Drilling Update

RNS Number : 8269R

Ovoca Gold PLC

31 August 2010

 



Ovoca Gold plc ("Ovoca" or the "Company")

Positive drill results for Olcha

Ovoca is pleased to announce drill results from its ongoing exploration effort at Olcha, a gold project on the Rassoshinskaya license. The Rassoshinskaya license is in the North Eastern part of the Magadan Region, Russia. The Olcha project has three targets; Centralny Zone 1, Centralny Zone 2 and Zond.

So far for 2010 over 6,640 metres has been drilled on Olcha. Ovoca has received laboratory analysis for 1,840 metres. The data received to date shows gold mineralization on Centralny Zone 2 is not closed along strike to the Southeast as well as at depth.

To date significant drilling results for 2010 include:

Bore hole ID number	Target	Interval, m			Gold grade g/ton	Silver grade g/ton
		from	to	length
C-168	Centralny, Zone 2	95.9	110.0	14.1	11.3	30.1
	including	105.2	110.0	4.8	30.9	70.6
C-168	Centralny, Zone 2	168.6	171.6	4.0	5.4	37.0
	including	169.6	170.6	1.0	15.2	110.4
C-169	Centralny, Zone 2	197.5	207.5	10.0	14.6	13.0
	including	197.5	199.3	1.8	14.1	10.3
	including	204.8	206.5	1.7	44.5	40.8
C-190	Centralny, Zone 2	195.1	202.6	6.5	6.5	28.1
	including	199.1	200.9	1.8	19.2	68.8
C-194	Centralny, Zone 2	144.7	146.7	2.0	10.4	29.5
C-195	Centralny, Zone 2	259.9	273.6	13.7	4.0	16.5
	including	266.4	268.0	1.6	9.7	49.9
	including	270.8	271.6	0.8	13.6	20.8

Trenching work has begun and to date 1,690 metres have been trenched at Olcha. Assays are pending.

Tim McCutcheon, CEO, comments: "The mineralization interval widths and gold grade demonstrate the significant potential of Centralny Zone 2. We are continuing drilling further along strike and at depth at Zone 2. Additionally, work on Zone 1 and Zond continues. Our plan to outline the resource potential of Olcha proceeds as planned."

Notes to Editors

Ovoca Gold PLC ("Ovoca" or "the Company") is a mineral exploration and mine development company listed on the AIM market of the London Stock Exchange (Ticker: OVG) and on the IEX market of the Irish Stock Exchange (Ticker: OVX). The Company's principal activity is gold exploration in the Magadan Region of the Russian Federation. Previously Ovoca acquired, developed and sold to JSC Polymetal the Goltsovoye silver project located in the Magadan Region.  Currently, Ovoca is aggressively exploring and developing its 100 per cent owned Stakhanovsky, Rassoshinskaya and Nevsko-Pestrinskoye licenses.

Stakhanovsky is located approximately 40 kilometres north of Susuman, the second largest city in the Magadan region.  It is accessible by year-round road and there is power infrastructure on site. Internal preliminary estimates suggest a gold resource (non JORC code of Russian standard compliant) of over 700,000 ounces.  The Company intends to put Stakhanovsky into production by 2013.

Rassoshinskaya is in the North Eastern part of the Magadan Region about 200 kilometres from the town of Simchan. There is no nearby infrastructure. Rassoshinskaya hosts an epithermal gold deposit named Olcha, which is the focus of Ovoca's exploration program. Olcha and nearby satellite deposits have the potential to host a high grade multi-million ounce gold resource.

Nevsko-Pestrinskoye is located in the central part of the Magadan region near the town of Omsukchan. A year-round road and powerline are near the site. The license completely surrounds the Goltsovoye silver deposit, which was owned by the Company from 2006 - 2009 and sold to JSC Polymetal for US$47.7 million at the time of closing. Ovoca intends to investigate and explore known mineral occurrences that extend beyond the Goltsovoye license area onto Nevsko-Pestrinskoye.

Ovoca Gold Plc

Timothy McCutcheon [phone] [e-mail]

Davy

John Frain [phone]

The above information has been reviewed and verified by Mr. Andrew W. Aitchison for the purposes of the Guidance Note for Mining, Oil and Gas Companies issued by the London Stock Exchange in March 2006. Mr. Aitchison, MAusIMM, FGS, is Ovoca Gold's Consulting Geologist and he has over 20 years experience of gold and base metal mining and exploration in Australia, Turkey, Ghana, Russia and Kazakhstan. Experience includes operational and management roles at the Pajingo and Ovacik gold mines, as well as Manager Mineral Resources and Mine Planning for Goldfields in Ghana. Further details about the Olcha gold project are found in the following technical reports (i) SRK Consulting Technical Report, June 2009, (ii) SRK Consulting Field Review, September 2009 which can be found in the Ovoca circular to shareholders dated 22 December 2009 on our website www.ovocagold.com.

 

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