ORM.L Regulatory News (ORM)

16 Feb 2006 07:01

Ormonde Mining PLC16 February 2006 16 February 2006 Ormonde Mining plc Further Positive La Zarza Drilling Results DUBLIN & LONDON: 16 February 2006 - Ormonde Mining plc ("Ormonde" or "theCompany") reports further positive results received from its Phase Two drillingprogramme at the La Zarza Gold-Copper Project in southern Spain, where it isearning a 70 per cent interest. HIGHLIGHTS • Intersection of 20 metres grading 5.5 grams per tonne ("g/t") gold, within an extensive interval of 45.5 metres grading 3.7 g/t gold. • Intersection of 22 metres grading 3 per cent copper, including a high-grade section of 10 metres grading 4 per cent copper. • Infill drilling will be ongoing, to advance progress towards feasibility. Kerr Anderson, Managing Director, said today, "Having now drilled 23 holes at La Zarza, the project continues to returnexcellent results from both gold- and copper-rich zones. Whilst we arepreparing our Preliminary Assessment Study of the project during the next coupleof months, we are sufficiently encouraged by both the drilling results andmetallurgical testwork to-date to embark immediately on further infill drillingin order to expedite the project towards full feasibility." Ormonde's objective at La Zarza is to establish a mining operation producinggold, copper and silver. Results from ongoing drilling, metallurgical testworkand resource estimation will be incorporated into a Preliminary Assessment Studyto be completed in Q2 2006, leading into a feasibility study in the second halfof the year. PHASE TWO DRILLING The Phase Two drilling is infilling previous, widely-spaced drilling to betterdefine gold and copper resources in the upper part of the La Zarza deposit. Thenew results are summarized as follows: Hole From (m) Width (m) Gold g/t Copper % Silver Au equiv. Cu equiv. g/t ORM20 80.0 8.7 6.1 1.1 192.2 12.2 5.0 128.75 45.5 3.7 0.4 21.0 5.0 2.1includes 142.0 20.0 5.5 0.3 15.2 6.5 2.7 ORM21 109.0 9.3 2.8 0.6 192.8 7.7 3.2 153.0 13.0 4.6 0.3 31.6 5.9 2.4 ORM22 262.3 10.7 0.3 3.5 28.1 9.3 3.8 ORM23B 199.0 22.0 0.6 3.0 20.2 8.2 3.4includes 206.0 10.0 0.4 4.0 17.7 10.4 4.3 248.0 8.0 5.8 0.3 47.9 7.4 3.0 Notes: All intersections are hosted by the Silicatado unit. In-situ gold and copper equivalents, shown for comparative purposes, arecalculated using the following prices: $450/oz Au, $3,500/t Cu, $8/oz Ag. Earlier Phase Two results were announced on 16th January. All intersectionsreported to-date are listed on the La Zarza project page of the Company'swebsite www.ormondemining.com. PHASE THREE DRILLING Ormonde's third phase of drilling at La Zarza will commence immediately uponcompletion of Phase Two. Phase Three drilling will continue to evaluate thedeposit to a greater level of detail, including some holes targeting deeperparts of the deposit not tested by Ormonde to-date. Enquiries to: Kerr Anderson, Managing Director,Ormonde Mining plc Tel: +353 (0)46 9073623 Fraser Gardiner, Director,Ormonde Mining plc Tel: +353 (0)86 3931178 Simon Rothschild / Nicola Biles / Keith IronsBankside Consultants Tel: +44 (0)20 7367 8888 ENDS BACKGROUND INFORMATION The La Zarza Gold-Copper Project is located in the Iberian Pyrite Belt miningdistrict of southwest Spain. Historically mined for pyrite by open pit andunderground, unexploited gold and copper mineralization was drilled in the 1990sby a BRGM-Normandy joint venture (SEIEMSA), which outlined a non-JORC resourceestimate of 950,000 ounces of gold, 9.5 million ounces of silver and 81,000tonnes of copper. In June 2004, Ormonde signed an agreement with the propertyowner whereby Ormonde can acquire a minimum 70 per cent interest in the La Zarzaconcessions by spending €1.8 million over three years. Ormonde Mining is quoted on the AIM in London and the IEX in Dublin. TheCompany's strategy is to enhance shareholder value by developing gold projectsin Spain and taking them into production. Ormonde has a strong local Spanishmanagement team, supported by a Board with extensive mine development andexploration experience. For more information and contact details including email, please visitwww.ormondemining.com. This information is provided by RNS The company news service from the London Stock Exchange