TIDMORM TIDMAUR
RNS Number : 8443C
Ormonde Mining PLC
14 March 2011
14 March 2011
Ormonde Mining plc
("Ormonde" or "the Company")
Salamanca-Zamora Gold Exploration Update
The Board of Ormonde is pleased to provide an update on its
exploration properties in the Salamanca and Zamora Provinces of
Spain ("the Projects). Following a review on exploration strategy
in the Salamanca-Zamora area it has been decided to immediately
advance its exploration work programmes by separating the Company's
ground holdings into gold-tungsten and gold-only prospects and
funding these separately.
The Company has decided to concentrate its internal exploration
resources on its gold-tungsten ground which includes the Dora,
Marta, Can, Saturno and Bollo prospects. These are also regarded as
potential peripheral satellites for the nearby Barruecopardo
Tungsten Project. Work programmes are being developed and an
exploration programme including drilling will commence shortly.
Funding of the gold-only prospects will be via a joint venture with
Aurum Mining Plc ("Aurum").
Gold-Tungsten Projects
-- An Independent "CSA Global" report (Aug'10), which mainly
reported on the gold-tungsten projects in Salamanca, concluded that
"The Salamanca permit block incorporates all the major features of
a classic intrusion related gold system ("IRGS")". IRGS systems are
known to host multi-million ounce deposits globally.
-- The report also highlighted that "work to date by Ormonde at
the Dora prospect suggests the presence of a large gold system".
To-date, wide low-grade intersections of gold have been encountered
in limited drilling and trench sampling, suggesting a significant
gold mineralised system.
-- Full assessment of all historic data, including drilling
where available, was initiated at the end of last year on the
gold-tungsten prospects and this has lead to prioritising targets
for drilling.
-- It is anticipated that drilling will commence shortly at
Bollo, where a small open pit tungsten mine was developed in the
1970s and where previous grab sampling on the old dumps returned
average gold grades of 8.3g/t from 30 samples.
The gold-only ground will be advanced via a farm-out joint
venture to enable funding by way of a third party. In this context,
the Company is pleased to announce that it has entered into a Joint
Venture with Aurum on the gold-only prospects.
Main Points of Joint Venture
-- Aurum can earn a 60% interest in two permits in the Zamora
Province and a 54% interest in a further two permits in the
Salamanca Province (one of which is under application), with the
total permit area being 106 square kilometres, by spending
EUR500,000 on exploration activities over an 18 month period.
-- Agreed budgeted work programmes include some 1,000 metres of
drilling in stage one of a 2-stage programme. Ormonde will act as
Manager and be responsible for all work programmes.
-- Drilling to-date on the Zamora permits on gold-bearing
structures has returned intervals including 23m grading 1.1g/t gold
from 51 metres depth (including a high-grade interval of one metre
grading 16.6g/t gold) and 9m grading 1.5 g/t gold from 56 metres
depth.
-- No drilling has been carried out to-date on the two Salamanca
permits, where significant soil geochemical anomalies are supported
by prospecting and initial trenching results.
Kerr Anderson, Ormonde's Managing Director, said:
"I am pleased that through our own exploration programme and the
Joint Venture agreed with Aurum we can advance the exploration of
our highly prospective licences in the Salamanca and Zamora region.
I look forward to drilling commencing shortly on both the gold and
gold-tungsten targets, and to being able to report progress on the
development of these exploration programmes."
Kerr Anderson PhD EurGeolPGeo, Managing Director of Ormonde
Mining plc, and a qualified person as defined in the Guidance Note
for Mining, Oil and Gas Companies, June 2009, 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.
For more information please visit www.ormondemining.com.
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)
Fergal Meegan / Roland French 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 & the ESM
in Dublin. Ormonde is a mineral development and exploration company
focused on Spain (Ticker ORM).
Ormonde's key activities include:
The Barruecopardo Tungsten Project - Ormonde is developing a low
cost mining operation at Barruecopardo to initially produce 8% of
non-Chinese global mine production from 2012.
The La Zarza Copper-Gold Project - Joint Venture with
Antofagasta Minerals - a large "massive sulphide" deposit with
significant copper, gold and zinc resources; exploration for an
enlargement to the copper resource is being funded by
Antofagasta.
Gold Explorationin several highly prospective areas of western
Spain.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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