Last checked at 8 Nov 2016 07:00
08 November 2016
Orogen Gold plc
("Orogen" or the "Company")
Mutsk gold project Armenia
First Step-out Hole at Mutsk Extends Gold Zone
Orogen Gold plc (AIM: ORE), the AIM quoted gold exploration company, announces that the first hole of its step-out drilling programme at the Mutsk gold project in southern Armenia has intercepted gold mineralisation 160m south of previous drilling.
Highlights:
· Hole OG16-57 intersects 14.2m @ 0.83g/t Au, as well as several narrower zones of higher grade
· Deposit traced by drilling for at least 800m and still open to north and south
· Results confirm Company's belief that Mutsk represents a substantial gold discovery
· Second hole further to south cuts alteration zones - gold assays awaited
· Further step-out hole to north in progress
Orogen has completed the drilling of two of the three step-out diamond drill holes planned to assess the potential strike extent of the Mutsk gold deposit. Assay results have been received for the first of these holes, OG16-57, which was drilled at a 50-degree angle towards the east. Intervals of interest are detailed in the table below.
Hole No. | From (m) | To (m) | Interval (m) | Au g/t |
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 |
The gold intercepts are associated with sections of pale hydrothermal alteration and pyrite mineralisation, similar to those hosting gold elsewhere in the deposit. The hole was sited about 160m beyond the most southerly gold intercept reported previously on 6 September in hole OG16-54. The total strike length of the deposit revealed by drilling now extends to 800m, with the deposit still open to the north and further to the south. There is also scope for additional extensions to the east and to depth.
The new drilling supports Orogen's belief that Mutsk represents a substantial gold discovery with potential for significant expansion and the Company looks forward to providing further information on completion of the drilling programme and receipt of remaining assays.
For maps of the Mutsk property please refer to the Mutsk project page on the Orogen website at www.orogengold.com
Colin Bird, Chief Executive of Orogen, commented: "This drill result is very satisfying and has vindicated our belief that the deposit is open to the south. A second hole has been drilled 340 metres further south again and typical gold-related alteration has been identified but the core has yet to be assayed. We have moved the machine to the north to further expand the deposit on strike. If both holes are successful the strike footprint will be in the region of 1.4 km which will very positively end our 2016 Mutsk drilling campaigns. "
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.
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 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. The Company announced planned commencement of RC drilling at the project in an RNS dated 13 October 2016.