14 Mar 2011 07:00
14 March 2011
Ormonde Mining plc
("Ormonde" or "the Company")
Salamanca-Zamora Gold Exploration Update
The Board of Ormonde is pleased to provide an update on its exploration properties in the Salamanca and Zamora Provinces of Spain ("the Projects). Following a review on exploration strategy in the Salamanca-Zamora area it has been decided to immediately advance its exploration work programmes by separating the Company's ground holdings into gold-tungsten and gold-only prospects and funding these separately.
The Company has decided to concentrate its internal exploration resources on its gold-tungsten ground which includes the Dora, Marta, Can, Saturno and Bollo prospects. These are also regarded as potential peripheral satellites for the nearby Barruecopardo Tungsten Project. Work programmes are being developed and an exploration programme including drilling will commence shortly. Funding of the gold-only prospects will be via a joint venture with Aurum Mining Plc ("Aurum").
Gold-Tungsten Projects
·; An Independent "CSA Global" report (Aug'10), which mainly reported on the gold-tungsten projects in Salamanca, concluded that "The Salamanca permit block incorporates all the major features of a classic intrusion related gold system ("IRGS")". IRGS systems are known to host multi-million ounce deposits globally.
·; The report also highlighted that "work to date by Ormonde at the Dora prospect suggests the presence of a large gold system". To-date, wide low-grade intersections of gold have been encountered in limited drilling and trench sampling, suggesting a significant gold mineralised system.
·; Full assessment of all historic data, including drilling where available, was initiated at the end of last year on the gold-tungsten prospects and this has lead to prioritising targets for drilling.
·; It is anticipated that drilling will commence shortly at Bollo, where a small open pit tungsten mine was developed in the 1970s and where previous grab sampling on the old dumps returned average gold grades of 8.3g/t from 30 samples.
The gold-only ground will be advanced via a farm-out joint venture to enable funding by way of a third party. In this context, the Company is pleased to announce that it has entered into a Joint Venture with Aurum on the gold-only prospects.
Main Points of Joint Venture
·; Aurum can earn a 60% interest in two permits in the Zamora Province and a 54% interest in a further two permits in the Salamanca Province (one of which is under application), with the total permit area being 106 square kilometres, by spending €500,000 on exploration activities over an 18 month period.
·; Agreed budgeted work programmes include some 1,000 metres of drilling in stage one of a 2-stage programme. Ormonde will act as Manager and be responsible for all work programmes.
·; Drilling to-date on the Zamora permits on gold-bearing structures has returned intervals including 23m grading 1.1g/t gold from 51 metres depth (including a high-grade interval of one metre grading 16.6g/t gold) and 9m grading 1.5 g/t gold from 56 metres depth.
·; No drilling has been carried out to-date on the two Salamanca permits, where significant soil geochemical anomalies are supported by prospecting and initial trenching results.
Kerr Anderson, Ormonde's Managing Director, said:
"I am pleased that through our own exploration programme and the Joint Venture agreed with Aurum we can advance the exploration of our highly prospective licences in the Salamanca and Zamora region. I look forward to drilling commencing shortly on both the gold and gold-tungsten targets, and to being able to report progress on the development of these exploration programmes."
Kerr Anderson PhD EurGeolPGeo, Managing Director of Ormonde Mining plc, and a qualified person as defined in the Guidance 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.
Enquiries to:
Ormonde Mining plc
Kerr Anderson, Managing Director Tel: +353 (0)46 9073623
Bankside Consultants
Simon Rothschild / Louise Mason Tel: +44 (0)20 7367 8888 Mob: +44 (0)7703 167065
Davy (Nomad / ESM Adviser)
Fergal Meegan / 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 quoted on the AIM in London & the ESM 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 initially produce ~8% of non-Chinese global mine production from 2012.
The La Zarza Copper-Gold Project - Joint Venture with Antofagasta Minerals - a large "massive sulphide" deposit with significant copper, gold and zinc resources; exploration for an enlargement to the copper resource is being funded by Antofagasta.
Gold Explorationin several highly prospective areas of western Spain.