9 May 2011 07:00
09 May 2011
Ormonde Mining plc
("Ormonde" or "the Company")
Engineering Firm Selected for Barruecopardo following Definitive Tungsten Metallurgical Testwork Programme
The Board of Ormonde is very pleased to report that following positive results from its current, definitive metallurgical testwork programme, it has selected Jacobs Engineering Group Inc (NYSE: JEC), "Jacobs" (formerly operating in the UK as Aker Solutions E&C Ltd.), to carry out a Cost and Definition Study ("C&D Study") for the Process Plant and associated surface infrastructure for the Barruecopardo Tungsten Project in Salamanca, Spain. This study will be a key component in the preparation of the Definitive Feasibility Study for the Project which Jacobs will also co-ordinate.
Main Points
·; Jacobs has been selected to carry out a C&D Study for the Process Plant and associated infrastructure for Barruecopardo and to co-ordinate the Project Feasibility Study.
·; Initial results from the current metallurgical testwork programme have demonstrated that a coarser crushed product size of -5mm (originally -3mm) will achieve liberation of the scheelite (the main tungsten bearing mineral) further simplifying the process plant flowsheet and leading to cost savings.
·; At this coarser crushed product size, pilot plant testwork is confirming pre-concentrate grades and recoveries achieved in the earlier testwork programmes.
Kerr Anderson, Ormonde's Managing Director, said:
"The selection of Jacobs is an important milestone in the development of the mining operation at Barruecopardo, and we are extremely encouraged by the testwork results showing liberation of the tungsten at even coarser crush sizes than indicated by the original programmes. This has positive implications for cost savings in the mineral processing operation.
In the tungsten market, the fundamental supply issues that developed in the second half of last year continue, with current European APT prices of US$448 per metric tonne unit compared to US$245 in September last year when we reported the results of the Scott Wilson Mining Study".
Metallurgical Testwork
In order to provide the necessary design data for the C&D Study, Wardell Armstrong International commenced a metallurgical testwork programme at their Wheal Jane laboratory in February 2011 on a 780kg head sample. The initial testwork has verified the previous critical results from the 2008 programme; that the scheelite is liberated at a relatively coarse size and that pre-concentration of the contained tungsten was highly efficient after crushing the material to this selected size. Initial results from the current metallurgical testwork programme demonstrate that an even coarser crushed product size of -5mm achieves liberation of scheelite (the main tungsten bearing mineral) further simplifying the process flowsheet and leading to cost savings.
With confirmation of this scheelite liberation size, the head sample was crushed and screened. The coarse fraction (1-5mm) was processed in a continuous IHC Jig and the fine fraction (less than 1mm) in an industrial-sized spiral, to produce two pre-concentrates. The preliminary assays received to date have confirmed that a very high proportion of the feed can be rejected at this pre-concentration stage with very low tungsten values in this rejected material, and that a low weight, high grade pre-concentrate can be produced.
The testwork programme will now continue to the next stage to upgrade the scheelite pre-concentrate to a saleable final concentrate grade and to carry out the environmental metallurgical testwork required for the Definitive Feasibility Study.
Kerr Anderson PhD EurGeolPGeo, Managing Director of Ormonde Mining plc, and a qualified person as defined in the Guidance Note for Mining, Oil and Gas Companies, June 2009, of the London Stock Exchange, has reviewed and approved the technical information contained in this announcement.
A glossary explaining technical terms contained in this announcement can be found at www.ormondemining.com/en/investors/technical_glossary.
For more information please visit www.ormondemining.com.
Enquiries to:
Ormonde Mining plc
Kerr Anderson, Managing Director Tel: +353 (0)46 9073623
Bankside Consultants
Simon Rothschild / Louise Mason Tel: +44 (0)20 7367 8888 Mob: +44 (0)7703 167065
Davy (Nomad / ESM Adviser)
Fergal Meegan / Roland French Tel: +353 (0)1 6796363
Fairfax I.S. PLC (Joint Broker)
Ewan Leggat / Katy Birkin Tel: +44 (0)207 598 5368
ENDS
About Ormonde
Ormonde Mining Plc is quoted on the AIM in London & the ESM in Dublin. Ormonde is a mineral development and exploration company focused on Spain (Ticker ORM).
Ormonde's key activities include:
The Barruecopardo Tungsten Project - Ormonde is developing a low cost mining operation at Barruecopardo to initially produce ~8% of non-Chinese global mine production from late 2012; to become a major long-life mine.
The La Zarza Copper-Gold Project - Joint Venture with Antofagasta Minerals - a large "massive sulphide" deposit with significant copper, gold and zinc resources; exploration for an enlargement to the copper resource is being funded by Antofagasta.
Gold Explorationin several highly prospective areas of western Spain.