Highland Gold Acquisition of Blagodatnoye to Increase MNV and Belaya Gora Potential

22.02.2010 

Highland Gold Mining Limited (“Highland Gold”, or the “Company”) is pleased to announce that the Company has acquired a license for exploration and mining rights for the Blagodatnoye prospect in the Khabarovsk Region. Blagodatnoye has a reported prognostic resource of 5 tonnes (161,000 oz) of gold. The acquisition was made in an open auction on February 19 in Khabarovsk for a bid price of 3.25 million roubles (US$ 107 794). Preliminary evaluation of data from previous exploration work revealed that the property has good potential to increase the mineral resource.

The Blagodatnoye prospect features stockwork-type gold mineralisation with average gold grades in the range of 1.5 g/t – 2 g/t. A multi-disciplinary exploration programme will be designed and executed to verify and expand the known mineralised zones.

The acquisition of the Blagodatnoye property underlines the Company’s strategy of growing its asset portfolio in the vicinity of its existing operations by adding quality exploration properties with potential for future gold production. The new prospect is situated in close proximity to the Company’s two other important assets - Mnogovershinnoye and Belaya Gora. Blagodatnoye contributes to Highland Gold’s strategic hub in the region further maximising synergies and maintaining growth.

 

For further information please contact:

   
Highland Gold Dmitry Yakushkin, Head of Communications +7 495 424 95 21
  Duncan Baxter, Chairman - +44 (0) 1534 814202
Fin Public Relations Alex Glover - +44 (0) 207 608 2280
Smith's Dominic Palmer-Tomkinson - +44 (0) 207 239 0140
J.P. Morgan Cazenove Michael Wentworth-Stanley, Managing Director
(Nominated Adviser) + 44 (0) 207 588 2828