Significant Progress Made at Three Exploration Properties
Highland Gold Mining Limited (“Highland Gold”, or the “Company”) is pleased to announce that exploration results from 3 of its exploration properties which are in advanced stage of work indicate strong development potentials.
At Belaya Gora, a total of 13,000 metres of diamond drilling have been completed in 2007 at the two targets Pologaya and Stockwork. Assay results received to date are in line with our previous expectations and corroborate the property’s resource potential which is estimated to be within the C1+C2 Russian reserve category at 22 million tonnes grading 1.68 g/t of gold. Resource delineation drilling is now continuing at Stockwork with an additional 7,500 metres planned to be completed by mid-year 2008. Metallurgical testing on two 300kg bulk samples from both targets is also in progress and preliminary results point to high recovery rates by gravitation alone. A pre-feasibility report including a cut-off grade study and a report with reserves calculation is being compiled and will be submitted for state approval by year-end 2008 as set out in the license agreement.
At the Lyubov property in the Chita region, the 2007 exploration programme focused on two targets, the Lyubov gold trend in the south and the Khaverga ore field in the north of the license area. At the Lyubov gold trend our drill testing programme identified a stockwork-type mineralization within the Evgraf zone which hosts a potential resource of (C1+C2) + P2 category of 28 million tonnes grading 1.5 g/t of gold, based on drilling results from previous explorers and our own results to date. In 2008 an additional 9,500 metres of diamond drilling is planned on the Evgraf zone and its western extension in order to delineate the zone’s overall resource potential estimated at 4-5 Moz. of gold (C1+C2+P1). At the Khaverga ore field the analysis of our 2007 geochemical soil-sampling survey revealed a 4 km long and 1.5 km wide zone of distinct gold anomalies with high gold grades of 0.03-8.0 g/t occurring within unconsolidated sediments. The geochemical anomalies spatially coincide with a very favourable geological setting marked by a regional fracture zone which was identified also during our geophysical survey work in the area. The Company considers that the mineral resource potential of the Khaverga could be comparable to that of the Lyubov trend. A trenching and sampling programme is planned for 2008 to delineate targets for follow-up drilling.
In 2007 the Company completed the preliminary stage of geological exploration at its Unkurtash project in Kyrgyzstan and the adjoining Sarytube and Karytube prospects. Based on these results the overall resource potential has been estimated and the type and volume of future exploration works formulated in a new “Exploration Project” as per the regulatory requirement. Accordingly, a widespread gold mineralization occurs in parallel zones of steeply dipping stockworks which form an elongated belt 4,000m long and 250-500 metres wide with a vertical extent of at least 350 metres. Extrapolating from the most explored areas, results of our own and previous works indicate a total resource potential (C1+C2+P1) for the exploration properties of 200 million tonnes grading 1.5 g/t of gold. The 2008 exploration programme allocates 12,000 metres of drilling for potentially delineating resources of 60 tonnes of gold of C1+C2 category and 120 tonnes of P1 category.
Mr. Werner Klemens, Director Exploration at Highland Gold has reviewed and verified the information contained in this release. Mr. Klemens holds a Ph.D. in Geology from the University of Toronto. He has 11 years of experience in mineral exploration and is fellow of the Geological Association of Canada. – A rigorous quality assurance programme complying to international standards is in effect at all exploration projects and includes duplicate sampling, insertion of standards and check assaying at external laboratories.
Commenting on today’s announcement, Henry Horne, Managing Director said: “These positive results underline the Company’s strong commitment to continue with its extensive exploration programme and highlights the potential that lies in our portfolio. Work at these as well as other prospects should contribute to the Company’s growth going forward.”
Henry Horne, Managing Director, Moscow - +7 495 777 5529
Dmitry Yakushkin, Director of Communications - +7 495 777 3155
Dominic Palmer-Tomkinson - +44 207 7239 0140
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Alex Glover - +44 (0) 207 608 2280
Highland Gold Mining Limited trades under the ticker, HGM.L