Tungsten Drilling Results
Ormonde Mining PLC
27 September 2007
27 September 2007
Ormonde Mining plc
Ormonde Drill Intersections Extend High Grade Tungsten Zone
DUBLIN & LONDON: 27 September 2007 - Ormonde Mining plc ("Ormonde" or "the
Company") announces further drill intersections at its Barruecopardo Tungsten
Project in Salamanca, Spain.
HIGHLIGHTS
• The main high-grade tungsten zone has been extended to the north
for a further 150 metres, giving a total tested strike length of 750 metres
• The zone has also been shown to extend to a depth of over 175
metres below ground surface
• The zone is still open to the north and at depth, and to the
south below the main open-pit, therefore showing increasing resource potential
• Drilling continues to be successful with new intersections
including 2 metres grading 0.9% WO3, 1 metre grading 1.4% WO3 and 4 metres
grading 0.6% WO3.
Kerr Anderson, Managing Director, said today,
"We are very pleased with the latest results which further extend the strike and
depth of the high-grade tungsten zone, and support the Directors' growing
confidence that it should be possible to establish a high margin, low capital
cost, underground mine on the deposit. Drilling is continuing with the twin
objectives of defining an initial mineable tungsten resource as soon as possible
and establishing the potential overall size of the deposit."
Drilling to-date at Barruecopardo has confirmed a steeply dipping zone of
tungsten mineralisation at least 750 metres long and over 175 metres deep. An
open-pit to the south of the drilled area indicates that the mineralisation
continues southward for 700-800 metres, to give a total potential strike length
of 1,550 metres.
A preliminary analysis of the deposit indicates that, provided the tungsten
grade and continuity continues with depth, it should be possible to establish a
high margin, low capital cost, underground mine on the deposit. Processing
would be by conventional gravity concentration.
A project profile containing graphics relating to the Project and a full list of
drilling results to-date can be downloaded from the Company website at
www.ormondemining.com/doc/pdf/profbar0709.pdf.
Drilling Results
Ormonde's ongoing drilling programme is being carried out to establish
continuity of the high tungsten grades and define initial resources at
Barruecopardo. The latest results include holes which extend the mineralisation
to the north by 150 metres (BAR-16 and 17) and increase its depth extent (BAR-18
and deepening of an earlier hole BAR-6), and are reported as follows:
Hole From (m) Length (m) WO3 %
BAR-16 91.0 1.0 1.4
and 202.0 4.0 0.6
BAR-17 125.0 2.0 0.9
BAR-18 91.0 1.0 0.7
and 254.0 1.0 0.3
BAR-6 245.0 1.0 0.7
In interpreting the drilling results the following should be noted:
• Much of Western production comes from small, narrow vein underground
deposits. For comparison, ore reserve grades at two of the main Western
producing mines, Cantung (Canada) and Panasquiera (Portugal) are 1.17% and 0.23%
WO3, respectively.
• The Barruecopardo tungsten mineralisation contains coarse grained
tungsten minerals which will yield a strong nugget effect and necessitates
closely spaced drilling and application of an upper cut for resource definition.
The preliminary figures indicate that an upper cut of 2.65% WO3 is applicable.
• Current prices for tungsten concentrates are in the region of US$180
per metric tonne unit (or US$18,000 per tonne of tungsten trioxide, WO3), with a
grade of 1% WO3 having an in-the-ground value of approximately US$180 per tonne
of mineralised rock.
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/projects/glossary.html.
Enquiries to:
Ormonde Mining plc
Kerr Anderson, Managing Director,
Fraser Gardiner, Director
Tel: +353 (0)46 9073623
Bankside Consultants
Simon Rothschild Tel: +44 (0)20 7367 8871 Mob: +44 (0)7703 167065
Davy (Nominated Adviser to Ormonde)
Fergal Meegan Tel: + 353 1 679 6363
ENDS
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.
Ormonde's main project is the La Zarza Copper-Gold Project in southern Spain
where a Bankable Feasibility Study is being carried out by leading international
engineering firms. A pre-feasibility study completed in September 2006 showed
positive economics for the development of an underground mining operation at La
Zarza.
Ormonde is also evaluating the Barruecopardo high-grade tungsten deposit in the
Salamanca area. Following two stages of exploration drilling, the definition of
high-grade tungsten mineralisation and preliminary metallurgical testwork, this
project has been upgraded to advanced project status. A continuous programme of
in-fill and step-out drilling is now underway with a view to fast-tracking the
evaluation of this project.
Ormonde is also exploring several gold exploration targets in the Salamanca area
and in northwest Spain.
For more information please visit www.ormondemining.com.
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, and are currently quoted by the Metal Bulletin in the range $160-$180 per
metric tonne unit. A metric tonne unit is equal to 10kg of WO3, which equates
to 1.0% contained WO3 in the rock.
This information is provided by RNS
The company news service from the London Stock Exchange