Placing and Dalli Copper-Gold

RNS Number : 5112J

Persian Gold PLC

04 December 2008

 



4th December 2008

PERSIAN GOLD PLC

Placing & Dalli Copper-Gold Update

Highlights:

• Placing of 11,250,000 new ordinary shares

• Positive results from trenching programme at North Hill of Dalli Copper-Gold 

• Detailed 3D model of the Dalli deposit to be completed within 2 months

Persian Gold Plc ('the Company'), the Irish based Iranian explorer, is pleased to announce it has completed a placing of 11,250,000 new ordinary shares at a price of £0.04 per share to raise approximately £450,000 (before expenses). The shares have been placed under the existing share authorities and will rank pari passu with the existing issued ordinary share capital.

In addition, for every two new shares acquired, each subscriber is entitled to receive one warrant at an exercise price of £0.04 with an exercise period of two years from the date of issue.

The proceeds of the placing will be used to provide additional working capital.

Application for the 11,250,000 of the new ordinary shares to be admitted to trading on AIM has been made.  Admission is expected on 9 December 2008.

Following the placing the directors' interests are:

	No of shares before placing	Percentage before placing	No of shares following placing	Percentage following placing
John Teeling	9,800,400	15.46	11,675,400	15.64
Jim Finn	4,700,400	7.41	5,950,400	7.97
Jack Teeling	4,100,000	6.47	4,725,000	6.32
David Horgan	4,200,000	6.62	5,450,000	7.30
Manouchehr Takin	-	-	300,000	0.40

  In addition to the placing announcement, the Company is pleased to provide an exploration update on the trenching programme at the North Hill of the Dalli copper-gold project located 200km southwest of Tehran.

Dalli is a gold/copper porphyry with extensive surface mineralisation and two distinct centres of pervasive alteration located 1.7km apart. It is a joint venture between Persian Gold (70%) and Dorsa (30%), a local Iranian company.

The North Hill target covers an area totalling 350m × 400m. A total of 435 trench samples were collected every two metres from 6 trenches (totalling 870m). Results have been received from the ALS Chemex Lab in Canada. These results include: 

Trench No.	Total Length	Mineralised Interval(m)	Gold (g/t)	Copper (%)
TR-04	198	198	1.1	0.22
TR-05	188	188	0.84	0.17
TR-06	98	98	1.1	0.23
TR-07	44	44	1.0	0.23
TR-3940	62	30	0.4	0.17
TR-4080	100	46	0.5	0.21

These results are positive and outline the zone of surface gold mineralisation which is present in the North Hill litho cap. Trenching has confirmed that the gold mineralisation correlates with strongly silicified quartz diorite intrusive rocks.  

Two of these trenches were planned along the azimuth of two previously drilled holes (DDH03 and DDH04). This correlation between the holes, trenches, and the geophysical signatures indicates gold concentrations at the top of North Hill. New vertical core holes will be planned for determination of the depth extensions of gold mineralisation in this area.

A detailed 3D model of the deposit will be completed within two months for an estimation of potential tonnage.

This release has been approved by Bahman Rashidi, Country Manager, for Persian Gold and a qualified geologist with more than eleven years experience exploring in Iran.

John Teeling, Chairman of Persian Gold, commented;

'Raising new finance for gold exploration is difficult, so it is a pleasure to report that your directors and a number of private investors have provided new capital to allow Persian Gold continue to explore in Iran.

Economic circumstances will change as will politics, but geology will not. Iran remains one of the best underexplored gold exploration targets available. The money will be spent on our existing projects and in progressing a number of new opportunities.'

Enquiries:

Persian Gold PLC
John Teeling, Executive Chairman	[phone]
College Hill
Paddy Blewer Nick Elwes	[phone]
Blue Oar Securities Plc
Nick Lovering Simon Moynagh	[phone]

 

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