Trading Update for the First Half of 2015
Highland Gold Mining Limited ("Highland Gold" or the "Company") announces its operational update for the half-year ending June 30, 2015. The Company expects to release a full report of the interim results, including financial results for the period, on or about September 23, 2015.
HIGHLIGHTS
• Total H1 2015 production of 121,242 oz of gold and gold equivalents at Mnogovershinnoye ("MNV"), Novoshirokinskoye ("Novo"), and Belaya Gora, a 1% increase from 120,121 oz in H1 2014.
• Continued optimisation of operations at the Belaya Gora processing plant, with gold recovery rates reaching 76% on average (21% higher than in H1 2014) and 80.9% in June.
• Steady operations at Novo, with ore processing volumes set to rise to an annual rate of 630,000 - 650,000 tonnes by year-end.
• Work on Kekura progressing as planned, including state approval of Russian-compliant reserves, finalisation of processing studies; and initiation of work on technical design documentation.
• Guidance for full-year 2015 output of gold and gold equivalents unchanged at 270,000 - 285,000 ounces.
OPERATIONS
Mnogovershinnoye (MNV) - Khabarovsk Region, Russia
Processing plant throughput for the first six months of 2015 was 705,493 tonnes of ore, yielding 42,451 oz of gold. Recovery rates averaged 89%, a slight decrease from the same period in 2014. The dip was due to changes in the mineral composition of the ore and a decline in gold grades.
Open-pit and underground ore production totalled 619,749 tonnes. Underground development recorded a 7% increase to 4,287 metres from the previous six months.
The average ore grade was 2.15 g/t, which is 37% less than the same period of 2014. The reduction is due to the commencement of mining at the Verkhneye, Tikhoye, and Valunistoye ore bodies, which have slightly lower gold grades.
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