25th Jun 2007 07:01
Persian Gold PLC25 June 2007 Persian Gold plc. 25th of June 2007 Exploration Update and Proposed Acquisitions - Second phase drilling and trenching to commence within weeks on theChah-e-Zard gold property. - Application to acquire new silica-alunite-gold concession inNorth-western Iran after positive sampling operations. - Proposal to acquire a new copper/gold porphyry project South of Tehranfollowing positive sampling results. Persian Gold (AIM: PNG) the AIM listed Iranian gold explorer is pleased toprovide an update on exploration and corporate activities in Iran. After reviewing Phase 1 drillhole and trenching results on the Chah-e-Zard goldproperty near Yazd in Central Iran (PNG option to acquire 70%), the boardconducted bottle roll tests to estimate the suitability of the oxide and oxide/sulphide material to heap leach gold extraction methods. Results were positivethough the depth of suitable material is, in certain parts of the license, lessthan anticipated. A Phase 2 trenching and drilling programme will commence in Chah-e-Zard in thecoming weeks. The programme will focus on the southern part of the licencewhich contain the best gold and silver grades and thickest heap leachablematerial. Some work will take place on an extension to the southern zone whererecent sampling has discovered gold. Results are expected by year end. Discussions with our partner in Chah-e-Zard has led to a revised agreementwhereby Persian Gold cover all expenditure up to bankable feasibility study andthereafter provide an agreed contribution toward mine construction costs. To the south of Tehran, Persian Gold has evaluated an advanced stage gold/copperporphyry project. Company geologists have sampled the ground and their resultsreplicate those reported by earlier explorers. Discussions are ongoing with theowners regarding a joint venture proposal, including a potential work programme. Persian Gold is also engaged in discussions to acquire an interest in a volcanichosted silica-alunite prospect in North-western Iran, discovered by Persian Goldgeologists. The geology indicates potential for a large low grade gold insilica-alunite deposit. Initial sampling has found widespread goldmineralization. Information in this announcement relating to exploration results has beenreviewed by Mr. A. Babakhani, an independent geologist and consultant to PersianGold, who is a qualified person under AIM guidelines. John Teeling, chairman, stated: "We are moving on a number of fronts in Iran, retaining our focus on gold.Drilling will commence shortly. at Chah-e-Zard, commercial second stagepotential of the deposit. Chah-e-Zard is exploration and risky, but we remainconfident in its potential We continue to see a flow of gold projects in Iran. Whilst it takes time tovisit, evaluate, sample, and analyse, two in particular hold considerablepromise. We have made a proposal to acquire a majority interest in a projectthat, contains gold mineralization over a significant area. If we aresuccessful in joint venturing this concession we will immediately commence apilot drilling programme. We are very excited about our second potential earlier stage project. It hasthe footprint we are looking for in Iran, a silica-alunite hosted depositcontaining gold. We are in discussions to acquire exploration rights in thearea." Persian Gold Plc John Teeling +353 1 833 2833 College Hill Paddy Blewer +44 (0) 20 7457 2020Nick Elwes +44 (0) 20 7457 2020 Blue Oar Securities Plc John Wakefield +44 (0) 117 933 0020 www.persiangoldplc.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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