Cambridge Mineral Resources plc

Cambridge Mineral Resources plc

February 25, 2008 02:01 ET

Cambridge Mineral Resources plc: Update on Progress on Quintana and El Cinco Gold Mine Projects

LONDON, UNITED KINGDOM--(Marketwire - Feb. 25, 2008) - Cambridge Mineral Resources plc (AIM:CMR)("the Company"), the mining exploration and production company, is pleased to announce that it has signed a civil engineering contract for the construction of the tailings dam and various other necessary earthworks.

Development financing was secured last month for up to three gold mines in Colombia and work has now commenced at Quintana. That work includes the upgrading of access roads as well as detailed topographical surveys of the tailings dam site and surrounding areas of suitable material to be used for the dam construction. Work over the next few weeks will also focus on the excavation of the site for the processing plant and the procurement of the plant equipment.

Mine development is scheduled to restart the week commencing Monday 25 February, with deepening of the main decline planned to reach Level 4 within the next four months.

CMR has also recruited a highly experienced project manager for Quintana, who will oversee the project start-up and remain as mine manager once the construction phase has been completed.

At El Cinco, CMR's second main project in the Frontino Gold Belt, final planning for the construction of the required road access is underway, with machinery expected to be on site in March. It is expected that within approximately 6 weeks the Company will have drill access to the site, which will allow it to commence resource definition drilling at both its Chingale and Colina Negra targets with its in-house drill rig. Following successful completion of these programmes, the Company plans to move rapidly to the production of a feasibility study and then mine development using the financing agreement already in place.

Colin Andrew, Managing Director of Cambridge Mineral Resources plc, stated:

"Operations at our Colombian projects are on course and we will be making regular announcements of progress, at Quintana as well as the other projects, as we move towards the start of gold production later this year. It is an exciting time for CMR as we build our first mine and further developments are expected shortly in Colombia and Peru."

Editors' Note

Cambridge Mineral Resources plc is an AIM-quoted mining and exploration company.

CMR's principal focus is the exploration for, and production of, precious metals in South America. It also owns interests in gold, copper, zinc and uranium projects in Europe.

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

Contact Information

  • Cambridge Mineral Resources plc
    Colin Andrew
    Managing Director
    020 7663 5618
    Ruegg & Co Limited
    Gavin Burnell / Brett Miller
    Nominated Adviser
    020 7584 3663
    Hichens, Harrison and Co
    Colin Rowbury
    020 7382 7771
    Haywood Securities (UK) Limited
    Tom Beattie
    020 7031 8018
    Bankside Consultants
    Michael Padley / Louise Davis
    Financial Public Relations
    020 7367 8888