Company Information for Aurum Mining Plc

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Company Statement

Aurum Mining plc joined the AIM market of the London Stock Exchange in May 2004 with the strategy of acquiring gold projects in the Former Soviet Union (FSU). The Company’s management and consultancy team - which brings together formidable experience of mining, the FSU and financial markets - has consistently delivered on its strategy with the result that the Company is on the point of transformation from exploration to production.

The Andash Project
Aurum acquired the licence to the Andash exploration area in northern Kyrgyz in January 2005 and has since advanced Zone 1 to a Proven and Probable reserve of 1.1 million ozs of gold and gold equivalent in copper. The licence area, which extends to 53 sq km, includes a further two orebodies and five exploration zones, offering a substantial opportunity to increase the Andash Project’s resource base and to maximise the mine life and cost efficiency of the proposed mine at Andash Zone 1. Aurum received a Mining Licence for Zone 1 from the Kyrgyz authorities in 2006 and also completed a fully bankable feasibility study, led by Wardell Armstrong International. Zone 1 has a JORC compliant P&P resource of 16Mt of ore at a grade of 1.05g/t and 0.4% copper, giving a gold equivalent of 1.1 million ozs.

Next steps
Detail design work for the construction of the open-cast mine at Zone 1, at an estimated capital cost of $55 million, has commenced following the successful raising of project finance through a £30m placing in February this year. Initial production is expected next year with output rates of 2Mt pa from 2009, establishing Aurum as a low-cost producer with significant additional exploration opportunities within the Andash licence area.

The Andash project also includes the Zone 2 and Zone 3 along with Tokhonysay and three other additional exploration areas.  

Current Operations

Andash gold and exploration project, Kyrgyz Republic

The exploration licence covers an area of 53km2 and is valid until December 2010, following an extension awarded to Aurum by the Kyrgyz authorities in February 2006. There is an undemanding work commitment of $60,000 in this calendar year as a condition of the licence extension, which the recent drill programme and feasibility work has already exceeded.

The State Agency for Geology and Mineral Resources of the Kyrgyz Republic awarded a mining licence for Zone 1 in November 2006. The licence is valid until 2017. Construction of the mine will commence in 2007, with production expected in 2008.

Geographical Spread

Former Soviet Union

Board of Directors and Key Management

Mark Jones	(CEO)
Sean Finlay	(Non Executive Chairman)
Haresh Kanabar	(Executive Director)
Chris Eadie	CFO
Colin Knight (Dr)	(Non Executive Director)
David Bryans	(Aurum Mining Consultant)

Company Address 1st Floor 26 Curzon Street Mayfair London, United Kingdom W1J 7TQ Telephone: +44 20 7478 9050 Facsimile: +44 20 7495 3388 Email: elena.altayli[at]aurummining.net Website: http://www.aurummining.net

Additional Address/Key Contact

Year End March

Nominated Brokers Arbuthnot Securities

Nominated Advisors Arbuthnot Securies

Related News

13/12/07 - Aurum Approaches Puberty
31/05/07 - Aurum Mining Counters Rumours About Its Andash Mine In Kyrgyzstan…
01/05/07 - Aurum’s Andash Project is Debt Free and Unhedged

Most Recent Statement

08/01/08 - Aurum Mining reports good drilling results from Tokhtonysay
16/07/07 - Pre-close Update
27/06/07 - Capital Expenditure Saving at Andash Zone 1 Mine
30/05/07 - Andash Mine Update
19/04/07 - Andash Mine Construction Update
05/01/07 - Feasibility study for the Andash Cu-Au project