Andash Drilling Update
Aurum Mining PLC
25 May 2006
For immediate release 25 May 2006
AURUM MINING PLC
('Aurum' or 'the Company')
Drilling Update on the Andash Deposit
Aurum Mining plc (AIM: AUR), the company formed to acquire gold and other
mineral extraction projects in the Former Soviet Union (FSU), is pleased to
provide an update on progress at its Andash gold and copper project in the
Kyrgyz Republic following the completion of an infill drill programme at Andash
Zone 1 and of on-going exploration work at Zones 2 and 3.
Highlights
• Completion of infill drilling programme for Zone 1 meets expectations.
Inferred resources will be transferred to Measured and Indicated
• Initial exploration drill results confirm extensive mineralisation of
Zones 2 and 3
• On track for completion of Feasibility Study in September
The infill drill programme at Zone 1 was designed to provide further details on
the copper and gold grades in the Zone 1 orebody to allow the completion of the
Feasibility Study while the exploration work at Zones 2 and 3 was designed to
give an improved understanding of the additional resource opportunities within
the licence area, including the location of higher grade deposits.
The infill programme at Zone 1 comprised 19 NQ core holes totalling 2,652m
designed to confirm previous copper and gold grades, but also to provide a more
robust and up-graded classified resource. Although all of the assay results are
not yet available, initial results and inspection of cores confirm previous
estimates. This will allow Wardell Armstrong International (WAI) to update the
current resource model to bring all the inferred category to Measured and
Indicated as stipulated by the JORC Classification and complete the Feasibility
Study by September 2006. Aurum has also completed 5 HQ core holes totalling 713m
for geotechnical purposes and resource estimation in and around the proposed
pit.
In addition, the Company has embarked on an aggressive exploration programme to
test the extent of Zones 2 and 3, which lie to the west of Zone 1, and to look
at the possible faulted extension to Zone 1 itself.
Recent analysis of new geological and geophysical data on Zones 2 and 3 greatly
improves our understanding of the structural and morphological characteristics.
Most mineralised zones are confined to approximate east-west trending, gently
northerly dipping structural-tectonic zones, with thickness variations from tens
to hundreds of metres. These zones appear further localised by cross-faults.
Preliminary work has indicated that the distance between orebodies is
approximately 200m. They have variable thickness and can be traced along strike
for more than 1km. The gold and copper content also appears variable from near
background levels up to tens of g/t gold and 1.5% copper.
The proliferation of altered, hornblende-rich host rocks in proximity to normal
composition granodiorites appears to be an important feature for the detection
of further mineralisation. Such mineralisation was uncovered during cleaning and
deepening of an old trench at the presumed continuation of Zone 2 in hornblende
siltstones giving an intersection of 4m at 13.3g/t Au. Importantly, halos of
such hornblende alteration have been found to be associated with geophysical
anomolies (IP) characterised by high polarisation (4-6%), which may be
associated with concealed sulphide mineralisation. This suggests that other IP
anomalies may indicate similar alteration zones.
To test this, Aurum has embarked on a preliminary exploratory drilling programme
on a 200x80-280m grid, with sections aligned across the known mineralised zones,
and to intersect the large IP anomaly identified to the north of Zones 2 and 3.
Aurum proposes to drill 5-6 sections with 3-4 holes per section to a depth of
150-250m, giving a total distance of some 3,000m. However, this programme will
be constantly evolving as new geological data emerges.
The first drilling results from the new programme have been received. Three
holes, P15, P16 and P17, drilled approximately 50m apart all intersected
mineralization in zones 2 and 3, with hole P17 testing the near surface ore zone
and holes P15 and P16 intersecting the structure further down dip. Holes P15 and
P16 proved the presence of blind mineralisation localised in a brecciated
granodiorite (similar to Zone 1) and associated with hornblende siltstone. Hole
P17 also intercepted mineralised breccia and hornblende siltstone. This supports
our hypotheses of using the hornblende siltstone, which shows up as an IP
anomaly, as an exploration target.
Results from the 3 holes show the ore zone intersections vary in thickness. In
hole P17, where the ore zone comes close to surface, mineralization is seen to
occur as thin stringers in a clay rich formation. This becomes more coherent
down dip as seen in holes P15 and P16. The ore zone is seen to increase in
thickness and grade in the down dip portion to approx 50m in hole P15, with gold
values varying between 1.5g/t and 0.31g/t. Although the average grade from the 3
holes is 0.49g/t, initial interpretation indicates that that selective mining of
the ore zone would be possible. Intersections of higher grade in hole P15 (26m
at 1.51g/t) indicate that gold grade improves down dip. This confirms what has
been seen in previous drilling, which has shown that the gold content increases
to an average of 1.4-1.5g/t to a maximum of 2.23-2.35g/t. Higher level targets
analogous to this are the aim of this present exploration programme.
Encouragingly, dozer road preparation for hole P37 (the next hole to be drilled)
has already cut previously unknown surface mineralisation.
WAI has reviewed the planned exploration programme and is monitoring progress to
optimise the probability of the discovery of additional, near surface
mineralisation.
Mark Jones, Aurum Mining's Chief Executive, said: 'These results represent
another important step forward for the Company and give us confidence both in
meeting our target of completing our Feasibility Study for Andash Zone 1 in
September and increasing the resource level in Zones 2 and 3.'
For further information:
Aurum Mining plc Tel: 020 7478 9050
Mark Jones, Chief Executive
Arbuthnot Securities Tel: 020 7012 2000
Graham Swindells
Buchanan Communications Tel: 020 7466 5000
Mark Court/Amy Rajendran
Notes to editors
Aurum Mining joined the AIM market of the London Stock Exchange in May 2004 with
the strategy of seeking, evaluating and acquiring gold and other mineral
extraction projects in the Former Soviet Union (FSU). In January 2005 the
Company completed its first acquisition, giving the Company an exploration
licence over the Andash gold and copper project in the Kyrgyz Republic. In its
State Register, the State Commission of Resources of the Kyrgyz Republic has
included 21.7 million tonnes of C1 and C2 reserves from the project, amounting
to gold and gold equivalent of more than 1.5 million ozs.
This information is provided by RNS
The company news service from the London Stock Exchange