ORM.L Regulatory News (ORM)

26 Sep 2006 07:01

Ormonde Mining PLC26 September 2006 Ormonde Mining plc Drilling to Commence on Salamanca Gold Project Update on Spanish Gold Exploration Projects DUBLIN & LONDON: 26 September 2006 - Ormonde Mining plc ("Ormonde" or "theCompany") reports on progress on its gold exploration projects in northwestSpain, with drilling programmes on the Salamanca Gold Project and otherproperties to continue through Q4. Highlights • Initial 6-8 hole drilling campaign commencing at Salamanca to test targets believed to signify a near surface, bulk tonnage gold system • Drilling also to be undertaken at Tracia, focusing on new targets defined by infill soil sampling and trenching • Permit applications submitted for a new project area; initial rock sampling programme has returned high grade gold values (21% of samples above 10 g/t gold) Kerr Anderson, Managing Director, said today, "The opportunities within our portfolio of Spanish gold exploration projectscontinue to develop and complement the progress we have made at La Zarza. Theperiod until the year-end will be one of intense activity across our properties,and we see distinct potential in particular in the Salamanca area." Salamanca Gold Project An initial 6-8 hole drilling campaign is commencing on the Can prospect which islocated at the northern end of the previously reported, extensive gold-in-soilanomaly (strike length of around 2.5 kilometres). New results from infill soil sampling over the prospect show a coherent goldanomaly (over 100 parts per billion gold; maximum value 504 ppb gold) over astrike length of around 500 metres and width of 50-150 metres, with morediscontinuous anomalism in a second zone to the west. These anomalies correspond to broad zones of quartz-sulphide veins andarsenopyrite-filled fractures occurring in a granite host-rock. Based upon thesoil geochemical associations and the style of the mineralization, the Companyconsiders the zone to signify a near surface, bulk tonnage gold target. Infill soil sampling is now being extended to the south over the remainder ofthe initial 2.5 kilometre long anomaly to generate further targets for drilling. At the Pino de Oro prospect, a drilling programme to test high-grade veinstructures intersected by holes drilled in the 1980s is being finalised and willcommence during October. Historic drilling at Pino returned best intersectionsof 1.0 metres @ 65.8 g/t gold from 74 metres, 2.0 metres @ 11.1 g/t gold from132 metres and 1.0 metre @ 14.8 g/t gold from 44 metres. Should furtherdrilling confirm the continuity of this mineralization, then the possibilityexists for a high grade vein-type deposit. Tracia Gold Project A drilling programme has commenced to test gold-in-soil anomalies identified bythe detailed sampling completed earlier this year. This involves 4-5 holes fora total of 700-800 metres of drilling. The detailed sampling demonstrated thatOrmonde's drilling in 2005 did not test the better gold targets which weredefined by more widely spaced soil samples, and that further drilling iswarranted based on the results to date. Recently excavated trenches show thatthe best soil anomalies correspond to zones of significant alteration andsulphide mineralization. The best intersection in the previous campaign (hole TH-02, 5.2 metres @ 2.8 g/twithin 19 metres @ 0.9 g/t gold) was drilled on what is now regarded as themargin of one of the main anomalies. Salamon Gold Project Three drill holes (total of 810 metres) were completed at Salamon between Mayand July. During this programme, Ormonde completed its earn-in expenditure toacquire a 51 per cent interest in the project, and activities are now beingfunded from monies received as grants and escrowed during the earn-in period. One deep hole, SS-66, was drilled to follow up on results from drilling in 2005that showed high-grade gold mineralization continuing at depth (4.8 metres @25.3 g/t gold). Results from hole SS-66 are disappointing and show that highergrade mineralization deeper in the deposit is discontinuous. Consequently, the focus at Salamon is on assessing the viability of the corehigh-grade zone in the upper part of the deposit. Two holes which were drilledin order to better constrain this mineralization and collect samples for ametallurgical testwork programme returned the following results: Hole From (m) Interval (m) Gold (g/t) SS-67 68.80 1.05 35.0 77.65 20.15 4.3Including 89.80 8.10 7.3SS-68 65.70 9.20 4.7 A composite sample will be submitted for metallurgical testwork, which willprimarily involve fine grinding and flotation of a sulphide concentrate toestablish gold recoveries to such a concentrate. New Projects Applications for three new Investigation Permits in northern Spain have beensubmitted to the Provincial Mining Department. Ormonde will be 100% owner ofthe permits which cover an area of extensive gold-bearing quartz-sulphideveining within granites of a similar geological setting to Salamanca and Tracia. Several of these veins were historically worked. Reconnaissance sampling of the veins has returned high gold results in many ofthe samples. Of the 68 samples collected, 49% returned over 1 g/t gold, with21% greater than 10 g/t gold and maximum values of 103.5, 53.6 and 35.4 g/ tgold. An aggressive exploration programme is planned upon granting of thesepermits. 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/glossary.htm. 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,Bankside Consultants Tel: +44 (0)20 7367 8871 About Ormonde Ormonde Mining plc is quoted on the AIM in London and the IEX in Dublin. TheCompany's objective is to enhance shareholder value by developing gold-focusedprojects in Spain and taking them into production. Ormonde has a strong localSpanish management team, supported by a Board with extensive mine developmentand exploration experience. For more information and contact details including email, please visitwww.ormondemining.com. 26 September 2006 This information is provided by RNS The company news service from the London Stock Exchange