Tungsten Drilling Results

27 Sep 2007 07:02

Ormonde Mining PLC27 September 2007 27 September 2007 Ormonde Mining plc Ormonde Drill Intersections Extend High Grade Tungsten Zone DUBLIN & LONDON: 27 September 2007 - Ormonde Mining plc ("Ormonde" or "theCompany") announces further drill intersections at its Barruecopardo TungstenProject in Salamanca, Spain. HIGHLIGHTS • The main high-grade tungsten zone has been extended to the northfor a further 150 metres, giving a total tested strike length of 750 metres • The zone has also been shown to extend to a depth of over 175metres below ground surface • The zone is still open to the north and at depth, and to thesouth below the main open-pit, therefore showing increasing resource potential • Drilling continues to be successful with new intersectionsincluding 2 metres grading 0.9% WO3, 1 metre grading 1.4% WO3 and 4 metresgrading 0.6% WO3. Kerr Anderson, Managing Director, said today, "We are very pleased with the latest results which further extend the strike anddepth of the high-grade tungsten zone, and support the Directors' growingconfidence that it should be possible to establish a high margin, low capitalcost, underground mine on the deposit. Drilling is continuing with the twinobjectives of defining an initial mineable tungsten resource as soon as possibleand establishing the potential overall size of the deposit." Drilling to-date at Barruecopardo has confirmed a steeply dipping zone oftungsten mineralisation at least 750 metres long and over 175 metres deep. Anopen-pit to the south of the drilled area indicates that the mineralisationcontinues southward for 700-800 metres, to give a total potential strike lengthof 1,550 metres. A preliminary analysis of the deposit indicates that, provided the tungstengrade and continuity continues with depth, it should be possible to establish ahigh margin, low capital cost, underground mine on the deposit. Processingwould be by conventional gravity concentration. A project profile containing graphics relating to the Project and a full list ofdrilling results to-date can be downloaded from the Company website atwww.ormondemining.com/doc/pdf/profbar0709.pdf. Drilling Results Ormonde's ongoing drilling programme is being carried out to establishcontinuity of the high tungsten grades and define initial resources atBarruecopardo. The latest results include holes which extend the mineralisationto the north by 150 metres (BAR-16 and 17) and increase its depth extent (BAR-18and deepening of an earlier hole BAR-6), and are reported as follows: Hole From (m) Length (m) WO3 % BAR-16 91.0 1.0 1.4and 202.0 4.0 0.6 BAR-17 125.0 2.0 0.9 BAR-18 91.0 1.0 0.7and 254.0 1.0 0.3 BAR-6 245.0 1.0 0.7 In interpreting the drilling results the following should be noted: • Much of Western production comes from small, narrow vein undergrounddeposits. For comparison, ore reserve grades at two of the main Westernproducing mines, Cantung (Canada) and Panasquiera (Portugal) are 1.17% and 0.23%WO3, respectively. • The Barruecopardo tungsten mineralisation contains coarse grainedtungsten minerals which will yield a strong nugget effect and necessitatesclosely spaced drilling and application of an upper cut for resource definition. The preliminary figures indicate that an upper cut of 2.65% WO3 is applicable. • Current prices for tungsten concentrates are in the region of US$180per metric tonne unit (or US$18,000 per tonne of tungsten trioxide, WO3), with agrade of 1% WO3 having an in-the-ground value of approximately US$180 per tonneof mineralised rock. Kerr Anderson PhD EurGeol PGeo, Managing Director of Ormonde Mining plc, and aqualified person as defined in the Guidance Note for Mining, Oil and GasCompanies, March 2006, of the London Stock Exchange, has reviewed and approvedthe technical information contained in this announcement. A glossary explaining technical terms contained in this announcement can befound at www.ormondemining.com/projects/glossary.html. Enquiries to: Ormonde Mining plcKerr Anderson, Managing Director,Fraser Gardiner, DirectorTel: +353 (0)46 9073623 Bankside ConsultantsSimon Rothschild Tel: +44 (0)20 7367 8871 Mob: +44 (0)7703 167065 Davy (Nominated Adviser to Ormonde)Fergal Meegan Tel: + 353 1 679 6363 ENDS About Ormonde Ormonde Mining plc is quoted on the AIM in London and the IEX in Dublin.Ormonde is a mineral development and exploration company focused on Spain, withthe objective of developing mining projects and taking them into production. Ormonde's main project is the La Zarza Copper-Gold Project in southern Spainwhere a Bankable Feasibility Study is being carried out by leading internationalengineering firms. A pre-feasibility study completed in September 2006 showedpositive economics for the development of an underground mining operation at LaZarza. Ormonde is also evaluating the Barruecopardo high-grade tungsten deposit in theSalamanca area. Following two stages of exploration drilling, the definition ofhigh-grade tungsten mineralisation and preliminary metallurgical testwork, thisproject has been upgraded to advanced project status. A continuous programme ofin-fill and step-out drilling is now underway with a view to fast-tracking theevaluation of this project. Ormonde is also exploring several gold exploration targets in the Salamanca areaand in northwest Spain. For more information please visit www.ormondemining.com. About Tungsten Tungsten is most frequently used as tungsten monocarbide, which has a hardnessclose to diamond, in cemented carbides. The principal tungsten applicationsinclude its use in cutting steels and in tungsten alloys, electronics, andchemical products. Prices of tungsten concentrates are expected to remain buoyant for the longterm, and are currently quoted by the Metal Bulletin in the range $160-$180 permetric tonne unit. A metric tonne unit is equal to 10kg of WO3, which equatesto 1.0% contained WO3 in the rock. This information is provided by RNS The company news service from the London Stock Exchange