Cambridge update on Gold Mine projects

Cambridge Mineral Resources plc, the mining exploration and production company, has signed a civil engineering contract for the construction of the tailings dam and various other necessary earthworks.

Development financing was secured last month for up to three gold mines in Colombia and work has now commenced at Quintana. That work includes the upgrading of access roads as well as detailed topographical surveys of the tailings dam site and surrounding areas of suitable material to be used for the dam construction. Work over the next few weeks will also focus on the excavation of the site for the processing plant and the procurement of the plant equipment.

Mine development is scheduled to restart the week commencing Monday 25 February, with deepening of the main decline planned to reach Level 4 within the next four months.

CMR has also recruited a highly experienced project manager for Quintana, who will oversee the project start-up and remain as mine manager once the construction phase has been completed.

At El Cinco, CMR’s second main project in the Frontino Gold Belt, final planning for the construction of the required road access is underway, with machinery expected to be on site in March. It is expected that within approximately 6 weeks the Company will have drill access to the site, which will allow it to commence resource definition drilling at both its Chingale and Colina Negra targets with its in-house drill rig. Following successful completion of these programmes, the Company plans to move rapidly to the production of a feasibility study and then mine development using the financing agreement already in place.

Colin Andrew, Managing Director of Cambridge Mineral Resources plc, said that operations at our Colombian projects are on course and we will be making regular announcements of progress, at Quintana as well as the other projects, as we move towards the start of gold production later this year. It is an exciting time for CMR as we build our first mine and further developments are expected shortly in Colombia and Peru.