Last checked at 17 Nov 2014 07:00
Orogen Gold plc
("Orogen" or the "Company")
Mutsk gold project Armenia
Further drilling extends the boundaries of the gold discovery
Orogen Gold plc (AIM: ORE), the AIM quoted gold exploration company, provides the following update on the Company's diamond drilling programme at the Mutsk gold project in southern Armenia.
Highlights:
· Additional step-out drilling on southern profile extends the known lateral extent of the gold-bearing zone to almost 100m
· Hole OG14-32 returns 13.8m assaying 1.20/t Au, including 9.0m assaying 1.50g/t Au
· Hole OG14-35 cuts multiple gold intercepts over 109m interval
· Drilling on the Mutsk gold discovery will continue to closure of weather window
Ed Slowey, Chief Executive of Orogen, commented: "I am very pleased with these latest drill results, which have extended the maximum lateral dimension of the Mutsk gold mineralisation to almost 100m west of the main feeder structure. In addition we have encountered the thickest zone of mineralisation yet seen and also discovered new mineralisation at depth. The drilling programme is planned to continue for at least another two weeks while the current benign weather conditions permit. We look forward to further positive developments as we test the continuity and boundaries of the Mutsk discovery, and strive to deliver value for shareholders. "
Significant gold assay intervals* | ||||
Hole No. | Depth from (m) | Depth to (m) | Interval (m) | Grade Au g/t |
OG14-22 | 119.0 | 122.6 | 3.6 | 0.71 |
OG14-32 | 34.2 | 48.0 | 13.8 | 1.20 |
incl. | 39.0 | 48.0 | 9.0 | 1.50 |
OG14-35 | 28.8 | 30.3 | 1.5 | 1.44 |
and | 46.0 | 56.0 | 10.0 | 0.69 |
and | 61.0 | 69.0 | 8.0 | 0.78 |
and | 80.2 | 88.0 | 7.8 | 0.50 |
and | 128.0 | 137.8 | 9.8 | 0.78 |
incl. | 130.0 | 137.0 | 7.0 | 0.98 |
*Downhole intervals - true widths may be less
Since the last drilling update on 14th October 2014, a further five diamond drill holes were completed and assayed at Mutsk and limited assaying was also carried out on two earlier holes. All holes were drilled at a 55 degree angle towards the east. Significant gold intervals were encountered in three of these holes as detailed in the enclosed table.
Hole OG14-35 was stepped out twenty metres to the west along drill profile 3610N to trace the further continuity of the mineralised zone in this direction. This hole cut the widest alteration zone yet seen at Mutsk over a 134m length, within which a series of gold-mineralised intervals were defined which are of similar or higher grade to those encountered in previous drilling on this profile. These included 10m assaying 0.69g/t Au and 9.8m grading 0.78g/t Au. The latter intercept is of particular interest as it appears to represent a deeper mineralised horizon than previously known.
Holes drilled to date on profile 3610N demonstrate a continuously mineralised body extending for almost 100 metres east to west, with the gold-bearing zone still open to the west and further mineralisation is being seen at depth as we step out in that direction.
Hole OG14-32 was located on profile 3950N, 340m north of profile 3610N, between holes OG13-03 and OG14-28 for which assays were reported previously. The hole was planned to help clarify the continuity of the mineralised zones between holes. OG14-32 crossed a strongly altered zone from 16m to 56m downhole depth. Within this, a 13.8m section assayed 1.20g/t Au from 34.2m to 48.0m. This included a shorter sub-section of 9.0m assaying 1.50g/t Au. All four holes on this profile are gold mineralised, however more geological variance is evident than on profile 3610N.
Hole OG14-22 was drilled towards the southern end of the Mutsk zone and was previously thought to be unmineralised. However, check assaying showed a 3.6m gold-bearing interval grading 0.71g/t Au towards the bottom of the hole. Recent re-mapping and re-logging of this drill hole and earlier drill core suggest that the hydrothermal mineralised zone may extend further to the south beneath masking cover rocks. This possibility will be tested by additional drilling to the south.
Hole OG14-33 was drilled at the far north of the north-south Mutsk structural zone on profile 5150N. Along with two previous holes drilled on this profile, the new hole showed that the structural and alteration system extends over two kilometres, but is not gold mineralised on this profile at the depths drilled.
The remaining three drill holes completed and assayed during the past month were planned to define the boundaries of alteration and mineralisation along strike at Mutsk. These were generally only weakly altered and reported no significant gold values.
Drilling is continuing at Mutsk while the weather window remains open to further extend and define the gold discovery and the Company will continue to update investors as more results come through.
For maps of the Mutsk property please refer to the Mutsk project page on the Orogen website at www.orogengold.com.
Sample Assaying
Gold assaying is undertaken at an analytical laboratory located in Kapan in the south of Armenia. The laboratory is operated by the international SGS Laboratory Services company. Orogen inserts certified standards, blanks and duplicate samples into its sample batches to check the accuracy of the assay results and has also carried out confirmatory checking of duplicate samples at another international laboratory.
About the Mutsk Project
The Mutsk Project is located in southern Armenia at about 2,000m elevation and is three and a half hours' drive from the capital Yerevan. The site is accessible most of the year other than during the core winter months. Maps showing the location and details of the project are available on the Company's website.
Limited historic exploration had been carried out until drilling by Georaid CJSC in 2011, which intersected low sulphidation epithermal-type pyrite-gold mineralisation in altered and brecciated tuffs, similar in age and gold grade to those that host the Lydian International high sulphidation Amulsar gold deposit (4.1 million ounces in Measured, Indicated and Inferred Resources at an average grade of 1g/t Au) located 30km to the northwest, also in Armenia.
Orogen has an exclusive agreement with Georaid CJSC to earn an 80% interest in the property by spending a total of US$2.5m by the end of August 2016.
-ENDS-
Approval
Ed Slowey, CEO of Orogen, is a Competent Person as defined by various international instruments and takes responsibility for the release of this information.
To view updated Mutsk drill maps, please see this link:
http://www.orogengold.com/projects/mutsk-armenia/mutsk-maps/
Enquiries:
Orogen Gold Plc | +353 1662 8395 |
Ed Slowey, CEO | |
Alan Mooney, FD | |
Cairn Financial Advisers LLP(Nominated Adviser) | +44 (0) 20 7148 7900 |
Avi Robinson / Liam Murray | |
Hume Capital Securities Plc (Broker) | +44 (0) 20 3693 1470 |
Jon Belliss |
|
Walbrook (Public Relations and Investor Relations) | +44 (0) 20 933 8780 |
Paul Cornelius / Guy McDougall | |
About Orogen Gold
Orogen Gold plc is a UK public company quoted on the London Stock Exchange AIM market (ticker: ORE). The Company is focused on mineral exploration and development in Europe and is currently operating two gold exploration projects: a) at Mutsk in Armenia and b) at Deli Jovan in Serbia. The Mutsk gold project in Armenia was optioned by Orogen early in 2013 to follow-up reports of a new epithermal discovery within an established gold district. At Deli Jovan the historic high-grade gold mining camp was last in production prior to World War II and has been significantly under-explored in modern times. The Mutsk project has been prioritised by the Company due to the clear potential evident on the property.