment and process at the plant, the cause of the accident was a small
explosion in the burner side of the boiler, resulting from incorrect adjustment
of the fuel-air mixture, causing the rupture of the main liquid vessel.  Fault
was attributed to incorrect procedures and modifications by several of the
Company's employees, manufacturing faults in the boiler itself, incorrect
selection of equipment and operation of the boiler by non-specialist staff.  The
Committee concluded that the Company was responsible and no fault was attributed
to the operator who died.  The Committee ordered that four employees be removed
from their positions, one of whom the Company has subsequently dismissed.  Three
further employees have been fined.  No fines were imposed on the Company.



Restarting of operations



The Company is permitted to restart all operations at the plant immediately,
except for the redesigned elution boiler which will need to be inspected and
approved by the Committee for State Control over Emergencies and Industrial
Safety. The crushing plant will be restarted shortly, with the intention of
building up a stockpile of crushed ore prior to the restart of the overall plant
by mid April 2008.  Mining operations, which were suspended after the accident
to conserve cash, will not be restarted until the beginning of May as a
stockpile of some 150,000 tonnes of ore already exists.



In addition to a small quantity of gold and silver in dore form, approximately
six kilogrammes of gold are on steel wool ready for smelting and a further 30
kilogrammes are on carbon awaiting the recommissioning of the elution system.



In order to safeguard the availability of the workforce, no employees  have been
laid off or put on short-time working. During the closure, employees have been
transferred to other activities and have received additional training.
Additional suitably qualified personnel are being employed in readiness to
operate the replacement boiler, once the plant is in full operation again.



Replacement boiler



The Company is using specialist boiler-consultants, who were approved by the
Committee for State Control over Emergencies and Industrial Safety, to design,
specify and install the new elution boiler and associated equipment.  This
design, which meets all of the points raised by the Committee in its findings,
has already been completed and a suitable, ready-made boiler has been located
and ordered from a manufacturer in Beesk, just 300 miles from the mine site
across the Russian border.  The manufacturer has agreed to procure and fit the
necessary peripheral equipment, ready for shipment by the end of March with a
further two weeks for it to be trucked to site and installed.  The Company
anticipates that approval will be given shortly thereafter, enabling all
operations at Sekisovskoye to be up and running again by mid April 2008.



Funding position



The Company is closely monitoring the impact on the cash flow and present
indications are that the Company's current funds are sufficient.  The Company is
in negotiations with its bankers for stand-by finance as an option in case it
should be needed.





Nick Bridgen, Chief Executive of Hambledon, commented:



"We appreciate the speed with which the Ministry has completed its report and
will action all its recommendations.  We are now working to bring the operation
back into production as quickly as possible and we expect to be fully
operational by mid April. We extend our deepest sympathies to the family of the
operator and are offering personal support to them at this difficult time."


Enquiries


Hambledon Mining plc                        Telephone:     +44 7791 327 180
Nick Bridgen


Bankside Consultants                        Telephone:     +44 20 7367 8888
Michael Padley


Seymour Pierce                              Telephone:    +44 20 7107 8000
Nicola Marrin


Note to editors



Hambledon Mining plc is an AIM-listed gold mining and exploration company, which
is operating the Sekisovskoye gold mine and the Ognevka processing plant, both
of which are close to Ust Kamenogorsk in East Kazakhstan.



At Sekisovskoye, the Company is mining from an open pit and has constructed an
850,000 tonnes per year treatment plant.  Production from the open pit will
average over 40,000 ounces per annum.  After the re-start of open pit
processing, the Company plans to develop the much larger underground resource
that is expected to lead to a combined production rate of around 100,000 ounces
per year.



The Ognevka processing plant is producing concentrates containing gold, silver,
copper, iron and coke from the re-treatment of zinc smelter residues.






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

MSCEAKDEFAEPEEE

Altyngold (LSE:ALTN)
Historical Stock Chart
From Jun 2024 to Jul 2024

Altyngold (LSE:ALTN)
Historical Stock Chart
From Jul 2023 to Jul 2024