www.hambledon-mining.com
Hambledon Mining plc is a gold mining and development group, which is operating the Sekisovskoye gold mine close to Ust Kamenogorsk in East Kazakhstan.
The Company has been mining from an open pit and operating an 850,000 tonnes per annum treatment plant since 2008. Underground mining at Sekisovskoye began in late 2011 on time and on budget. From a combined production from the underground and open pit mine of approximately 30,000 ounces in 2012 a figure of approximately 100,000 ounces is targeted from the underground mine alone in 2017. It hopes to complete the purchase of Akmola Gold LLP in March 2012, bringing in to the group two gold deposits with a total resource of 440,000 ounces gold.
Fox-Davies repeats 'buy' recommendation on Hambledon Mining after drill results
According to Fox Davies Capital analyst Peter Rose, further development of the underground mining operation is key to unlocking the potential of Hambledon Mining's (LON:HMB) Sekisovskoye gold project in Kazakhstan.
The note from Rose followed yesterday’s underground drilling results from Hambledon, which showed grades of up to 4.86 grammes per tonne (g/t) gold across 9 metres and 3.5 g/t gold across two metres.
Hambledon said the drill results compared favourable to ore body number 11 where mining started in late 2011 and provided a confirmation of its geological model.
Rose today reiterated his ‘buy’ recommendation with a target price of 15 pence on Hambledon, saying the grades are higher in the underground mining zones, which means the same tonnage through the mill will provide a higher gold output.
The initial contribution of underground ore increased the overall gold grade by 22 percent in the final three months of 2011 compared with the third quarter.
In addition, the underground zones are less susceptible to the harsh winter climate in the area than open pit mining operations.
Rose also noted that the results were consistent with the other results that have been obtained to date.
In the meantime, Hambledon has been making good progress in expanding the underground mining zones with three levels being mined at present and a fourth due to commence in early February.
Hambledon aims to progressively ramp up gold production at Sekisovskoye to 100,000 ounces per year.
Shares in Hambledon closed at 3.63 pence on Thursday, valuing the company at £26.95 million.


















