ORM.L Regulatory News (ORM)

10 May 2005 07:30

Ormonde Mining PLC10 May 2005 10 May 2005 Ormonde Mining plc Tracia Drilling Confirms Depth Extension of Surface Gold Mineralization. High-Grade Prospecting Results in New Area. DUBLIN & LONDON: 0910 May 2005 - Ormonde Mining plc ("Ormonde" or "the Company")reports that initial drilling has confirmed the depth extension of surface goldmineralization at its wholly-owned Tracia Gold Project in northwest Spain, oneof the Company's five active Spanish gold projects. HIGHLIGHTS • Drilling has intersected an interval of 5.2 metres grading 2.8 grams per tonne ("g/t") gold, including individual sample grades of 5.3 and 6.8 g/t gold. • Follow-up prospecting work samples in from a new target area have returned high gold grades including 73.3, 40.7 and 20.7 g/t gold.s identified abundant and widespread material similar to samples which previously returned high gold grades. • Ongoing drilling and geochemical programmes are to be expanded.s identified abundant and widespread material similar to samples which previously returned high gold grades. Managing Director Kerr Anderson commented, "The results from the first phase of drilling are very encouraging. As we havebeen testing only a small part of the large geochemical anomalies at Tracia, ourdrilling and geochemical programmes in the forthcoming months will be expandedto allow an aggressive evaluation of all targets in the permit area. "In addition, the high-grade results from prospecting samples taken as weeagerly await the assay results of follow-up prospecting to last year'sthehigh-grade sampleswork discovered point to last yearexciting new targets. Weanticipate that this ongoing regional work will result in the acquisition offurther permits in the Tracia area and we eagerly await the assay results fromfurther sampling." INITIAL DRILLING The first drill holes on the Tracia permit have been designed to test the depthextension of gold mineralization identified in trenches on the Fieitoso andCasaldrago Prospects, which are located at the southern end of a large soilanomaly. Two holes, TH-01 and TH-02, have been drilled at Fieitoso. TH-02 has returned aninterval of 5.2 metres grading 2.8 g/t gold from 68.3 metres depth, whichincludes individual sample grades of 5.3 and 6.8 g/t gold. Several intervalswith anomalous levels of gold occur in both holes, including 9.0 metres grading0.3 g/t gold from 34.2 metres depth in TH-01. The extent of hydrothermalalteration and sulphide veining observed in drill core provide further supportfor the presence of a significant, shallow hydrothermal system at Tracia. Drilling is continuing at the Casaldrago Prospect to test previously reportedsurface trench intervals of 1.0 metre grading 34.7 g/t, and 1.5 metres grading11.3 g/t gold (within 9.0 metres grading 2.7 g/t gold). Drilling is also plannedat Baltar, where limited trenching returned a best interval of 3.2 metresgrading 17.0 g/t gold. SOIL SAMPLING EXTENDED Based on the success of the early drilling, further soil sampling is now inprogress over the northern extension of the area sampled to-date. Here,prospecting has returned several gold-bearing loose blocks in altered granitewith best values of 4.5, 2.4 and 1.9 g/t gold. This area, if proven to be thecontinuation of the main soil anomaly, would give a potential strike length ofover 3,000 metres. REGIONAL SAMPLINGHIGH-GRADE PROSPECTING SAMPLES Prospecting and infill stream sediment sampling have also been ongoing this yearover a large area around the Tracia permit. New work at localities whereprevious reconnaissance samples returned gold grades of 80.2 g/t and 11.1 g/tgold, has located further mineralized blocks and outcrops over a wide area. High grades of gold have been returned from several follow-up samples collectedfrom one of these localities. Of 28 samples taken, 15 samples (54 per cent)returned grades between 1 and 8 g/t gold, with a further 3 samples returning73.3, 40.7 and 20.7 g/t gold. A correlation between gold and bismuth in thesamples, also typical of mineralization at Tracia, is consistent with prominentintrusion-related gold systems and emphasizes the prospective nature of this newtarget area. FurtherS samples have been submitted to the laboratory for assay and prospectingwill continue during the summer. BACKGROUND TO THE TRACIA PROJECT Mineralization at Tracia is typically associated with zones of silicificationand discrete sulphide-bearing quartz veins in an altered, granitic host rock,with many features characteristic of intrusion-related gold deposits. Thisdeposit type includes many multi-million ounce deposits worldwide (e.g. FortKnox with 5.4 Moz, and Pogo with 5.8 Moz, both in Alaska). The Salave deposit innearby Asturias is a local analogy, 160 kilometres northeast of Tracia, whereRio Narcea Gold Mines Ltd is conducting a feasibility study and has recentlypublished estimated measured and indicated mineral resources of 1.5 millionounces at a grade of 3.0 g/t gold. Enquiries to: Kerr Anderson, Managing Director, Ormonde Mining plc Tel: +353 (0)46 9073623 Fraser Gardiner, Investor and Media Relations, Ormonde Mining plc Mobile: +353 (0)86 3931178 Simon Rothschild, Bankside Consultants Tel: +44 (0)207 444 4153 Mobile: +44 (0)7703 167065 ENDS BACKGROUND INFORMATION Ormonde Mining is quoted on the AIM and IEX markets in London and Dublin,respectively. The Company is focused on acquiring and developing high-grade goldprojects in Spain. Ormonde's portfolio contains advanced projects withsubstantial gold (and copper) resources, including La Zarza with one millionounces of gold and 180 million pounds of copper, and other properties where theCompany anticipates that drilling will identify significant new resources. TheCompany has a strong local Spanish management team, supported by a Board withextensive exploration expertise in the region and mine development experience. For more information, please visit www.ormondemining.com or contact the Companyat info@ormondemining.com. This information is provided by RNS The company news service from the London Stock Exchange