Tungsten Project Update

Ormonde Mining PLC
09 October 2006

09 October 2006



                               Ormonde Mining plc

               Update on Barruecopardo Tungsten Tailings Project

DUBLIN & LONDON: 09 October 2006 - Ormonde Mining plc ("Ormonde" or "the Company
") reports on its Barruecopardo Tungsten Tailings Project ("the Project")
located in the Salamanca area, Western Spain.  The Company is currently
evaluating the viability of a low-cost operation processing tungsten-bearing
material contained in dumps and tailings produced from the Barruecopardo
tungsten mine.

Highlights

  • Sampling results are in line with expectations and Ormonde has exercised
    its Option over the Project

  • Results indicate higher tungsten grades (0.1% WO3) in the western part of
    the Project, with a higher proportion of fine material amenable to direct
    spiral concentration

  • Gravity separation testwork will determine the amount of tungsten
    recovered by low-cost spiral processing, the quality of the concentrate
    produced, and indicative revenues for the Project

  • Drilling intersects tungsten mineralization in the Northern Extension to
    the historically mined vein system


Kerr Anderson, Managing Director, said today,

"This Project offers the possibility for a low cost, profitable, near-term
source of cashflow to the Company.  We are encouraged by the results of the
sampling programme and the continuing historically high price of tungsten.  The
drilling of the Northern Extension indicates potential in addition to the
tailings project, which we will be following up on in due course."

Option Exercised

In February 2006 Ormonde entered into an option agreement ("the Option") to
acquire 100 per cent of the mineral rights pertaining to tungsten and gold at
the Project.  The Company reports that sampling results to-date are in line with
expectations and it has exercised the Option.

Evaluation Programme - Sampling Results

The tungsten-bearing material at the Project is divided into two broad types:
Tailings (predominantly fine-grained material in the western part), and Dumps
(predominantly coarse-grained material in the eastern part).

Ormonde has taken representative samples from both groups of material.  Sampling
was carried out using both drilling and trenching.  A total of 51 sites were
sampled giving a representative sample distribution across the Project.

Samples were sieved to 1 millimetre to produce two sub-samples, a -1mm fraction
and a +1mm fraction, which were then analysed separately for tungsten content.
The finer material (-1mm) would be amenable to direct processing through gravity
separation spirals, whereas coarser material would require some form of crushing
ahead of spiral separation.

The results can be summarized as follows:

                               Sample sites                 Average  WO3 %                     Average  Distribution
                                                        -1mm             +1mm                 -1mm                 +1mm
Tailings                                 13            0.093            0.088                  73%                  27%
Dumps                                    38            0.044            0.022                  38%                  62%

The results demonstrate that the finer grained Tailings material has a higher
overall grade and importantly a higher proportion of -1mm material.  This
potentially benefits the economics of the Project because:

  • Direct processing of fine material through a gravity separation spiral
    would reduce operating costs (no crushing required) and thereby improve the
    operating margin.

  • Processing higher grade, lower cost material in the early years of an
    operation will facilitate maximum returns and minimize risk by early
    repayment of any up-front capital expenditure.

The Dumps material is a significant lower grade resource which can be processed
later in the life of the Project should high tungsten prices prevail.

A gravity separation testwork programme to be carried out during the next two
months will determine the rate of recovery of tungsten to a concentrate, the
concentrate specification, and the scope of capital and operating costs.

An initial resource estimate will also be carried out on the basis of the
sampling results and a recent topographic survey of the Project site.
Additionally, the potential for a gold credit will be assessed; gold assay
results for the high tungsten samples are awaited.

Ormonde has been approached by several parties interested in purchasing the
tungsten concentrates produced by the Project.  Once a concentrate specification
has been ascertained by the testwork programme, Ormonde expects discussions with
these parties to progress quickly.

Barruecopardo Northern Extension Drilling

The Barruecopardo open pit mine which produced the tailings material exploited
an extensive tungsten-bearing vein system.  This vein system is known to extend
for at least 600 metres to the north of the open pit.  This northern extension
is covered by the Salamanca Gold Project and Ormonde and its JV partners have
completed an exploratory drilling programme to test for additional "hard-rock"
tungsten potential.

Six core drill holes (BAR-1 and BAR-3 - 7) have been completed for a total of
1,130 metres.  Holes were drilled on three 200 metre spaced sections, to test
400 metres of strike length.    Results have been received for holes BAR-1 and
BAR-3, 4 and 5, and include the following:


Hole                          From (m)                To (m)                            Length (m)                WO3 %

BAR-1                             80.4                  81.4                                   1.0                 0.13
                                  89.3                  90.1                                   0.8                 0.14
                                  94.9                  95.9                                   1.0                 0.11
                                 115.7                 116.7                                   1.0                 0.58

BAR-3                             36.5                  37.5                                   1.0                 0.22
                                  42.3                  43.3                                   1.0                 0.32
                                 101.5                 109.2                                   7.7                 0.24
                                 144.3                 145.4                                   1.1                 0.13

BAR-4                             27.6                  40.8                                  13.2                 0.14
                                                       incl.                                   2.4                 0.37
                                 110.4                 111.7                                   1.3                 0.31
                                 122.0                 122.9                                   0.9                 0.50
                                 142.5                 143.1                                   0.6                 >1.0

BAR-5                             22.7                  23.5                                   0.8                 0.65
                                  34.8                  36.0                                   1.2                 0.10
                                 133.7                 135.4                                   1.7                 0.39



The drilling shows variable tungsten grades with broader lower grade zones (0.10
- 0.25% WO3) and narrow higher grade intervals (over 0.30% WO3).  By way of
comparison, the ore reserve grade at the Panasqueira mine in Portugal is 0.23%
WO3 (Primary Metals 2006 NI 43-101 technical report).

Upon receipt of results for holes BAR-6 and BAR-7, the potential of the
Barruecopardo Northern Extension will be appraised.

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/glossary.htm.

Enquiries to:

Kerr Anderson, Managing Director,
Ormonde Mining plc   Tel: [phone]

Fraser Gardiner, Director,
Ormonde Mining plc   Tel: [phone]

Simon Rothschild,
Bankside Consultants   Tel: [phone]


ENDS

About Ormonde

Ormonde Mining plc is quoted on the AIM in London and the IEX in Dublin.  The
Company's objective is to enhance shareholder value by developing gold-focused
projects in Spain and taking them into production.  Ormonde has a strong local
Spanish management team, supported by a Board with extensive mine development
and exploration experience.

For more information and contact details including email, 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 most well-known use of tungsten is
in lighting filaments, and other important applications include improving steel
properties and use in tungsten alloys, electronics, and chemical products.

Annual world production is only 74,000 tonnes of tungsten metal, with the
largest producer being China.  One of the world's largest producers of tungsten
concentrates outside China is the Panasqueira mine in Portugal.

Marketable ore concentrates of scheelite, the main tungsten mineral at
Barruecopardo, typically contain 65-70 per cent WO3 (tungsten trioxide).
Concentrates are generally priced per "metric tonne unit" (mtu), equivalent to
10 kilograms.  Prices of tungsten concentrates, which are traded through private
contracts and not on an open market, have increased three-fold since 2004 in
market conditions which are expected to remain buoyant for the long term.
Prices for tungsten concentrates are currently quoted by the Metal Bulletin in
the range $160-$170/mtu.




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