Drilling Report

RNS Number : 4402L

Ormonde Mining PLC

12 January 2009

 

12th January 2009

Ormonde Mining plc

Drilling Results Facilitate Doubling of Proposed Production Rate at Barruecopardo 

DUBLIN & LONDON: 12 January 2009 - Ormonde Mining plc ("Ormonde" or "the Company") is pleased to report excellent results from the last seven holes of its current infill drilling programme at its Barruecopardo Tungsten Project in Salamanca, Spain ("the Project"). These results indicate that the deposit could sustain a much higher production rate than initially proposed for the Project and have led to the decision to adopt a 400,000 tonnes per year ("tpy")  production rate (previously 200,000 tpy) for the completion of technical studies on the Project.  These higher throughput levels should lead to greater returns on a future mining investment.

• The drilling results have continued to exceed expectations and include hole BAR-54 returning a true thickness (tt) intersection of 27.5 metres at 1.2% WO3 and hole BAR-55 returning 11.8 metres at 0.9% WO3.

• The drilling has established continuous bands of tungsten mineralisation in the Filon Principal Zone (FP), as depicted in the accompanying plan and sections  (www.ormondemining.com/doc/press/pr090112.pdf). The FP Zone  mineralisation  is  open  to the north, partially open to the south and open at depth  along its full one kilometre length.

• An analysis of all of the drilling on the FP Zone indicates that the Project has the capacity to produce at much higher production rates than initially proposed. A production rate of 400,000 tpy has now been adopted for the ongoing technical studies (previously  200,000 tpy). There may be scope for further increases in production rate post start-up.

• The increased mining rates provided by the latest drilling results have led Ormonde to adopt an overall resource cut-off grade of 0.25% WO3 (previously 0.4% WO3).  At this cut-off grade the June '08 resource estimation prepared by CSA Global is 5.2 million tonnes at 0.48% WO3 (2.5 million metric tonne units (mtu) of WO3). In practice, depending upon the mix of selective versus bulk mining methods employed, the cut-off grade may be varied and there will be significant flexibility to mine at different tungsten grades depending upon prevailing market conditions.
  

• The recent drill infill results indicate that, based on the present resource figures, the down dip extensions of FP Zone alone can now be considered to be an exploration target of some 2 million tonnes per 100m vertically. 

Kerr Anderson, Managing Director, said:

"The infill drilling on the Filon Principal Zone has been extremely successful and has returned impressive tungsten results. The consistency and grades have exceeded our expectations and will enhance the Project in terms of the increased production rate, the applicability of bulk underground mining methods and the flexibility to mine at different tungsten grades." 

Ormonde, through its wholly owned Spanish subsidiary Saloro S.L., holds a 90% interest in the Barruecopardo Tungsten Project. Ormonde aims to benefit from the robust project economics, extensive resource upside potential and the low development capital cost requirements to become a leading low cost Western producer of tungsten in the near term.

New Drilling Results

Hole	From (m)	Width (m)	True Width (m)	WO3%	WO3% (cut)*	Zone
BAR-49	173.0	19.0	13.5	0.45	0.29	FP
including		11.0	7.8	0.68	0.41
BAR-50	158.0	53.0	35.5	0.38	0.38	FP
including	158.0	11.0	7.4	0.46	0.46
	including	3.0	2.0	1.26	1.26
and	175.0	12.0	8.0	0.72	0.72
	including	4.0	2.7	1.78	1.78
and	197.0	14.0	9.4	0.43	0.43
	including	7.0	4.7	0.61	0.61
BAR-51	95.0	1.0	0.7	0.23	0.23	FP
BAR-52	122.0	63.0	53.3	0.18	0.18	FP
including	122.0	12.0	10.1	0.24	0.24
	including	5.0	4.2	0.40	0.40
and	144.0	10.0	8.4	0.36	0.36
and	170.0	15.0	12.7	0.28	0.28
	including	10.0	8.4	0.34	0.34
BAR-53	53.0	11.0	8.4	0.15	0.15	FP
including	61.0	3.0	2.3	0.52	0.52
BAR-54	93.0	33.0	27.5	1.20	0.70	FP, F1, F2
including	82.0	3.0	2.5	1.52	1.52	FP
and	102.0	9.0	7.5	0.66	0.66	F1
and	119.0	7.0	5.8	4.08	1.73	F2
BAR-55	110.0	36.0	21.2	0.55	0.45	FP
including	126.0	20.0	11.8	0.85	0.68

Notes to table:

FP = Filon Principal Zone

F1, F2 = Footwall Zones as yet unclassified

* = using a top cut of 3.0% 

Notes on assay method:

Assays are reported using the fusion XRF method.

Kerr Anderson PhD EurGeol PGeo, Managing Director of Ormonde Mining plc, and a qualified person as defined in the Guidance Note for Mining, Oil and Gas Companies, March 2006, 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/invest/glossary.html.

Enquiries to:

Ormonde Mining plc

Kerr Anderson, Managing Director,

Fraser Gardiner, Director

Tel: [phone]

Bankside Consultants

Simon Rothschild / Louise Mason  Tel: [phone]  Mob: [phone]

Davy (Nomad / IEX Adviser)

Fergal Meegan Tel: [phone]

Brewin Dolphin (UK Adviser)

Alexander Dewar Tel: [phone]

ENDS

About Tungsten

Tungsten is most frequently used as tungsten monocarbide, which has a hardness close to diamond, in cemented carbides. The principal tungsten applications include its use in cutting steels and in tungsten alloys, electronics, and chemical products.

Prices of tungsten concentrates are expected to remain buoyant for the long term.  More information can be found on Ormonde's tungsten information page at http://www.ormondemining.com/about-tungsten/index.html. 

About Ormonde

Ormonde Mining plc is quoted on the AIM in London and the IEX in Dublin. Ormonde is a mineral development and exploration company focused on Spain, with the objective of developing mining projects and taking them into production.

For more information please visit www.ormondemining.com.

 

END

 

 

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