RNS Number : 4152Y
  Hambledon Mining PLC
  07 July 2008
   


    HAMBLEDON MINING PLC
    (AIM: HMB)

    Operations Update

    Hambledon Mining plc ("Hambledon" or the "Group" or the "Company"), the AIM-listed gold mining and processing company operating in
Kazakhstan, is pleased to report good progress at its Sekisovskoye operation.

    Although June was affected by a lower than normal grade of ore being treated, production at Sekisovskoye is continuing to make steady
progress towards reaching design capacity. Towards the end of the month, higher grade material was being treated and the full process
circuit was in operation, giving much higher production levels.

    The unforeseen clay-like material is lasting longer than expected but the remaining amounts can be blended with hard-rock ore without
significantly affecting future production. Some of the ore that was crushed during the affected period is oversized and hence requires more
milling. This will continue to affect production in July.  Alterations will be made to the crusher in the first half of July, including the
use of different conveyor belts and a redesigned feeder, which should improve reliability.

    At Ognevka, further test-work is being carried out to improve copper and precious metals recovery from clinkers. A separate test-work
programme into the means of treatment of the large resource of pegmatite tailings, of which 1.6 million tonnes are owned by the Company, is
ongoing. Whilst this is happening, the focus of the management team and all of the Company's resources will be dedicated to optimising
Sekisovskoye. Once that has been achieved, Hambledon will return to the significant opportunity that exists at Ognevka. 


    Nick Bridgen, Chief Executive of Hambledon Mining, commented:

    "We continue to progress towards optimising production at Sekisovskoye and, even with the obstacles experienced in the earlier part of
the year, we expect to achieve the annualised production rate shortly. We remain on course to become cash generative in the second half of
the year."


    7th July 2008
      Enquiries

    Hambledon Mining plc                    Telephone:    +44 20 7233 1462
    Charles Zorab

    Lothbury Financial                           Telephone:    +44 20 7011 9411
    Michael Padley / Louise Davis

    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 owns 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.  As soon as steady production has been achieved, 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.

    Concentrates produced from the Ognevka processing plant contain gold, silver, copper, iron and coke arising from the re-treatment of
zinc smelter residues.


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