ORM.L Regulatory News (ORM)

12 Jan 2005 07:30

Ormonde Mining PLC12 January 2005 12 January 2005 Ormonde Mining plc Report on Preliminary Drilling - Trives Gold Project, Spain. DUBLIN & LONDON: 12 January 2005 - Ormonde Mining plc announces that it hascompleted a preliminary diamond drilling programme on the Portas Prospect at itsTrives Gold Project in northwest Spain, one of Ormonde's five active Spanishgold projects. Six core drill holes (for a total of 870 metres) were completed in anexploratory programme designed to establish the continuity of goldmineralization interpreted to be associated with a shear-zone exposed in Romanworkings. Additionally, the drilling aimed to provide a better understanding ofgeological features which control gold mineralization in the area. The outcomes of the programme, being the first modern exploration to test thedepth and strike extensions of surface mineralization at Portas, can besummarized as follows: • Drilling has intersected the depth extensions of gold-bearing vein structures observed and sampled in the Roman pits (see results table below) • Extensive quartz veining, brecciation, hydrothermal alteration and sulphide mineralization (pyrite, arsenopyrite), all typical features of shear-zone hosted gold systems, were encountered by the drilling • Altered felsic intrusions, not observed at surface, have been identified in drill core; a close spatial association with such rocks is common in shear-zone hosted gold systems worldwide • Visible gold observed in several quartz veins • Intersection of underground cavities by drilling suggests that these gold zones were mined historically. Managing Director of Ormonde, Kerr Anderson commented, "In addition to confirming the continuation of gold mineralized structures atdepth, this preliminary drilling phase has succeeded in identifying a number ofgeological components which combine to make Portas a very prospective goldsystem. We look forward to advancing the project with further drilling during2005." Results from the programme include those listed in the table below. It shouldalso be noted that numerous other wide zones occur with anomalous levels ofgold, generally associated with quartz veining. In hole TRIVES-002, for example,an interval of 41.2 metres has an average grade of 0.4 g/t gold, from 121 metresdepth (includes 3.00 metres grading 2.4 g/t gold). Drill Hole From Interval Gold Grade TRIVES-001 33.40 metres 1.15 metres 6.4 g/t 41.75 metres 6.55 metres 1.5 g/t including 1.75 metres 4.0 g/t 55.20 metres 3.00 metres 2.7 g/t TRIVES-001-2 55.50 metres 1.61 metres 1.6 g/t 58.00 metres 1.00 metre 6.2 g/t 73.70 metres 0.70 metres 9.8 g/t 76.80 metres 1.10 metres 2.6 g/t TRIVES-002 49.75 metres 3.65 metres 1.5 g/t 137.35 metres 3.00 metres 2.4 g/t Ongoing activities at Portas will include structural interpretation and mappingincorporating knowledge gained from drill core, ahead of further drilling totest deeper extensions of gold zones. Soil geochemistry data indicate that goldmineralization at Portas continues to the southeast of the drilled area, givingthe zone a total strike length of one kilometre; based on this drilling, anumber of soil geochemistry anomalies also warrant further investigation bydrilling. BACKGROUND TO THE TRIVES PROJECT The Trives Gold Project, in the Lugo and Ourense Provinces of northwest Spain,comprises two Investigation Permits 100% owned by Ormonde covering a total areaof 3.2 square kilometres, and a further two contiguous Investigation Permitsunder option covering a total area of 3.6 square kilometres. On the two permitsunder option with two private Spanish companies, SYEM and SPIB, Ormonde canacquire a 100% interest before April 2007. The primary target within thesepermits is the Portas Gold Prospect. Enquiries to: Kerr Anderson, Managing Director,Ormonde Mining plc Tel: +353 (0)46 9073623Fraser Gardiner, Investor and Media Relations,Ormonde Mining plc Mobile: +353 (0)86 3931178Simon Rothschild, Bankside Consultants Tel: +44 (0)207 444 4153 Mobile: +44 (0)7703 167065 ENDS BACKGROUND INFORMATION Ormonde Mining is listed on the Irish Stock Exchange and also trades on London'sSEAQ platform. The Company is focused on acquiring and developing high-gradegold projects in Spain. Ormonde's portfolio contains advanced projects withsubstantial gold (and copper) resources, including La Zarza with one millionounces of gold, and other properties where the Company anticipates that drillingwill identify significant new resources. The Company has a strong local Spanishmanagement team, supported by a Board with extensive exploration expertise inthe region and mine development experience. For more information, please visit www.ormondemining.com or contact the Companyat info@ormondemining.com. This information is provided by RNS The company news service from the London Stock Exchange