Gold Production Commences at Quintana, Colombia
20 November 2008 - 6:00PM
UK Regulatory
Cambridge Mineral Resources plc / Ticker: CMR / Index: AIM / Sector: Mining & Exploration
20 November 2008
Cambridge Mineral Resources plc
Gold Production Commences at Quintana, Colombia
Cambridge Mineral Resources plc ('CMR' or 'the Company'), the mining exploration and production
company primarily targeting precious metals in South America, has commenced production at its
Quintana Gold Mine in Colombia on 9th November with first gold being poured on 19th November. It is
anticipated that the Quintana Mine will produce circa 15,200 ozs of gold and 6,000 ozs of silver per
annum over a minimum five year mine life.
CMR has completed work on the 5.1km access road to the mine site, including deepening and equipping
the mine, installing a modern tailings management facility, a 60 bed mine camp and the processing
plant utilising both gravity, flotation and leach processes. The plant is now becoming fully
operational and has commenced commercial production at a nominal 75 tonnes per day, processing daily
mine production and stockpiled ore. CMR has a sales contract in place with CIIGSA, a long-
established Colombian gold refiner, with sales prices based on the London p.m. gold price fix on the
day of delivery to the refinery. Gold dore sales will commence shortly.
CMR Managing Director Colin Andrew said, "Bringing Quintana on line is a transformational step for
CMR as we move from being an exploration company into a mining production company, and we are pleased
to have achieved this within the time period scheduled by CMR earlier this year. We had initially
targeted production at a rate of 50 tonnes of ore per day, however with circa 4,000 tonnes contained
in the pre-production stockpile, I am delighted that we have commenced mill throughput at a rate of
75 tonnes per day, which we expect to further increase in the near future. This increase in the
planned production rate allows us to ramp up production and sell more gold. With cash operating
costs estimated to be approximately US$131 per oz gold over the life of mine, we expect Quintana to
be a low-cost producer demonstrating good profit margins. We look forward to reporting further on
Quintana's operations in the near future."
The Quintana Mine is located in Remedios Municipality of the Department of Antioquia in central
Colombia within the country's foremost gold mining district, the Frontino Gold Belt, which has
recorded production approaching nine million ozs since 1852. Following the completion of the
feasibility study which defined a resource of 109,582 tonnes at 24.58 g/t gold and 19.85 g/t silver
(measured, indicated and inferred) containing 86,822 ozs gold, which has since been expanded by
further drilling and underground development, work commenced in February 2008 to bring the mine into
production. The project is estimated to have a NPV of US$10.8 m, based on a 50 tpd operation over
five years at a gold price of US$600 per oz.
Colin J. Andrew BSc ARSM MIMMM FGS CEng, Managing Director of Cambridge Mineral Resources plc, and a
Qualified Person as defined by the 'Guidance Note for Mining, Oil and Gas Companies, March 2006' of
the London Stock Exchange, has reviewed the information contained herein.
** ENDS **
For further information, visit www.cambmin.co.uk or contact:
Colin Andrew Cambridge Mineral Resources plc +44 (0) 20 7663 5618
Managing Director candrew@iol.ie
Michael Burton Cambridge Mineral Resources plc +44 (0) 20 7663 5618
Finance Director mburton@cambmin.co.uk
Gavin Burnell / Ruegg & Co Limited +44 (0) 20 7584 3663
Roxane Marffy
Colin Rowbury Religare Hichens, Harrison plc +44 (0) 20 7382 7771
Tom Beattie Haywood Securities (UK) Limited +44 (0) 20 7031 8018
Victoria Thomas St Brides Media & Finance Ltd +44 (0) 20 7236 1177
Notes to Editor
Cambridge Mineral Resources plc is an AIM listed mining and exploration company primarily targeting
precious metals in South America with an output target of 100,000 ozs of gold per annum. CMR's
strategy is to develop established resources at an advanced stage of exploration or near term
production and develop mineable reserves through further exploration. It has a strong portfolio of
mineral projects at varying stages of development including the Quintana gold mine in Colombia, which
commenced production in November 2008 and the Rasuhuilca silver-gold mine in Peru on which a
feasibility study has recently been completed. The Company also has a portfolio of significant
mineral assets in Europe, which it is currently in the process of divesting through either joint-
venture or sale.
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