9 Jun 2020 07:00
9 June 2020
Ormonde Mining plc
("Ormonde" or "the Company")
Existing Gold Projects and General Business Update
Ormonde announces an update on its Spanish gold projects, advances in its ongoing review of new opportunities and the proposed date for its 2020 Annual General Meeting ("AGM").
Highlights:
· Cost-effective work programme to be advanced at certain existing Spanish gold projects, following up on numerous high grade intersections encountered from previous diamond drilling on licence areas, ranging between 11.4 grams per tonne ("g/t") to 65.8 g/t gold over widths of 1-2 metres.
· Focus remains on continuing assessment of resource sector prospects with potential to add substantial shareholder value. Around 100 projects have been reviewed to date, with a small number of opportunities shortlisted for further active consideration.
· The Company concurs with the view of shareholders that a physical AGM is more beneficial to shareholders than a virtual one. Accordingly, considering the Irish Government's phased approach to reopening the country for business and the health and safety of shareholders and employees, the Ormonde AGM is being arranged for 16 September 2020 in Dublin. A Notice of AGM with full details, including any virtual access, will be posted to shareholders together with the Company's Annual Report later in June.
Jonathan Henry, Ormonde's Executive Chairman, commented:
"I am very pleased to report that a fresh look at Ormonde's Spanish gold exploration projects has highlighted the potential to build on high grade gold mineralisation which was intersected by previous drilling campaigns. We have identified several targets within the project portfolio which can be advanced, to the benefit of shareholders in a positive gold market environment, with low cost work programmes, while continuing to conserve the Company's cash balances for driving value in potential resource sector M&A opportunities.
In this regard, Ormonde's management team has several very interesting options under consideration. Gold projects have been a key focus of these efforts, together with opportunities across a range of commodities, global jurisdictions and risk profiles. The priority remains on concluding a resource sector transaction which would add substantial value for Ormonde's shareholders."
Spanish Gold Projects Update
During the Covid-19 lockdown, Ormonde has completed an internal desktop review on the Salamanca and Zamora gold projects in western Spain, held in joint venture with Shearwater Group plc ("JV"). The review highlights opportunities to follow up on high grade gold results returned by earlier drilling carried out by Ormonde and the JV. Narrow but high grade and shallow-level drill intercepts are found in multiple holes at two prospect locations, where there is clear scope for more substantially developed ore shoots and untested extensions within these structurally controlled mineralised zones.
At the El Facho prospect in Zamora (44% Ormonde), the highest grade intercepts from previously reported drillholes include:
Hole name | Drilled by | Year | Downhole depth (m) | Downhole width (m)* | Gold grade (g/t) |
P14 | Spanish Govt | 1993 | 74 | 1 | 65.8 |
P15 | Spanish Govt | 1993 | 132 | 2 | 11.1 |
P17 | Spanish Govt | 1994 | 44 | 1 | 14.8 |
ORMP-1 | Ormonde | 2006 | 73 | 1 | 16.6 |
ORMP-4 | Ormonde | 2007 | 40 | 1 | 18.9 |
ORMP-10 | JV | 2011 | 102 | 1 | 21.3 |
ORMP-14 | JV | 2011 | 143 | 1 | 11.4 |
* Approximate true widths are 70-90% of downhole width
At the MML prospect in Salamanca (49% Ormonde), the highest grade intercepts from previously reported drillholes include:
Hole name | Drilled by | Year | Downhole depth (m) | Downhole width (m)* | Gold grade (g/t) |
PERDD001 | JV | 2012 | 46.9 | 1.1 | 22.7 |
110.7 | 1.4 | 21.5 | |||
PERDD005 | JV | 2012 | 106 | 1 | 13.4 |
PERDD007 | JV | 2012 | 50 | 1 | 19.5 |
PERDD010 | JV | 2012 | 92 | 1 | 33.2 |
* Approximate true widths are 70-90% of downhole width
In addition, several earlier stage prospects, where no drilling has yet been carried out, have been identified as good gold exploration targets warranting further work.
Further work programmes are to be advanced in a material but cost-effective way in the near to medium term.
Notes:
Fraser Gardiner, MAIG, Chief Operating Officer of Ormonde Mining plc, and a qualified person as defined in the Note for Mining, Oil and Gas Companies, June 2009, of the London Stock Exchange, has reviewed and approved the technical information contained in this announcement.
The full results of drillholes contained in this announcement have been previously published by Ormonde as follows:
07 August 2007: P14, P15, P17, ORMP-1, ORMP-4
28 March 2012: ORMP-10, ORMP-14
11 March 2013: PERDD001, PERDD005, PERDD007, PERDD010
Enquiries to:
Ormonde Mining plc
Jonathan Henry, Executive Chairman
Paul Carroll, Chief Financial Officer
Fraser Gardiner, Chief Operating Officer
Tel: +353 (0)1 801 4184
Davy (Nomad, Euronext Growth Advisor and Joint Broker)
John Frain / Barry Murphy
Tel: +353 (0)1 679 6363
SP Angel Corporate Finance LLP (Joint Broker)
Ewan Leggat
Tel: +44 (0)20 3 470 0470
Capital M Consultants
Simon Rothschild
Mob: +44 (0)7703 167065
Murray Consultants
Mark Brennock
Tel: +353 (0)1 4980300
Mob: +353 (0)87 2335923
For more information, visit www.ormondemining.com.