ORM.L Regulatory News (ORM)

1 Apr 2008 07:00

Ormonde Mining PLC01 April 2008 01 April 2008 Ormonde Mining plc Ormonde Reports its Best Drilling Intersection To-Date from the Barruecopardo Tungsten Project, Salamanca DUBLIN & LONDON: 01 April 2008 - Ormonde Mining plc ("Ormonde" or the "Company")is pleased to report very significant drilling results from its BarruecopardoTungsten Project in Salamanca, Spain (the "Project"). The new drillhole resultsinclude a very thick 67 metre intersection in the first hole below the centralportion of the historic open pit. This is also the first hole through thecentre of the Filon Principal Zone and it represents the best intersection todate on the Project. Importantly, this is in an area of the deposit notincluded in the Company's published resource estimate. Highlights • Hole BAR-26B, the first hole drilled through the central portion ofthe Filon Principal Zone and beneath the centre of the open pit, has returned aninterval of 67 metres grading 0.3% WO3. • This very thick intersection has an estimated true thickness of 49metres and includes three high-grade intervals of 7 metres grading 1.1% WO3, 4metres grading 0.9% and 2 metres grading 1.9% WO3. • In addition, hole BAR-31, drilled through the Filon Maestro and FilonCentral zones, intersected 3 metres grading 1.3% WO3. • All drilling results received to date and plans of the Project areaare contained in the PDF version of this announcement at www.ormondemining.com/doc/press/pr080401.pdf. • Ormonde will be presenting the Project at the Global Tungsten Forum inLondon on Wednesday 2nd April. See www.global-forums.co.uk for full details. Kerr Anderson, Managing Director, said: "This is by far the best set of drilling results we have reported so far on theProject. Our drilling to-date has been largely concentrated on the FilonMaestro Zone. The BAR 26B results, however, serve to highlight the potential ofthe adjacent Filon Principal Zone, demonstrating that it also contains highgrade zones and that there may be substantial, thicker mining zones under theexisting pit. Historical records indicate that Barruecopardo was one ofEurope's main tungsten mines, and we believe that our results to-date pointtowards Barruecopardo again becoming a very significant Western tungstenproducer." The Company's January 2008 Inferred Resource estimate was 1 million tonnes at anaverage grade of 0.7% WO3, for 700,000 metric tonne units of contained WO3. Thedeposit has only been partly explored to a shallow depth and is open alongstrike, and the Company estimated in January that the resource potential down to350m would be in the order of 3-4 million tonnes. In January Ormonde reported its Order-of-Magnitude Study which indicated astart-up underground production rate of 200,000 tonnes per year, which couldresult in tungsten production of 90,000 metric tonne units of WO3 per year. Theproduction rate could be increased post start-up if, as expected, the reservebase at the Project is upgraded on further drilling. The Study estimated totalcapital costs to develop the Project in the region of €10-15 million, and netsurplus cashflows from the initial operation of €5 million per year. New Drilling Results Significant assay results received since the last drilling report are asfollows: Hole From (m) Width (m) True Width (m) WO3% ZoneBAR-26B 138.0 67.0 49.0 0.3 FPincluding 138.0 7.0 5.1 1.1and 185.0 4.0 2.9 0.9and 203.0 2.0 1.5 1.9BAR-31 32.0 3.0 2.3 1.3 FCBAR-32 42.0 1.0 0.7 0.4 FAand 52.0 1.0 0.7 0.5 FA Zone codes: FA = Filon Abilio Zone FP = Filon Principal Zone FC = Filon Central Zone FM = Filon Maestro Zone Drill hole BAR-26B was drilled under the main open pit in an area of the depositnot included in the Company's January 2008 resource estimate. Theinterpretation of the hole shows that it intersected the depth extension to theFilon Principal Zone mined by the historic open pit, some 70 metres below thebase of the pit. Notably, the Zone in this hole is much thicker than thatdocumented in the old records. This supports Ormonde's model that the FilonPrincipal Zone comprises high-grade tungsten mineralisation within a broader,overall lower grade mineralised zone. BAR-31 was an infill hole targeting the Filon Central and Maestro Zones. Thehole intersected both zones, with Filon Maestro returning no significant valuesand Filon Central returning a high-grade interval. BAR-32 was the first hole into the Filon Abilio Zone to the east of all otherzones and returned two narrow intervals of moderate grade. All assays are reported using the ICP lithium metaborate fusion method. Allvalues greater than 0.1% tungsten are subsequently analysed by the XRF method. 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)7703 167065 Davy (Nomad / IEX Adviser)Fergal Meegan Tel: +353 (0)1 6796363 Brewin Dolphin (UK Adviser)Gordon Culfeather Tel: +44 (0) 141 314 8121 ENDS 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. 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. For more information please visit www.ormondemining.com. This information is provided by RNS The company news service from the London Stock Exchange