New Spanish Gold Project

Ormonde Mining PLC
08 September 2005

08 September 2005


                               Ormonde Mining plc


             Deal Signed on High-Grade Silver-Gold Project in Spain


DUBLIN & LONDON: 08 September 2005 - Ormonde Mining plc ("Ormonde" or "the
Company") reports that it has entered into an agreement with Polar Mining Oy
("Polar"), a Finnish subsidiary of ASX-listed Dragon Mining NL, whereby the
Company may acquire a 50 per cent interest in the Valina Silver-Gold Project in
the Lugo Province of northern Spain. The Company will focus on the potential for
an open-pittable, high-grade resource.


HIGHLIGHTS

  • Limited previous drilling (total of 6 holes) returned a best interval of
    6.0 metres grading 451 grams per tonne ("g/t") silver and 1.7 g/t gold,
    including 1.0 metre grading 2,020 g/t silver and 5.8 g/t gold. This is a
    near-surface intersection, beginning at only 8.7 metres depth.

  • High-grade silver-gold-antimony-lead results in samples from small dumps
    near old workings: 60 samples returned an average grade of 227 g/t silver,
    2.7 g/t gold, 0.8% antimony and 2.2% lead, with 10 samples grading over 500
    g/t silver.

  • Anomalous silver, gold, antimony and lead soil geochemistry over a strike
    length of some 1.1 kilometres.

  • Ormonde's initial work programme entails metallurgical testwork designed
    to investigate the possibility of producing a concentrate containing the
    silver, gold and antimony (a high value speciality metal) for direct sale to
    a smelter.


Managing Director of Ormonde, Kerr Anderson commented,

"The Valina Silver-Gold Project fits well into our portfolio as a potential
early cash flow opportunity in an area where we have existing active projects.
Should our initial work show that a silver-gold-antimony concentrate suitable
for direct sale to a smelter can be produced, then our programmes will focus on
defining sufficient mineral resources to justify a high-grade, open pit mining
operation. Given that there has been very little drilling to-date, and with soil
geochemistry suggesting that the mineralized structure extends for over one
kilometre in length, we are keen to take the project forward".


INITIAL PROGRAMME

The Valina mineralization is currently interpreted as a brecciated shear-zone
dipping at 30-40 degrees, hosted within slates and shales, with the metals of
economic interest present in sulphides. Ormonde's initial programme will involve
the drilling of three short holes to verify existing drilling results and obtain
material for metallurgical testwork. This testwork will be designed to look at
options for the extraction of the economic minerals from the Valina
mineralization, and in particular will investigate the possibility of producing
a silver-gold-antimony concentrate by simple bulk flotation, for direct sale to
a smelter. Should the testwork results prove favourable, a second-stage drilling
programme will be carried out to define sufficient mineral resources for an
open-pit operation, focused on a mineralized zone extending some 75-100 metres
down-dip.


BACKGROUND TO THE VALINA DEAL

The Valina property in the Lugo Province of Galicia comprises a single permit
covering a total area of approximately 5.4 square kilometres. The full strike
length of the mineralized structure is contained within this permit. Under the
terms of the deal signed with Polar, Ormonde can earn a 50 per cent interest in
the permit by spending a total of €200,000 over an 18 month period from the date
of the agreement (7th September 2005). Polar is a wholly-owned subsidiary of
Dragon Mining NL of Australia, who recently commissioned the Svartliden gold
mine in Sweden (60,000 oz production per annum open-pit) and is evaluating
several other resource-based gold projects in Finland.


Enquiries to:

Kerr Anderson, Managing Director,

Ormonde Mining plc Tel: [phone]

Fraser Gardiner, Investor and Media Relations,

Ormonde Mining plc Mobile: [phone]

Simon Rothschild,

Bankside Consultants Tel: [phone] Mobile: [phone]


ENDS


BACKGROUND INFORMATION

Ormonde Mining is quoted on the AIM and IEX markets in London and Dublin,
respectively. The Company is focused on acquiring and developing gold projects
in Spain where it has a strong local Spanish management team, supported by a
Board with extensive exploration expertise in the region and mine development
experience.

Ormonde's portfolio comprises the La Zarza Gold Copper Project in southern Spain
and four other resource evaluation and exploration projects in northern and
western Spain. For more information and contact details including email, please
visit www.ormondemining.com.


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