There has been a 79% increase in contained gold at Hambledon Mining"s Sekisovskoye project in Kazakhstan.

Grade control sampling has confirmed the 79% increase compared with the geological model at 480 metre level.

Hambledon has received ecological and operating permits, and expects its processing facility at Sekisovskoye to be completed this quarter. Start-up of the Ognevka processing plant is also expected shortly.

Hambledon chief executive Nicholas Bridgen says: "The increase in contained gold shown by our grade control sampling is even more dramatic than previously announced. This reinforces our geologists' conviction that the out-turn at this complex deposit will be far better than we have so far been able to demonstrate and, if so, it will extend the life of the open pit, reduce the stripping ratio and cut the cash costs per ounce.

"Despite the late delivery of some of our equipment and the slow working of some contractors, we still expect our first gold production before the end of the year."

At Sekisovskoye, the company is mining from an open pit and constructing an 850,000 tonnes per year treatment plant. Production from the open pit will average more than 40,000 ounces per annum. After the start of open pit processing, the company plans to develop the much larger underground resource that is expected to lead to a combined production rate of around 100,000 ounces per year.

The Ognevka processing plant is being refurbished and will produce concentrates containing gold, silver, copper, iron and coke from the re-treatment of zinc smelter residues.