ORM.L Regulatory News (ORM)

6 Dec 2007 07:00

Ormonde Mining PLC06 December 2007 06 December 2007 Ormonde Mining plc Ormonde intersects 3 metres grading 1.0% Tungsten in the new Filon Principal Zone at Barruecopardo DUBLIN & LONDON: 06 December 2007 - Ormonde Mining plc ("Ormonde" or "theCompany") is very pleased to report encouraging high grade results from thefirst drillhole in the Filon Principal Zone ("FP Zone") at its BarruecopardoTungsten Project in Salamanca, Spain ("the Project"). The Company also reportstwo further infill holes from the Filon Maestro Zone ("FM Zone"). Highlights • First hole BAR-20 in the FP Zone intersects 3 metres grading 1.0% WO3(tungsten trioxide); this occurs within a broader zone of 13 metres at 0.25% WO3which would have been the mining zone in the previous open pit operation. • The FP Zone is a 700 metre long zone below the historic open pittungsten mine; BAR-20 was drilled at the southern end of this pit, and indicatesthat the FP Zone could be prospective as an underground target; furtherdrilling, presently in progress, will determine if this high grade zone extendsnorthwards. • The FP Zone is additional to the FM Zone, which has been the focus ofOrmonde's drilling to-date; infill drilling of the FM Zone (BAR-21 and 22)continues to return results in line with expectations. • The Company intends to complete an initial resource estimate and anin-house order-of-magnitude viability study on the Project during the next 2-3months. Kerr Anderson, Managing Director, said: "This first hole in the FP Zone is a very encouraging development at theProject. It demonstrates the potential for significant widths of high-gradetungsten within this extensive zone which was mined in its upper part by thehistoric open pit." A table of all significant drilling results reported to-date is provided belowand a drawing showing the locations of drillholes and of the zones describedbelow is included in the PDF version of this announcement atwww.ormondemining.com/doc/press/pr071206.pdf. The current drilling programme is designed to build up the initial resource basefor the Project. Drilling to-date has identified three main tungstenmineralised zones: Filon Maestro Zone Summary: Ormonde's drilling has focused primarily on this high grade tungstenzone to the north of the main historic open pit mine. Its current known limitsare 750 metres strike length and over 175 metres depth. Infill and step-outdrilling is ongoing. New Results: Results reported today from two new infill holes continue tosupport previous results, with new intersections of 5 metres grading 0.5% WO3(BAR-21), 1 metre grading 0.6% WO3 (BAR-22) and 4 metres grading 0.22% WO3(BAR-22). Filon Principal Zone Summary: Previous mining activity was targeted at this wider, lower gradetungsten zone located beneath the flooded portion of the main pit. A 1985 studyreports that this zone was mined over a 700 metres strike length, with anaverage width of 14 metres (maximum 22 metres) and average grade of 0.23% WO3.Drilling of the FP Zone is underway with a view to identifying higher gradetungsten zones within it. New Results: The first drill hole to test this zone, BAR-20, has intersected 3metres grading 1.0% WO3. This intersection occurs within a broader zone of 13metres grading 0.25% WO3, which would have been the mining zone in the previousopen pit operation. Filon Central Zone Summary: Tungsten-rich quartz veins occur in the granite rock between the FMand FP Zones. Several intersections can be correlated to define a zone with astrike length of 500 metres, which is being further tested in the currentdrilling programme. No new results. Kerr Anderson PhD EurGeol PGeo, Managing Director of Ormonde Mining plc, and aqualified person as defined in the Guidance Note for Mining, Oil and GasCompanies, March 2006, of the London Stock Exchange, has reviewed and approvedthe technical information contained in this announcement. A glossary explaining technical terms contained in this announcement can befound at www.ormondemining.com/projects/glossary.html. Enquiries to: Ormonde Mining plcKerr Anderson, Managing Director,Fraser Gardiner, DirectorTel: +353 (0)46 9073623 Bankside ConsultantsSimon Rothschild / Louise Mason Tel: +44 (0)20 7367 8888 Mob: +44 (0)7703167065 Davy (Nominated Adviser to Ormonde)Fergal Meegan Tel: + 353 1 679 6363 ENDS Drilling Results FILON MAESTRO ZONE FILON CENTRAL ZONE FILON PRINCIPAL ZONE Hole From (m) Length WO3% From (m) Length WO3% From (m) Length WO3% (m) (m) (m) BAR-01 115.7 1.0 0.5 BAR-02 Hole being deepened BAR-03 101.5 3.4 1.0 including 101.9 1.0 2.4 BAR-04 122.0 0.9 1.6 142.5 0.6 4.5 BAR-05 133.7 1.7 0.4 BAR-06 245.0 1.0 0.7 181.6 1.2 0.6 BAR-07 Intersected intrusion BAR-09 119.0 2.0 2.1 BAR-10 125.0 2.0 1.5 BAR-11 114.0 1.0 0.3 BAR-12 128.0 2.0 1.7 BAR-13 123.0 2.0 2.4 BAR-14 114.0 1.0 0.3 BAR-15 122.0 2.0 0.4 BAR-16 202.0 4.0 0.6 91.0 1.0 1.4 BAR-17 125.0 2.0 0.9 BAR-18 254.0 1.0 0.3 91.0 1.0 0.7 BAR-19 268.0 2.0 0.5 96.0 8.0 0.3 96.0 1.0 1.5 BAR-20 137.0 3.0 1.0 BAR-21 125.0 5.0 0.5 BAR-22 110.0 1.0 0.6 132.0 4.0 0.2 Note: BAR-20, 21 and 22 are new holes reported in this announcement. Resultsfrom all other holes have been reported in previous announcements. About Ormonde Ormonde Mining plc is quoted on the AIM in London and the IEX in Dublin.Ormonde is a mineral development and exploration company focused on Spain, withthe objective of developing mining projects and taking them into production. Ormonde's main projects are the La Zarza Copper-Gold-Zinc Project in southernSpain where a Bankable Feasibility Study is being carried out by leadinginternational engineering firms, and the Barruecopardo high-grade tungstendeposit in the Salamanca area where a continuous programme of in-fill andstep-out drilling is now underway with a view to fast-tracking the evaluation ofthis project. The Company's other current activities include successful gold exploration atthe Pino de Oro Prospect (Zamora) and Sierro Prospect (Salamanca). For more information please visit www.ormondemining.com. About Tungsten Tungsten is most frequently used as tungsten monocarbide, which has a hardnessclose to diamond, in cemented carbides. The principal tungsten applicationsinclude its use in cutting steels and in tungsten alloys, electronics, andchemical products. Prices of tungsten concentrates are expected to remain buoyant for the longterm, and are currently quoted by the Metal Bulletin in the range $160-$180 permetric tonne unit. A metric tonne unit is equal to 10kg of WO3, which equatesto 1.0% contained WO3 in the rock. This information is provided by RNS The company news service from the London Stock Exchange