CAMBRIDGE MINERAL RESOURCES PLC (CMR.L) UPDATE

CAMBRIDGE MINERAL RESOURCES PLC (CMR.L) UPDATE

Cambridge Mineral Resources plc (“CMR” or “the Company”), the mining exploration and production company, announces an update on development activities at its Quintana Gold Mine in Colombia.

Work commenced onsite on 10 February 2008, and development activities on surface have seen the completion of a 5.1km access road to the mine site at Quintana, completion of site access, work on the construction of a Tailings Management Facility to full international standards as designed by Golder Associates and additional earth-works at the mill site.  Underground activities recommenced on 16 February and thus far have seen the completion of 15m of raising of the internal No.2 Incline Shaft to surface and the recommencement of sinking this shaft to No. 4 Level (some 150m below present base of mine).  A new winder has been installed on No. 0 Level, pending its redeployment to the shaft headgear on surface that is currently under construction.

Most major items of plant equipment, including the primary and secondary crushing circuits, the grind circuit, the free-gold gravity recovery circuit and the flotation and cyanidation circuits, have been sourced and ordered from various suppliers.  Delivery to site is expected over the next 100 days.  A pre-fabricated mine camp with accommodation for 50 has been ordered and is expected to be delivered to site within 50 days.

The slightly rescheduled start to construction and the imminent onset of the wet season in Colombia may cause some additional interruption to the overall construction of the surface facilities and processing plant.  As the duration and effects of the wet season are uncertain, it has been assumed that some delay to the commencement of gold production is possible and, therefore, Q4 2008 is now estimated as the revised timing for first revenue receipts.

Surface diamond drilling is currently underway on an 11 hole programme designed to seek additional resources at depth and along strike of the existing JORC compliant overall Measured, Indicated and Inferred Resources of 109,852 tonnes @ 24.58 g/t gold, 19.85 g/t silver (uncut). 

Elsewhere in Colombia, exploration work has recommenced on the Colina Negra properties, which CMR believes may well be the site of the Company’s second and third gold mine developments in this area.  The current funding arrangements allow for their development.

Colin Andrew, Managing Director, commented:
“We are making excellent progress in working towards production, despite the weather, and we expect the first receipts from gold sales before the year end.  We are also progressing our other interests, in particular in Peru.”

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