JORC-compliant Resource & Reserve Audit Results for Mnogovershinnoye

02.08.2011

Highland Gold Mining Limited (“Highland Gold”, or the “Company” AIM: HGM) is pleased to announce updated resources and reserves at its Mnogovershinnoye Mine (MNV) in the Khabarovsk region, Russia resulting from an independent JORC compliant audit carried out by Micromine Consulting Services (MCS, a division of Micromine Pty Ltd) between June 2010 – July 2011. This report confirms a 190% increase in proven and probable reserves at MNV compared to those stated in the Company’s Annual Report & Accounts 2010 and supports MNV’s current life of mine plan which extends through to 2016.

MINERAL RESOURCES REPORTED IN ACCORDANCE WITH JORC
Project Name Classification Ore, tonnes Gold,
g/t
Contained gold,
ounces
Highland’s
interest (%)
Gold ounces
attributable
to Highland




MNOGOVERSHINNOYE
Measured 4,789,000 4.52 695,935 100% 695,935
Indicated 1,332,000 4.47 191,426 100% 191,426
Measured
+Indicated
6,121,000 4.50 887,361 100% 887,361
Inferred 3,294,000 4.40 465,575 100% 465,575
Total * 9,415,000 4.47 1,352,936 100% 1,352,936

 

RESERVES REPORTED IN ACCORDANCE WITH JORC
Project Name Classification Ore, tonnes Gold,
g/t
Contained gold,
ounces
Highland’s
interest (%)
Gold ounces
attributable
to Highland


MNOGOVERSHINNOYE
Proven 3,343,000 4.60 494,414 100% 494,414
Probable 818,000 4.86 127,896 100% 127,896
Proven +
Probable
4,161,000 4.65 622,310 100% 622,310
  • resources are inclusive of reserves, reserves are calculated at US$1100 /oz
  • totals are rounded to the nearest whole number
  • January – July 2011 depletion is not included

Exploration diamond drilling continues at several underground and surface locations within the MNV license (16,000 metres and 8,000 metres budgeted in 2011 respectively) where minimal historical work had previously been carried out. As a result of this ongoing exploration work it is expected that some current resources will be upgraded into the reserve category and new resources discovered.

Micromine Pty Ltd consultants Mr. Sergey Drozdov (Professional Member of the Australian Institute of Geoscientists) and Mr.Oleg Nesterov (Professional Member of The Australasian Institute of Mining and Metallurgy) have provided and verified information contained in this release with respect to drilling and resource / reserves. They are qualified as Competent Persons as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves".

For further information please contact:

Highland Gold Dmitry Yakushkin, Head of Communications + 7 495 424 95 21
  Duncan Baxter, Chairman + 44 (0) 1534 814 202
Matrix Robin Henshall, Partner +44 (0) 20 3206 7172
(Nominated Adviser and Broker) Nick Stone +44 (0) 20 3206 7343
Fin Public Relations Alex Glover + 44 (0) 20 7608 2280