Tracia Project Update

Ormonde Mining PLC
07 December 2004

                               Ormonde Mining plc

              Drilling Underway at the Tracia Gold Project, Spain.

                    New Sampling Identifies Further Targets.

DUBLIN & LONDON: 07 December 2004 - Ormonde Mining plc ("Ormonde") and its joint
venture partner International Gold Exploration IGE AB ("IGE") have commenced a
diamond drilling programme on the Tracia Gold Project in northwest Spain (the
"Tracia Project"), one of Ormonde's five active Spanish gold projects.




HIGHLIGHTS


  • This programme represents the first drilling on the Tracia Project where
    work to-date has defined several targets on what may be a large gold system


  • New sampling has identified further gold mineralization within the Tracia
    permit to the north of the current investigation area


  • High gold grades (80.2 and 11.1 g/t gold) returned from prospecting in new
    areas outwith the permit.


Managing Director of Ormonde, Kerr Anderson commented,


"Our surface sampling has shown the potential for an extensive new gold system
at Tracia, and we are continuing to fast track its development through the joint
venture with IGE. We have defined several quality targets, and it is exciting to
have our first drilling programme on this property underway. We are also
extremely pleased to see high gold grades being returned by our prospecting
programmes which highlight the much wider potential for discovery in this area
of northwest Spain."




DRILLING

Five short holes (around 100 metres each) are planned in the initial drilling
phase to test mineralized zones in two of the target areas:


At the first target, drilling will test a broad zone of alteration where
trenching has revealed several mineralized structures including:


        7 metres grading 3.1 grams per tonne ("g/t") gold

        2 metres grading 3.5 g/t gold

        1 metre grading 16.4 g/t gold

        1 metre grading 14.9 g/t gold.


In the second target area, new trenching has revealed previously unknown zones
of sulphide-bearing massive silicification. Ancient surface diggings exploiting
these zones, which vary from 5 to 8 metres in width, suggest that significant
gold grades exist. Sampling results are pending.


Numerous other targets identified by soil and rock sampling will be confirmed in
parallel with current drilling and will subsequently be tested by an expanded
programme in early 2005.




SAMPLING IDENTIFIES NEW TARGET AREA WITHIN TRACIA PERMIT

In addition to recent trenching in the main investigation area, initial sampling
of altered granite in the northern part of the Tracia permit has successfully
identified a new area of gold mineralization. All thirteen samples collected
returned anomalous levels of gold, with five samples returning between 1 and 4.5
g/t gold. Soil sampling, which has successfully identified drilling targets in
the main part of the permit, will be extended to cover this new area.






HIGH-GRADE PROSPECTING RESULTS

On regional work outwith the Tracia permit, high-grade gold samples have been
discovered in two separate areas. In one area, a sample returned a gold grade of
80.2 g/t, with a nearby sample returning 2.5 g/t gold. In the second area, an
isolated sample returned a grade of 11.1 g/t gold. These excellent results will
be followed up with more detailed sampling.


These samples were collected in completely new terrain on the basis of data in
the joint venture's regional geochemistry database. This immediate success
clearly highlights the potential for the discovery of new gold deposits in this
region, and only a small number of gold anomalies identified in the database
have been explored to-date.




BACKGROUND TO THE TRACIA PROJECT

The Tracia Project has many affinities with intrusion-related gold deposits, a
category which includes many multi-million ounce gold deposits worldwide (e.g.
Fort Knox with 5.4 Moz, and Pogo with 5.8 Moz). The Salave deposit in nearby
Asturias is a local analogy, where Rio Narcea Gold Mines Ltd is conducting a
feasibility study and has recently published an estimated measured and indicated
mineral resource of 1.5 million ounces at a grade of 3.0 g/t gold.


Exploration activities at the Tracia Project are being funded by IGE, a Swedish
mining company listed on the Oslo Stock Exchange. Ormonde currently holds 100
per cent of the Tracia Project and is Operator of the JV, responsible for field
and administrative activities. IGE can earn a 50 per cent interest by spending
€260,000 over a two-year period. The full amount of these funds has now been
advanced from IGE and it is envisaged that the sums will be fully expended on
exploration and drawn down by Ormonde early in 2005.




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]




BACKGROUND INFORMATION

Ormonde Mining is listed on the Irish Stock Exchange and also trades on London's
SEAQ platform. The Company is focused on acquiring and developing high-grade
gold projects in Spain. Ormonde's portfolio contains advanced projects with
substantial gold (and copper) resources, including La Zarza with one million
ounces of gold, and other properties where the Company anticipates that drilling
will identify significant new resources. The Company has a strong local Spanish
management team, supported by a Board with extensive exploration expertise in
the region and mine development experience.


For more information, please visit www.ormondemining.com or contact the Company
at [e-mail].



7 December, 2004


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