Clontarf Regulatory News (CLON)

14 Sep 2005 07:00

Persian Gold PLC14 September 2005 Exploration Update Persian Gold (AIM: PNG) which is exploring in Northwestern Iran is pleased toannounce an update on operations. Highlights are: • Encouraging gold results in Iran • High-grade results from sampling in Zehabad area. • Second stage exploration underway • Detailed sampling and mapping completed on Twin Hills • New Projects being evaluated Persian Gold has been exploring on an 1800 sq km concession in North West Iran,searching for a large scale gold in quartz-alunite deposit. Stage 1 sampling hasbeen completed with encouraging results in eight areas. The Zehabad area inparticular, produced significant gold grades ranging up to 14 g/t in samples.Zehabad, which is the site of a former small zinc lead mine, has a series ofgold mineralised veins which are being re-sampled and mapped. Results to dateconfirm the earlier grades. Second stage exploration involving more detailed sampling and mapping isunderway focusing initially on the Twin Hills prospect in Takestan. The TwinHills exploration involved detailed chip sampling on a 1400 x 750 metre grid.The sampling is completed and samples are in the laboratory awaiting analysis.Drilling should commence once the results are available. John Teeling, Chairman of Persian Gold Plc, commented "Results of our gold exploration in Iran offer great encouragement and we movedrapidly to the second stage prior to completing the first stage. In summary, wehave discovered 8 clusters of gold values on our concession in Northwest Iran.We already have exploration licences on three, have applied for three more andwe are preparing the last two applications. In the Zehabad area, the goldgrades recovered from sampling are good. We have revisited the area andre-sampled. Initial indications are of a vein system, rather than a quartzalunite orebody. If this is true and if subsequent work proves up the extentand grade of the veins, we are looking at the possibility of an underground highgrade mine. The second stage detailed sampling and follow-up drilling will last through theSpring of 2006. At the same time, Persian Gold is examining a number of otherprojects in Iran. For further information please contact: Persian Gold PLCJohn Teeling, Chairman + 353 87 258 1178Jack Teeling, Director + 353 1 833 2833 Bell Pottinger Corporate & Financial + 44 (0) 207 861 3232Nick Lambert This information is provided by RNS The company news service from the London Stock Exchange