LONDON (Alliance News) - Orogen Gold PLC Tuesday said geophysical surveys carried out on its Mutsk gold project in Armenia have extended a target zone and show strongest anomalies in its undrilled northern sector on the site.
The exploration and development mining company said a detailed geophysical testing programme at the site has extended its target zone to almost 2.5 kilometres in length, with the zone remaining open in the northern region.
The company said the surveys have also shown a large area in the northern part of the survey grid which has low magnetism and could perhaps represent possible hydrothermal alteration, similar to that associated with strong gold mineralisation in the south of its Mutsk project.
The new region has not yet been drill tested, and so the company is now planning to test the northern target, and to test extensions of gold mineralisation encountered further south in earlier drill phases. It said drilling will begin shortly.
The Mutsk project is in southern Armenia at high elevation of roughly 2,000 metres. Orogen Gold has an exclusive agreement with Georaid CJSC to earn an 80% interest in the property by spending a total of USD2.5 million by the end of August 2016.
Orogen Gold shares were up 13% to 0.147 pence, putting it top of the AIM ALL-Share risers in early trading on Tuesday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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