Clontarf Regulatory News (CLON)

30 Jun 2005 08:00

Persian Gold PLC30 June 2005 Persian Gold Joins AIM 30th June 2005 Persian Gold PLC (ticker: PNG.L) is pleased to announce its introduction to theLondon Stock Exchange's Alternative Investment Market Thursday 30th June 2005. Prior to its admittance, Persian Gold successfully raised £1 million by placing4m ordinary shares at a price of 25p per share. The placing price values thecompany at £14 million. Rowan Dartington is the nominated advisor and broker tothe Company. The proceeds will be used to fund a concentrated sampling anddrilling program on 320 sq kms in specific areas in Takestan north-western Iran.This programme will take 12-18 months to complete. The Company was formed in 2003 specifically to explore for gold in the vastalunite reserves of Iran. Whilst international majors such as BHP and RTZoperate in Iran, Persian Gold is the first independent, European juniorexploration company to commence operations. What makes Persian gold differentfrom other junior gold explorers is • High quality geological concessions which share similarities with gold rich areas in Latin America• Exceptional quality of company management Persian Gold is applying in Iran, a new gold exploration model which has provenhighly successful in the past decade. This model has discovered, some of thelargest gold deposits in the world. Mike Thomsen, Persian Gold's SeniorTechnical Advisor, is a world class expert in Quartz-Alunite Gold explorationfrom his days with Newmont Gold. In South America he was involved in thedevelopment of the 50 million ounce Yanacocha mine in Peru. Yanacocha is thesecond largest gold mine in the world. Yanacocha is a gold in alunite deposit. The gold in alunite exploration model brought Persian Gold to Iran, which hasthe world's second largest deposits of alunite - over a billion tons. Operationshave so far proved successful. Persian Gold has been exploring 1,800 sq km ofalunite deposits in Takestan, Northern Iran. Using 4 teams of geologists andsamplers, some 3,000 samples have been carefully selected, prepared in Tehranand shipped to the OMAC laboratory in Loughrea, Ireland for analysis. Traces ofgold have been found, proving that gold exists in the system. Second stage sampling on a tighter grid is commencing on the first of a numberof targeted areas. These are areas where traces of gold have been found. Thetarget for the Company is a large multi million ounce open cast gold mine. Acommercially viable grade is 1.5 to 2.0 grams of gold per ton because the goldis easily recovered using vast heaps where gold in alunite is slowly leached outover days, weeks and months. The company's management is headed by John Teeling. John has been verysuccessful in taking innovative resource companies to the London AIM market andbrings many years of success and experience to the Board. The other Boardmembers are all experienced explorers. Success and experience are shared by the two major technical advisers to theCompany. Mike Thomsen has 28 years experience in the field and has a provenrecord of success. Monir Davoudzadeh, a prestigious Iranian geologist, is co-ordinating operationsin Takestan through the Company's Tehran office. Dr Davoudzadeh brings not onlya keen understanding of the region's geology, but also a detailed knowledge ofthe Iranian minerals industry. Mike Thomsen, the chief technical adviser said "Our concessions are geologically exciting. Not only are there massive alunitereserves but they share key features with mineral rich regions of Latin Americawhich could be the key to a significant gold find. We have the possibility of amulti million ounce gold find in our concessions. Initial results are positive" John Teeling, Chairman of Persian Gold said "We are at the start of something which could be really big. We have hadexcellent assistance from the authorities in Tehran and we could not wish forbetter local co-operation. But never forget, gold exploration is a high riskbusiness. Whilst it is important to stress that we are still at very earlystages, the downside risk has dropped significantly due to the fact that we havealready proven the presence of gold in our licensed area. Iran has a longillustrious history of gold. The aim of Persian Gold is to rekindle thissparkling history by applying modern exploration techniques to this relativelyunder explored country." For further information please contact: Persian Gold PLCJohn Teeling, Chairman + 353 87 258 1178Jack Teeling, Director + 353 1 833 3505 Bell Pottinger Corporate & Financial + 44 207 861 3232Nick LambertPaddy Blewer Background Notes • Persian Gold was formed in the UK in 2003 • It has 56 M shares in issue of which 70% are controlled by directors and managers • The directors and managers have extensive exploration experience for gold and hydro carbons. John Teeling, with James Finn and David Horgan, has • established 8 stock exchange listed resource companies. David Horgan manages on Iraq focused oil exploration company. Mike Thomsen has 28 years • gold exploration experience with gold multi nationals. Monir Davoudzadeh, now based in Munich, is an acknowledged specialist in Iranian geology and a • former senior executive in the Iranian Geological Survey. This information is provided by RNS The company news service from the London Stock Exchange