Clontarf Regulatory News (CLON)

29 Nov 2006 07:00

Persian Gold PLC29 November 2006 Persian Gold plc. Drilling Results from Chah-e-Zard Gold Project in Iran • Seventeen hole programme completed • Early stage exploration programme suggests cautious optimism • Gold assays recovered from six holes - mineralisation in five • One hole intersected 122 metres at 1.95g/t including 10 metres at 13.6g /t • Surface trenching has uncovered additional gold bearing structures Persian Gold plc, the Irish based AIM listed company (AIM:PNG) which owns anoption to acquire 70% of the Chah-e-Zard gold project in Yazd, Iran, is pleasedto announce that assay results for the first six drill holes and multiplesurface trenches have been received. The Chah-e-Zard project is located 350 kilometres southeast of Tehran andconsists of a circular complex of multiple-stage breccias hosted in alteredvolcanics. Located along the edge of this feature, the Zard gold target isdeveloped where the breccias cut a pre-existing intrusive dome complex. Theinitial drilling is a scouting programme to better outline the shape and scopeof the resource. Gold and silver results have been received for the first drill hole (ZDH-1) andgold assays have been received for holes ZDH-2 through ZDH-6 (Figure 1). Allother assays are pending. Figure 1 - Chah-e-Zard Drill Results Hole 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 102m 224m 122m 1.95 g/t of which 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/t All drill holes were inclined at -60 degrees from horizontal and core samplingwas conducted on 2 metre intervals of cut quarter core. The Company has also received gold assays from multiple surface trenches. Thesecontain intercepts of 10 metres at 2.25 g/t, 4 metres at 9.58 g/t, 4 metres at4.42 g/t, 12 metres at 0.97 g/t, 40 metres at 0.43 g/t, 20 metres at 0.69 g/tand 12 metres at 0.49 g/t. All gold and silver analyses are being carried out by OMAC Labs in Ireland. John Teeling, Chairman of Persian Gold, commented: "These initial drilling results are a good start to our scouting drill programmeand show that the gold mineralisation, found on the surface, extends tosignificant depths. These results need to be put in context. The Chah-e-Zard anomaly covers over1.25km x 0.75km so results from a few holes, whilst encouraging, require furtherwork. We await results from the remaining holes with interest." 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 PlcJohn Teeling +353 1 833 2833 College HillPaddy Blewer +44 (0) 20 7457 2020Nick Elwes +44 (0) 20 7457 2020 Corporate SynergyIan Rice +44 (0) 117 933 0020Craig Howie +44 (0) 20 7448 4400 www.persiangoldplc.com This information is provided by RNS The company news service from the London Stock Exchange