8th Sep 2014 08:48
LONDON (Alliance News) - Orogen Gold PLC Monday said the new phase of drilling at its Mutsk project, in southern Armenia, has confirmed discovery of wide zones of gold mineralisation.
Orogen said as drilling has focussed along the main Mutsk corridor, step-out holes sited to the west of the north-south Mutsk structure have confirmed the company's interpretation from 2013 of much more widespread hydrothermal alteration, pyrite and gold mineralisation, it said.
Intercepts up to 60 metres at 1.21 grams per tonne of gold, including 10 metres at 3.11 grams per tonne of gold have been reported, it said.
"The previously reported high-grade intercepts...have been shown to be connected to much more substantial widths of hydrothermally altered gold-bearing rocks in step-out holes. Encouragingly, gold grades through these wide zones have increased in tenor as the drilling has moved northwards and include some higher grade intervals," said Chief Executive Ed Slowey.
"We are also very encouraged by the intersection of further wide zones of alteration in just-completed and ongoing drill holes up to 1.6 kilometres further north," added Slowey.
About 1,700 metres of an initial planned programme of 3,000 metres of diamond drilling has been completed to date in the current programme at Mutsk, said Orogen.
The Mutsk project is at high elevation of roughly 2,000 metres. Orogen Gold has an exclusive agreement with Georaid CJSC that allows Orogen Gold to earn an 80% interest in the property by spending a total of USD2.5 million by the end of August 2016.
Orogen's shares were up 9.6% to 0.137 pence per share Monday morning, having touched an intraday high of 0.180p. The stock remains well below its 52-week high of 0.50p.
By Joshua Warner; [email protected]; @JoshAlliance
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