Drilling Update
November 20 2006 - 2:01AM
UK Regulatory
RNS Number:3101M
Ormonde Mining PLC
20 November 2006
Ormonde Mining plc
New Zinc Resource at La Zarza
Drilling Update
DUBLIN & LONDON: 20 November 2006 - Ormonde Mining plc ("Ormonde" or "the
Company") reports a JORC-compliant Mineral Resource estimate for zinc contained
in the Massive Sulphide unit at its La Zarza Project in southwest Spain. This
is in addition to the existing copper and gold resources within the Silicatado
unit reported in April 2006, and represents a significant increase in the
Project's resource inventory.
Ormonde is currently working towards a Bankable Feasibility Study ("BFS") at the
Project, where it is earning a 70% interest. The Company recently completed a
positive pre-feasibility Scoping Study based on an underground mining operation
producing 450,000 tonnes per year over a 10 year mine life.
HIGHLIGHTS
* At a cut-off grade of 4.0% zinc, this new Massive Sulphide resource is
estimated at 2.9 million tonnes grading 4.5% zinc, for a total of 130,300 tonnes
of contained zinc; at a cut-off grade of 3.5% zinc, this rises to 261,400 tonnes
of contained zinc
* The grades of other metals in this resource are 0.5% copper, 1.0%
lead, 33 g/t silver and 0.8 g/t gold
* This zinc resource will be included with the Silicatado resources in
the Bankable Feasibility Study
* The infill drilling programme has been completed with a total of 53
holes now drilled; latest assay results are reported below
Kerr Anderson, Managing Director, said today,
"The addition of this significant polymetallic resource could enhance the
economics of the La Zarza project quite considerably. The extra tonnage
potentially extends mine life, maximizing returns on capital investment in
processing plant and underground development, and serves to highlight further
resource potential."
MASSIVE SULPHIDE ZINC RESOURCE
The La Zarza Deposit contains two mineralized units, the Silicatado unit and the
Massive Sulphide unit. Copper and gold resources reported in April 2006 were
estimated entirely within the Silicatado unit, and no Massive Sulphide resources
have previously been reported.
The Massive Sulphide unit occurs as a steeply dipping body immediately adjacent
to the Silicatado. Ormonde's drilling programmes have confirmed that the
Massive Sulphide contains significant concentrations of zinc and other metals
that could feasibly be exploited by an extension to the proposed underground
mining operation - Ormonde's positive pre-feasibility study published in
September '06 was based on Silicatado resources only.
The current Massive Sulphide zinc resource is based on data from Ormonde's
drilling programmes and a database of previous operator drilling. The thickness
of the zinc-rich zone typically ranges from 8 to 25 metres. The resource
currently extends from near-surface to 500 metres depth and is stated using
different cut-off grades as follows (see Note 1):
Massive Sulphide Zinc Resource Estimate
Category Cut-off Tonnes Zn % Pb % Cu % Ag g/t Au g/t
(Zn%) (millions)
Inferred 4.0 2.9 4.5 1.0 0.5 32.6 0.8
3.5 6.5 4.0 1.0 0.5 32.7 0.9
3.0 10.1 3.8 1.0 0.6 33.2 0.9
The corresponding contained metal totals are as follows:
Cut-off Contained Contained Pb Contained Contained Contained
(Zn%) Zn (t) (t) Cu (t) Ag (Moz) Au (oz)
4.0 130,300 29,000 15,400 3.0 78,000
3.5 261,400 65,000 34,400 6.8 180,000
3.0 378,700 97,400 57,300 10.7 286,900
In this initial Massive Sulphide zinc resource estimate, all resources have been
classified in the Inferred resource category (JORC, 2004). This approach has
been adopted as not all assay results from the Company's Phase 3 drilling
programme have yet been received. This resource is based on data from 57 drill
holes. The Company intends to carry out a revised Mineral Resource estimate for
the entire project in Q1 2007, and believes that at that time a high proportion
of the Massive Sulphide zinc resource will be upgraded to the Indicated
category.
Metallurgical testwork on representative samples of the Massive Sulphide zinc
resource will be carried out as part of the ongoing BFS programme. However, in
other massive sulphide deposits in the Pyrite Belt area zinc and other metals
have been extracted from ore by conventional flotation to concentrates. If the
La Zarza Massive Sulphide zinc material behaves in a similar way, then
processing would be by a similar flotation process to that already proposed for
the Silicatado copper and gold resources.
