Clontarf Regulatory News (CLON)

16 Jan 2007 07:00

Persian Gold PLC16 January 2007 Drilling Update • Extensive gold mineralisation confirmed at Chah-e-Zard prospect in central Iran. • Work underway to further define the target. • Excellent support from local partners and the Iranian authorities. Persian Gold (AIM:PNG), the Irish based gold explorer, is pleased to updateshareholders on results from its 16 hole reconnaissance drilling programme atChah-e-Zard near Yazd in Central Iran. Persian Gold holds a 70% interest in theproject. Table 1 below shows a summary of results. Gold results from the 16 hole programme suggest a high grade gold system in thesoutheast with lower grades in the west and northwest. Only three of the 16holes did not contain gold anomalies. The silver results, although incomplete,appear to mirror the gold results. The southernmost holes (1 and 3) contained high grade mineralisation includingan intersection of 122m at 1.95 g/t gold and 23.8 g/t silver. Holes 1 and 3 are125 metres apart. Holes to the west and northwest (4-13) carry anomalies ofless than 1 g/t gold. Although more drilling is required, these results appear to indicate that thereare at least two mineralised systems in the area. Planning is underway for thesecond phase of drilling which is likely to take place in the Spring. John Teeling, Chairman commented: "The initial phase of drilling the large gold anomaly at Chah-e-Zard isproducing promising results. The high grades and thick mineralisation in thesoutheast warrant immediate follow up drilling while grades in the north andwest indicate that gold and silver are present but at lower grades. Although final conclusions cannot be drawn from such a small drill programme,every drill result adds to our knowledge of the system. The first phase ofdrilling has improved our understanding and we expect to commence a furtherdrilling phase in the near future to further define the target." Table 1: Drilling results from Chah-e-ZardHole Depth from Depth to Interval Silver grade Gold gradeZDH-1 138m 178m 40m 49.3 g/t average 1.24 g/t average of which 16m 92.2 g/t 2.37 g/tZDH-2 45m 85m 40m 0.43 g/tZDH-3 9m 23m 14m 1.67 g/t 102m 224m 122m 23.8 g/t 1.95 g/t of which 30m 84.8 g/t and 10m 13.60 g/t and 6m 5.19 g/tZDH-4 50m 68m 18m 0.66 g/tZDH-6 18m 56m 38m 0.15 g/tZDH-7 29m 73m 44m 0.14 g/tZDH-8 33m 43m 10m 7.3 g/t 214m 230m 16m 30.0 g/t 0.18 g/tZDH-9 51m 55m 4m 0.53 g/t 63m 69m 6m 0.52 g/t 71m 107m 36m 22.1 g/tZDH-10 88m 106m 18m 0.15 g/tZDH-11 62m 98m 36m 0.20 g/tZDH-13 108m 116m 8m 0.47 g/tZDH-14 86m 96m 10m 0.24 g/t 118m 150m 32m 0.41 g/tZDH-16 18m 32m 14m 0.21 g/t No gold was encountered in holes 5, 12 and 15. Gold results from holes 1-6 were previously reported on 29 November 2006 as werethe silver results from hole 1. Information in this announcement relating to exploration results has beenreviewed by Mr. Babakhani, an independent geologist and consultant to PersianGold, who is a qualified person under AIM guidelines. For further information please contact:Persian Gold Plc John Teeling +353 1 833 2833College Hill Paddy Blewer +44 (0) 20 7457 2020Nick Elwes +44 (0) 20 7457 2020Corporate Synergy Ian Rice +44 (0) 117 933 0020 This information is provided by RNS The company news service from the London Stock Exchange