La Zarza update

Ormonde Mining PLC
25 November 2004

                               ORMONDE MINING PLC

   Phase One drilling to commence at the La Zarza gold-copper deposit, Spain

DUBLIN & LONDON: 25 November 2004 - Ormonde Mining plc announces that it is
commencing its first phase of drilling at the La Zarza gold-copper deposit in
southern Spain, where resources of 950,000 ounces of gold, 9.5 million ounces of
silver and 180 million pounds of copper have been established in the inferred
resource category by a previous operator.


The preliminary drilling programme of approximately 2,000 metres in six holes
has two purposes:


  • Confirmation of previous operator resource data


  • To obtain representative core samples for metallurgical testing.


The programme will test both gold- and copper-rich parts of the deposit where
intersections from past drilling (widely-spaced) include the following:


HOLE                       FROM (m)                 INTERVAL (m)               GRADE
Gold:
ZA6                        64                       21                         4.0 g/t gold
including                                           8                          6.1 g/t gold
ZA4                        89                       10                         5.6 g/t gold
ZA10                       118                      25                         5.1 g/t gold
ZA1                        543                      7                          12.1 g/t gold

Copper:
ZA21                       246                      14                         3.2 % copper
ZA1                        529                      8                          2.6 % copper


The objective of the metallurgical testing, to be supervised by an independent
senior metallurgist, is to identify the optimum processing methods for both gold
and copper "ore types". Data from limited work carried out by the project's
previous operator reported gold recoveries of 50 to 55 per cent by conventional
leaching and over 80 per cent with oxidation pre-treatment. Copper recoveries by
flotation are expected to be high (over 80 per cent).




TIMETABLE


  • Assay results from the current drilling are expected to be announced,
    together with a new resource estimate, during the first quarter of 2005


  • The metallurgical testing will also commence in Q1 2005


  • This will be followed by an infill "pre-feasibility" drilling programme
    during the second half of 2005.


Chairman Mike Donoghue commented, "This is the first stage of an evaluation
programme with the objective of putting La Zarza's gold and copper resources
into production. Our aim is to develop an operation in two stages, with
production in stage one being in the order of 30,000 ounces of gold, 350,000
ounces of silver and 3,500 tonnes of copper per year. In the second stage we
would hope to substantially increase the production".




BACKGROUND TO THE LA ZARZA PROJECT

Ormonde is currently earning a 70 per cent interest in the La Zarza project by
funding programmes to the value of €1.8 million during a three year period,
under an option agreement with the property owner, Nueva Tharsis S.A.L., signed
in June 2004.


Ormonde's main focus at La Zarza is on an inferred resource of 5.9 Mt grading
5.0 g/t gold and 50 g/t silver (950,000 ounces of gold, 9.5 million ounces of
silver), hosted by the "Silicatado" rock type. A copper resource of 2.9 Mt
grading 2.8 % copper (180 million pounds of copper) occurs adjacent to the gold
resource. All resources are open laterally and at depth, and the total
mineralized system at La Zarza has a strike length of over three kilometres.


The deposit, which has both open-pit and underground mining potential, is
situated within an existing Mining Concession, and the Company has received
early indications of strong local government support including grants for
investigation works.




Enquiries to:


Ormonde Mining plc

Kerr Anderson, Managing Director [phone]

Fraser Gardiner, Investor and Media Relations [phone]

[e-mail]


John Carroll, Director [phone]


Bankside Consultants

Simon Rothschild [phone] / [phone]

Keith Irons [phone] / [phone]






BACKGROUND INFORMATION

Ormonde Mining is listed on the Irish Stock Exchange and also trades on London's
SEAQ platform. The Company is focused on acquiring and developing high-grade
gold projects in Spain. Ormonde's portfolio contains advanced projects with
substantial gold (and copper) resources, including La Zarza with one million
ounces of gold, and other properties where the Company anticipates that drilling
will identify significant new resources. The Company has a strong local Spanish
management team, supported by a Board with extensive exploration expertise in
the region and mine development experience.


For more information, please visit www.ormondemining.com.


Current metal prices: Gold $446/ounce; Silver $7.6/ounce; Copper $1.4/pound




25 November, 2004


                      This information is provided by RNS
            The company news service from the London Stock Exchange