Last checked at 14 Dec 2015 07:00
14 December 2015
Orogen Gold plc
("Orogen" or the "Company")
Mutsk gold project Armenia
Final results from 2015 drilling programme
Orogen Gold plc (AIM: ORE), the AIM quoted gold exploration company, provides the following update on the Company's recent diamond drilling programme at the Mutsk gold project in southern Armenia.
Highlights:
· Drilling programme extends strike of previously defined gold mineralisation
· Deposit open ended in at least two directions and to depth
· Drill intercepts identify potential for zones of enhanced gold grade
· Orogen to review all work to date during closed season
Colin Bird, Chief Executive of Orogen, commented: "This programme, whilst limited, has revealed new potential for increased tonnage with superior grades. We will evaluate this project on a continuing basis and position it in our ongoing strategy. "
Mutsk 2015 drilling - significant gold assay intervals* | ||||
Hole No. | From (m) | To (m) | Interval (m) | Au g/t |
OG15-46 | 29.0 | 50.0 | 21.0 | 2.68 |
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also | 81.0 | 84.0 | 3.0 | 1.15 |
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also | 94.9 | 114.0 | 19.1 | 0.82 |
incl. | 103.0 | 113.0 | 10.0 | 1.11 |
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OG15-47 | 20.0 | 42.4 | 22.4 | 1.08 |
incl. | 20.0 | 26.2 | 6.2 | 2.17 |
incl. | 36.0 | 43.0 | 7.0 | 1.53 |
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also | 55.0 | 58.0 | 3.0 | 1.16 |
also | 83.0 | 89.2 | 6.2 | 1.55 |
also | 96.0 | 99.0 | 3.0 | 0.32 |
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OG15-48 | 123.0 | 126.7 | 3.7 | 0.64 |
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also | 141.0 | 143.3 | 2.3 | 0.97 |
*Downhole intervals - true widths may be less
Gold assay results were received for the final two holes of the six-hole drilling programme recently completed at Mutsk in Armenia. The programme was laid out to define extensions to the previously outlined gold targets and to test for new zones to enhance the resource potential at Mutsk.
The two most recent holes, OG15-48 and OG15-49 were drilled to test the hypothesis that further zones of hydrothermal alteration and gold mineralisation might exist beneath younger cover rocks to the east of the previously defined feeder structure. Both holes encountered zones of kaolin-carbonate-quartz alteration. Gold assays in OG15-48 confirmed that the alteration zone in this hole was gold-bearing, as tabulated above. No significant gold assays were returned for OG15-49. Nevertheless, the alteration and gold-bearing intervals in OG15-48 are considered an encouraging start to exploration further to the east at Mutsk and open out a new target area.
As reported in a news release on November 27, 2015, holes OG15-46 and OG15-47 are of particular interest. Both holes were significantly gold-bearing, including an interval of 21.0m width assaying 2.68g/t Au at shallow depth. These extend the strike length of the main Mutsk zone to over 500m and the zone remains open to the south, with possible further extensions to the north and to depth. Also the intercept in OG15-46 is approximately double the grade encountered in several of the nearby holes and confirms that there are sections of higher-grade gold within the deposit.
For maps of the Mutsk property please refer to the Mutsk project page on the Orogen website at www.orogengold.com.
Orogen will now work on integrating the new information with the existing project database to re-model the deposit in 3D, with a view to defining potential extensions and higher grade zones to the deposit. This modelling will be utilised in forward planning at Mutsk.
The company aims to continue its work leading to completion of the 80% earn-in target by August 2016.
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 also carries out confirmatory checking of duplicate samples at another 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. Lydian has recently announced that it has secured the major part of the financing for the project and plans to commence construction in 2016.
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, Operations Director of Orogen, is a Competent Person as defined by various international instruments and takes responsibility for the release of this information.
Enquiries:
Orogen Gold plc Colin Bird, CEO Alan Mooney, FD | +353 1662 8395 |
Cairn Financial Advisers LLP (Nominated Adviser) Avi Robinson/ Liam Murray | +44 (0) 20 7148 7900 |
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 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.