19 Oct 2011 07:00
19 October 2011
Ormonde Mining plc
("Ormonde" or "the Company")
Positive Gold Results from Initial Drilling in Gold Joint Venture
The Board of Ormonde is pleased to report that positive gold assay results have been returned from two holes drilled on its Zamora Gold Project through the joint venture with Aurum Mining PLC, with both holes returning gold values of good grade and width. Consequently, the joint venture is now planning a follow-up drilling campaign with the objective of extending the thicker gold mineralisation.
Highlights
·; Drill hole ORMP-10 has returned a higher grade interval of 12 metres grading 3.4 grammes per tonne ("g/t") gold (from 89m depth) within an overall interval of 30 metres grading 1.6g/t gold (from 75m depth) and drill hole ORMP-11 has returned an interval of 10 metres grading 2.1g/t gold (from 102m depth).
·; Both holes have been drilled on the "Facho" structure, on the Zamora Project, where previous drilling by Ormonde had returned a best interval of 23 metres grading 1.1g/t gold (including a high-grade interval of one metre grading 16.6g/t gold); gold mineralization is associated with quartz veining and alteration; further drilling is now planned.
·; A third hole was drilled on a second unrelated structure around one kilometre to the east of the Facho structure; only minor alteration and veining was observed in this hole and results are awaited.
·; The next drilling campaign will also include a short-hole programme on the Peralonso permit in Salamanca Province, where previous trenching returned a best interval of 5 metres grading 5.4g/t gold.
·; Aurum Mining PLC has forwarded the total funds due under the agreed initial programme and is now progressing towards spending the required €500,000 over an eighteen month period to earn its majority interest in the permits, which are the subject of the Joint Venture.
Kerr Anderson, Ormonde's Managing Director, said:
"These are very good drilling results from the initial two holes drilled by the Joint Venture returning the best mineralised intervals to date on the Facho structure, including an impressive interval of 12 metres grading 3.4 g/t gold. The Joint Venture is now planning a more expansive drilling programme as a result of these holes and I look forward to reporting on progress from this programme".
Detail
On 11 March 2011, Ormonde entered into a joint venture with Aurum Mining PLC ("Aurum") whereby Aurum can earn a 60% interest in two permits in the Zamora Province and a 54% interest in a further two permits in the Salamanca Province (one of which is under application), with the total permit area being 106 square kilometres, by spending €500,000 on exploration activities over an 18 month period. The initial drilling has been focused on the two permits in Zamora and comprised a three-hole programme totalling 672m with two holes drilled on the "Facho" structure and a further hole on the "LLago" structure. Previous drilling by Ormonde at Facho had returned intervals including 23m grading 1.1g/t gold from 51 metres depth (including a high-grade interval of one metre grading 16.6g/t gold) and 9m grading 1.5 g/t gold from 56 metres depth. Gold mineralisation is hosted in steeply-dipping structures characterised by quartz veining, silicification and alteration. The objective of the joint venture drilling programme was to test for extensions to the known intervals and in particular to ascertain whether broader mineralised intervals could be delineated.
The first two holes ORMP-10 and 11 were drilled on two sections to test the down-dip extension of mineralization on these sections. Both holes have intersected significant gold mineralization in veined and altered granites. The interval in hole ORMP-10 in particular is wider than that identified prior to this drilling programme and is seen as a very positive development. Consequently, the joint venture is now planning a further more extensive drilling campaign with the objective of significantly extending the thicker gold mineralisation.
Results from the two holes at Facho are reported below:
Hole | Length (m) | Dip/Azimuth | From (m) | Thickness (m) | True Thickness (m) | Gold (g/t) |
ORMP-10 | 221.0 | -55o/330o | 89 | 12 | 9 | 3.4 |
within | 75 | 30 | 22 | 1.6 | ||
ORMP-11 | 299.5 | -55o/330o | 102 | 10 | 7 | 2.1 |
And | 275 | 5 | 4 | 1.9 |
Previous drilling by Ormonde on the Facho structure include:
Hole | From (m) | Thickness (m) | Gold (g/t) |
ORMP 1 | 51 | 23 | 1.1 |
ORMP 3 | 131 | 3 | 3.6 |
ORMP 4 | 40 | 6 | 3.7 |
ORMP 5 | 56 | 9 | 1.5 |
ORMP 6 | 104 | 7 | 1.1 |
ORMP 7 | 38 | 7 | 1.2 |
A short-hole drilling programme will also now commence on the Peralonso permit in Salamanca to test the shallow depth extent of gold mineralisation located in previous trenching. Gold mineralisation is hosted within Fe-oxide-bearing breccias within altered granites, with previous trenching of an extensive soil geochemical anomaly (400 x 400m) returning a best interval of 5 metres grading 5.4g/t gold.
Notes:
Sampling, Assaying and Quality Control Measures
All drill core has been routinely logged by an experienced geologist. Relevant core intervals were split in half by diamond saw, with half being sent for assay and the other half being retained in the core boxes for reference. Sampling is mainly carried out over one metre intervals.
Sample preparation and analyses were performed at ALS Chemex (Spain). Assays are reported using the fire assay (FA) method with an atomic absorption (AA) finish. Reference samples (blanks, duplicates and certified standards) are routinely included in each sample batch as quality control measures. .
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 or follow Ormonde on Twitter https://twitter.com/ormondemining or Linkedin http://www.linkedin.com/company/ormonde-mining-plc
Enquiries to:
Ormonde Mining plc
Kerr Anderson, Managing Director Tel: +353 (0)46 9073623
Bankside Consultants
Simon Rothschild Tel: +44 (0)20 7367 8888 Mob: +44 (0)7703 167065
Murray Consultants
Ed Micheau Tel: +353 (0)1 4980300 Mob: +353 (0)86 803 7155
Davy (Nomad / ESM Adviser)
Eugenée Mulhern / 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 become a major, secure European supply of tungsten.
The La Zarza Copper Project- a large "massive sulphide" deposit; exploration for an enlargement to the current copper resources is being funded through a joint venture Antofagasta Minerals.
Gold Explorationin several highly prospective areas of western Spain.