8 Dec 2011 07:00
08 December 2011
Ormonde Mining plc
("Ormonde" or "the Company")
Update on the La Zarza Joint Venture activities with Antofagasta
The Board of Ormonde is pleased to provide an update on activities in the La Zarza Joint Venture ("JV") with Antofagasta Minerals SA ("Antofagasta").
Main Points
·; Airborne VTEM geophysical survey completed over the entire JV permit area and initial interpretation of results provided to the Joint Venture.
·; Detailed gravity survey carried out and interpretation completed.
·; Modelling and integration of the VTEM and gravity results with a new structural interpretation for La Zarza has identified several priority target areas for drilling.
·; A programme of some 3,000 metres of drilling has been agreed by the Joint Venture to test all priority targets identified; drilling commencing shortly.
·; Ormonde's wholly owned Spanish subsidiary Ormonde España SL ("OESL") has submitted final documentation to theprovincial mining authority to enable in due course the transfer of the mining rights from the underlying holder to OESL. Such a transfer will be necessary to facilitate a future re-activation of mining activities at La Zarza.
Kerr Anderson, Ormonde's Managing Director, said:
"We are very pleased with progress at La Zarza and the surrounding permit area with both the submission of the relevant documentation to the provincial mining authorities in Huelva for the future re-activation of mining activities, and with an aggressive drilling programme to test targets identified by the extensive geophysical survey programmes. I look forward to reporting results on our endeavours in this very important Spanish copper mining district."
Ricardo Muhr, Vice-President for Mineral Resources, Antofagasta Minerals S.A., said:
"AMSA is very encouraged by the work to-date in the joint venture with Ormonde in this very important, and prospective, mineral belt. We look forward to the outcome of our drilling programme and are supportive of Ormonde's activities in advancing the La Zarza project for future re-activation of mining activities."
Background
In August 2011, OESL was awarded four new permits around La Zarza (over a total area of some 95 square kilometres) covering the strike extension of the La Zarza system and controlling structures, as suggested by regional airborne magnetics surveying carried out in the 1990s. Gravity and airborne VTEM (electromagnetic) surveys have been completed and the modelled results integrated with a new structural interpretation based upon work by the joint venture at La Zarza. This has identified several priority target areas for drilling, with a programme of some 3,000 metres of drilling agreed by the Joint Venture partners to test all the main targets. This programme will commence shortly with all activities being funded by Antofagasta.
At La Zarza, OESL has now submitted the final documentation required by the regional and provincial mining authorities to enable in due course the transfer of the mining rights from the underlying holder Nueva Tharsis SA to OESL. Such a transfer will be necessary to facilitate a future re-activation of mining activities at La Zarza.
Kerr Anderson PhD EurGeolPGeo, Managing Director of Ormonde Mining plc, and a qualified person as defined in the AIM 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)1 8253570
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 admitted to trading on the AIM market in London and the ESM market 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 produce ~12% of non-Chinese annual global mine production from mid 2013.
The La Zarza Copper Project- a large "massive sulphide" deposit with significant copper, resources; 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.