Expanded Drilling Campaign Commencing on Gold JV
06 December 2011
Ormonde Mining plc
("Ormonde" or "the Company")
Expanded Drilling Campaign Commencing on Gold Joint Venture
The Board of Ormonde is pleased to report that following the recent positive gold intersection results from the initial drilling at the Zamora Gold Project in western Spain, an expanded drilling campaign has been agreed with our joint venture partner, Aurum Mining PLC ("Aurum Mining" or "Aurum"), and drilling has now commenced.
Key points:
· The initial two holes drilled on the "Facho" structure returned significant gold mineralisation:
o 12 metres grading 3.4 grammes per tonne ("g/t") gold within an overall interval of 30 metres grading 1.6g/t gold (from 75m depth) and
o 10 metres grading 2.1g/t gold (from 102m depth)
· A third hole, drilled on an unrelated structure, did not encounter any gold mineralisation.
· Following analysis of these initial results the Joint Venture has agreed a new drilling campaign with the intention of testing and expanding the "Facho" structure.
· This campaign will include ~2,000m of diamond drilling and it is anticipated that drilling will be complete and assays available during Q1 2012.
Kerr Anderson, Ormonde's Managing Director, said:
"Following the very positive initial drilling results at our Zamora Gold Project, which encountered significant gold intersections, we are pleased to have agreed an expanded drilling campaign with our joint venture partner Aurum Mining. This drilling programme, funded by Aurum, has now commenced with the aim of more thoroughly testing and expanding the Facho gold structure."
Detail
On 11 March 2011, Ormonde entered into a joint venture with Aurum Mining whereby Aurum can earn a 60% interest in two permits in the Zamora Province and a 54% interest in a further two permits in the Salamanca Province (one of which is under application). The total permit area comprises 106 square kilometres and Aurum may earn its interest by spending €500,000 on exploration activities over an 18 month period. The initial drilling has been focused on the two permits in Zamora and comprised a three-hole programme, totalling 672m, with two holes drilled on the "Facho" structure and a further hole on the "LLago" structure. Previous drilling by Ormonde at Facho had returned drillhole intervals including 23m grading 1.1g/t gold from 51 metres depth (including a high-grade interval of one metre grading 16.6g/t gold) and 9m grading 1.5 g/t gold from 56 metres depth. Gold mineralisation is hosted in steeply-dipping structures characterised by quartz veining, silicification and alteration.
The first two holes drilled by the Joint Venture on Facho intersected significant gold mineralisation in veined and altered granites, including 12 metres grading 3.4 g/t gold within an overall interval of 30 metres grading 1.6g/t gold and 10 metres grading 2.1g/t gold. A third hole drilled on an unrelated structure, some 1km away, did not encounter any gold mineralisation.
Based on analysis of these very encouraging drill results the Joint Venture has now agreed an expanded drilling campaign to more fully test and extend the Facho structure. This campaign, which has just commenced, will include ~2,000m of diamond drilling, with assays expected to be available during Q1 2012.
Kerr Anderson PhD EurGeolPGeo, Managing Director of Ormonde Mining plc, and a qualified person as defined in the AIM Note for Mining, Oil and Gas Companies, June 2009, of the London Stock Exchange, 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 or follow Ormonde on:
Twitter https://twitter.com/ormondemining or
Linkedin http://www.linkedin.com/company/ormonde-mining-plc
Enquiries to:
Ormonde Mining plc
Kerr Anderson, Managing Director Tel: +353 (0)1 8253570
Bankside Consultants
Simon Rothschild Tel: +44 (0)20 7367 8888 Mob: +44 (0)7703 167065
Murray Consultants
Ed Micheau Tel: +353 (0)1 4980300 Mob: +353 (0)86 803 7155
Davy (Nomad / ESM Adviser)
Eugenée Mulhern / Roland French Tel: +353 (0)1 6796363
Fairfax I.S. PLC (Joint Broker)
Ewan Leggat / Katy Birkin Tel: +44 (0)207 598 5368
ENDS
About Ormonde
Ormonde Mining Plc is admitted to trading on the AIM market in London and the ESM market in Dublin. Ormonde is a mineral development and exploration company focused on Spain (Ticker: ORM).
Ormonde's key activities include:
The Barruecopardo Tungsten Project - Ormonde is developing a low cost mining operation at Barruecopardo to produce ~12% of non-Chinese annual global mine production from mid 2013.
The La Zarza Copper Project- a large "massive sulphide" deposit; exploration for an enlargement to the current copper resources is being funded through a joint venture Antofagasta Minerals.
Gold Exploration in several highly prospective areas of western Spain.
This information is provided by RNS
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