Expanded Drilling Campaign Commencing on Gold JV

RNS Number : 3431T

Ormonde Mining PLC

06 December 2011

 



06 December 2011

Ormonde Mining plc

("Ormonde" or "the Company")

Expanded Drilling Campaign Commencing on Gold Joint Venture

The Board of Ormonde is pleased to report that following the recent positive gold intersection results from the initial drilling at the Zamora Gold Project in western Spain, an expanded drilling campaign has been agreed with our joint venture partner, Aurum Mining PLC ("Aurum Mining" or "Aurum"), and drilling has now commenced.

Key points:

·     The initial two holes drilled on the "Facho" structure returned significant gold mineralisation:

o  12 metres grading 3.4 grammes per tonne ("g/t") gold within an overall interval of 30 metres grading 1.6g/t gold (from 75m depth) and

o  10 metres grading 2.1g/t gold (from 102m depth)

·     A third hole, drilled on an unrelated structure, did not encounter any gold mineralisation.

·    Following analysis of these initial results the Joint Venture has agreed a new drilling campaign with the intention of testing and expanding the "Facho" structure.

·    This campaign will include ~2,000m of diamond drilling and it is anticipated that drilling will be complete and assays available during Q1 2012.

Kerr Anderson, Ormonde's Managing Director, said:

"Following the very positive initial drilling results at our Zamora Gold Project, which encountered significant gold intersections, we are pleased to have agreed an expanded drilling campaign with our joint venture partner Aurum Mining.  This drilling programme, funded by Aurum, has now commenced with the aim of more thoroughly testing and expanding the Facho gold structure."

Detail

On 11 March 2011, Ormonde entered into a joint venture with Aurum Mining whereby Aurum can earn a 60% interest in two permits in the Zamora Province and a 54% interest in a further two permits in the Salamanca Province (one of which is under application). The total permit area comprises 106 square kilometres and Aurum may earn its interest by spending €500,000 on exploration activities over an 18 month period.  The initial drilling has been focused on the two permits in Zamora and comprised a three-hole programme, totalling 672m, with two holes drilled on the "Facho" structure and a further hole on the "LLago" structure.  Previous drilling by Ormonde at Facho had returned drillhole intervals including 23m grading 1.1g/t gold from 51 metres depth (including a high-grade interval of one metre grading 16.6g/t gold) and 9m grading 1.5 g/t gold from 56 metres depth.  Gold mineralisation is hosted in steeply-dipping structures characterised by quartz veining, silicification and alteration. 

The first two holes drilled by the Joint Venture on Facho intersected significant gold mineralisation in veined and altered granites, including 12 metres grading 3.4 g/t gold within an overall interval of 30 metres grading 1.6g/t gold and 10 metres grading 2.1g/t gold. A third hole drilled on an unrelated structure, some 1km away, did not encounter any gold mineralisation.

Based on analysis of these very encouraging drill results the Joint Venture has now agreed an expanded drilling campaign to more fully test and extend the Facho structure.  This campaign, which has just commenced, will include ~2,000m of diamond drilling, with assays expected to be available during Q1 2012.

Kerr Anderson PhD EurGeolPGeo, Managing Director of Ormonde Mining plc, and a qualified person as defined in the AIM 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/ormonde-mining-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]

Fairfax I.S. PLC (Joint Broker)

Ewan Leggat / Katy Birkin  Tel: [phone]

ENDS

About Ormonde

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

Ormonde's key activities include:

The Barruecopardo Tungsten Project - Ormonde is developing a low cost mining operation at Barruecopardo to produce ~12% of non-Chinese annual global mine production from mid 2013.

The La Zarza Copper Project- a large "massive sulphide" deposit; exploration for an enlargement to the current copper resources is being funded through a joint venture Antofagasta Minerals.

Gold Exploration in several highly prospective areas of western Spain.

 

END

 

 

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