HOC Hochschild Mining Plc

RNS Number:0049E
Hochschild Mining PLC
18 September 2007


 
18 September 2007


Hochschild Mining plc commences production at the Pallancata mine and completes
                     capacity expansion at the Selene plant


* Commencement of production at Pallancata marks another important
  milestone in Hochschild's growth strategy

* Doubling plant capacity at Selene exemplifies Hochschild's ability to
  leverage its existing operations and regional knowledge to efficiently expand
  production

* During the course of 2007, Hochschild has expanded from three
  operations in one country to six operations in three countries, Peru, Argentina
  and Mexico

* Hochschild is on track to reach its production target of 26 million
  silver equivalent attributable ounces in 2007 (14 million silver attributable
  ounces and 200 thousand gold attributable ounces)

Eduardo Hochschild, Chairman of Hochschild Mining plc, said,

"Thus far, 2007 has been an exciting year for the Hochschild Mining Group as we
continue to deliver on our project pipeline. We have successfully expanded plant
capacity at Ares, Arcata and Selene and have commenced production at San Jose in
Argentina, Moris mine in Mexico and now Pallancata in Peru."

Hochschild Mining plc ("Hochschild" or the "Group") is pleased to announce that
it has commenced production at the Pallancata mine on time and within budget at
an initial rate of 180 ktpa. Pallancata is a silver and gold mine located in
southern Peru approximately 22 kilometers from the existing Selene operation and
is a joint venture between Hochschild (60%) and International Minerals
Corporation ("International Minerals") (40%) and is operated by Hochschild.
Commencement of production at Pallancata further solidifies Hochschild's ability
to bring new projects into production on time. This year Hochschild has expanded
from three operations in one country to six operations in three countries, Peru,
Argentina and Mexico.

Processing throughput capacity at the Selene plant has increased from 350 ktpa
to 700 ktpa to accommodate the Pallancata ore. Initially, while Pallancata is
being ramped up to approximately 270 ktpa over the next 12 months, approximately
seventy-five percent of the throughput capacity at the Selene plant will be used
for the Selene ore with the remaining twenty-five percent for the Pallancata
ore.

The Pallancata ore is transported to the Selene site via a 22 kilometer gravel
road. As was contemplated originally, the Pallancata ore will be sold in the
form of a silver-gold concentrate while the possibility of converting it to dore
is evaluated.

In the last six months of 2006, the reserves and resources in Pallancata
increased substantially as a result of an aggressive drilling campaign where
12,860 meters were drilled. During this period, resources and reserves increased
36% and 111% respectively. In 2007, 2,939 meters have already been drilled, with
a plan to drill another 16,441 meters during the remainder of the year. With the
drilling success over the last twelve months, the Group intends to shift focus
back to Selene in order to prove up additional reserves. The Group continues to
be pleased with the caliber of mineralization being encountered within the
Pallancata land package which consists of 7,330 hectares.

Corporate social responsibility remains a key pillar of the Hochschild mission
and for this reason the Company has employed a CSR manager at the Pallancata
operation solely responsible for maintaining and improving communications with
the local communities. We have been active on all fronts of corporate social
responsibility most notably in active involvement with the local school as well
as through the establishment of an infirmary.


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


About Hochschild Mining plc


Hochschild Mining plc (HOC.L for Reuters / HOC LN for Bloomberg) is a publicly
held company listed on the London Stock Exchange. Hochschild is a leading
precious metals company with a primary focus on the exploration, mining,
processing and sale of silver and gold. Hochschild currently operates five
underground epithermal vein mines, four located in southern Peru and one in
southern Argentina and one open pit mine in northern Mexico. Hochschild also has
one early stage development project in Mexico and fifteen long-term prospects
throughout Latin America. Hochschild has over forty years experience in the
mining of precious metal epithermal vein deposits.

For further information please visit www.hochschildmining.com


About Pallancata

The Pallancata silver and gold mine, located in southern Peru, is owned by
Hochschild (60%) and International Minerals (40%) and is operated by Hochschild.
In 2006, a 12,860 metre drill program was completed which increased attributable
resources and reserves by 36% and 111%, respectively. Thus far in 2007, 2,939
metres of drilling have been completed and plans to drill an additional 16,411
metres will be completed during the remainder of the year. To date more than 1.6
kilometres of underground workings have been developed in the Pallancata vein.




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

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