Clontarf Regulatory News (CLON)

16 Oct 2008 07:00



16th October 2008

Persian Gold Plc

Positive Results from Dalli Drilling in Iran

Positive drilling results from 3 out of 4 holes drilled - potential large copper-gold system in place

Positive results driving further investment and exploration work including;

Ground surveys

1,513 metres of trenching

Detailed geological map

3D model of the deposit

Results of surveys and drilling will result in potential tonnage estimation

Persian Gold (AIM:PNG), the Irish based Iranian gold and copper explorer, is pleased to provide results from the second phase drilling programme at Dalli, 200km southwest of Tehran.

Dalli is a gold/copper porphyry with extensive surface mineralisation and two distinct centres located 1.7km apart. It is a joint venture between Persian Gold (70%) and Dorsa (30%), a local Iranian company.

An earlier drilling phase identified commercial grade mineralisation. The latest programme of four holes focused on the South Hill, where the best grades were found in earlier work. Four holes totalling 1,206 metres were drilled. One vertical hole, (DDH 06), drilled the centre of the South Hill to a depth of 401 metres to measure the depth extension of the higher grades found in the earlier drilling. Three holes were drilled at angles to test the lateral extension of the system.

Varying levels of porphyry style alteration were observed in the drill core as was sulphide mineralisation. Core recoveries were good. Results are shown in table 1 below.

Table 1: Second Phase Dalli Drill Results

Hole DDH 05 was barren but encountered strong pyrite mineralisation. These results reinforce the belief that Dalli could be a very large system. A series of activities are underway to better identify and explain the system;

a detailed topographic map on a 50m x 50m grid over the North and South Hills has been completed

a detailed geological map covering 81 hectares on the North Hill and 100 hectares on the South Hill has been completed

a total of 16 trenches covering 1,513 metres have been completed and 819 samples taken. Results are awaited

a detailed 3D model of the deposit will be completed within three months

This release has been approved by Bahman Rashidi, General Manager, Iran, for Persian Gold and a qualified geologist with more than ten years experience exploring in Iran.

John Teeling, Chairman of Persian Gold commented;

"Once again, we have shown that we can operate in Iran to the highest standards. Second phase drilling at Dalli was encouraging. With the exception of drill hole 5 which was barren, the results were highly positive, in particular drill hole 7 with 220 metres of 0.42% copper and 0.50g/t gold. At current metal prices, this equates to a value of $35 per tonne of rock in the ground.

These results confirmed the need to complement our drilling with further ground surveys and trench samples. All of the data will be inputted to a 3D model from which we can make a first estimate of potential tonnage."

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