ORM Ormonde Mining Plc

RNS Number:4473J
Ormonde Mining PLC
26 September 2006


                               Ormonde Mining plc

                 Drilling to Commence on Salamanca Gold Project
                  Update on Spanish Gold Exploration Projects


DUBLIN & LONDON: 26 September 2006 - Ormonde Mining plc ("Ormonde" or "the
Company") reports on progress on its gold exploration projects in northwest
Spain, with drilling programmes on the Salamanca Gold Project and other
properties to continue through Q4.


Highlights

  * Initial 6-8 hole drilling campaign commencing at Salamanca to test targets
    believed to signify a near surface, bulk tonnage gold system

  * Drilling also to be undertaken at Tracia, focusing on new targets defined
    by infill soil sampling and trenching

  * Permit applications submitted for a new project area; initial rock
    sampling programme has returned high grade gold values (21% of samples above
    10 g/t gold)


Kerr Anderson, Managing Director, said today,

"The opportunities within our portfolio of Spanish gold exploration projects
continue to develop and complement the progress we have made at La Zarza.  The
period until the year-end will be one of intense activity across our properties,
and we see distinct potential in particular in the Salamanca area."


Salamanca Gold Project

An initial 6-8 hole drilling campaign is commencing on the Can prospect which is
located at the northern end of the previously reported, extensive gold-in-soil
anomaly (strike length of around 2.5 kilometres).

New results from infill soil sampling over the prospect show a coherent gold
anomaly (over 100 parts per billion gold; maximum value 504 ppb gold) over a
strike length of around 500 metres and width of 50-150 metres, with more
discontinuous anomalism in a second zone to the west.

These anomalies correspond to broad zones of quartz-sulphide veins and
arsenopyrite-filled fractures occurring in a granite host-rock.  Based upon the
soil geochemical associations and the style of the mineralization, the Company
considers the zone to signify a near surface, bulk tonnage gold target.

Infill soil sampling is now being extended to the south over the remainder of
the initial 2.5 kilometre long anomaly to generate further targets for drilling.

At the Pino de Oro prospect, a drilling programme to test high-grade vein
structures intersected by holes drilled in the 1980s is being finalised and will
commence during October.  Historic drilling at Pino returned best intersections
of 1.0 metres @ 65.8 g/t gold from 74 metres, 2.0 metres @ 11.1 g/t gold from
132 metres and 1.0 metre @ 14.8 g/t gold from 44 metres.  Should further
drilling confirm the continuity of this mineralization, then the possibility
exists for a high grade vein-type deposit.


Tracia Gold Project

A drilling programme has commenced to test gold-in-soil anomalies identified by
the detailed sampling completed earlier this year.  This involves 4-5 holes for
a total of 700-800 metres of drilling.  The detailed sampling demonstrated that
Ormonde's drilling in 2005 did not test the better gold targets which were
defined by more widely spaced soil samples, and that further drilling is
warranted based on the results to date.  Recently excavated trenches show that
the best soil anomalies correspond to zones of significant alteration and
sulphide mineralization.

The best intersection in the previous campaign (hole TH-02, 5.2 metres @ 2.8 g/t
within 19 metres @ 0.9 g/t gold) was drilled on what is now regarded as the
margin of one of the main anomalies.


Salamon Gold Project

Three drill holes (total of 810 metres) were completed at Salamon between May
and July.  During this programme, Ormonde completed its earn-in expenditure to
acquire a 51 per cent interest in the project, and activities are now being
funded from monies received as grants and escrowed during the earn-in period.

One deep hole, SS-66, was drilled to follow up on results from drilling in 2005
that showed high-grade gold mineralization continuing at depth (4.8 metres @
25.3 g/t gold).  Results from hole SS-66 are disappointing and show that higher
grade mineralization deeper in the deposit is discontinuous.

Consequently, the focus at Salamon is on assessing the viability of the core
high-grade zone in the upper part of the deposit.  Two holes which were drilled
in order to better constrain this mineralization and collect samples for a
metallurgical testwork programme returned the following results:

Hole                                    From (m)                          Interval (m)                       Gold (g/t)

SS-67                                      68.80                                  1.05                             35.0
                                           77.65                                 20.15                              4.3
Including                                  89.80                                  8.10                              7.3
SS-68                                      65.70                                  9.20                              4.7


A composite sample will be submitted for metallurgical testwork, which will
primarily involve fine grinding and flotation of a sulphide concentrate to
establish gold recoveries to such a concentrate.


New Projects

Applications for three new Investigation Permits in northern Spain have been
submitted to the Provincial Mining Department.  Ormonde will be 100% owner of
the permits which cover an area of extensive gold-bearing quartz-sulphide
veining within granites of a similar geological setting to Salamanca and Tracia.
  Several of these veins were historically worked.

Reconnaissance sampling of the veins has returned high gold results in many of
the samples.  Of the 68 samples collected, 49% returned over 1 g/t gold, with
21% greater than 10 g/t gold and maximum values of 103.5, 53.6 and 35.4 g/ t
gold.  An aggressive exploration programme is planned upon granting of these
permits.

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.

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


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


About Ormonde

Ormonde Mining plc is quoted on the AIM in London and the IEX in Dublin.  The
Company's objective 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.

26 September 2006


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

DRLSEWFWISMSEFU

Ormonde Mining (AQSE:ORM)
Historical Stock Chart
From Jun 2024 to Jul 2024

Ormonde Mining (AQSE:ORM)
Historical Stock Chart
From Jul 2023 to Jul 2024