PHASE 3 DRILLING UPDATE
The Company reports that its Phase 3 infill drilling programme is now completed.
Twenty-eight diamond holes were drilled in the programme (ORM-26 to ORM-53)
for a total of 6,656 metres. Ormonde has drilled a total of 14,000 metres on
the La Zarza Project.
Significant results received to-date from the Phase 3 programme are as follows:
Hole Zone From (m) Width (m) Cu % Zn % Pb % Au g/t Ag g/t
ORM-26 CU 270.0 8.0 2.3 0.1 0.1 0.4 78.6
ORM-27 ZN 401.0 20.0 0.5 3.5 1.2 1.5 55.7
ORM-28 CU 324.0 4.0 2.8 0.1 0.2 1.3* 59.8
ZN 376.0 20.0 0.7 4.6 1.2 1.7* 48.8
ORM-29 ZN 281.0 7.1 0.5 5.7 2.0 0.9* 41.8
ORM-30 CU 281.0 7.0 2.8 2.9 0.8 0.5 37.0
ZN 350.0 10.0 0.5 5.0 0.3 0.4 15.4
ORM-31 551.0 13.0 0.9 4.5 2.2 2.6 43.2
includes CU 551.0 3.0 2.5 3.4 0.7 0.4 42.3
and AU 559.0 5.0 0.3 3.8 2.5 5.8 38.2
ORM-32 ZN 260.0 7.7 0.5 3.8 1.3 1.7 44.9
Zone codes: CU - Copper Silicatado; AU - Gold Silicatado; ZN - Massive Sulphide
Zinc
* = Gold assays subject to finalization
Assays for all remaining holes are expected by the end of January 2007,
following which a revised Mineral Resource estimate will be carried out. As a
result of the infill drilling, Ormonde expects a high proportion of the
resources to be classified in the Indicated category.
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 Mob: +44 (0)7703 167065
NOTE 1
Mineral Resources are reported in compliance with the standards set out in the
JORC Code (2004). Resources have been modelled and estimated using the Datamine
software package by Prehenita, S.L., a consultant to Ormonde, and have been
approved by Kerr Anderson PhD EurGeol PGeo, Managing Director of Ormonde. Dr.
Anderson is a member of the Institute of Geologists of Ireland. He has
sufficient experience which is relevant to the style of mineralization and type
of deposit under consideration to qualify as a Competent Person as defined in
the 2004 Edition of the JORC Code and a qualified person as defined in the
Guidance Note for Mining, Oil and Gas Companies, March 2006, of the London Stock
Exchange.
Further details on the Mineral Resources can be found in the Technical Notes
section at the end of this announcement. A glossary of terms is also appended.
About La Zarza
The La Zarza Copper-Gold Project comprises a group of Mining Concessions
covering a total of 13 square kilometres in the Iberian Pyrite Belt mining
district of southwest Spain, some 50 kilometres north of Huelva and 90
kilometres northwest of Seville.
In September 2006, Ormonde published a positive pre-feasibility study for the
Project and work towards completion of a Bankable Feasibility Study is currently
in progress. The Project benefits from existing road, rail, power and water
infrastructure in the immediate proximity, a local skilled workforce and
available contractors in this historic mining area, and appropriate regulatory
and investment regimes.
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 mining
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 please visit www.ormondemining.com.
GLOSSARY
TERM DEFINITION
Competent Person A person who is a Member or Fellow of The Australasian Institute of Mining
and Metallurgy, or of the Australian Institute of Geoscientists, or of a '
Recognised Overseas Professional Organisation' ('ROPO') included in a list
promulgated from time to time. A 'Competent Person' must have a minimum of
five years experience which is relevant to the style of mineralization and
type of deposit under consideration and to the activity which that person
is undertaking.
Cut-off grade The grade of material below which mining is uneconomic.
g/t Grams per tonne.
Indicated Mineral Resource That part of a Mineral Resource for which tonnage, densities, shape,
physical characteristics, grade and mineral content can be estimated with a
reasonable level of confidence. It is based on exploration, sampling and
testing information gathered through appropriate techniques from locations
such as outcrops, trenches, pits, workings and drill holes. The locations
are too widely or inappropriately spaced to confirm geological and/or grade
continuity but are spaced closely enough for continuity to be assumed.
