Expansion of Operations in Colombia Acquisition of Additional Gold Mining Operation
Cambridge Mineral Resources plc (”CMR” or the ”Company”), the mining exploration and production company focused on South America, is pleased to announce that it has signed an agreement with a Colombian company granting a three-month due diligence period to review a gold mining operation in Colombia.
Under the terms of this agreement, upon satisfactory completion of the due diligence, the parties will form a 50:50 joint ownership mining project company for the expansion of the mining operation. This will become CMR’s second advanced gold mining operation in the country and eighth gold project in the region.
Following completion of the due diligence CMR will invest funds totalling approximately US$395,000 to complete underground exploration/development activities and a Bankable Feasibility Study. Mine expansion will be jointly funded via the project company with an initial mine production target of 100 tonnes per day and the installation of a modern process plant with an estimated capability of producing upwards of 15,000 ozs of gold per annum at start-up level.
The process flowsheet and design of the gold process plant has been completed and CMR will perform additional verification metallurgical testwork during the due diligence period.
Colin Andrew, Managing Director, Cambridge Mineral Resources commented:
”This agreement gives CMR a second advanced project close to a production decision. The Mina Quintana project, CMR’s first Colombia acquisition, is at an advanced stage of exploration/development and the Company expects to complete the Quintana Feasibility Study before the end of Q1 2007. The Quintana development is ahead of schedule and we expect to be in a position to make a decision regarding moving to full production very shortly.
”We remain on target to achieve our stated aim of developing a portfolio of small high-grade mines capable of producing 100,000 ozs gold per annum. Following completion of this acquisition, we will have acquired six mines in Colombia in just over one year, two of which we believe can be significantly expanded in the near future and one that has the potential to be a world class resource.”
Colin J. Andrew BSc ARSM MIMMM FGS CEng, Managing Director of Cambridge Mineral Resources plc, and a Qualified Person as defined by the “Guidance Note for Mining, Oil and Gas Companies, March 2006″ of the London Stock Exchange, has reviewed the information contained herein.
CAMBRIDGE MINERAL RESOURCES PLC
Colin Andrew, Managing Director
Tel: +44 (0) 20 7663 5618
INSINGER DE BEAUFORT
Tel: +44 (0) 20 7190 7000
Louis Castro, Director Corporate Finance
Tel: +44 (0) 20 7367 8888
Michael Padley / Michael Spriggs
Cambridge Mineral Resources plc is an AIM-quoted mining and exploration company. Its principal focus is the exploration for and production of gold and base metals in the following key target areas:
* South America: Colombia and Peru
* Europe: Spain, Bulgaria and Serbia (Bulgaria and Serbia under joint ventures)
The Company has a strong portfolio of mineral projects at varying stages of commercialisation, supporting its strategy of providing shareholders with attractive upside opportunities.