Salamanca Update
Ormonde Mining PLC
02 May 2006
Ormonde Mining plc
Ormonde Extends New Salamanca Gold Zone to 2.5 Kilometres
DUBLIN & LONDON: 02 May 2006 - Ormonde Mining plc ("Ormonde" or "the Company")
reports further positive exploration results obtained from the Salamanca Gold
Project in western Spain, where it is earning a 90 per cent interest. New
sampling has significantly increased the extent of a gold geochemical anomaly
reported in January 2006, which the Company believes could represent a large,
near-surface bulk-tonnage gold target.
HIGHLIGHTS
• The previously reported gold anomaly has been extended by a further 1
kilometre, giving it a total length of 2.5 kilometres.
• The width of the zone increases from around 200 metres to a maximum of 500
metres.
• Of 50 new rock samples collected, 36 (72 per cent) returned grades greater
than 1 gram per tonne ("g/t") gold, with best results of 58.4, 39.9 and 37.4
g/t gold.
Kerr Anderson, Managing Director, said today,
"With this new extension the gold anomaly has got bigger and better and I
believe that we have identified the geochemical footprint of a near-surface bulk
tonnage gold target. Initial drilling during the summer months will test the
overall grade across this extensive zone, but at this early stage the size and
continuity of the anomaly are very impressive."
"With Salamanca demonstrating very distinct potential, together with La Zarza we
now have two very strong projects to take the Company forward."
Soil Geochemistry
An information page on the new results, which includes colour plots of the
geochemical data, can be downloaded from the Company's website
www.ormondemining.com.
In January, Ormonde reported that results from a soil sampling programme had
produced an extensive and coherent gold anomaly over a part of its permit area
where no mineralization of any kind has previously been identified. The anomaly
has a linear geometry, probably representing a structural trend.
New sampling across the northern extension of the anomaly has shown that the
zone extends for a further 1 kilometre giving it a total strike length of 2.5
kilometres, and increases in width to a maximum of 500 metres. The anomaly is
defined by samples with grades exceeding 75 parts per billion ("ppb") gold, with
a maximum value of 467 ppb. This Northern Extension is now the most prospective
part of the overall zone.
Coincident soil geochemical anomalies in key metals (arsenic, bismuth, antimony
and tellurium) generally associated with the mineralization style being targeted
at Salamanca, lends support to the belief that this is a significant
gold-mineralized zone. The nature of limited outcrops, loose blocks and
knowledge from other localities in the area indicate that gold mineralization is
characterized by sulphide-bearing sheeted veins and arrays of
arsenopyrite-bearing, quartz filled fractures within a granite host rock.
Rock Sampling
New rock samples collected are sulphide-bearing loose blocks found across the
anomalous area where outcrop is very poor. Results can be summarized as follows:
Total samples: 50
Samples over 5 g/t Au: 16 (32 per cent)
Samples over 1 g/t Au: 36 (72 per cent)
Samples over 0.1 g/t Au: 45 (90 per cent)
All eight samples collected from within the Northern Extension have returned
high gold grades: 58.4, 37.4, 18.3, 6.4, 6.3, 4.6, 4.3 and 3.1 g/t gold. Samples
from several other new localities in the area of soil sampling have also
returned high grades, including 39.9, 29.6, 28.3, 24.4 and 19.8 g/t gold.
Kerr Anderson PhD EurGeol PGeo, Managing Director of Ormonde Mining plc, and a
qualified person as defined in the Guidance Note for Mining, Oil and Gas
Companies, March 2006, of the London Stock Exchange, has reviewed and approved
the technical information contained in this announcement.
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, PR and IR adviser,
Bankside Consultants Tel: +44 (0)20 7367 8871
ENDS
Background Information
Ormonde considers the Salamanca area to be one of the most prospective gold
terrains in Spain. The Company has agreements with two private Spanish companies
to earn a 90 per cent interest in a permitted area of 720 square kilometres, by
staged funding of exploration totalling €2.2 million over a five year period.
The permits cover deposits with potential for high-grade zones and several
prospects where there has been no or only limited follow-up exploration.
Ormonde Mining plc is quoted on the AIM in London and the IEX in Dublin. The
Company's strategy is to enhance shareholder value by developing gold-focused
projects in Spain and taking them into production. Ormonde has a strong local
Spanish management team, supported by a Board with extensive mine development
and exploration experience.
For more information and contact details including email, please visit
www.ormondemining.com.
02 May 2006
This information is provided by RNS
The company news service from the London Stock Exchange
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