Cabeza Prospect Update

RNS Number : 6214T

Ormonde Mining PLC

17 December 2012

 

17 December 2012

Ormonde Mining plc

("Ormonde" or "the Company")

Further Good Gold Results from Trenching on the Cabeza Prospect

The Board of Ormonde is pleased to report further very encouraging results from its trenching programme at our Cabeza de Caballo ("Cabeza") Gold Prospect in the Salamanca Province, western Spain. This prospect is part of our joint venture with Aurum Mining plc.

Results received from samples collected in the latest two trenches excavated on an extensive gold-in-soil anomaly have encountered gold mineralisation over wide zones of good grade. These results follow on from earlier trenching that encountered similar gold mineralisation as announced on 23 October 2012.

Main Points

·     Trench CABTR006 encountered two main zones of veining and mineralisation (19m and 30m wide respectively).  Best intervals within the two mineralised zones include:

o  First zone: 4 metres grading 8.17 grams per tonne ("g/t"), and 1 metre grading 14.0g/t gold;

o  Second zone: 1 metre grading 4.72 g/t, 11 metres grading 1.57 g/t and 5 metres grading 1.22g/t gold.  If zero gold grade is assigned to the intervals that were not sampled between these zones (total of 13 metres), then this gives an average grade of 0.97g/t gold over the full 30 metre zone of interest.

·     Trench CABTR006 is located some 90 metres south of Trench CABTR004 reported in October which returned 21 metres grading 3.71 g/t gold from a similar zone of quartz-sulphide veining.

·     These trenches are located on a gold-in-soil anomaly which has a strike length of some 800 metres.

A map of the trenches and the gold-in-soil anomaly can be accessed by clicking here.

Kerr Anderson, Ormonde's Managing Director, said:

"These are further very encouraging results from the Cabeza Prospect, with gold mineralisation being identified at surface over wide zones of good grade. This supports our growing confidence that we have identified a significant new gold system in this area. 

We now intend to expand our activities at Cabeza early in the New Year, with further trenching scheduled to be undertaken in January and a follow up drilling campaign thereafter."

Detail

Two further trenches for a total of 280 metres were excavated at Cabeza de Caballo Prospect on a gold-in-soil anomaly, which has a strike length of some 800 metres (NNE-SSW) at 50ppb gold.  These trenches were a follow-up to test the strike extension of thick zones of good grade gold mineralisation identified during the first trenching programme to be carried out on the Prospect as reported in October (Trenches CABTR001 to 004), which included an interval of 21 metres grading 3.71g/t gold from a zone of steeply-dipping quartz-sulphide veining within altered granites in Trench CABTR004.  Trench CABTR006 was excavated some 90 metres south of Trench CABTR004 and encountered two zones of strong veining and alteration from 11 to 30m (19m wide) and 56 to 86m (30m wide).  Complete sampling of one of these zones was not possible.  Assaying of the first zone returned best intervals of 4 metres grading 8.17g/t and 1 metre grading 14.0g/t gold and may be correlated with a zone of weak mineralisation in Trench CABTR003.  The second zone returned several intervals including 1 metre grading 4.72 g/t, 11m grading 1.57 g/t and 5m grading 1.22 g/t gold and is interpreted as the continuation of the zone in CABTR003 and 004.  If zero gold grade is assigned to the intervals that were not sampled (total of 13m) in this 30m wide second zone, then this gives an average gold grade of 0.97g/t gold. Trench CABTR005 was excavated on the northern margin of the soil anomaly and encountered essentially fresh granitic rock with no significant veining or alteration.  Chip sampling returned no significant gold grades in samples collected from Trench 005. 

Results received from the six trenches excavated to-date are summarised in the table below.  The resumption of trenching will focus on the area to the south of CABTR006 towards the earlier trenches CABTR001 and 002 around 400-450m to the south and will be followed thereafter by drilling.

Trench	From (m)	To (m)	Au g/t
CABTR005	No significant mineralization
CABTR006	11.0	15.0	4m @ 8.17
	22.0	23.0	1m @ 14.0
	29.0	30.0	1m @ 3.41
	56.0	57.0	1m @ 4.72
	64.0	75.0	11m @ 1.57
	81.0	86.0	5m @ 1.22

Trench	From (m)	To (m)	Au g/t
CABTR001	5.8	6.8	1m @ 0.61
	8.0	9.0	1m @ 2.20
	17.0	18.0	1m @ 1.53
	28.0	29.0	1m @ 16.6
	59.0	60.0	1m @ 0.61
	69.0	70.0	1m @ 0.85
	113.0	114.0	1m @ 2.26
	143.0	144.0	1m @ 2.56
CABTR002	3.0	4.0	1m @ 0.70
	11.0	12.0	1m @ 0.67
CABTR003	13.0	14.0	1m @ 1.07
	18.0	19.0	1m @ 0.95
	28.0	31.0	3m @ 0.65
	40.0	41.0	1m @ 0.70
	58.0	59.0	1m @ 1.96
	64.0	67.0	3m @ 0.87
	69.0	70.0	1m @ 3.27
	71.0	75.0	4m @ 1.96
	78.0	82.0	4m @ 1.85
	88.0	91.0	3m @ 2.13
	92.0	94.0	2m @ 1.25
	97.0	98.0	1m @ 11.8
CABTR004	0.0	21.0	21m @ 3.71

Significant Intercepts 0.5 g/t cut (1m minimum width of intercept and 5m maximum internal dilution)

Notes to table:

Sampling, Assaying and Quality Control Measures

All trenches have been mapped and sampled by an experienced geologist.  Sampling is carried out over one metre intervals.

Sample preparation and analyses were performed at ALS Chemex (Spain).  Assays are reported using Fire Assay and AAS on a 50g sample.  Reference samples (blanks, duplicates and certified standards) are routinely included in each sample batch as quality control measures.  In addition check assays are performed on selected mineralised samples.

Kerr Anderson PhD EurGeolPGeo, Managing Director of Ormonde Mining plc, and a qualified person as defined in the Note for Mining, Oil and Gas Companies, June 2009, of the London Stock Exchange, has reviewed and approved the technical information contained in this announcement.

A glossary explaining technical terms contained in this announcement can be found at www.ormondemining.com/en/investors/technical_glossary.

For more information please visit www.ormondemining.com  or follow Ormonde on Twitter https://twitter.com/ormondemining or Linkedin http://www.linkedin.com/company/ormondemining-plc

Enquiries to:

Ormonde Mining plc

Kerr Anderson, Managing Director  Tel: [phone]

Bankside Consultants

Simon Rothschild  Tel: [phone]   Mob: [phone]

Murray Consultants

Ed Micheau  Tel: [phone]  Mob: [phone]

Davy (Nomad / ESM Adviser)

Eugenée Mulhern / Roland French  Tel: [phone]

ENDS

About Ormonde

Ormonde Mining Plc is admitted to trading on the AIM market in London & the ESM market in Dublin. Ormonde is a mineral development and exploration company focused on Spain (Ticker: ORM).

Ormonde's key activities include:

Barruecopardo Tungsten - Ormonde is developing a low cost mining operation at Barruecopardo to become a major, secure European supply of tungsten.

La Zarza Copper- polymetallic massive sulphide deposit in the prolific Iberian Pyrite Belt of southern Spain.

Gold Explorationin several highly prospective areas of western Spain which includes its joint venture agreement with Aurum Mining plc (AIM: AUR), where Ormonde currently has a 40% interest in the Pino de Oro project in the Zamora Province and a 46% interest in the Peralonso and Cabeza projects in Salamanca Province of western Spain.  Ormonde is Manager of the Joint Venture.

 

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