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. Last Updated: 07/27/2016

Hambro Raises Pioneer Cost Estimate

LONDON -- Peter Hambro Mining, the country's third-biggest gold producer, raised its projected spending to develop the Pioneer deposit and delayed the start-up of the Malomir project for as long as one year to tap a bigger resource.

The addition of a processing plant boosted projected spending at Pioneer to $87 million through December 2009, up from last year's estimate of $81 million, London-based Peter Hambro said Monday in a statement. Malomir's planned 2008 start-up was postponed for six to 12 months, the company added.

The Pioneer project will produce 395,000 ounces of gold by 2009, surpassing Pokrovsky as the company's largest mine, Peter Hambro said. Malomir will produce 286,000 ounces, or 26 percent of the total projected 2009 output of 1.1 million ounces.

The delay at Malomir is because "the geology is more complex and needs more geological exploration to be done,'' Peter Hambro spokeswoman Alya Samokhvalova said. "We were previously talking about two deposits in that area and we've now identified three."