Russian gold aids recovery at Celtic

CELTIC RESOURCES, which is to be split into three different exploration companies, made pre-tax profits of $0.56m in the six months to the end of June.

The company said the turn-around was directly attributable to having increased its stake in the Suzdal gold mine in Kazakhstan from 40% to 100% in mid 2002.

The AIM-listed company reported pre-tax profits of $560,000, compared to a loss of $512,000 in the same period last year.

Chairman Peter Hannen said the company had made presentations to a number of investment institutions in Britain and on the Continent.

"These presentations have been well received and together with an improving gold price seem to have encouraged the investment community to revise its view of Celtic," he said.

"We look forward to the participation of our new shareholders as we continue to develop our exciting portfolio of assets."

Mr Hannen said the company had reviewed a number options for enhancing the value of their precious and speciality mineral exploration properties in Kazakhstan and their oil and gas assets.

"Our plan is to create two new companies, each with its own dedicated management team, to hold and develop these assets.

"In coming months, separate AIM listings will be sought for each company. Celtic will retain substantial share-holdings in both companies, thus giving it a significant interest in the values inherent in these assets while leaving it free to focus on its three gold mines." he added.

Mr Hannen was very upbeat about the company's Russian gold prospects, which he described as a world-class deposit containing a resource of over 29 million ounces of gold.

"We are now concentrating on completing the documentation, due diligence, and government approvals necessary to allow us to bring the agreement to you for approval.

"The full ownership of this gold mine will put our company into a new league of resources companies, and we will keep you informed as we progress," he added.