Clontarf Regulatory News (CLON)

15 Nov 2007 07:01

Persian Gold PLC15 November 2007 Persian Gold plc. 15th November 2007 Exploration Update on the Dalli and Chah-e-Zard Projects Highlights O First phase drilling completed at Dalli in Central Iran O Dalli drill core being analysed at OMAC Labs in Ireland O Drilling rig moved to Chah-e-Zard for a 14 hole second phase programme Persian Gold, the Irish based gold explorer (AIM:PNG) is pleased to provide anupdate on its exploration drilling projects in Iran. The first phase drilling program at Dalli has been now completed. An initialfour holes for a total of 1,188 metres have been drilled into this copper/goldporphyry system located in central Iran. Drilling went very smoothly with highcore recoveries. The core is being logged/split onsite and the samples are thensent to Tehran for sample preparation. Pulps are prepared in Tehran, which arethen shipped to the OMAC laboratories in Ireland for geochemical analysis.Results are expected to be reported in the coming weeks. The copper-gold targets at Dalli are defined by two zones of outcroppingmineralisation located 1.5 km apart. The first two holes were located in thesouthern zone of mineralisation and the second two holes targeted the northernzone. In all of the drill holes at Dalli, varying levels of porphyry stylealteration including potassic zones were observed. Visible sulphidemineralisation consisting of primarily pyrite and chalcopyrite was also seen inthe drill core. Strong multi-phase sulphide-rich quartz stockwork frommillimetres to centimetres in thickness was present in a number of zones. Whileno assays have yet been received, these porphyry style characteristics ofalteration and sulphide mineralisation are quite positive. The drill rig has now moved to Chah-e-Zard where a 14 hole second phase drillingprogramme is underway. First phase drilling at the Chah-e-Zard project, whichis located 350kms south of Tehran, identified a zone of very good gold grades.The extent of this oxide gold zone is now being tested by an additional 23trenches totalling 1,300 metres and 14 drill holes for a total of 1,000 metres.The trenching programme is nearing completion and drilling has started. John Teeling, Chairman of Persian Gold, commented: "The Dalli drilling programme has gone smoothly, efficiently and on time. Thesamples will now be analysed at the world class OMAC labs in Ireland. Visualobservation of the core during recovery and logging indicated that the targetcopper/gold mineralisation is in place, but it must be emphasised that no gradesare as yet known. While Dalli was being drilled, the Southern lobe of the Chah-e-Zard gold targetwas being trenched to estimate the continuity of mineralisation at surface. 14drill holes will now test the depth of the oxide and transition zones; targetingan opencast heap leachable deposit. Iran continues to be a good exploration location. The geology is exciting, thepeople welcoming, the terms attractive and the majority of the required skillsare also available." 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 Plc John Teeling +353 1 833 2833 College Hill Paddy Blewer +44 (0) 20 7457 2020 Nick Elwes +44 (0) 20 7457 2020 Blue Oar Securities Plc John Wakefield +44 (0) 117 933 0020 Simon Moynagh www.persiangoldplc.com This information is provided by RNS The company news service from the London Stock Exchange