ORM.L Regulatory News (ORM)

12 Jul 2007 07:00

Ormonde Mining PLC12 July 2007 12 July 2007 Ormonde Mining plc Ormonde Consolidates 100 per cent interest in La Zarza Copper-Gold Project DUBLIN & LONDON: 12 July 2007 - Ormonde Mining plc ("Ormonde" or "the Company")is pleased to report significant progress on its La Zarza Copper-Gold Project insouthwest Spain. • Ormonde increases its equity interest in the La Zarza Project to 100% in an acquisition which includes all land holdings at La Zarza held by joint venture partner Nueva Tharsis • Scope of the Bankable Feasibility Study ("BFS") on La Zarza has been expanded to include two additional mineralised zones, the Zinc Massive Sulphide Zone and the Copper Massive Sulphide Zone, which have the potential to significantly increase the resource base • BFS currently being carried out under the management of Aker Kvaerner progressing well and expected to be completed in Q4 2007 Kerr Anderson, Managing Director of Ormonde, said today: "We are very pleased to have consolidated a 100% interest in the Project, whichallows Ormonde shareholders to receive the full value from a mining operation atLa Zarza. The potential added value of the Zinc Massive Sulphide and CopperMassive Sulphide resources to the Bankable Feasibility Study will, we believe,result in an even stronger project at the financing stage." "We very much appreciate the contribution of Nueva Tharsis as our joint venturepartner during the past 3 years and value their input to a successfuldevelopment at La Zarza". Agreement Under the terms of a new agreement with Nueva Tharsis, Ormonde is assigned 100%of the La Zarza mining rights and acquires Nueva Tharsis's 2.25% royaltyinterest and landholdings at La Zarza. Ormonde will pay a total of €2 millionin staged payments from now through to the first shipment of concentrates from amining operation at La Zarza. An initial payment of €350,000 to Nueva Tharsishas been paid from existing cash resources. Bankable Feasibility Study The scope of the BFS on La Zarza currently being carried out under themanagement of Aker Kvaerner has been expanded to include the Zinc MassiveSulphide Zone, which was not part of the Scoping Study completed last year.Drilling of this zone is presently in progress. The Company also intends todrill a new Copper Massive Sulphide Zone, identified some 500 metres to the westof the main mineralised zone, with a view to adding this to the Project resourcebase. Substantial progress has been made with the BFS on metallurgical testwork,process plant design, mine access layout, and tailings facility design. It isanticipated that the BFS will be completed in Q4 2007. Ormonde has alsoreceived positive feedback from the local Administration to initialenvironmental permitting documentation submitted and the required environmentalstudies are now being carried out. Enquiries to: Kerr Anderson, Managing Director,Ormonde Mining plc Tel: +353 (0)46 9073623 Simon Rothschild,Bankside Consultants Tel: +44 (0)20 7367 8871 Mob: +44 (0)7703 167065 Fergal MeeganDavy (Nominated Adviser to Ormonde) Tel: + 353 1 6796363 Additional Information Ormonde Mining plc is quoted on the AIM in London and the IEX in Dublin.Ormonde is a mineral development and exploration company focused on Spain, withthe objective of developing mining projects and taking them into production. Ormonde's main project is the La Zarza Copper-Gold Project in southern Spainwhere a Bankable Feasibility Study is being carried out by leading internationalengineering firms. A pre-feasibility study completed in September 2006 showedpositive economics for the development of an underground mining operation at LaZarza. Ormonde is also evaluating the Barruecopardo high-grade tungsten deposit in theSalamanca area. Following two stages of exploration drilling, the definition ofhigh-grade tungsten mineralisation and preliminary metallurgical testwork, thisproject has been upgraded to advanced project status. A continuous programme ofin-fill and step-out drilling is now underway with a view to fast-tracking theevaluation of this project. Ormonde is also exploring several gold exploration targets in the Salamanca areaand in northwest Spain. For more information please visit www.ormondemining.com. This information is provided by RNS The company news service from the London Stock Exchange