ORM.L Regulatory News (ORM)

13 Nov 2007 07:01

Ormonde Mining PLC13 November 2007 13 November 2007 Ormonde Mining plc Ongoing Drilling and Evaluation Indicates Multi-Vein Nature of Ormonde's Spanish Tungsten Project DUBLIN & LONDON: 13 November 2007 - Ormonde Mining plc ("Ormonde" or "theCompany") is pleased to report that ongoing drilling and evaluation work at itsBarruecopardo Tungsten Project in Salamanca, Spain ("the Project") now indicatea deposit with multiple mineralised zones, raising the Project's resource andeconomic potential. Drilling to-date at the Project has focused primarily on targeting a high gradetungsten zone termed Filon Maestro ("FM Zone") to the north of the main historicopen pit mine. Interpretation of recent drilling intersections and access tohistorical data now show that a further two tungsten mineralised zones can bedefined. The Project therefore now comprises: • Filon Maestro Zone: Ormonde recently reported that ongoing infill and step-out drilling has extended the known limits of the FM Zone along strike to 750 metres and at depth to over 175 metres. The Company is pleased to report that drilling continues to intersect this zone at depth and supports previous results, with a new intersection from hole BAR-19 of 2 metres grading 0.5% WO3. • Filon Principal Zone: Access to historical mining reports has now indicated that previous mining activity was targeted at a wider, lower grade tungsten zone, the Filon Principal Zone ("FP Zone"), located beneath the flooded portion of the main pit. A study completed in 1985 reports that this zone was mined over a 700 metres strike length, with an average width of 14 metres (maximum 22 metres) and average grade of 0.23% WO3. Initial drilling of the FP Zone is underway with a view to identifying higher grade tungsten zones within it. • Filon Central Zone: A new intersection from BAR-19 of 8 metres grading 0.3% WO3 (includes 1 metre grading 1.5% WO3) indicates the presence of tungsten-rich quartz veins in the granite rock between the FM and FP Zones. This zone appears to correlate to what were previously reported as isolated tungsten intervals of 1 metre grading 1.4% WO3 in BAR-16 and 1.0 metre grading 0.7% WO3 in BAR-18. This zone, named Filon Central, will be further tested in the current drilling programme. Kerr Anderson, Managing Director, said: "We continue to make excellent progress with our tungsten programme. Theemerging picture of a Project with growing resource potential through thedefinition of multiple mineralised zones is an extremely positive development." A table of all significant drilling results reported to-date is provided belowand a drawing showing the location of the zones described above is included inthe PDF version of this announcement at www.ormondemining.com/doc/press/pr071113.pdf Ormonde currently has two drill rigs operating at the Barruecopardo Project,with the objective of fast-tracking the Project's evaluation through infill andstep-out drilling. 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. A glossary explaining technical terms contained in this announcement can befound at www.ormondemining.com/projects/glossary.html. Enquiries to: Ormonde Mining plc Kerr Anderson, Managing Director, Fraser Gardiner, Director Tel: +353 (0)46 9073623 Bankside Consultants Simon Rothschild / Louise Mason Tel: +44 (0)20 7367 8888 Mob: +44 (0)7703 167065 Davy (Nominated Adviser to Ormonde) Fergal Meegan Tel: + 353 1 679 6363 ENDS Drilling Results FILON MAESTRO ZONE FILON CENTRAL ZONE Hole From (m) To (m) Length (m) WO3 % From (m) To (m) Length (m) WO3 % BAR-01 115.7 116.7 1.0 0.5 BAR-02 To be deepened to intersect FM Zone BAR-03 101.5 104.9 3.4 1.0 including 101.9 102.9 1.0 2.4 BAR-04 122.0 122.9 0.9 1.6 142.5 143.1 0.6 4.5 BAR-05 133.7 135.4 1.7 0.4 BAR-06 245.0 246.0 1.0 0.7 181.6 182.8 1.2 0.6 BAR-07 Intersected intrusion cutting main zone BAR-09 119.0 121.0 2.0 2.1 BAR-10 125.0 127.0 2.0 1.5 BAR-11 114.0 115.0 1.0 0.3 BAR-12 128.0 130.0 2.0 1.7 BAR-13 123.0 125.0 2.0 2.4 BAR-14 114.0 115.0 1.0 0.3 BAR-15 122.0 124.0 2.0 0.4 BAR-16 202.0 206.0 4.0 0.6 91.0 92.0 1.0 1.4 BAR-17 125.0 127.0 2.0 0.9 BAR-18 254.0 255.0 1.0 0.3 91.0 92.0 1.0 0.7 BAR-19 268.0 270.0 2.0 0.5 96.0 104.0 8.0 0.3 96.0 97.0 1.0 1.5 Note: BAR-19 is a new hole reported in this announcement. Results from allother holes have been reported in previous announcements. About Ormonde Ormonde Mining plc is quoted on the AIM in London and the IEX in Dublin.Ormonde is a mineral development and exploration company focused on Spain, withthe objective of developing mining projects and taking them into production. Ormonde's main project is the La Zarza Copper-Gold-Zinc Project in southernSpain where the Company's objective is to establish an underground miningoperation producing copper, gold, zinc and silver in concentrates. A BankableFeasibility Study is currently being carried out by leading internationalengineering firms. Ormonde is also evaluating the Barruecopardo high-grade tungsten deposit in theSalamanca area where a continuous programme of in-fill and step-out drilling isnow underway with a view to fast-tracking the evaluation of this project. TheCompany's other current activities include successful gold exploration at thePino de Oro Prospect (Zamora) and Sierro Prospect (Salamanca). For more information please visit www.ormondemining.com. About Tungsten Tungsten is most frequently used as tungsten monocarbide, which has a hardnessclose to diamond, in cemented carbides. The principal tungsten applicationsinclude its use in cutting steels and in tungsten alloys, electronics, andchemical products. Prices of tungsten concentrates are expected to remain buoyant for the longterm, and are currently quoted by the Metal Bulletin in the range $160-$180 permetric tonne unit. A metric tonne unit is equal to 10kg of WO3, which equatesto 1.0% contained WO3 in the rock. This information is provided by RNS The company news service from the London Stock Exchange