Drilling Report

RNS Number : 4913U

Persian Gold PLC

15 May 2008

 



15 May 2008

Persian Gold PLC

Chah-e-Zard Gold Discovery Advances to Pre-Feasibility Stage

The Board of Persian Gold (AIM:PNG), the Irish based Iranian gold explorer is pleased to announce the results of second phase drilling at Chah-e-Zard. Following a detailed review and modelling of the trench and drill results from both the first phase announced on 16 January 2007 and this phase Persian Gold announces that:

• Persian Gold has exercised the option to acquire 70% of the joint venture company which will hold the licence over the Chah-e-Zard gold discovery. The licence is in the process of being transferred to the joint venture company.

• An application will be made to the authorities for a Discovery Certificate covering 160,000 ounces of gold and 1 million ounces of silver.

• A pre-feasibility study will be undertaken on the near surface oxide resource to determine the economics of a heap leach gold mine.

Assuming co-operation from the authorities, this pre-feasibility study could be completed within 20 weeks. Based on the results of this study, Persian Gold will investigate all possible methods to extract maximum value for shareholders from this discovery.

Chah e-Zard is located in a desert area where logistics, security and community relations are excellent.

This release has been approved by Bahman Rashidi, a qualified geologist with more than ten years experience exploring in Iran.

John Teeling, chairman, commented;

'Chah-e-Zard may well become the first producing mine developed by Persian Gold in Iran. The detailed analysis of 38 drill holes and thousands of metres of trenching led to a modelled deposit of 160,000 ounces of gold and 1 million ounces of silver in a tightly defined area. This confirms Persian Gold's belief that there are significant gold and related metal discoveries to be made in the Persian-Tethyan belt.'

Summary drill results of second phase drilling:

Drill hole	Depth m.	Interval m.	Gold g/t	Depth m.	Interval m.	Silver g/t
1	6-20	14	0.74	6-20	14	40.23
3	38-40	2	1.15	37-60	23	9.6
and	48-50	2	1.13
and	58-66	8	0.53
4	27-36	9	0.58	14-27	13	36
and	36-38	2	45.44	36-45	9	8.2
and	58-70	12	6.15	59-71	12	36.5
5	0-12	12	2.65	0-12	12	8.6
and	77-83	6	1.16	71-83	13	15
5-2	0-5	5	6.01	0-5	5	8.22
and	27-46	19	2.20	2746	19	22.3
6-2	0-5	5	1.48
7	55-63	8	1.32	68-68	62	13
8	2-4	2	0.95	24-27	3	21.77
and	8-12	4	1.00
9	2-3	1	1.12	26-44	18	7
and	20-22	2	2.37	45-63	18	24
and	54-63	9	1.48	64-79	15	7.5
and	67-68	1	2.97
and	74-76	2	1.55
10	29-61	32	5.90	11-16	5	17
and	71-74	3	11.63	27-59	32	26.45
and	86-100	14	3.11	82-100	18	81.9
			End of hole
10-2	2-4	2	1.38	8-12	4	39
and	8-10	2	2.75	23-59	36	10.7
and	31-34	3	1.30
and	58-61	3	2.65
11	15-16	1	7.52
and	22-27	5	11.10
and	34-35	1	9.04
12	39-44	5	1.47	42-53	12	15

Enquiries:

Persian Gold PLC
John Teeling, Executive Chairman	[phone]
College Hill
Nick Elwes	[phone]
Blue Oar
John Wakefield	[phone]

 

END

 

 

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