Hambledon Mining plc
("the Company")
PRODUCTION UPDATE
The Company reports its production for the three months from 1 October 2009 to 31 December 2009.
October November December Total
Milled tonnes (dry) 75,596 70,352 55,246 201,194
Gold grade (g/t) 1.01 1.02 1.13 1.05
Contained gold (gms) 76,352 71,759 62,152 210,263
Contained gold (oz) 2,455 2,307 1,998 6,760
Gold recovery % 79.0% 80.3% 80.98% 80%
Recovered gold (oz) 1,940 1,851 1,618 5,409
Recovered silver (oz) 4,194 4,538 4,746 13,478
Operation of the process plant ran very smoothly in October and November. Lower tonnages were processed in December
due to mill relines and a major rebuild of the crushing facility, resulting in 5 days milling lost. Extreme (-45C)
weather conditions in the second week of December also impacted the production for December. Currently, temperatures are
even lower, which will have an impact on January figures.
The new mobile crushing facility has arrived in Ust Kamenogorsk, having been long delayed by customs. It is expected
to be commissioned in early February. This machine will initially be used to re-crush frozen ore that has caused
blockages in the circuit and low milling rates during the winter period. It will also be able to act as a back-up unit
for the main jaw crusher, albeit with reduced capacity. During the summer period when the re-crushing of frozen ore is
not required, it will be used to produce aggregates for own use or sale.
An engine failure on one of our two Hitachi excavators in October put the machine out of operation for seven weeks
resulting in lower mining rates than planned and requiring low grade stockpiled ore to be blended with the higher grade
ore mined during the quarter. This resulted in the overall grade of ore being processed being 1.05 g/t instead of the
1.27 g/t planned.
Negotiations for a renewal of the Alpha Bank stand-by loan facility of $2m. have been concluded and agreed.
UNDERGROUND DEVELOPMENT
Approval for the first phase of the underground development was received in late December. A contract with a local
underground contractor was signed at the end of December to commence work on the development of the underground project.
This work is expected to commence in mid January.
A tender process for supply of underground equipment has been completed. It is expected that orders will be placed
for this equipment in the first quarter of 2010 which would result in delivery of equipment in time to allow
commencement of stoping operations in late 2010.
Surface infrastructure construction for the underground operation started in the December quarter with a road being
constructed to the portal site, surface sedimentation ponds being constructed and power lines and surface transformers
being installed.
Enquiries:
Hambledon Mining :
Telephone +44 (0)20 7233 1462
Charles Zorab
Fairfax I.S. PLC:
Telephone +44 (0)207 598 5368
Nominated Adviser and Broker
Ewan Leggat
