ORM.L Regulatory News (ORM)

31 Jan 2005 07:30

Ormonde Mining PLC31 January 2005 Ormonde Mining plc Ormonde Completes Acquisition of Advanced Gold Project in Salamanca, Western Spain DUBLIN & LONDON: 31 January 2005 - Ormonde Mining plc ("Ormonde" or "theCompany") reports that it has acquired several advanced gold properties in theSalamanca area of western Spain. These include deposits where sampling byprevious workers has demonstrated potential for high-grade zones within largelower grade gold resources, and several high-grade gold prospects where therehas been no or only limited follow-up exploration. Ormonde and joint venture partner Prehenita S.L. ("Prehenita") have been awardedthree permit areas following a public tender process, and have secured twofurther contiguous permits in joint venture with SIEMCALSA. Together withpermits announced on 1st November 2004, these ground holdings are termed theSalamanca Gold Project ("the Project"), with a total permitted area of 720square kilometres. Ormonde can earn a 90 per cent interest in the Project bystaged funding of exploration totalling €2.2 million over a five year period. PROJECT HIGHLIGHTS (Note: resource estimates are taken from Geological Survey and previous companyreports) • Mina Marta Gold Deposit: previous sampling has shown potential for near-surface high-grade gold zones (over 8 grams per tonne) within the deposit, where some 1.0 million ounces of gold at an average grade of 1.1 grams per tonne ("g/t") have been reported. • Mina Saturno and Valle de los Espinos Deposits: collective resources of 310,000 ounces of gold at an average grade of 2.2 g/t; a highly prospective structure linking these two deposits has not been explored for gold. • Pino de Oro Gold Prospect: advanced exploration targets with high gold grades at shallow depths in historical drilling as described in the Company's announcement on 1st November, 2004 (1.0 metre grading 65.8 g/t gold, 6.0 metres grading 5.9 g/t gold). • Sampling results highlight several high-grade gold prospects, with average grades from rock samples at each prospect ranging from 4.1 to 92.0 g/t gold (see table below), in areas where there has been no or only limited follow-up exploration. • Large exploration permits covering areas considered to be prospective based on favourable geology and regional geochemistry data. Managing Director of Ormonde, Kerr Anderson commented, "We have secured an extensive ground holding in one of the most pronounced goldterrains of Spain. Ormonde is the first company to hold comprehensive tenureover the region's gold deposits and many prospects, a tribute to the strength ofthe Company's Spanish management. Resource potential has already beendemonstrated at Mina Marta and Mina Saturno - Valle de los Espinos, and theevaluation of these deposits will be the focus of our immediate work programmes.We also believe that as much of the region remains under-explored, our excellentground position gives us a distinct advantage for making new discoveries." MINA MARTA GOLD DEPOSIT Mina Marta occurs as a large quartz vein swarm within metasedimentary andgranitic rocks, over an area of 1,300 x 100 metres. Some 1.0 million ounces ofgold at an average grade of 1.1 g/t have been reported for the deposit fromsurface to 150 metres depth. As this is based on relatively limited trenchingand drilling, the Company intends to carry out a significant amount of furtherdrilling to delineate the higher grade parts of the deposit. These high-grade zones are evidenced by previous surface sampling of quartzveins, which returned high-grade gold values (see table below). The averagegrade of 175 samples taken from outcrops and small dumps at Mina Marta is 8.1 g/t gold, with a maximum value of 201 g/t gold. Significantly, this highest gradesample was taken from the metasedimentary host rocks, suggesting thatmineralization also occurs in broader zones around the quartz veins. MINA SATURNO and VALLE DE LOS ESPINOS GOLD DEPOSITS Total resources of 310,000 ounces of gold have been estimated at Mina Saturnoand Valle de los Espinos by the local Geological Survey, based on drilling,trenching and bulk sampling. Gold mineralization occurs in quartz veins whichwere previously exploited for tungsten by open-pit mining. As previous operatorsfocused on tungsten mineralization, there has been no significant goldexploration along a highly prospective, 3 kilometre-long structure linking thesetwo deposits. OTHER PROSPECTS A summary of gold grades of rock samples (principally quartz veining) taken byprevious workers from the main deposits and other prospects within the SalamancaGold Project are tabulated as follows: Locality No. Samples Max Grade Av. Grade > 3 g/t > 10 g/t Mina Marta 175 200.9 8.1 30% 12% Mina Saturno 29 22.0 2.25 17% 3% V. de los Espinos 28 41.0 4.3 32% 11% Prospect 7 211.9 92.0 86% 71% Prospect 30 58.6 9.1 30% 23% Prospect 21 19.6 4.1 29% 19% Prospect 13 31.9 12.6 77% 62% Prospect 5 25.3 14.6 80% 60% Prospect 5 12.6 5.0 60% 20% Prospect 5 24.8 13.4 80% 40% EXPLORATION STRATEGY The Mina Marta and Mina Saturno - Valle de los Espinos Deposits, where resourcepotential has already been demonstrated, will be prioritised as targets.Existing drilling and geological data for these localities are currently beingcompiled prior to modelling and validation of published work. Drilling willsubsequently be carried out, initially designed to verify and test thecontinuity of existing drill intersections. Ongoing work in other areas, to include interpretation of satellite imagery,prospecting, rock sampling and soil sampling, will aim to identify new zones tobe developed into drilling targets. Many characteristics of the mineralizationin the Project area are typical of intrusion-related gold systems, andexploration strategies for Salamanca will be similar to those being successfullyapplied at the Company's Tracia Gold Project, also interpreted to beintrusion-related. BROCHURE OF PARTICULARS Application has been made to the Irish Stock Exchange for 750,000 New OrdinaryShares of nominal value €0.025 each in the Company, to be admitted to dealing onthe Exploration Securities Market of the Irish Stock Exchange and it is expectedthat dealings will commence therein on 4 February, 2005. The shares have beenallotted pursuant to an agreement with Prehenita S.L. on the Salamanca GoldProject and will rank pari passu in all respects with the existing issuedOrdinary Shares in the Company. Enquiries to: Kerr Anderson, Managing Director, Ormonde Mining plc Tel: +353 (0)46 9073623 Fraser Gardiner, Investor and Media Relations, Ormonde Mining plc Mobile: +353 (0)86 3931178 Simon Rothschild, Bankside Consultants Tel: +44 (0)207 444 4153 Mobile: +44 (0)7703 167065 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. 31 January 2005 This information is provided by RNS The company news service from the London Stock Exchange