Last checked at 15 May 2008 07:00
15 May 2008
Persian Gold PLC
Chah-e-Zard Gold Discovery Advances to Pre-Feasibility Stage
The Board of Persian Gold (AIM:PNG), the Irish based Iranian gold explorer is pleased to announce the results of second phase drilling at Chah-e-Zard. Following a detailed review and modelling of the trench and drill results from both the first phase announced on 16 January 2007 and this phase Persian Gold announces that:
Persian Gold has exercised the option to acquire 70% of the joint venture company which will hold the licence over the Chah-e-Zard gold discovery. The licence is in the process of being transferred to the joint venture company.
An application will be made to the authorities for a Discovery Certificate covering 160,000 ounces of gold and 1 million ounces of silver.
A pre-feasibility study will be undertaken on the near surface oxide resource to determine the economics of a heap leach gold mine.
Assuming co-operation from the authorities, this pre-feasibility study could be completed within 20 weeks. Based on the results of this study, Persian Gold will investigate all possible methods to extract maximum value for shareholders from this discovery.
Chah e-Zard is located in a desert area where logistics, security and community relations are excellent.
This release has been approved by Bahman Rashidi, a qualified geologist with more than ten years experience exploring in Iran.
John Teeling, chairman, commented;
"Chah-e-Zard may well become the first producing mine developed by Persian Gold in Iran. The detailed analysis of 38 drill holes and thousands of metres of trenching led to a modelled deposit of 160,000 ounces of gold and 1 million ounces of silver in a tightly defined area. This confirms Persian Gold's belief that there are significant gold and related metal discoveries to be made in the Persian-Tethyan belt."
Summary drill results of second phase drilling:
| Drill hole | Depth m. | Interval m. | Gold g/t | Depth m. | Interval m. | Silver g/t |
| 1 | 6-20 | 14 | 0.74 | 6-20 | 14 | 40.23 |
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| 3 | 38-40 | 2 | 1.15 | 37-60 | 23 | 9.6 |
| and | 48-50 | 2 | 1.13 | |||
| and | 58-66 | 8 | 0.53 | |||
| 4 | 27-36 | 9 | 0.58 | 14-27 | 13 | 36 |
| and | 36-38 | 2 | 45.44 | 36-45 | 9 | 8.2 |
| and | 58-70 | 12 | 6.15 | 59-71 | 12 | 36.5 |
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| 5 | 0-12 | 12 | 2.65 | 0-12 | 12 | 8.6 |
| and | 77-83 | 6 | 1.16 | 71-83 | 13 | 15 |
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| 5-2 | 0-5 | 5 | 6.01 | 0-5 | 5 | 8.22 |
| and | 27-46 | 19 | 2.20 | 2746 | 19 | 22.3 |
| 6-2 | 0-5 | 5 | 1.48 | |||
| 7 | 55-63 | 8 | 1.32 | 68-68 | 62 | 13 |
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| 8 | 2-4 | 2 | 0.95 | 24-27 | 3 | 21.77 |
| and | 8-12 | 4 | 1.00 | |||
| 9 | 2-3 | 1 | 1.12 | 26-44 | 18 | 7 |
| and | 20-22 | 2 | 2.37 | 45-63 | 18 | 24 |
| and | 54-63 | 9 | 1.48 | 64-79 | 15 | 7.5 |
| and | 67-68 | 1 | 2.97 | |||
| and | 74-76 | 2 | 1.55 | |||
| 10 | 29-61 | 32 | 5.90 | 11-16 | 5 | 17 |
| and | 71-74 | 3 | 11.63 | 27-59 | 32 | 26.45 |
| and | 86-100 | 14 | 3.11 | 82-100 | 18 | 81.9 |
| End of hole |
| |||||
| 10-2 | 2-4 | 2 | 1.38 | 8-12 | 4 | 39 |
| and | 8-10 | 2 | 2.75 | 23-59 | 36 | 10.7 |
| and | 31-34 | 3 | 1.30 | |||
| and | 58-61 | 3 | 2.65 | |||
| 11 | 15-16 | 1 | 7.52 | |||
| and | 22-27 | 5 | 11.10 | |||
| and | 34-35 | 1 | 9.04 | |||
| 12 | 39-44 | 5 | 1.47 | 42-53 | 12 | 15 |
Enquiries:
| Persian Gold PLC | |
| John Teeling, Executive Chairman | +353 (0) 1 8332833 |
| College Hill | |
| Nick Elwes | +44 (0) 20 7457 2020 |
| Blue Oar | |
| John Wakefield | +44 (0) 1179 330 020 |