LONDON (Alliance News) - Orogen Gold PLC on Tuesday reported good results from its drilling programme at the Mutsk gold project in Armenia, but said it has issued shares to its joint venture partner to continue work as Mutsk at a big discount.
Orogen said an independent geological review of the Mutsk project found gold mineralisation at the site overlies a large hydrothermal system at the site, of which only a small portion has so far been explored.
It said the gold mineralising system at Mutsk is preserved from erosion and said broad, low-grade mineralised zones at the prospect appear to be stacked into multiple layers.
The review recommends further exploration off-trend from the mineralised zone discovered so far.
"The independent geological overview report of the Mutsk project confirms our optimism regarding the potential scale of the discovery and points towards some additional drill targets, related to structural junctions and possible high grade gold zones at deeper levels," said Orogen Chief Executive Ed Slowey.
Orogen also said it has issued 110.9 million shares to its US joint venture partner on Mutsk, Georaid CJSC, under the deal between the two to allow Orogen to continue exploration at Mutsk beyond the end of December 2014. The agreement between the two means Orogen had to issue shares up to the value of USD100,000, giving an issue price of 0.009 cents per share, or 0.006 pence per share.
Orogen shares were down 11.5% to 0.0531 pence on Tuesday, one of the worst performers in the AIM All-Share index.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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