TIDMORM
RNS Number : 5199F
Ormonde Mining PLC
18 June 2012
18 June 2012
Ormonde Mining plc
("Ormonde" or "the Company")
Further Encouraging Progress in Gold Joint Venture
The Board of Ormonde is pleased to report further drilling
results on the "El Facho" gold structure at the Zamora Gold
Project, which is in joint venture with Aurum Mining PLC ("Aurum"),
with assays received from a further five holes (ORMP 16-20) from
the current nine-hole programme.
Drilling to date has now established and defined a gold
mineralised zone over a strike length of some 600 metres with the
mineralisation remaining open both at depth and along strike.
Highlights
-- Drill hole ORMP-19 has returned a significant interval of 22
metres grading 1.09 grams per tonne ("g/t") gold (from 79m depth)
and drill hole ORMP-20 has returned 9 metres grading 1.24g/t gold
(from 56m depth).
-- Hole ORM-19 is located some 100 metres along strike (to the
northeast) from previously reported hole ORMP-15, which returned an
interval of 22 metres grading 1.94 grams per tonne ("g/t") gold
(from 99m depth), within an overall interval of 49 metres grading
1.16g/t gold (from 96m depth).
-- Sixteen of the seventeen holes drilled at El Facho by Ormonde
and/or the Joint Venture for which assay results are available have
encountered gold mineralisation in excess of 1 g/t across multiple
intersections.
-- Based upon these drilling results, modelling of the
mineralisation has been carried out and this indicates the presence
and continuity of a gold-bearing structure over a strike length of
some 600 metres.
-- To assist in the design and planning of further drilling at
El Facho, a preliminary resource estimation, carried out on the
modelled mineralisation by external consultants to the Joint
Venture partners, Aurum Exploration Services (the Irish-based
mineral exploration consultant), suggests that the mineralised zone
contains between 3.8 million tonnes and 4.8 million tonnes of
mineralised material, with average grades from 0.9-1.0g/t gold
using a 0.3g/t gold cut-off (total of 122,000-145,000 ounces). It
is important to note that this resource has not been estimated in
compliance with any internationally recognised standard and has
been undertaken solely to guide further drilling programmes carried
out to ascertain the full resource potential in the project
area.
-- A three-hole drilling programme has also been completed on
the Peralonso Permit; results will be reported upon receipt of
assays for all three holes.
-- Aurum has now advanced funds of EUR500,000 required for
expenditure on exploration activities to earn its majority interest
in the permits which are the subject of the Joint Venture
Agreement.
Kerr Anderson, Ormonde's Managing Director, said:
"At the outset of our current drilling programme last November,
we were seeking to confirm the presence of an extended gold
mineralisation zone. We are pleased that today's results from El
Facho continue to confirm the gold-bearing structure, with drilling
having now extended the mineralised zone to a length of at least
600 metres. The level of progress achieved to date has enabled us
to model the main mineralised zone for the first time and will help
guide future drilling on the project with the objective of
expanding the gold-bearing zones further."
Detail
In March 2011, Ormonde entered into a joint venture with Aurum
whereby 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 (with the total permit area being 106 square
kilometres) by spending EUR500,000 on exploration activities over
an 18 month period.
Drilling to date has been focused on the "El Facho" gold
structure in Zamora, where the Joint Venture has drilled eleven
holes (ORMP-10, 11 and 13-21) for a total of 2,697 metres of
drilling, bringing total drilling at El Facho to eighteen holes
drilled by Ormonde / or the Joint Venture (Click here to view plan
view of drill holes) for a total of 3,658 metres. Gold
mineralisation is hosted in steeply-dipping structures
characterised by quartz veining, silicification and alteration in
granites. The Joint Venture drilling was designed to test for
extensions to the known gold intersections and in particular to
ascertain whether broader mineralised intervals can be
delineated.
