ORM.L Regulatory News (ORM)

2 May 2006 07:01

Ormonde Mining PLC02 May 2006 Ormonde Mining plc Ormonde Extends New Salamanca Gold Zone to 2.5 Kilometres DUBLIN & LONDON: 02 May 2006 - Ormonde Mining plc ("Ormonde" or "the Company")reports further positive exploration results obtained from the Salamanca GoldProject in western Spain, where it is earning a 90 per cent interest. Newsampling has significantly increased the extent of a gold geochemical anomalyreported in January 2006, which the Company believes could represent a large,near-surface bulk-tonnage gold target. HIGHLIGHTS • The previously reported gold anomaly has been extended by a further 1 kilometre, giving it a total length of 2.5 kilometres. • The width of the zone increases from around 200 metres to a maximum of 500 metres. • Of 50 new rock samples collected, 36 (72 per cent) returned grades greater than 1 gram per tonne ("g/t") gold, with best results of 58.4, 39.9 and 37.4 g/t gold. Kerr Anderson, Managing Director, said today, "With this new extension the gold anomaly has got bigger and better and Ibelieve that we have identified the geochemical footprint of a near-surface bulktonnage gold target. Initial drilling during the summer months will test theoverall grade across this extensive zone, but at this early stage the size andcontinuity of the anomaly are very impressive." "With Salamanca demonstrating very distinct potential, together with La Zarza wenow have two very strong projects to take the Company forward." Soil Geochemistry An information page on the new results, which includes colour plots of thegeochemical data, can be downloaded from the Company's websitewww.ormondemining.com. In January, Ormonde reported that results from a soil sampling programme hadproduced an extensive and coherent gold anomaly over a part of its permit areawhere no mineralization of any kind has previously been identified. The anomalyhas a linear geometry, probably representing a structural trend. New sampling across the northern extension of the anomaly has shown that thezone extends for a further 1 kilometre giving it a total strike length of 2.5kilometres, and increases in width to a maximum of 500 metres. The anomaly isdefined by samples with grades exceeding 75 parts per billion ("ppb") gold, witha maximum value of 467 ppb. This Northern Extension is now the most prospectivepart of the overall zone. Coincident soil geochemical anomalies in key metals (arsenic, bismuth, antimonyand tellurium) generally associated with the mineralization style being targetedat Salamanca, lends support to the belief that this is a significantgold-mineralized zone. The nature of limited outcrops, loose blocks andknowledge from other localities in the area indicate that gold mineralization ischaracterized by sulphide-bearing sheeted veins and arrays ofarsenopyrite-bearing, quartz filled fractures within a granite host rock. Rock Sampling New rock samples collected are sulphide-bearing loose blocks found across theanomalous area where outcrop is very poor. Results can be summarized as follows: Total samples: 50 Samples over 5 g/t Au: 16 (32 per cent) Samples over 1 g/t Au: 36 (72 per cent) Samples over 0.1 g/t Au: 45 (90 per cent) All eight samples collected from within the Northern Extension have returnedhigh gold grades: 58.4, 37.4, 18.3, 6.4, 6.3, 4.6, 4.3 and 3.1 g/t gold. Samplesfrom several other new localities in the area of soil sampling have alsoreturned high grades, including 39.9, 29.6, 28.3, 24.4 and 19.8 g/t gold. Kerr Anderson PhD EurGeol PGeo, Managing Director of Ormonde Mining plc, and aqualified person as defined in the Guidance Note for Mining, Oil and GasCompanies, March 2006, of the London Stock Exchange, has reviewed and approvedthe technical information contained in this announcement. 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, PR and IR adviser, Bankside Consultants Tel: +44 (0)20 7367 8871 ENDS Background Information Ormonde considers the Salamanca area to be one of the most prospective goldterrains in Spain. The Company has agreements with two private Spanish companiesto earn a 90 per cent interest in a permitted area of 720 square kilometres, bystaged funding of exploration totalling €2.2 million over a five year period.The permits cover deposits with potential for high-grade zones and severalprospects where there has been no or only limited follow-up exploration. Ormonde Mining plc is quoted on the AIM in London and the IEX in Dublin. TheCompany's strategy is to enhance shareholder value by developing gold-focusedprojects in Spain and taking them into production. Ormonde has a strong localSpanish management team, supported by a Board with extensive mine developmentand exploration experience. For more information and contact details including email, please visitwww.ormondemining.com. 02 May 2006 This information is provided by RNS The company news service from the London Stock Exchange