Peralonso Drilling Update

RNS Number : 8409G

Aurum Mining PLC

04 July 2012

 

4 July 2012

AURUM MINING PLC

("Aurum" or "the Company")

Peralonso Drilling Update

Aurum Mining plc (AIM: AUR) is pleased to report the assay results from the first three holes drilled on the Peralonso Permit area in the Salamanca Province of western Spain, which the Company holds in its joint venture with Ormonde Mining PLC ("Ormonde").  This is the second permit area to be drilled by the Joint Venture following the successful recent drilling campaign on the El Facho prospect in the Zamora Province.

The three shallow holes (which were drilled to depths of 126m, 75m and 75m respectively) were drilled with the intention of testing the shallow depth extent of gold mineralisation which had been identified by previous exploration work within the area of a large gold-in-soil geochemical anomaly. 

The Board is very pleased to report that two of the three holes have intersected gold mineralisation at or near surface and these results suggest several zones or bands of gold mineralisation within the area defined by an extensive (400m x 400m) soil geochemical anomaly.

Highlights

·    Drill hole PERDD001 has returned three separate intervals of:

o 18 metres grading 1.10 grams per tonne ("g/t") gold (from surface)

o 10.1 metres grading 3.39g/t gold (from 46.9m) including 1.1 metres grading 22.7g/t gold

o 14.95 metres grading 2.33g/t gold (from 109.1m) including 1.4 metres grading 21.5g/t gold.

·    Drill hole PERDD002, located some 180 metres southwest of drill hole PERDD001, returned 5.3m grading 1.14g/t gold (from 8.9m depth)

·    Several other untested gold-in-soil anomalies are present within the permit area.

·    Permits are already in place to enable the commencement of follow up drilling at Peralonso. This follow up drilling is currently being planned.

·    These drilling results, which highlight the potential of a near surface gold structure at Peralonso, support historical trenching work on the site which also indicated this potential. This trenching work yielded some strong gold values including 5m grading 5.4 g/t gold and 3m grading 1.9 g/t gold.

Sean Finlay, Aurum's Chairman, commented

"These initial assay results from Peralonso are very encouraging and have certainly exceeded our expectations. They demonstrate the highly prospective nature of the permit area and further drilling on the site is clearly merited. We look forward to commencing further drilling on the Peralonso prospect in the near future.

Aurum's joint venture with Ormonde continues to make significant progress, and these drilling results from Peralonso, when viewed alongside the successful drilling campiagn on the El Facho structure, highlight that we have an exciting gold portfolio in north west Spain." 

Detail

Three holes for a total of 276.4 metres of drilling were completed with the intention of testing the shallow depth extent of gold mineralisation encountered in previous trenching within the area of an extensive gold-in-soil geochemical anomaly (400m x 400m) in the Peralonso Permit area.  Trenching had shown gold mineralisation to be best developed within steeply-dipping quartz-rich breccia zones hosted within altered granites.  The holes intersected predominantly granites with some intervals of meta-sediment, with alteration and quartz-rich breccias within the granite hosting the gold mineralisation.

Significant results from PERDD001 - PERDD003 are reported below:

Hole	Length (m)	Dip/Azimuth	From (m)	Thickness (m)	Gold (g/t)
PERDD001	126.1	-50o/288o	0	18.0	1.10
and			46.9	10.1	3.39
incl			46.9	1.1	22.7
and			109.1	14.95	2.33
incl			110.7	1.4	21.5
PERDD002	75.1	-50o/290o	8.9	5.0	1.12
PERDD003	75.2	-50o/288o	No Significant mineralisation

True thicknesses have not yet been established.

In addition, the assay results from the final hole (ORMP-21) at the El Facho prospect on the Zamora Gold Project have also been received and the key intersection is reported below:

Hole	Length (m)	Dip/Azimuth	From (m)	Thickness (m)	Gold (g/t)
ORMP-21	282.1	-55o/330o	165	1	6.11

Background

In March 2011, Aurum entered into a joint venture with Ormonde whereby Aurum was entitled to earn a 60% interest in two permits in the Zamora Province and a 54% interest in a further two permits in the Salamanca Province (with the total permit area being 106 square kilometres) by spending €500,000 on exploration activities over an 18 month period ("Joint Venture Agreement").  Aurum has advanced funds of €500,000 required for expenditure on exploration activities to earn its majority interest in the permits which are the subject of the Joint Venture Agreement. The process is now being commenced to transfer the relevant permits to Aurum.

Notes:

Sampling, Assaying and Quality Control Measures

All drill core has been routinely logged by an experienced geologist.  Relevant core intervals were split in half by diamond saw, with half being sent for assay and the other half being retained in the core boxes for reference.  Sampling is mainly carried out over one metre intervals.

Sample preparation and analyses were performed at ALS Chemex (Spain).  Assays are reported using the fire assay (FA) method with an atomic absorption (AA) finish.  Reference samples (blanks, duplicates and certified standards) are routinely included in each sample batch as quality control measures.

Qualified Person

Simon Beardsmore, BSc (hons), ARSM, MIMMM, CEng, Technical Manager of Aurum Mining plc, and a qualified person as defined in the Guidance Note for Mining, Oil and Gas Companies, June 2009, of the London Stock Exchange, has reviewed and approved the technical information contained in this announcement.

Contact details:

Aurum Mining plc	Tel: [phone]
Chris Eadie, Chief Executive Officer
Fairfax I.S. plc (Nomad & Broker)	Tel: [phone]
Ewan Leggat / Laura Littley

 

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