Drilling Results and Update
Ormonde Mining PLC
16 January 2006
Ormonde Mining plc
La Zarza Drilling Results and Update
DUBLIN & LONDON: 16 January 2005 - Ormonde Mining plc ("Ormonde" or "the
Company") reports the first set of results received from its Phase Two drilling
programme at the La Zarza Gold-Copper Project in southern Spain, where it is
earning a 70 per cent interest. Further progress in the metallurgical testwork
programme is also reported.
Ormonde's objective at La Zarza is to establish a mining operation producing
gold, copper and silver. Results from ongoing drilling, metallurgical testwork
and resource estimation will be incorporated into a Preliminary Assessment Study
to be conducted in Q2 2006, leading to a feasibility study later in the year.
MAIN POINTS
• Drilling results demonstrate continuity in copper mineralization over
extensive intervals with an intersection of 47.2 metres grading 2.0 per cent
copper, including 12.0 metres grading 2.5 per cent copper.
• Gold intersections include 4.0 metres grading 6.2 grams per tonne.
• Further positive results received from metallurgical testwork.
Kerr Anderson, Managing Director, said today,
"With the Phase Two drilling programme at the half way stage, we are satisfied
that this work, in conjunction with the testwork programme, will enable us to
move into a feasibility study this year. This will be a major step in achieving
our objective of adding significant value for shareholders by developing a gold
and copper mining operation at La Zarza."
PHASE TWO DRILLING
Results have been received for holes ORM12 to ORM17, drilled on two profiles in
the western section of the La Zarza deposit, with significant intersections as
follows:
Hole From (m) Width (m) Gold g/t Copper % Silver g/t Gold equiv.
ORM12 295.0 3.0 4.5 1.7 26.3 9.1
ORM14 67.9* 47.2 0.6 2.0 35.6 6.1
includes 67.9 7.2 0.7 2.4 75.0 7.8
and 79.0 12.0 0.7 2.5 45.0 7.5
199.0 5.0 0.6 2.5 29.0 7.2
219.0 4.0 6.2 0.3 27.0 7.4
ORM15 72.0* 37.0 0.6 1.7 25.7 5.2
includes 81.0 5.0 0.8 2.1 25.6 6.3
134.0 24.0 0.4 2.1 24.8 5.9
ORM16 149.0 6.0 4.5 0.4 27.8 6.0
includes 150.0 2.0 10.2 0.4 26.0 11.6
Notes:
All intersections are hosted by the Silicatado unit, with the exception of ORM16
which occurs within Massive Sulphide at the contact with the Silicatado.
In-situ gold equivalents, shown for comparative purposes, are calculated using
the following prices: $450/oz Au, $3,500/t Cu, $8/oz Ag.
* = Due to drilling angles these two intersections are on average 20 metres
apart.
Ormonde's Phase Two drilling programme is partially infilling the areas covered
by previous operator SEIEMSA's 1997 non-JORC resource estimate, to determine
grade and geological continuity of gold and copper mineralization to a higher
level of confidence and thereby allow a proportion of the deposit to be
classified in the JORC Indicated Mineral Resource category. This category of
resource is required for preliminary mine design purposes as part of the
feasibility study. The programme is focusing on the upper part of the La Zarza
deposit where historical underground mine workings to extract pyrite extend into
the gold-copper body.
The drilling to-date has demonstrated continuity in copper mineralization over
extensive intervals, although structural offsets may have resulted in more
irregular distribution of gold mineralization in the upper-western part of the
deposit.
The Phase Two programme is ongoing and due for completion in February. On
receiving all assay data from the programme, the Company will conduct a revised
geological interpretation of the deposit, leading to a JORC-compliant resource
estimation.
METALLURGICAL TESTWORK
Further results have been received from ongoing metallurgical testwork on both
the Gold and Copper Silicatado Composites.
Gold Composite
Initial flotation tests showed up to 60 per cent of the gold was recovered by
standard flotation procedures to first-stage copper and lead concentrates, with
a further 20-30 per cent going into a pyrite concentrate (previously reported).
Initial leach tests on the pyrite concentrate show gold recoveries of around 20
per cent, however it is anticipated that this may be improved by using other
recovery techniques.
Ongoing flotation testwork is targeted at maximising the amount of gold and
silver that can be recovered to the copper and lead concentrates, this being the
simplest and lowest cost processing route. Importantly, flotation would also
recover value from the copper contained in the Gold Silicatado, not previously
contemplated by a leaching option.
Copper Composite
Results from a second copper composite indicate even better recoveries than
those previously reported, suggesting that final copper concentrates should have
grades of greater than 20 per cent copper at recoveries of 80-90 per cent.
Conventional, single-stage flotation is envisaged to recover copper and silver
from the Copper Silicatado, and Locked Cycle tests have been commissioned to
establish final concentrate specifications.
Enquiries to:
Kerr Anderson, Managing Director,
Ormonde Mining plc
Tel: +353 (0)46 9073623
Fraser Gardiner, Director,
Ormonde Mining plc
Tel: +353 (0)86 3931178
Simon Rothschild,
Bankside Consultants
Tel: +44 (0)20 7367 8871
Mobile: +44 (0)7703 167065
BACKGROUND INFORMATION
The La Zarza Gold-Copper Project is located in the Iberian Pyrite Belt mining
district of southwest Spain. Historically mined for pyrite by open pit and
underground, unexploited gold and copper mineralization was drilled in the 1990s
by a BRGM-Normandy joint venture (SEIEMSA), which outlined a non-JORC resource
estimate of 950,000 ounces of gold, 9.5 million ounces of silver and 81,000
tonnes of copper. In June 2004, Ormonde signed an agreement with the property
owner whereby Ormonde can acquire a minimum 70 per cent interest in the La Zarza
concessions by spending €1.8 million over three years.
Ormonde Mining is quoted on the AIM and IEX markets in London and Dublin,
respectively. The Company is focused on acquiring and developing gold projects
in Spain where it has a strong local Spanish management team, supported by a
Board with extensive exploration expertise and mine development experience.
For more information and contact details including email, please visit
www.ormondemining.com.
16 January, 2006
This information is provided by RNS
The company news service from the London Stock Exchange
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