Operational Update

RNS Number : 1392W

Ovoca Gold PLC

15 November 2010

 

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

Podgorniy target identified following soil sampling programme

Ovoca announces it has completed analysis of soil geochemical sampling of the Podgorniy area, which has shown a large gold-silver-arsenic anomaly.  Podgorniy is an area which was identified by Ovoca as a prospective gold target and is located in the North-central part of the Rassoshinskaya license which is in the Northeastern part of the Magadan Region, Russia.

The Podgorniy soil sampling program of approximately 2,500 samples returned assays of up to 21 grams per tonne gold and 14 grams per tonne silver. All samples were analyzed for a suite of 15 elements using emission spectrochemical analysis and analyzed for gold by atomic absorption spectrometry.  Soil samples that returned high grade gold values from this initial testwork were re-assayed using the Fire Assay method. The Podgorniy gold-silver anomaly is approximately three kilometers in length and one kilometer wide. Two alluvial gold placers have been mined in the streams heading to the West and to the South from the Podgorniy area. Additionally, historical data on the same site as that covered by the geochemistry sample area include the following grab samples:

Number	Gold grade, g/ton	Silver grade, g/ton
#49	5	15
#52	21	68
#53	12	64

To view the Podgorniy Project Map, please visit the following link: http://www.ovocagold.com/press/

Tim McCutcheon, CEO, comments: "The Rassoshinskaya license area is 2,460 square kilometers, a huge area in a very prospective region for gold discoveries. Our Olcha project, in the Southern part of the Rassoshinskaya license, is advancing as we have reported earlier this year. Podgorniy, in the Northern part of the Rassoshinskaya license area, is a new target for us and we intend to push forward and combine geophysical analysis with the start of trench and drilling work in the 2011 exploration season. The geochemical analysis is particularly exciting due the close overlap of gold and silver showings, as well as showings of other minerals associated with bedrock gold deposits."

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 ESM 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 from the University of Newcastle, Australia, 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 Podgorniy 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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