Tungsten Update
January 09 2007 - 2:01AM
UK Regulatory
RNS Number:1802P
Ormonde Mining PLC
09 January 2007
09 January 2007
Ormonde Mining plc
Drilling Results Highlight Potential for New Tungsten Resource in Salamanca
DUBLIN & LONDON: 09 January 2007 - Ormonde Mining plc ("Ormonde" or "the
Company") reports tungsten results from its drilling programme on the northern
extension of the Barruecopardo vein system, and updates on its Tungsten Tailings
Project located in the Salamanca area in western Spain.
Main Points
* Drilling results highlight potential for a new "hard rock" tungsten
resource in the northern extension of the historically mined Barruecopardo
vein system
* These results include high-grade tungsten values of 4.5%, 2.4% and 1.6%
WO3 (tungsten trioxide) over 0.6 to 1.0 metre intervals
* Positive tungsten results from scout drilling on the nearby Valdegallegos
prospect indicate other possible tungsten zones in the immediate area
* First stages of gravity separation testwork programme on the adjacent and
separate Tungsten Tailings Project have been completed and initial results
are awaited
Kerr Anderson, Managing Director, said today,
"The widths and grades of tungsten mineralization intersected in our drilling
are encouraging and highlight the potential to delineate a new "hard rock"
resource at Barruecopardo. We now plan to carry out a follow-up drilling
programme to establish whether there is sufficient continuity in the vein
system, meriting a more comprehensive drill-out of the deposit for resource
delineation.
"We are also encouraged by tungsten prices which remain high and by the
continuing strong fundamentals in the tungsten market."
Drilling Results - Barruecopardo Northern Extension
Six core drill holes (BAR-1 and BAR-3 to BAR-7) have been completed on the
northern extension for a total of 1,130 metres. Holes were drilled on three 200
metre spaced sections to test 400 metres of strike length and 150 metres of
depth extent. All assay results have been received and are summarized in the
table below, which includes results previously reported on 9th October 2006.
The table also includes repeat assay results received for samples which gave
high-grade tungsten values above the analytical detection limit in the original
assaying (denoted with an asterisk *).
Hole From (m) To (m) Length (m) WO3 %
BAR-1 80.4 81.4 1.0 0.13
89.3 95.9 6.6 0.05
115.7 116.7 1.0 0.58
BAR-3 36.5 37.5 1.0 0.22
42.3 43.3 1.0 0.32
101.5 109.2 7.7 0.51
including 101.9 102.9 1.0 2.42*
144.3 145.4 1.1 0.13
BAR-4 27.6 40.8 13.2 0.14
including 31.9 34.3 2.4 0.37
110.4 111.7 1.3 0.31
122.0 122.9 0.9 1.58*
142.5 143.1 0.6 4.48*
BAR-5 22.7 23.5 0.8 0.65
34.8 36.0 1.2 0.10
133.7 135.4 1.7 0.39
BAR-6 106.3 106.8 0.5 0.32
160.2 161.4 1.2 0.14
181.6 182.8 1.2 0.55
BAR-7 72.1 73.1 1.0 0.05
In interpreting these results the following should be noted:
* Current prices for tungsten concentrates are in the region of US$165 per
metric tonne unit (or US$16,500 per tonne of tungsten trioxide, WO3), with a
grade of 1% WO3 having an in-the-ground value of approximately US$165 per
tonne of mineralized rock. Prices have been reported as high as US$220
during the past 12 months.
* Much of Western production comes from small, narrow vein underground
deposits. For comparison, ore reserve grades at two of the main Western
producing mines, Cantung (Canada) and Panasquiera (Portugal) are 1.17% and
0.23% WO3, respectively.
* The Barruecopardo tungsten mineralization contains coarse grained tungsten
minerals which will yield a strong nugget effect, thereby requiring closely
spaced drilling for resource definition.
* Mapping on surface suggests reasonable continuity of the Barruecopardo vein
system over 800 metres of strike, which is steeply dipping and hosted in
competent granite rocks.
* The tungsten grades intersected in the drilling, coupled with the likely
gravity processing and potentially favourable mining geometry are seen as
encouraging factors.
Drilling Results - Valdegallegos Prospect
As part of the investigation in the Barruecopardo area, hole BAR-8 was drilled
at Valdegallegos, where an extensive vein system was historically worked for
tungsten by a series of shallow trenches and pits, around one kilometre to the
west of Barruecopardo. This hole returned the intervals tabulated below, and
indicates other possible tungsten zones in the immediate area.
Hole From (m) To (m) Length (m) WO3 %
BAR-8 33.5 34.6 1.1 0.43
97.9 98.8 0.9 1.26
107.5 109.5 2.0 0.56
Tailings Project Gravity Testwork
The first stages of a gravity separation testwork programme on the Tungsten
Tailings Project have been completed, with initial results awaited. The
testwork programme will determine the amount of tungsten recovered to a
concentrate, the concentrate specification and the scope of capital and
operating costs.
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 Mob: +44 (0)7703 167065
Additional Information
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. A Bankable Feasibility Study
is currently underway at the La Zarza Copper-Gold Project, tungsten
opportunities are being evaluated in the Salamanca area and several gold
exploration targets are being tested in northwest Spain.
For more information on the Company and its projects please visit
www.ormondemining.com or download the latest Investor Information Sheet from
www.ormondemining.com/pdf/ORMinfo.pdf.
About Tungsten
Tungsten is most frequently used as tungsten monocarbide, which has a hardness
close to diamond, in cemented carbides. The most well-known use of tungsten is
in lighting filaments, and other important applications include improving steel
properties and use in tungsten alloys, electronics, and chemical products.
Prices of tungsten concentrates are expected to remain buoyant for the long
term, and are currently quoted by the Metal Bulletin in the range $160-$170 per
metric tonne unit. A metric tonne unit is equal to 10kg of WO3, which equates
to 1.0% contained WO3 in the rock.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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