ORM.L Regulatory News (ORM)

1 Nov 2007 07:01

Ormonde Mining PLC01 November 2007 01 November 2007 Ormonde Mining plc Ormonde reports wide gold intersection in first drillhole in sheeted vein gold system in Salamanca DUBLIN & LONDON: 01 November 2007 - Ormonde Mining plc ("Ormonde" or "theCompany") is pleased to report that the first drilling and trenching on a newprospect termed "Sierro" at its Salamanca Gold Project in western Spain hasreturned very encouraging wide gold intersections in a sheeted vein system. The Company identified its ground holdings in Salamanca as having potential tohost large, granite-related gold systems and it now believes it may have locatedsuch a system. Main Points • The first hole on Sierro, drilled on a gold-in-soil geochemical anomaly some 800m long by 400m wide, returned gold over a 62 metre interval averaging 0.5 g/t, within a newly-defined sheeted vein system; • A trench excavated across the part of the anomaly tested by this drillhole returned 25 metres grading 1.0 g/t gold within a broad zone of 57 metres averaging 0.7 g/t gold; • Gold occurs as continuous mineralisation within wide zones of sheeted quartz veining of a broadly similar nature to the extensive systems hosting large low-grade granite-related gold deposits; • These thick gold intersections are deemed by the Company to be extremely encouraging; neither the trench nor the drillhole established the boundaries of the mineralised system and further drilling will be carried out to establish the extent and average grade of this system. Kerr Anderson, Managing Director, said today, "These latest drilling and trenching results highlight the potential for newgold discoveries on our extensive exploration acreage in the Salamanca Project.In particular, the first hole drilled in Sierro supports our belief that theSalamanca area has the potential for large tonnage gold deposits. Although thisis only one hole, it is possibly one of the most significant drilled in our goldprogrammes over the past few years, and we now intend to resume drilling on thisprospect. In addition, our geochemical programmes continue to identify newdrilling targets; most of the permit area has not been sampled to-date by suchprogrammes." Sierro Ormonde has completed a single drillhole (WS-1) at Sierro for a total of 127.9metres. This hole was designed to give a rapid test to a large coherentgold-in-soil anomaly some 800m long by 400m wide (> 75ppb gold). To assist inthe location of the drillhole, a trench was excavated across part of the soilanomaly. Sampling of zones of quartz veining exposed in the trench returned25.0 metres averaging 1.0 g/t gold, within a broader zone of 57.0 metresaveraging 0.7 g/t gold. Hole WS-1 was drilled beneath this trench. Hole WS-1 intersected a series of sheeted quartz veins cutting metasediments,which can be traced up to the surface trench, and returned: From (m) To (m) Width (m) Gold (g/t) 32.0 94.0 62.0 0.5 The style of sheeted quartz veining with an associated Ag-As-Bi-Sb geochemicalsignature and the considerable thickness of the gold mineralisation, are broadlysimilar to that seen in certain large tonnage gold deposits in other parts ofthe world (these include Dublin Gulch with a grade of 0.9 g/t gold - underevaluation; and Fort Knox with a grade of 0.8 g/t gold - in production, both inNorth America). The hole was collared in the middle of the gold anomaly, which is some 400metres wide on this drill section, and has therefore only been partly tested bydrillhole WS-1. A diagram is included in the PDF version of this announcementat www.ormondemining.com/doc/press/pr071101.pdf. Step-out drilling is now planned to test the lateral and vertical extent of thegold mineralisation in this first hole. In addition, these highly successfulsoil sampling programmes will be extended to the other prospective parts of thelarge permit area. 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.htm. Enquiries to: Ormonde Mining plc Kerr Anderson, Managing Director, Fraser Gardiner, Director Tel: +353 (0)46 9073623 Bankside Consultants Simon Rothschild Tel: +44 (0)20 7367 8871 Mobile: +44 (0)7703 167065 Davy (Nominated Adviser to Ormonde) Fergal Meegan Tel: + 353 1 6796363 ENDS 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. For more information please visit www.ormondemining.com. This information is provided by RNS The company news service from the London Stock Exchange