RNS Number:0351A
Hochschild Mining PLC
11 July 2007



11 July 2007


           Hochschild Mining plc Quarterly Production Report for the
                      three months to 30 June 2007 ("Q2")


Highlights:


  * 20% increase in total silver production quarter-on-quarter and 14%
    increase year-on-year
  * 13% increase in total gold production quarter-on-quarter although slightly
    lower than the same period last year
  * Hochschild is on schedule with its expansion from three operations in one
    country to six operations in three countries
  * Hochschild is on track to reach its 2007 production target of 26 million
    silver equivalent attributable ounces (14 million attributable silver ounces
    and 200 thousand attributable gold ounces)


Eduardo Hochschild, Chairman of Hochschild Mining plc, commented


"We are delighted to be announcing strong production results today that show the
benefits of our expansions. Already this year we have expanded two of our plants
and commenced production at San Jose and with two more mines scheduled for
commencement of production in the current quarter, 2007 will be a transformative
year for the company. These figures show that we are on track to deliver on our
IPO promises, to meet our targets to increase production this year and to
achieve our 50 million silver equivalent ounce target by 2011."


Overview:


Overall production in Q2 increased as a result of increased capacity at all
three operating units, and higher grades for both silver and gold at Arcata.
Production at Selene was relatively flat despite increased throughput capacity
as a result of lower head grades mined.


Capacity Expansions:


Following the completion of the capacity expansion at Ares in the first quarter,
the capacity expansion at Arcata from 350 ktpa to 420 ktpa was successfully
completed in the second quarter. In addition, the capacity expansion at Selene
has been initiated and will take the plant from 350 ktpa to 700 ktpa. The
expansion at the Selene plant is on track for completion in Q3 and will
accommodate the ore from Pallancata. Last week Hochschild announced plans for an
expansion at its new San Jose mine to double capacity in Q3 2008 and to reduce
costs by joining the project to the southern national grid.


New Projects:


2007 is a transformative year for Hochschild with the group moving from three
mines in one country to six mines in three countries. San Jose, the group's
first mine in Argentina commenced production on time, during Q2, and will start
to make a significant contribution to the group in the second half of 2007.
Pallancata in Peru and Mina Moris in Mexico remain on track to commence
production in Q3 of this year.


Joint Ventures:


Since the end of the quarter, Hochschild has announced a new strategic alliance
with its existing partner at the Moris mine in Mexico, EXMIN Resources Inc.
("EXMIN"), has increased its stake in EXMIN and has gained right of first offer
on certain exploration properties in the Sierra Madre region.


TOTAL PRODUCTION

                                       Q2            Q1            Q2
                                     2007          2007          2006

Silver production (Koz)             3,073         2,561         2,684
Gold production (Koz)               48.04         42.66         49.03
Total silver equivalent (Koz)       5,955         5,120         5,626
Total gold equivalent (Koz)         99.25         85.33         93.76




ARCATA

Product                                Q2            Q1            Q2
                                     2007          2007          2006
Ore production (tonnes)            94,421        82,092        65,883
Average head grade silver(g/t)     569.03        491.25        584.51
Average head grade gold (g/t)        1.44          1.30          1.51
Concentrate produced (tonnes)       4,099         3,349         2,578
Silver grade in concentrate (kg/t)  11.36         10.54         13.36
Silver produced (Koz)               1,497         1,134         1,107
Gold produced (Koz)                  3.74          3.00          2.73



ARES

Product                                Q2            Q1            Q2
                                     2007          2007          2006
Ore produciton (tonnes)            84,138        72,266        71,514
Average head grade silver (g/t)    261.80        252.80        312.45
Average head grade gold (g/t)       14.66         15.03         17.86
Dore total (Koz)                   690.15        564.09        711.58
Silver produced (Koz)                 650           529           670
Gold produced (Koz)                 38.11         33.49         39.59



SELENE

Product                                 Q2            Q1            Q2
                                      2007          2007          2006
Ore production (tonnes)            100,389        90,192        89,941
Average head grade silver (g/t)     328.00        349.92        347.59
Average head grade gold (g/t)         2.32          2.55          2.71
Concentrate produced (tonnes)          947           861           915
Silver grade in concentrate (kg/t)   30.96         32.62         30.80
Silver produced (Koz)                  925           897           906
Gold produced (Koz)                   6.19          6.16          6.71


The Group will announce its Interim Results for the first half of 2007 on 18th
September. Please visit our website for more details on upcoming events
www.hochschildmining.com.


Enquiries:

Hochschild Mining plc

Wray Barber +44 (0)20 7152 6014

Head of Investor Relations


Finsbury

Robin Walker +44 (0)20 7251 3801

Public Relations


- ends -



                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
MSCUASNRBARBARR
Hochschild Mining (LSE:HOC)
Historical Stock Chart
From Jun 2024 to Jul 2024 Click Here for more Hochschild Mining Charts.
Hochschild Mining (LSE:HOC)
Historical Stock Chart
From Jul 2023 to Jul 2024 Click Here for more Hochschild Mining Charts.