Inferred Mineral Resource That part of a Mineral Resource for which tonnage, grade and mineral
content can be estimated with a low level of confidence. It is inferred
from geological evidence and assumed but not verified geological and/or
grade continuity. It is based on information gathered through appropriate
techniques from locations such as outcrops, trenches, pits, workings and
drill holes which may be limited or of uncertain quality and reliability.
JORC Code (2004) Australasian Code for Reporting of Exploration Results, Mineral Resources
and Ore Reserves "The JORC Code" 2004 Edition.
Mineral Resource A concentration or occurrence of intrinsic economic interest in or on the
Earth's crust in such form, quality and quantity that there are reasonable
prospects for eventual economic extraction. The location, quantity, grade,
geological characteristics and continuity of a Mineral Resource are known,
estimated, or interpreted from specific geological evidence and knowledge.
Mineral Resources are sub-divided, in order of increasing geological
confidence, into Inferred, Indicated and Measured categories.
oz / Moz Ounce / million ounces.
t Tonne (1,000 kg).
TECHNICAL NOTES
DATA USED
The Mineral Resource estimation is based on drilling data from Ormonde's Phase
One and Phase Two drilling programmes, results to-date from Phase Three
drilling, and the database of historical drilling by SEIEMSA and other previous
operators. Historical drill holes which were not considered to be reliable were
removed from the Mineral Resource dataset. Underground channel samples reported
by SEIEMSA and used for their 1997 resource estimation could not be verified and
are therefore not included in Ormonde's Mineral Resource dataset.
SAMPLING, LABORATORIES AND QUALITY CONTROL MEASURES
All drilling on the project has been core drilling. All Ormonde's drilling has
been with either HQ or NQ core diameter. All Ormonde's holes have had
appropriate collar surveys by an independent licensed Spanish surveyor, and down
hole surveys. All core has been routinely logged, including records of core
recovery, by an experienced geologist. Relevant core intervals were split in
half by diamond saw, with half being sent for assay and the other half being
retained in the core boxes for reference.
Samples are analysed at ALS Chemex, Vancouver and ASA-OMAC Laboratories,
Ireland. Initial sample preparation involving crushing of the half core to 85%
passing 2mm is carried out at a local sample preparation facility. A one
kilogram split of the -2mm material is then sent directly to the laboratory for
pulverising and assay by appropriate methods. Reference samples which include
blanks, internationally accredited standards and duplicates are routinely
included in each sample batch as quality control measures.
ESTIMATION METHODOLOGY
The Mineral Resource estimate has been carried out using the Datamine software
package by Spanish consultancy company, Prehenita, S.L.. Prehenita geologist
Jose Manuel Prada is a mine geologist with 20 years of experience including 12
years in the field of resource estimation. He is an expert in the use of
Datamine having carried out several resource and reserve estimation projects.
He is highly experienced in the geology of the Iberian Pyrite Belt and as
Project Geologist for La Zarza since June 2004 he is appropriately qualified to
conduct the Mineral Resource estimate.
Geological & Block Model Development
Ormonde logging data, historical drill logs and historical cross sections and
underground level plans have been used to develop a 3-dimensional wireframe
model for the main mineralized units which comprise the La Zarza deposit. The
Massive Sulphide zinc resource estimate was carried out entirely within the
Massive Sulphide unit.
A block model was created constrained by the known boundaries of the Massive
Sulphide unit. The blocks have dimensions of 10 x 10 x 10 metres.
Determination of Block Density
A Specific Gravity of 4.5 has been assumed for all blocks. This is based on
experience in other massive sulphide deposits in the Pyrite Belt, and
measurements on La Zarza drill core.
Estimation Methods
The resource estimation process used can be summarized as follows:
* Compositing of individual assay intervals to 2 metre
composites, followed by statistical analysis of the composite dataset
* Construction of multi-directional variograms and determination
of appropriate search ellipses
* Estimation of metal grades in the block model using Ordinary
Kriging, with cross-validation by Indicator and Point Kriging
Resource Categorization
The Massive Sulphide zinc resource is currently classed entirely in the Inferred
resource category of The JORC Code (2004). See the Glossary for definitions of
the JORC resource categories.
20 November 2006
This information is provided by RNS
The company news service from the London Stock Exchange
END
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