ORM.L Regulatory News (ORM)

9 Jan 2007 07:01

Ormonde Mining PLC09 January 2007 09 January 2007 Ormonde Mining plc Drilling Results Highlight Potential for New Tungsten Resource in Salamanca DUBLIN & LONDON: 09 January 2007 - Ormonde Mining plc ("Ormonde" or "theCompany") reports tungsten results from its drilling programme on the northernextension of the Barruecopardo vein system, and updates on its Tungsten TailingsProject located in the Salamanca area in western Spain. Main Points • Drilling results highlight potential for a new "hard rock" tungsten resource in the northern extension of the historically mined Barruecopardo vein system • These results include high-grade tungsten values of 4.5%, 2.4% and 1.6% WO3 (tungsten trioxide) over 0.6 to 1.0 metre intervals • Positive tungsten results from scout drilling on the nearby Valdegallegos prospect indicate other possible tungsten zones in the immediate area • First stages of gravity separation testwork programme on the adjacent and separate Tungsten Tailings Project have been completed and initial results are awaited Kerr Anderson, Managing Director, said today, "The widths and grades of tungsten mineralization intersected in our drillingare encouraging and highlight the potential to delineate a new "hard rock"resource at Barruecopardo. We now plan to carry out a follow-up drillingprogramme to establish whether there is sufficient continuity in the veinsystem, meriting a more comprehensive drill-out of the deposit for resourcedelineation. "We are also encouraged by tungsten prices which remain high and by thecontinuing strong fundamentals in the tungsten market." Drilling Results - Barruecopardo Northern Extension Six core drill holes (BAR-1 and BAR-3 to BAR-7) have been completed on thenorthern extension for a total of 1,130 metres. Holes were drilled on three 200metre spaced sections to test 400 metres of strike length and 150 metres ofdepth extent. All assay results have been received and are summarized in thetable below, which includes results previously reported on 9th October 2006.The table also includes repeat assay results received for samples which gavehigh-grade tungsten values above the analytical detection limit in the originalassaying (denoted with an asterisk *). Hole From (m) To (m) Length (m) WO3 % BAR-1 80.4 81.4 1.0 0.13 89.3 95.9 6.6 0.05 115.7 116.7 1.0 0.58 BAR-3 36.5 37.5 1.0 0.22 42.3 43.3 1.0 0.32 101.5 109.2 7.7 0.51including 101.9 102.9 1.0 2.42* 144.3 145.4 1.1 0.13 BAR-4 27.6 40.8 13.2 0.14including 31.9 34.3 2.4 0.37 110.4 111.7 1.3 0.31 122.0 122.9 0.9 1.58* 142.5 143.1 0.6 4.48* BAR-5 22.7 23.5 0.8 0.65 34.8 36.0 1.2 0.10 133.7 135.4 1.7 0.39 BAR-6 106.3 106.8 0.5 0.32 160.2 161.4 1.2 0.14 181.6 182.8 1.2 0.55 BAR-7 72.1 73.1 1.0 0.05 In interpreting these results the following should be noted: • Current prices for tungsten concentrates are in the region of US$165 per metric tonne unit (or US$16,500 per tonne of tungsten trioxide, WO3), with a grade of 1% WO3 having an in-the-ground value of approximately US$165 per tonne of mineralized rock. Prices have been reported as high as US$220 during the past 12 months. • Much of Western production comes from small, narrow vein underground deposits. For comparison, ore reserve grades at two of the main Western producing mines, Cantung (Canada) and Panasquiera (Portugal) are 1.17% and 0.23% WO3, respectively. • The Barruecopardo tungsten mineralization contains coarse grained tungsten minerals which will yield a strong nugget effect, thereby requiring closely spaced drilling for resource definition. • Mapping on surface suggests reasonable continuity of the Barruecopardo vein system over 800 metres of strike, which is steeply dipping and hosted in competent granite rocks. • The tungsten grades intersected in the drilling, coupled with the likely gravity processing and potentially favourable mining geometry are seen as encouraging factors. Drilling Results - Valdegallegos Prospect As part of the investigation in the Barruecopardo area, hole BAR-8 was drilledat Valdegallegos, where an extensive vein system was historically worked fortungsten by a series of shallow trenches and pits, around one kilometre to thewest of Barruecopardo. This hole returned the intervals tabulated below, andindicates other possible tungsten zones in the immediate area. Hole From (m) To (m) Length (m) WO3 % BAR-8 33.5 34.6 1.1 0.43 97.9 98.8 0.9 1.26 107.5 109.5 2.0 0.56 Tailings Project Gravity Testwork The first stages of a gravity separation testwork programme on the TungstenTailings Project have been completed, with initial results awaited. Thetestwork programme will determine the amount of tungsten recovered to aconcentrate, the concentrate specification and the scope of capital andoperating costs. 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/glossary.htm. 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 Additional Information Ormonde Mining plc is quoted on the AIM in London and the IEX in Dublin. TheCompany's objective is to enhance shareholder value by developing miningprojects in Spain and taking them into production. A Bankable Feasibility Studyis currently underway at the La Zarza Copper-Gold Project, tungstenopportunities are being evaluated in the Salamanca area and several goldexploration targets are being tested in northwest Spain. For more information on the Company and its projects please visitwww.ormondemining.com or download the latest Investor Information Sheet fromwww.ormondemining.com/pdf/ORMinfo.pdf. About Tungsten Tungsten is most frequently used as tungsten monocarbide, which has a hardnessclose to diamond, in cemented carbides. The most well-known use of tungsten isin lighting filaments, and other important applications include improving steelproperties and use in tungsten alloys, electronics, and chemical 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-$170 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