Last checked at 14 Dec 2016 07:00
14 December 2016
Orogen Gold plc
("Orogen" or the "Company")
Mutsk gold project Armenia
Final Drill Results Further Extend Mutsk deposit
Orogen Gold plc (AIM: ORE), the AIM quoted gold exploration company, reports on the final drill results for 2016 at the Mutsk gold project in southern Armenia, having finished the final stages step-out drilling programme as announced on 29 November 2016.
Highlights:
· Final 2016 drilling results extend gold zone to the north
· 2016 programme increases deposit length to 1.3km
· Deposit remains open to south and east
· Company to update and refine project model using new information
· Orogen to develop programme in New Year to explore for further extensions and move towards resource delineation
Colin Bird, Chief Executive of Orogen, commented: "The ambitious final 2016 step-out drilling programme at Mutsk produced excellent results by significantly extending the gold deposit footprint. During the winter we will update the project model to gain an enhanced three dimensional understanding of the nature of the deposit with a view to further resource extension and definition to JORC standard. This process helps to de-risk future drill targeting and is very cost effective. Overall, work during the current year has substantially enhanced our prospects for the Mutsk gold project."
Orogen has now received all assay results for the 2016 step-out diamond drilling programme at the Mutsk gold deposit. The final two angled step-out holes were drilled 200m and 400m respectively to the north of the previously defined North Gold Zone to look for extensions to this zone. The 200m step-out hole, OG16-59, cut several intervals of hydrothermal alteration, one of which was gold-bearing, assaying 0.35g/t Au over 4.5m from 25.5-30.0m depth. This shallow zone was heavily weathered with some core loss and gold may have been washed out during the drilling process. The final hole, OG16-60 further to the north, did not locate any significant gold values.
Overall, management is very encouraged by the outcome of a relatively limited drilling programme in 2016. This has demonstrated that a substantial gold deposit has been discovered with open pit potential just 30km from the Amulsar project, which is of a similar grade to Mutsk and is currently under development. The strike length of the Mutsk deposit has been substantially increased by step-out drilling in the current year from 0.5km to 1.3km, with the deposit still open to the south. In addition, drilling to the east of the original discovery has located further multiple gold bands, almost doubling the mineralisation footprint from east to west. There is also potential for additional discoveries further to the east, as well as at depth.
The recent drilling has given an indication of the potential scale of the project. Orogen will now use the winter season to update and refine the deposit model as well as planning the optimum route towards resource definition. Shareholders will be kept informed of advances over the coming period.
Mutsk 2016 Drilling Main Au Intervals | ||||
Hole No. | From (m) | To (m) | Interval (m) | Au g/t |
OG16-50 | 8.0 | 21.0 | 13.0 | 1.13 |
incl. | 9.0 | 15.0 | 6.0 | 1.63 |
and | 45.0 | 57.0 | 12.0 | 0.69 |
incl. | 45.0 | 50.8 | 5.8 | 1.03 |
and | 127.0 | 138.5 | 11.5 | 0.81 |
OG16-51 | 65.0 | 74.0 | 9.0 | 0.32 |
OG16-52 | 51.0 | 57.7 | 6.7 | 0.43 |
and | 72.5 | 81.6 | 9.1 | 0.66 |
and | 129.0 | 131.6 | 2.6 | 0.55 |
and | 138.0 | 149.0 | 11.0 | 1.00 |
incl. | 144.8 | 149.0 | 4.2 | 1.62 |
and | 164.2 | 176.0 | 11.8 | 1.06 |
incl. | 172.6 | 176.0 | 3.4 | 1.48 |
OG16-53 | 67.2 | 73.0 | 5.8 | 1.68 |
and | 116.0 | 119.2 | 3.2 | 1.09 |
OG16-54 | 44.1 | 53.0 | 8.9 | 1.14 |
incl. | 49.3 | 53.0 | 3.7 | 1.85 |
and | 58.9 | 63.0 | 4.1 | 1.60 |
OG16-56 | 56.3 | 61.5 | 5.2 | 0.77 |
and | 73.9 | 77.0 | 3.1 | 0.78 |
and | 103.0 | 113.0 | 10.0 | 0.47 |
and | 121.0 | 122.0 | 1.0 | 2.63 |
OG16-57 | 27.0 | 29.0 | 2.0 | 1.57 |
and | 49.9 | 51.0 | 1.1 | 1.21 |
and | 54.3 | 68.5 | 14.2 | 0.83 |
and | 104.0 | 105.2 | 1.2 | 1.25 |
OG16-58 | 67.0 | 70.6 | 3.6 | 1.35 |
and | 123.0 | 125.5 | 2.5 | 0.76 |
OG15-59 | 25.5 | 30.0 | 4.5 | 0.35 |
For maps of the Mutsk property please refer to the Mutsk project page on the Orogen website at www.orogengold.com
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 (5 million ounces in Measured, Indicated and Inferred Resources at an average grade of 0.7g/t Au) located 30km to the northwest, also in Armenia. Lydian has recently announced that it has secured financing for mine construction and work has commenced on the US$420m project, with first gold production planned for early 2018.
Technical Sign-Off
Ed Slowey, Operations Director of Orogen, is a Competent Person as defined by various international instruments and takes responsibility for the release of this information.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
Enquiries:
Orogen Gold plc Colin Bird, CEO | c/o Walbrook |
Cairn Financial Advisers LLP (Nominated Adviser) Liam Murray / Sandy Jamieson | +44 (0) 20 7213 0880 |
Beaufort Securities Limited (Broker) Jon Belliss | +44 (0) 20 7382 8300 |
Walbrook (Public Relations and Investor Relations) Paul Cornelius / Gary Middleton | +44 (0) 20 7933 8780 |
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 gold exploration and is currently operating two gold exploration projects: a) at Mutsk in Armenia and b) at Silverton in Nevada, USA. 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. In Nevada, an earn-in agreement was signed covering the Silverton gold-silver prospect, giving Orogen the right to earn in to an initial 51% interest in the property. Anomalous gold values are recorded from bedrock across much of the property, but previous drilling is not considered to have adequately tested the potential gold sources. Assay results from a recently completed RC drilling programme on the property are awaited.