ORM Ormonde Mining Plc

 

TIDMORM TIDMANTO 
 
RNS Number : 3880S 
Ormonde Mining PLC 
09 September 2010 
 
09 September 2010 
 
                               Ormonde Mining plc 
                          ("Ormonde" or "the Company") 
 
 
             Progress in Joint Venture with Antofagasta on La Zarza 
 
Ormonde Mining plc is pleased to provide an update on progress in the Joint 
Venture with Antofagasta Minerals S.A. ("Antofagasta") on its La Zarza Cu-Au 
Project in Huelva Province, Spain. 
 
 
Key Points 
·     Having met their initial committed expenditure of US $1 million under the 
Joint Venture Agreement, Antofagasta has opted to continue to fund further work 
on the La Zarza Joint Venture. 
·     Based upon a new structural interpretation for the La Zarza Massive 
Sulphide Deposit, a preliminary, non-JORC compliant, global mineral resource of 
some 61Mt grading 0.80% Cu, 0.9g/t Au, 0.56% Pb, 1.96% Zn and 5.7g/t Ag (1.34% 
CuEq cut-off) is estimated. 
·     The estimate includes the results of four new holes, which while 
intersecting strong chloritic alteration with sulphide in places in three of the 
holes, did not intersect significant copper mineralisation. 
·     This new resource includes a higher grade portion of the deposit, which 
was the subject of an earlier feasibility study by Ormonde. 
·     Ormonde has submitted applications to the provincial mining authority for 
additional permits covering the potential strike extension of the La Zarza 
system. 
 
 
Kerr Anderson, Ormonde's Managing Director, said: 
 
"The work activities to-date and the global resource estimate reported to the 
Joint Venture by Antofagasta demonstrate that there is a significant and 
substantial copper resource at La Zarza. Joint venture activities will now be 
targeted at investigating possibilities for the further expansion of the copper 
resource base in the area through further exploration programmes". 
 
 
Background to La Zarza 
Prior to the Antofagasta-Ormonde Joint Venture, Ormonde had evaluated a mining 
operation at La Zarza based principally upon the copper-gold "Silicatado" 
resources of 9.9Mt grading 1.0% Cu, 1.6g/t Au, 1.0% Pb, 3.0% Zn and 38.9g/t Ag, 
in the eastern end of the deposit.  The Antofagasta-Ormonde joint venture 
activities are designed to investigate the possibility of a significantly larger 
copper resource base at La Zarza. 
Work programmes during the first year of the Joint Venture focussed on a new 
structural interpretation for La Zarza to assist in the exploration for 
additional massive sulphides.  Re-logging and interpretation of some 12,424m of 
previous drilling has provided the basis for this new structural interpretation. 
 Following geophysical surveying (42 line kilometres of electromagnetics), four 
holes (drilled to depths of between 591 and 766 metres for a total of 2,655 
metres) were drilled principally to test for mineralisation extensions to the 
west of La Zarza.  Although intersecting strong chloritic alteration with 
varying development of sulphides, these holes failed to intersect massive 
sulphides. 
The new structural interpretation formed the basis for an in-house estimation of 
an initial global resource by the Joint Venture.  This new, unclassified, 
non-JORC compliant resource totals 61Mt grading 0.80% Cu, 0.9g/t Au, 0.56% Pb, 
1.96% Zn, 5.7g/t Ag (1.34% CuEq cut-off). 
As a consequence of gaining a better understanding of the geology at La Zarza, 
Ormonde has submitted applications to the provincial mining authority for 
additional permits covering the potential strike extension of the La Zarza 
system and controlling structures.  These permits are to be included in the 
Joint venture and work programmes will be extended over new permit areas. 
 
 
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, February 2007, 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. 
 
 
Enquiries to: 
 
Ormonde Mining plc 
Kerr Anderson, Managing Director  Tel: +353 (0)46 9073623 
 
Bankside Consultants 
Simon Rothschild / Louise Mason  Tel: +44 (0)20 7367 8888   Mob: +44 (0)7703 
167065 
 
Davy (Nomad / ESM Adviser and Joint Broker) 
Fergal Meegan  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 quoted on the AIM in London and the ESM in Dublin. Ormonde 
is a mineral development and exploration company focused on Spain. 
 
For more information please visit www.ormondemining.com. 
 
About Antofagasta 
Antofagasta is a wholly owned subsidiary of Antofagasta plc, with interests in 
mining, transportation and water distribution, which is listed on the London 
Stock Exchange and is a constituent of the FTSE-100 index.  During 2009, its 
Chilean mining operations (comprising the Los Pelambres, El Tesoro and Michilla 
mines) produced approximately 442,500 tonnes of copper metal in concentrate and 
cathode, and 7,800 tonnes of molybdenum in concentrate. As a result of the Los 
Pelambres expansion and Esperanza project the Group is expected to increase 
production to over 700,000 tonnes per year by 2011. Antofagasta also has 
exploration and evaluation or feasibility programs in North America, Latin 
America, Australia, Asia and Africa. 
TECHNICAL SUPPORTING INFORMATION 
 
DATA USED 
 
The Mineral Resource estimation is based wholly on drilling data from Ormonde's 
drilling programmes, holes completed by the Ormonde-Antofagasta JV ("AMSA JV") 
and the database of historical drilling by previous operators.  Historical drill 
holes which were not considered to be reliable were removed from the Mineral 
Resource dataset.  A total of 195 holes were used in the estimation. 
 
 
SAMPLING, LABORATORIES AND QUALITY CONTROL MEASURES 
 
All drilling on the project has been core drilling.  All Ormonde's and AMSA JV 
drilling has been with either HQ or NQ core diameter.  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 have been analysed at ALS Chemex, Vancouver and ASA-OMAC Laboratories, 
Ireland.  Initial sample preparation involving crushing of the half core to 85% 
passing 2mm was carried out at both a local sample preparation facility and 
subsequently ALS Chemex.  In the case of use of the local sample preparation 
facility, a one kilogram split of the -2mm material was 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 Vulcan software, 
based upon a new Geological Model, by Joint venture personnel appropriately 
qualified to conduct the Mineral Resource estimate. 
 
Geological & Block Model Development 
Logging data, historical drill logs, cross sections and level plans have been 
used to develop a 3-dimensional wireframe model for the main mineralized units 
which comprise the La Zarza deposit.  The resource estimate was carried out 
entirely within these units.  A block model was created constrained by the 
boundaries of the mineralisation. 
 
Determination of Block Density 
Specific Gravity measurements have been taken from core samples on-site and 
check measurements on selected samples carried out by GEOPRIN have confirmed the 
quality of Ormonde's measurements.  Correlation between Specific Gravity values 
and Sulphur content determined by assay is sufficiently strong that Sulphur 
content has been used to determine the average density of resource blocks based 
on a regression equation. 
 
Estimation Methods 
The resource estimation process used can be summarized as follows: 
·      Compositing of individual assay intervals  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 
within the confines of the interpreted solids and Inverse Distance for any data 
outside these limits. 
 
Resource Categorization 
The resource estimation is global and is currently unclassified and not 
JORC-Compliant (2009). 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 MSCSSEFMAFSSEDU 
 

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