Significant results from ORMP-16 to 20 are reported below:
Hole Length Dip/Azimuth From Thickness Estimated Gold
(m) (m) (m) True Thickness (g/t)
(m)
--------- ------- ------------ ----- ---------- ---------------- -------
-50(o)
ORMP-16 180.0 /333(o) 144 10 7 0.5
--------- ------- ------------ ----- ---------- ---------------- -------
and 226 7 5 0.9
--------- ------- ------------ ----- ---------- ---------------- -------
-50(o)
ORMP-17 211.5 /324(o) 148 12 9 0.7
--------- ------- ------------ ----- ---------- ---------------- -------
-50(o)
ORMP-18 201.0 /318(o) 21 14 10 0.4
--------- ------- ------------ ----- ---------- ---------------- -------
-50(o)
ORMP-19 223.0 /327(o) 79 22 16 1.1
--------- ------- ------------ ----- ---------- ---------------- -------
-60(o)
ORMP-20 201.1 /331(o) 55 15 11 0.8
--------- ------- ------------ ----- ---------- ---------------- -------
incl 56 9 6 1.2
--------- ------- ------------ ----- ---------- ---------------- -------
Previous drilling by Ormonde and/or the joint venture on the
Facho structure includes:
Hole From Thickness Gold
(m) (m) (g/t)
--------- ----- ---------- -------
ORMP
1 51 23 1.1
--------- ----- ---------- -------
ORMP
3 131 3 3.6
--------- ----- ---------- -------
ORMP
4 40 6 3.7
--------- ----- ---------- -------
ORMP
5 56 9 1.5
--------- ----- ---------- -------
ORMP
6 104 7 1.1
--------- ----- ---------- -------
ORMP
7 38 7 1.2
--------- ----- ---------- -------
ORMP-10 89 12 3.4
--------- ----- ---------- -------
within 75 30 1.6
--------- ----- ---------- -------
within 25 80 0.8
--------- ----- ---------- -------
ORMP-11 102 10 2.2
--------- ----- ---------- -------
and 275 5 1.9
--------- ----- ---------- -------
ORMP-13 154 10 0.6
--------- ----- ---------- -------
and 172 3 1.4
--------- ----- ---------- -------
ORMP-14 143 1 11.4
--------- ----- ---------- -------
ORMP-15 109 11 3.6
--------- ----- ---------- -------
within 99 25 1.8
--------- ----- ---------- -------
within 96 49 1.2
--------- ----- ---------- -------
Based upon all drilling results on the El Facho structure
to-date, wireframes have been constructed around the main
mineralised zones reflecting gold content and alteration, and these
wireframes show continuity of the main gold-bearing structure over
a strike length of some 600 metres (Click here to view wireframe
gold structure). Preliminary resource modelling has been carried
out within these wireframes by external consultants to the Joint
Venture partners, Aurum Exploration Services (the Irish-based
mineral exploration consultant). This has been done to assist in
the design and planning of further drilling to ascertain the
resource potential in the project area. This modelling indicates
that the mineralised zone comprises some 3.8-4.8 million tonnes
with overall grades from 0.9-1.0g/t gold using a 0.3g/t gold
cut-off (total of 122,000-145,000 ounces). It is important to note
that this resource has not been estimated in compliance with any
internationally recognised standard and has been undertaken to
guide further drilling programmes. The range in estimates is due to
the use of differing modelling assumptions in the estimation
process.
In addition to the drilling at El Facho, three holes (for a
total of 277.1m) have now been completed on the Peralonso Permit in
the Salamanca Province to test the shallow depth extent of gold
mineralisation located in previous trenching. Gold mineralisation
at surface at Peralonso is hosted within Fe-oxide-bearing breccias
within altered granites, with previous trenching of an extensive
soil geochemical anomaly (400 x 400m) returning a best interval of
5 metres grading 5.4g/t gold. Results will be reported upon receipt
of assays for all three holes.
Notes:
Sampling, Assaying and Quality Control Measures
All drill core has been routinely logged 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. Sampling is mainly
carried out over one metre intervals.
Sample preparation and analyses were performed at ALS Chemex
(Spain). Assays are reported using the fire assay (FA) method with
an atomic absorption (AA) finish. Reference samples (blanks,
duplicates and certified standards) are routinely included in each
sample batch as quality control measures. .
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.
As noted above, resource information contained in this
announcement relating to the El Facho structure has not been
estimated in compliance with any internationally recognised
standard and has been undertaken solely to guide further drilling
programmes in order to ascertain the full resource potential in the
project area. Accordingly this announcement does not constitute a
resource update within the meaning of the AIM Guidance Note for
Mining, Oil and Gas Companies.
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 or
follow Ormonde on Twitter https://twitter.com/ormondemining or
Linkedin http://www.linkedin.com/company/ormonde-mining-plc
Enquiries to:
Ormonde Mining plc
Kerr Anderson, Managing Director Tel: +353 (0)1 8253570
Bankside Consultants
Simon Rothschild Tel: +44 (0)20 7367 8888 Mob: +44 (0)7703 167065
Murray Consultants
Ed Micheau Tel: +353 (0)1 4980300 Mob: +353 (0)86 803 7155
Davy (Nomad / ESM Adviser)
Eugenee Mulhern / 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 admitted to trading on the AIM market in
London & the ESM market 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 become a major, secure
European supply of tungsten.
The La Zarza Copper Project- a large "massive sulphide" deposit;
exploration for an enlargement to the current copper resources is
being funded through a joint venture Antofagasta Minerals.
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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