Mnogovershinnoye Lower Horizons Acquisition
Highland Gold Mining Limited ("Highland Gold" or the "Company") announces the acquisition of a license for exploration and mining rights for the Lower Horizons of the Mnogovershinnoye (MNV) deposit, thereby extending the Company’s current 17.9 km2 license for MNV at depth beyond lower levels of existing state approved reserves. The acquisition resulted from an open auction held on 23 October in the regional capital of Khabarovsk for a bid price of 7.810 million roubles (ca. US$ 191,000). The Lower Horizon of MNV represents untapped mineral potential within the mine’s immediate vicinity and has good potential to deliver new resources at MNV in the medium-term.
The Lower Horizons license grants access to lower levels of the Main and Intermediate ore zones, the hosts for MNV’s rich ore bodies and the focus of previous and current mining activities. The Lower Horizon has seen only limited exploration in the past and has reported prognostic resources of 18 tonnes of gold. Exploration of the Lower Horizon’s resource potential will likely be initiated from the Northern ore body utilising existing underground infrastructure.
Together with the North-Western Flank property acquired in July 2014, the new acquisition supports the Company's continued focus on its near-mine exploration efforts at MNV with a goal of verifying and further increasing known near-mine mineralised prospects, thus adding value to ongoing operations.
Mr. Werner Klemens, Head of Exploration at Highland Gold has reviewed and verified the information contained in this release with respect to drilling and resource / reserve matters. Mr. Klemens holds a Ph.D. in Geology from the University of Toronto has more than 16 years of experience in mineral exploration and is a fellow of the Geological Association of Canada. A rigorous quality assurance programme complying with international standards is in effect at all exploration projects and includes duplicate sampling, insertion of standards and check assaying at external laboratories.
For further information please contact:
|Highland Gold||John Mann, Head of Communications
+ 7 495 424 95 21
Duncan Baxter, Non-Executive Director
+ 44 (0) 1534 814 202
|Numis Securities Limited:
(Nominated Adviser and Joint broker)
|John Prior, James Black,
+44 (0) 207 260 1000
|Peat & Co
( Joint Broker)
+44 (0) 207 104 2334
“Prognostic Resources” as per Russian reserve/resource classification are estimated for mineralisation outside the limits of areas that have been explored in detail and are often based on data from trenches and from geochemical and geophysical surveys.