LONDON (Alliance News) - Orogen Gold PLC on Monday said it is around halfway through its diamond drilling programme on the Mutsk gold property in southern Armenia and said it has extended the main gold zone to the east and to the south through the first three holes.
"The first part of this drilling programme has returned very encouraging results. In essence the deposit is growing with continued potential to the east and good strike potential to the south. We look forward to the balance of the programme yielding similarly positive results," said Chief Executive Colin Bird.
Orogen started drilling in early June and is about halfway through its drilling programme, with a total of three holes completed to date. Orogen is earning an 80% interest in the project by spending USD2.5 million on exploration before the end of this month under a deal signed back in January 2013 with Georaid CJSC.
Two of the first three holes, OG16-50 and OG16-52, were drilled to the south-east of the main gold zone and were angled towards the east to test an area previously interpreted to be in the barren footwall of a north-south fault structure.
OG16-50 delivered an intercept of 13.0 metres graded at 1.13 grammes of gold per tonne, including 6.0 metres at 1.65 grammes of gold. Another intercept of 12.0 metres graded at 0.69 grammes of gold per tonne, including 5.8 metres at 1.03 grammes of gold, was hit during drilling. The last intercept from the hole was 11.5 metres graded at 0.81 grammes of gold.
OG16-52, which still needs to be completed following a mechanical breakdown of the drill rig, returned intercepts of 6.7 metres at 0.43 grammes of gold, 9.1 metres graded at 0.66 grammes of gold, 2.6 metres at 0.55 grammes of gold, and 11.0 metres graded at 1.0 gramme of gold, including 4.2 metres at 1.62 grammes. Another intercept of 11.8 metres returned grades of 1.06 grammes of gold per tonne, including 3.4 metres at 1.48 grammes.
The other hole, OG16-51, was drilled at the southern end of the main gold zone and returned an intercept of 9.0 metres graded at 0.32 grammes of gold per tonne of ore.
"The drilling to date has succeeded in extending the overall footprint of the gold mineralisation to an area of 600.0 metres north to south by 200.0 metres east to west. The main gold zone remains open to the east and south. In addition a further northern gold zone has not yet been fully delineated," said the miner.
"Drilling is continuing on the property to further extend the deposit and additional results will be reported as they are received and processed," the miner added.
Orogen Gold shares were untraded on Monday morning, last trading at 0.0208 pence per share.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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