LONDON MINING 3RD QUARTER 2009 RESULTS
(Thomson Reuters ONE) - * Admission to AIM and placing of 37 million existing shares * Dispute resolved with African Minerals and Government of Sierra Leone * Wadi Sawawin feasibility study on track * 3,600m drilling programme at Isua complete * MOU signed with other operators on CGMR enlarged licence area * Cash of USD230 million at 30 September 2009Aim AdmissionOn 2 November London Mining announced 37,239,225 existing shares hadbeen placed at GBP1.924/share with new investors ahead of admissionto AIM. Trading of London Mining shares commenced on 6 November. Theadmission and placing has significantly increased the free float ofLondon Mining's issued share capital and added over 30 high qualityinstitutional investors to London Mining's register.Operating ReviewLondon Mining made significant headway on its four principal projectsover the quarter and has also embarked on several new initiatives asthe Company moves towards realising its ambition to become a mid-tierdeveloper of mines for the steel industry. These are the developmentof a corporate social responsibility programme and an acceleratedJORC resource campaign.Marampa (100%), Sierra LeoneDuring the quarter the company resolved its dispute with theGovernment of Sierra Leone and African Minerals and was issued with anew 13.82km2 mining licence. Testwork was also received from CDTN inBrazil which showed that either sinter feed or blast furnace feedcould be produced from the reprocessed Marampa tailings using twostage Wet High Intensity Magnetic Separation (WHIMS). Production ofsinter feed is possible without the installation of a milling circuitand CRU Strategies have indicated that the resulting product shouldcapture a USD3/dmt premium to Brazilian Itabira fines if sold intothe European market. The Company expects to have a JORC standardresource statement for the tailings in December 2009 and for theprimary ore in June 2010. A construction decision for Marampa isexpected by the end of 2009 following final ratification of fiscalincentives in the Sierra Leone Parliament.Wadi Sawawin (50% JV), Saudi ArabiaThe Company remains confident of delivering the BFS for Wadi Sawawinby the end of 2009. A 2,640m drilling campaign is underway with theaim of extending the mine life for the project from 14 to 17 years.The joint venture has a total licence area of 211.2 km2 with the areacomprising the current 230Mt resource lying within an area of 3.5km2.Initial work indicates good further exploration potential and an8,000m drilling programme is planned to increase the regionalresource.Isua (100%), GreenlandDuring the third quarter, London Mining completed 3,600m of drillingat Isua, the results of which will contribute towards an updated JORCresource statement at the end of 2009. SNC Lavalin have beenappointed to complete a prefeasibility study and this expected to bedelivered during Q1 2010. Also during the quarter, the owner's teamwas augmented by the appointment of Dr Xiaogun Hu, an expert inglacier management and cold weather construction.China Global Mining Resources JV (50%)In July the CGMR JV commissioned Wardrop Engineering to estimate aresource from historical drill data (60 holes comprising an estimated24,000m of drilling were completed on the licence area in the 1970s).Wardrop have indicated that mineralisation is pervasive throughoutthe licence area and at depth. A drilling campaign to confirm thehistoric data is currently being planned and is expected to commencetowards the end of 2009 with the aim of producing a resourcestatement to JORC standards in 2010. The JV has entered an MOU toacquire the other operators on the expanded licence, and isprogressing due diligence. The acquisition will provide an additional0.3Mtpa of concentrate production capacity and allow the JV to beginplanning for an enlarged operation.Other InvestmentsLondon Mining acquired interests in DMC Energy Pty Ltd (DMC Energy)and International Coal Company (ICC) during 2008.DMC Energy (effective 28%), South AfricaA definitive feasibility study for the 70% owned Rietkuil project hasstill yet to be delivered by DMC. Early indications show thatRietkuil can be developed on a wholly open-pit basis. The feasibilitystudy is expected to be released ahead of DMC's proposed listing onthe Johannesburg Stock Exchange in Q2 2010International Coal Company Ltd (20%), ColombiaLondon Mining continues to review its investment in Colombia. TheCompany is in negotiations with ICC regarding the provision oflimited funding of up to USD5 million to develop further the businessplan for coke and coal production. Any such funding is likely to bemade within the next few months.Corporate developmentCorporate Social ResponsibiltyFurther to the release of its Competent Person's Report in OctoberLondon Mining has engaged Wardell Armstrong to review its CSRperformance and capability. London Mining currently meets all localEnvironmental, Health, Safety and Community requirements at a locallevel but plans to ensure that all its projects are developed in linewith industry best practice.JORC programmeLondon Mining has launched comprehensive mineral resource definitionprogramme in order to better understand the geological potential ofits resources under the supervision of its Manager for Resources andDevelopment, Sergio Guedes. The Company plans to report to JORCstandards in line with industry best practice. Updated resourcestatements for Marampa, Wadi Sawawin and Greenland are expected bythe end of the year. The Company also plans to drill a further22,000m to further expand existing resources.For more information, please contact:London Mining PlcRachel Rhodes, Finance Director +44 20 7201 5000Thomas Credland, Head of Investor RelationsLiberum Capital (Broker/Nomad)Clayton Bush/Ellen Francis +44 20 3100 2000GMP Securities EuropeJeremy Wrathall +44 20 7647 2800Crux Kommunikasjon ASCharlotte Knudsen +47 97 56 19 59Threadneedle Communication (UK)Laurence Read/ Graham Herring +44 20 7653 9850About London MiningLondon Mining Plc is a UK-based company that is developing mines forthe steel industry. The company owns 100% of the Marampa hematiteiron ore mine in Sierra Leone, 100% of the Isua magnetite iron oreproject in Greenland, a 50% stake in on the Wadi Sawawin jointventure in Saudi Arabia and a 50% stake in the China Global MiningResources joint venture. It also has minority interests in SouthAfrica and Colombia. The Company listed on the Oslo Axess, amarketplace regulated by the Stock Exchange, on 9 October 2007 andthe AIM on 6 November 2009. It trades under the symbol LOND.NO.---END OF MESSAGE---http://hugin.info/137683/R/1354401/328394.pdfhttp://hugin.info/137683/R/1354401/328395.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 12.11.2009 - 08:02 Uhr
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