ORM.L Regulatory News (ORM)

23 Jan 2007 07:01

Ormonde Mining PLC23 January 2007 23 January 2007 Ormonde Mining plc Salamanca Tungsten Update DUBLIN & LONDON: 23 January 2007 - Ormonde Mining plc ("Ormonde" or "the Company") updates on its tungsten projects located in the Salamanca area inwestern Spain. Results have been received from the initial gravity testwork on the TungstenTailings Project, which show that it is difficult to recover the tungsten in thetailings material into a gravity concentrate. This is interpreted as being dueto the very fine grain size of the tailings material. To complete theprogramme, testwork will be carried out using a Knelson Concentrator. Howeverit is unlikely that sufficient tungsten can be economically recovered into asaleable concentrate. Evaluation work continues on the "hard rock" tungsten mineralization reported inrecent drilling results from the northern extension of the Barruecopardo veinsystem. This mineralization is extremely coarse grained so that the difficulties encountered in relation to the finely ground tailings material should not recur. Detailed drilling is commencing to investigate the continuity of encouraging high grade mineralization intersected in the first drilling campaign. Mapping on surface suggests reasonable continuity of the vein system over 800 metres of strike, which is steeply dipping and hosted in competent granite rocks. Kerr Anderson, Managing Director commented: "While the results in relation to the tailings are disappointing, expenditure onthe project to date has not been significant. Furthermore the economic benefitfrom successful evaluation and development of the "hard rock" mineralizationwould, if realised, significantly exceed any targeted from the tailings. We arealso continuing to make good progress on the La Zarza Bankable Feasibility Studyand the Company shortly expects to sign feasibility study contract agreementswith two international engineering firms." Enquiries to: Kerr Anderson, Managing Director,Ormonde Mining plc Tel: +353 (0)46 9073623 Fraser Gardiner, Director,Ormonde Mining plc Tel: +353 (0)86 3931178 Simon Rothschild,Bankside Consultants Tel: +44 (0)20 7367 8871 Mob: +44 (0)7703 167065 This information is provided by RNS The company news service from the London Stock Exchange