ORM.L Regulatory News (ORM)

2 Jun 2005 07:01

Ormonde Mining PLC02 June 2005 02 June 2005 Ormonde Mining plc La Zarza Drilling Update DUBLIN & LONDON: 02 June 2005 - Ormonde Mining plc ("Ormonde" or "the Company")announces the completion of its initial drilling programme at its La ZarzaGold-Copper Project in southwest Spain and reports assay results received forholes ORM1, ORM4 and ORM5. The Company also outlines the scope of ongoing andforthcoming work programmes. DRILLING PROGRAMME Seven holes have been drilled over a strike length of some 500 metres, for atotal of 2,530 metres. These holes were principally designed to obtainrepresentative samples for metallurgical testwork from both gold and copperresources hosted within the "Silicatado" unit. All holes intersected theSilicatado, with details as follows: Hole From Width Approx. True Width ORM1 57 34 34 ORM2 257 56 40 ORM3 370 17 15 ORM4 358 26 24 ORM5 161 33 30 ORM6 325 29 20 ORM7 113 112 80 Gold and multi-element assay results have been received from holes ORM1, ORM4and ORM5, with the results from the other four holes pending. In a preliminaryinterpretation of the results, intersections presented below have beenclassified by mineralization type and gold equivalent grade is also given forcomparative purposes: Hole From Width Type Au g/t Ag g/t Cu % Au equiv. ORM5 163.0 17.0 Gold 4.1 40.5 0.4 5.6 ORM1 77.0 6.0 Copper-Gold 1.2 52.0 2.0 6.3 ORM4 357.8 11.2 Copper 0.3 25.4 2.1 5.2 (Notes: All lengths are in metres. Widths are approximately true width. Au =gold, Ag = silver, Cu = copper. Gold equivalents are based on in-situ metalvalues using the following prices: $400/oz Au, $7/oz Ag, $2,700/t Cu). Managing Director of Ormonde, Kerr Anderson commented, "Our programmes are progressing as planned at La Zarza with drillingintersecting anticipated intervals of continuous gold, silver and/or coppermineralization, and we look forward to advancing through the next stages of theproject. In addition to the metallurgical testwork and subsequent economicscoping study, we will be maintaining the momentum of the drilling throughoutthe coming months to investigate previously untested extensions to the currentresources." METALLURGICAL TESTWORK PROGRAMME Investigative testwork on composite core samples from both the gold and copperSilicatado will commence at Wardell Armstrong International, UK, upon receipt ofall assay results. The testwork will be designed to determine gold, silver andcopper recoveries achievable by variable-sized grinding, flotation and cyanideleaching. Oxidative stages will also be investigated as a possible route to amaximum gold recovery. Results from the testwork will be incorporated into an economic scoping studywhich will cost the various mining and processing options available to take LaZarza to production. DATA COMPILATION AND RESOURCE ESTIMATION All previous drilling and underground assay data and geological information havebeen compiled to generate a 3-dimensional model of the deposit and an initialblock model using Datamine software. Extensive existing underground development,which could significantly reduce capital costs and development lead times, hasalso been captured as part of the data model. A new resource estimate using varying gold and copper cut-off grades will beprepared upon receipt and interpretation of all assay data from the drillingprogramme. Resources will be classified using the guidelines provided by TheJORC Code (2004). BACKGROUND TO THE LA ZARZA PROJECT Ormonde is currently earning a 70 per cent interest in the La Zarza Project byfunding programmes to the value of €1.8 million during a three year period,under an option agreement with the property owner, Nueva Tharsis S.A.L., signedin June 2004. Ormonde's focus at La Zarza is on inferred resources of 5.9 Mt grading 5.0 g/tgold and 50 g/t silver (950,000 ounces of gold, 9.5 million ounces of silver),and an adjacent copper resource of 2.9 Mt grading 2.8 % copper (81,000 tonnes ofcopper). These resources are hosted by the "Silicatado" rock type. All resourcesare open laterally and at depth, and the total mineralized system at La Zarzahas a strike length of over three kilometres. The deposit is situated within an existing Mining Concession, and the Companyhas received early indications of local government support including grants forinvestigation works. 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 gold projectsin Spain where it has a strong local Spanish management team, supported by aBoard with extensive exploration expertise in the region and mine developmentexperience. 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