Clontarf Regulatory News (CLON)

8 Jan 2008 07:00

Persian Gold PLC08 January 2008 8th January 2008 Persian Gold plc Positive Results from Second Phase Trenching / Drilling at Chah-e-Zard O Completion of 2nd stage of trenching / drilling O Positive initial results O Further results to be announced in near future Persian Gold (AIM: PNG), the Irish based Iranian gold explorer, is pleased toannounce that the second phase of trenching and drilling in the Southern GoldZone of the Chah-e-Zard project has been completed. The Chah-e-Zard goldproject is located near the city of Yazd in central Iran. Persian Gold haspreviously announced diamond drill intercepts of 122 metres of 1.95 g/t Gold and40 metres of 1.24 g/t Gold from holes ZDH-3 and ZDH-1 respectively. Both ofthese holes, from the first phase of drilling, were located in the southern zoneof the prospect. The second phase of exploration work, focused on this zone, consisted oftrenching and drilling to delineate near surface oxide gold mineralization forpotential future open pit mining. A total of 25 trenches for a distance of 1,513 metres were completed. Thetrenches are approximately 50 to 100 metres long, one metre wide and excavatedto a depth of 0.5 to 2.0 metres. A total of 596 samples from the trenches werecollected. Twenty-two diamond drill holes have now been completed for a total of 1,693metres. These holes were drilled to an average depth of 60 to 80 metres. Atotal of 1,554 samples were taken. All 2,150 samples from the trenches and drill holes have been delivered to thesample preparation lab in Tehran. Initial results for the first 410 trenchsamples have been received from OMAC labs in Ireland and include gold interceptsof: O 61 metres at 5.13 g/t (including 18 metres at 11.54 g/t and 10 metres at 5.17 g/t) O 10 metres at 4.98 g/t O 8 metres at 2.29 g/t. Trenching has confirmed that within the phreatic breccia zone, the goldmineralization correlates with the hydrothermal breccias that are stronglysilicified and structurally controlled. The contact between the mineralisedzone and phreatic breccia is sharp. The drill core indicates a series ofsteeply dipping silicified structures, which are thought to represent the mainmineralized component of this gold system. Further trench results and the drilling results are expected in the near future. Commenting on these results, John Teeling, Chairman of Persian Gold, stated: "These results are very positive and demonstrate that a near surface oxide golddeposit is present in the southern area. If the 22 holes drilled confirm thepresence of commercial gold at depth, we will move to pre-feasibility stage." Information in this announcement relating to exploration results has beenreviewed by Mr. A.Babakhani, an independent geologist and consultant to PersianGold, who is a qualified person under AIM guidelines. Contacts: Persian Gold PlcJohn Teeling +353 1 833 2833 College HillPaddy Blewer +44 (0) 20 7457 2020Nick Elwes +44 (0) 20 7457 2020 Blue Oar SecuritiesJohn Wakefield +44 (0) 117 933 0020Simon Moynagh +44 (0) 117 933 0020 www.persiangoldplc.com This information is provided by RNS The company news service from the London Stock Exchange