Cambridge Mineral Resources plc

Cambridge Mineral Resources plc

April 22, 2008 02:29 ET

Cambridge Mineral Resources Plc: Update on Quintana Gold Mine Construction-Work Commenced on Site

LONDON, UNITED KINGDOM--(Marketwire - April 22, 2008) - Cambridge Mineral Resources plc (AIM:CMR) ("CMR" or "the Company"), the mining exploration and production company, announces an update on development activities at its Quintana Gold Mine in Colombia.

Work commenced onsite on 10 February 2008, and development activities on surface have seen the completion of a 5.1km access road to the mine site at Quintana, completion of site access, work on the construction of a Tailings Management Facility to full international standards as designed by Golder Associates and additional earth-works at the mill site. Underground activities recommenced on 16 February and thus far have seen the completion of 15m of raising of the internal No.2 Incline Shaft to surface and the recommencement of sinking this shaft to No. 4 Level (some 150m below present base of mine). A new winder has been installed on No. 0 Level, pending its redeployment to the shaft headgear on surface that is currently under construction.

Most major items of plant equipment, including the primary and secondary crushing circuits, the grind circuit, the free-gold gravity recovery circuit and the flotation and cyanidation circuits, have been sourced and ordered from various suppliers. Delivery to site is expected over the next 100 days. A pre-fabricated mine camp with accommodation for 50 has been ordered and is expected to be delivered to site within 50 days.

The slightly rescheduled start to construction and the imminent onset of the wet season in Colombia may cause some additional interruption to the overall construction of the surface facilities and processing plant. As the duration and effects of the wet season are uncertain, it has been assumed that some delay to the commencement of gold production is possible and, therefore, Q4 2008 is now estimated as the revised timing for first revenue receipts.

Surface diamond drilling is currently underway on an 11 hole programme designed to seek additional resources at depth and along strike of the existing JORC compliant overall Measured, Indicated and Inferred Resources of 109,852 tonnes @ 24.58 g/t gold, 19.85 g/t silver (uncut).

Elsewhere in Colombia, exploration work has recommenced on the Colina Negra properties, which CMR believes may well be the site of the Company's second and third gold mine developments in this area. The current funding arrangements allow for their development.

Colin Andrew, Managing Director, commented:

"We are making excellent progress in working towards production, despite the weather, and we expect the first receipts from gold sales before the year end. We are also progressing our other interests, in particular in Peru."

Editors' Note

Cambridge Mineral Resources plc is an AIM-quoted mineral exploration and production company whose principal focus is for gold and silver in South America, where it plans to have two mines in production by the end of 2008.

Gold: in Colombia CMR has secured a financing facility for three gold mines, the first of which, Quintana, is currently under construction and is due to commence production in the fourth quarter of 2008. CMR currently owns 78% of Quintana.

CMR announced on 25 January 2008 that it had secured financing arrangements for the development of up to three of its gold mining projects in Colombia. This financing is for up to a total of USD 15 million in the form of pre-payments for gold to be delivered to the financier over a period of approximately 30 months following each mine start and represents approximately 25% of forecast monthly production.

Silver: in Peru CMR is currently completing a feasibility study at its wholly-owned Rasuhuilca silver mine and, subject to the successful outcome of the study and subsequent financing, it has planned to commence production in the fourth quarter of 2008.

In Europe, CMR has interests in gold and uranium exploration projects in Bulgaria, where it has a joint-venture with Electrum Ltd, a privately-held global gold exploration company with one of the largest and most diversified exploration portfolios in the world.

The Company also wholly-owns two projects in south-west Spain and is currently in discussion with third-parties regarding opportunities to advance these projects:

- Lomero-Poyatos - a polymetallic underground mine on which a Scoping Study and 43-101 report have been completed.

- Masa Valverde - a substantial copper-zinc exploration project which is the largest unmined massive sulphide body in the Iberian Pyrite Belt.

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

Contact Information

  • Cambridge Mineral Resources plc
    Colin J Andrew
    Managing Director
    020 7663 5618
    Ruegg & Co Limited
    Gavin Burnell / Roxane Marffy
    Nominated Adviser
    020 7584 3663
    Hichens, Harrison and Co Plc
    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