Last checked at 6 Sep 2016 07:00
06 September 2016
Orogen Gold plc
("Orogen" or the "Company")
Mutsk gold project Armenia
Drilling Substantially Extends Gold Deposit Footprint at Mutsk, Armenia
Orogen Gold plc (AIM: ORE), the AIM quoted gold exploration company, provides the following positive news on its recent diamond drilling programme at the Mutsk gold project in southern Armenia.
Highlights:
· Limited drilling programme doubles deposit footprint
· Multiple bands of hydrothermal alteration and gold mineralisation intersected
· Gold zone remains open further to the south and east and to depth, with many areas untested
· Company preparing updated deposit model and follow-up plan
Colin Bird, Chief Executive of Orogen, commented: "This is a very pleasing result for the Company. The last two drilling programmes have been aimed specifically at defining the "gold envelope" at Mutsk. Relatively small expenditure has doubled the target and further scope remains. Our near-term detailed modelling will allow us to fully understand dips, trends and therefore target future drilling from a sound base. The outcome is particularly gratifying against the backdrop of a renewed interest in gold mining and developments within the regions we are operating in."
Diamond drilling at the Mutsk gold property recommenced in early July 2016 with the twin aim of extending the footprint of the gold deposit and achieving the 80% project earn-in target by end August 2016. The programme has been completed for now, with the drilling of a total of 1,015 metres in seven holes directed towards the east. As announced on 31 August 2016 the earn-in target was achieved on schedule.
The holes were focussed to the east and south of the main gold zone at Mutsk. Six of the seven holes completed cut sections of hydrothermal alteration with associated gold-bearing intervals. This limited programme exceeded expectations by approximately doubling the overall footprint of the gold mineralisation to an area of 600m north to south by 200m east to west. The main gold zone remains open further to the east and south. In addition the northern gold zone has not yet been fully delineated.
Several of the holes hit multiple gold intervals over total downhole widths of up to 130m. The main assay intervals of interest are summarised in the table below.
Results for the first three holes in the programme, OG16-50 to OG16-52 were reported in an earlier RNS release dated 08 August 2016. Among the more interesting intercepts from the later holes are 8.9m@1.14g/t Au from 44.1m depth in OG16-54 and 5.8m@1.68g/t Au from 67.2m depth in OG16-53.
Hole OG16-54 is particularly interesting as it extends the gold zone further to the south where grades appear to pick up again. The remaining holes confirm the occurrence of gold mineralised bands towards the east and southeast of the main gold zone. It appears that the gold bands may plunge steeply towards the west on some sections, with more pervasive mineralisation where hydrothermal alteration is more widespread.
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 |
*Downhole intervals quoted - true widths may be less
Assay results remain in line with, or ahead of, those recorded at Lydian's Amulsar project, 30km from Mutsk, where development has recently commenced on a 2.4Moz ore reserve grading 0.78g/t Au.
The Company will now assess the significance of the new gold extensions at Mutsk, and will prepare a follow-up plan over the coming weeks to further expand the gold resource and to consider other work required to advance the project towards maiden resource status.
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 the financing for the project and has commenced construction.
Orogen has just completed earning an 80% interest in the property and can increase that holding if its' local partners elect not to contribute towards future work programmes.
-ENDS-
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.
Enquiries:
Orogen Gold plc Colin Bird, CEO Alan Mooney, FD | +353 1662 8395 |
Cairn Financial Advisers LLP (Nominated Adviser) Liam Murray Sandy Jamieson | +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 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 recently announced 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.