Cambridge Mineral Resources plc

Cambridge Mineral Resources plc

April 10, 2007 02:00 ET

Cambridge Mineral Resources Plc: Underground Development Commenced at Mina La Linda

Acquisition of Colina Negra gold mine

LONDON, UNITED KINGDOM--(CCNMatthews - April 10, 2007) - Cambridge Mineral Resources plc ("CMR" or "the Company")(AIM:CMR), the mining exploration and production company focused on South America, announces that it has commenced underground development of the La Linda gold mine in Colombia.

CMR has also signed an exclusive option agreement with the title holders of the Mina Colina Negra. The agreement covers 200 hectares to the north of the main area of interest within the El Cinco project, also currently under option. As a result, CMR now holds a majority interest in a contiguous block of 7,400ha around the El Cinco and Colina Negra mines.

CMR expects to commence underground development at its El Cinco / Colina Negra project within the next few weeks, following completion of 20km of road construction currently underway.

La Linda

Mina La Linda is a small scale, high-grade mining operation that has produced small tonnages of ore from a steeply dipping mesothermal gold vein by artisanal methods. The development programme is planned to prove up the extensions of the vein on the main level over an additional 100m of strike length during the next three months. Previous sampling by CMR has returned assays of 0.75m at 40.08g/t gold and 124.4g/t silver, 0.65m at 21.69g/t gold and 169.9g/t silver and 0.9m at 19.94g/t gold and 38.0g/t silver.

In addition to the La Linda vein, surface exploration by CMR geologists has identified at least three other significant veins on the property and it is hoped that further underground development or drilling can be started on at least one of these in the second half of 2007.

Colina Negra / El Cinco

The option agreement with the Colina Negra partners allows CMR a five year exclusive exploration period. Should this exploration result in an economic discovery, CMR will make a US$25,000 payment to the partners for the right to own 76% of the project.

Initial exploration at Colina Negra has revealed a set of NNW striking veins with variable, but typically shallow, dip to the west. They have to date been traced over approximately 400m of strike length and reach widths in excess of three metres. Artisanal workings by means of small tunnels are currently conducted by the titleholders at a rate of 2-3 tonnes per day.

Sampling by CMR across the Colina Negra vein returned the following selected results: 1.0m at 114.31g/t gold, 1.0m at 66.2g/t gold, 1.5m at 35.2g/t gold, 1.0m at 22.5g/t gold, 1.0m at 10.4g/t gold and 1.57m at 10.1g/t gold.

Artisanal mining has recently recorded production head grades averaging 13.7 g/t gold.

CMR plans to conduct further detailed surface exploration and prospecting in order to define additional drill targets on the property over the next four to six months and hopes to drill this property, together with its El Cinco property, early in the second half on 2007.

Colin Andrew, CMR Managing Director commented:

"The commencement of the development at La Linda, and the imminent commencement at El Cinco / Colina Negra continues the expansion of the Company's mining operations in Colombia. We remain on course to achieve our gold production target of over 100,000oz per annum by late 2009."

Information in this press release is based on data reviewed by Colin J. Andrew, BSc ARSM MIMMM FGS CEng, Managing Director for Cambridge Mineral Resources plc, who is a Chartered Engineer and Member of the Institute of Materials, Minerals & Mining, and qualifies as a Competent Person in accordance with the "Guidance Note for Mining, Oil and Gas Companies, March 2006" of the London Stock Exchange. Mr Andrew has in excess of 30 years experience in mining and mineral exploration and has consented to the inclusion of the information in the form and context in which it appears.

Sampling and Analytical Procedures

Samples from La Linda, El Cinco and Colina Negra were prepared and analyzed by ALSChemex and SGS both ISO 9001 certified international laboratories.

The samples were primary crushed to 90% passing 6mm, secondary crushed to 95% passing -10 mesh. The sample was then homogenised and riffle split until 250-500g of material is obtained and pulverised in a ring grinder for 2-3 minutes until 95% passes -140 mesh. All preparation equipment was flushed by barren material after each sample was processed. Gold was initially determined by 50 gram fire assay fusion for total decomposition, followed by digestion of the silver dore bead and AA analysis. Gold between 1.0 and 5.0 g/t was also assayed using classical fire assay on a one assay-tonne sample (29.2 gram), whereas gold greater than 5.0 g/t was also assayed by gravimetric finish. Silver was analysed by AA finish. The laboratory's internal QC meets industry accepted practice.

CMR carries out an internal QA-QC program that is independent from ALSChemex and SGS by inserting blind standards, blanks and field duplicate samples into all batches of 20 samples for analysis. All sample bags were sealed with on site prior to shipping to the laboratory.

Editors' Note

Cambridge Mineral Resources plc is an AIM-quoted mining and exploration company. Its principal focus is the exploration for and production of gold and base metals in the following key target areas:

- South America: Colombia and Peru

- Europe: Spain, Bulgaria and Serbia (Serbia under joint venture)

The Company has a strong portfolio of mineral projects at varying stages of commercialisation, supporting its strategy of providing shareholders with attractive upside opportunities.

Contact Information

    Colin Andrew, Managing Director
    +44 (0)20 7663 5618
    Jasper Allen, Director, Corporate Finance
    +44 (0) 20 7190 7000
    Michael Padley / Daniela Hale
    +44 (0) 20 7367 8888