Clontarf Regulatory News (CLON)

25 Jul 2006 07:00

Persian Gold PLC25 July 2006 PERSIAN GOLD PLC Update on the Chah-e-Zard Gold Project in Yazd, Iran • Very encouraging second stage sampling results. • Drilling contract agreed. • Drilling to commence in the coming weeks. Persian Gold plc. ("Persian Gold" or "the Company") is very pleased to announcethe results from the second stage sampling programme on the Chah-e-Zard GoldProject in Yazd, Iran. Persian Gold holds an option to acquire 70% of theproject with the remainder held by a local Iranian company. The first analyses from the current geochemical sampling programme on the golddeposit in Chah-e-Zard, near Yazd, have produced excellent results. 344 of 366samples of the current rock chip/channel and soil data base have returned goldvalues. These results have enabled the Board of Persian Gold to confirm a drillingcontract with a Turkish drilling company with a long history of goldexploration. The Company intends to undertake a multi hole diamond drillprogramme to commence in early autumn. John Teeling, Chairman commented "These are good results and support the earlier results achieved by Persian Goldand the data supplied by our local partner. The size of the mineralised zone, at750m x 1250m, is large and, if the upcoming drilling programme confirms previousrock and soil sampling data, there is a good possibility of advancing thisproject towards a new substantial gold discovery. The project is attractive both geologically and logistically. Suitable for lowcost heap leaching and workable all year round, this could be a very costeffective and profitable project" Operational Detail The detailed surface geochemical sampling programme underway is being conductedon a precise 50 by 50 metres sampling grid to define the outline of the depositand to select drill targets. This programme is a follow up to the earlierreconnaissance rock chip programme undertaken in Q1 2006 which defined a largesurface anomaly with gold values up to 21 g/t. The rock chip and soil sample results have confirmed that gold mineralization at Chah-e-Zard, including a significant number of samples that grade better than4.0g/t gold and multi-gram silver, occur across outcrops within an areameasuring in excess of 1250m x 750m. The mineralisation relates to a variety ofacid sulphate altered phreatic, phreatomagmatic and siliceous hydrothermalbreccias. The current defined target covers an area of 700,000m2 within which thefollowing averaged rock chip/channel results are calculated using a 10.0g/t cutoff for the higher grading samples: • 184 rock samples within this target boundary average 0.94 g/t gold. • 37% of rock samples grade better than 0.5g/t Au and average 2.30g/t gold. • 12% samples grade better than 2.0g/t Au and average 4.9g/t gold. • 7% samples grade better 4.0g/t and average 6.7g/t gold. The forthcoming reconnaissance diamond drill holes at Chah-e-Zard aim to testthe significance of the grade at depth and determine whether the gold gradeshold up between outcrops. Soil results for samples covering the target area onapproximately 50 metre indicate that there is a good probability that the goldmineralisation is continuous between outcrops. The Chah-e-Zard target, located 350 miles southeast of Tehran, consists of acircular complex of multiple-stage breccias hosted in altered volcanics. Rockalteration at Chah-e Zard covering an area in excess of 3 x 3 km, relates to alarge elliptical shaped collapse feature. Located at the edge of this feature,the Zard gold target is developed where the 'collapse feature' cuts apre-existing intrusive dome complex. The alteration which extends around theremainder of the structure remains to be investigated in detail. This area which is easily accessible all year round exhibits potential for alarge gold resource. Initial indicators suggest that the deposit will beamenable to low cost heap leaching. The terrain is also suited to this process.The forthcoming drill program aims to test scope for a large scale bulk tonnageand heap leach gold target in tandem with on going surface exploration which itis hoped will better define limits to the mineralization. This announcement has been approved by S.J. Meldrum, Geologist, Consultant tothe Board, Calle Las Tres Marias 363-6, Monterrico, Surco, Lima, Peru. Enquiries: Persian Gold Plc David Horgan +353 87 292 3500John Teeling +353 1 833 2833 College Hill Paddy Blewer +44 (0) 20 7457 2020Nick Elwes +44 (0) 20 7457 2020 Rowan DartingtonIan Rice +44 (0) 117 933 0020 This information is provided by RNS The company news service from the London Stock Exchange