Drilling Update

RNS Number : 0651Z

Ormonde Mining PLC

24 May 2016

 

24 May 2016

 

 Ormonde Mining plc

("Ormonde" or "the Company")

Latest Drilling Supports Potential for Stage 2 Underground Mining at Barruecopardo Project

The Board of Ormonde is very pleased to report the results of the recently completed drilling program at the Barruecopardo Tungsten Project in Salamanca, Spain ("Barruecopardo" or the "Project"). The purpose of this drilling program was to further confirm the potential for the mineral resources to be expanded and extended at depth, with a view to enabling development of a "Stage 2" underground mine at the Project.

Highlights

·     Excellent results obtained from 2,000m drilling program commenced during Q4 2015 including:

BAR83:            23m     @ 0.26% WO₃ from 172m (including 4m @ 1.23% WO₃)

BAR83:            5m       @ 1.95 % WO3 from 404m

BAR85:            25m     @ 0.21% WO₃ from 334m (including 5m @ 0.59% WO₃)

BAR86:            6m       @ 2.59% WO₃ from 253m

·     Results further support the current resource interpretation at Barruecopardo;

·     Confirm the significant potential to extend tungsten mineralisation at the Project: and

·     Demonstrate the potential to extend the nine year mine life at Barruecopardo substantially through the development of a "Stage 2" underground mine at the Project

Steve Nicol, Ormonde's Managing Director, commented:

"The excellent drilling results achieved from the recently completed drilling program below the base of the planned open pit are most satisfying, confirming our belief that there is significant potential to substantially extend the mine life at Barruecopardo through the development of a Stage 2 underground mine. Works in this regard, including further drilling, will continue during the project construction and initial production periods." 

Drilling Results 

The five hole drill program was carried out with the objective of confirming extensions to the mineralisation at depth beneath the main central part of the planned 9 year open pit, whilst also following up a potentially expanded zone of mineralisation under the shallow northern end of the planned open pit which was identified by drilling in 2012.

An opportunity exists to significantly extend the currently defined nine year mine life of the Project through the development of a Stage 2 underground operation, with the identification of additional mineral resources below the central part of the planned open pit being the primary focus in this regard.  The results of this initial drilling program lends growing support to this potential. The Project Company will continue to advance its goal of establishing and developing a fast track Stage 2 underground mine at the Project.

Drilling in the Northern area (BAR83, BAR84, and BAR87), below the shallow end of the currently defined open pit confirmed that this part of the resource is more complex, with multiple schist blocks present within the granite being intersected during drilling. Further drill testing is warranted to follow up on the original results from the 2012 drilling, but such work will not be immediately prioritised.

A full table of significant intercepts is provided below.

Project Timeline Update

In February the Company reported upon an administrative appeal in relation to an element of the compulsory land acquisition process underway which the Company considered to be merely vexatious. This belief has been supported by a recent negative finding (favourable to the Company's position) at the initial administrative level of this appeal process, however Project timelines remain likely to be impacted. Following receipt of updated specialist legal advice related to the relevant appeals process and timelines the Company is now finalising discussions with its project partner and debt provider on the optimisation of the project delivery schedule with details to be announced in due course.

Table of Significant Intercepts

Hole	Length of Hole		From	To	Length	WO3	Cut WO3
	(m)		(m)	(m)	(m)	(%)	(%)
BAR83	473.5		101	105	4	0.16
BAR83			172	195	23	0.26
		including	172	176	4	1.23
BAR83			291	298	7	0.37
BAR83			354	359	5	0.11
BAR83			404	409	5	1.95	1.02
BAR83			439	443	4	0.14
BAR83			451	455	4	0.12
BAR84	341.5		307	311	4	0.13
BAR84			329	333	4	0.29
BAR85	401.8		303	317	14	0.14
BAR85			334	359	25	0.21
		including	334	337	3	0.53
		including	354	359	5	0.59
BAR85			378	382	4	0.50
BAR86	418.5		180	184	4	0.25
BAR86			203	208	5	0.12
BAR86			253	259	6	2.59	1.68
BAR86			290	302	12	0.14
		including	290	291	1	1.03
BAR86			330	334	4	0.90
BAR87	359.6		331	336	5	0.11

Notes to table: 

All lengths are down-hole lengths.

Significant intercepts at 0.1% WO₃ cut-off (4m minimum width of intercept).

Where cut grades are shown these are after application of a 5% WO₃ top cut. 

Sampling, Assaying and Quality Control Measures were implemented as part of the drilling program.

All core has been routinely logged by an experienced geologist.  Relevant core intervals were split in half by diamond saw, with half being sent for assay and the other half being retained in the core boxes for reference.  Sampling is carried out over one metre intervals. 

Sample preparation and analyses were performed at ALS Chemex (Spain). Assays are reported using the fusion XRF method.  Reference samples (blanks, duplicates and certified standards) are routinely included in each sample batch as quality control measures.  In addition check assays are performed on selected mineralised samples.

EurGeol Dr. Mark Holdstock, PGeo, a qualified person as defined in the Guidance Note for Mining, Oil and Gas Companies, June 2009, of the London Stock Exchange, acting in his capacity as consultant geologist, has reviewed and approved the technical information contained in this announcement.

A glossary explaining technical terms contained in this announcement can be found at www.ormondemining.com/en/investors/technical_glossary.

For more information please visit www.ormondemining.com.

Enquiries to: Ormonde Mining plc

Steve Nicol, Managing Director Tel: [phone]

Capital M Consultants

Simon Rothschild Mob: [phone]

Murray Consultants

Mark Brennock  Tel: [phone] Mob: [phone]

Davy Corporate Finance (Nomad / ESM Adviser, Joint Broker and Financial Adviser) Eugenée Mulhern / Roland French Tel: [phone]

SP Angel Corporate Finance LLP (Joint Broker)

Ewan Leggat Tel: [phone]

About Ormonde

Ormonde Mining plc is admitted to trading on the AIM market in London and the ESM market in Dublin and is a mineral development and exploration company focused on Spain (Ticker: ORM). In partnership with funds managed by Oaktree Capital Management ("Oaktree") through the joint venture company Barruecopardo JV BV (Ormonde 30%/Oaktree 70%), the parties are developing a low cost tungsten mining operation at Barruecopardo in the Salamanca Province to become a major European supplier of tungsten. Ormonde also has other exploration projects for gold and copper. 

 

 

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