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Highland Gold stays on track with Belaya Gora gold project

Published: 09:21 27 Jul 2011 BST

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Highland Gold (LON:HGM) announced it has submitted the final design documents for approval for the second stage of development of its Belaya Gora gold project in the Khabarovsk region of Russia.

First phase mining at the Belaya Gora project, which has been yielding yielded significant intersects of gold mineralisation, began in November 2010.

Today the company notes that it is progressing to the second important stage in accordance with previously declared timelines, underpinning its commitment to launch the stand-alone gold processing plant at Belaya Gora during the second half of 2012.

The anticipated design process capacity averages 1.5 million tonnes of ore per annum with an associated expected gold production ranging from 75,000 to 110,000 oz per annum.

Project capex spent to date is approximately US$11 million out of a total budget of US $101million planned over the period 2011/12.

Based on comprehensive independent metallurgical studies already completed, the company is confident that conventional metallurgical processing based on gravity concentration and whole ore cyanidation technology will enable optimum levels of gold recovery.

The first stage of production at the site is expected to continue through to commissioning of the stand-alone process plant.

Belaya Gora's management team is in the process of finalising the detailed construction schedule and work plans in order to commence site specific activities. Land clearing and preparation for construction have already commenced and site construction will immediately follow the receipt of the construction permit.

Highland Gold’s capital construction team has already initiated the selection of a general contractor as well as preparation of tendering documents for the supply of capital equipment.

The company’s other major asset in the the Khabarovsk region  of Russia is Blagodatnoye, where drill analysis has already indicated a gold-mineralised zone of around 500x400 metres in width, intersected to a depth of 200 metres. Prospectivity of the zone remains open in all directions.

In early trade, Highland shares were up 1.88p to 184.13p.

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