15th Aug 2005 07:30
Ormonde Mining PLC15 August 2005 15 August 2005 Ormonde Mining plc La Zarza Drilling Report DUBLIN & LONDON: 15 August 2005 - Ormonde Mining plc ("Ormonde" or "theCompany") reports full results from its initial drilling programme at the LaZarza Gold-Copper Project in southwest Spain. HIGHLIGHTS • New results include: • Two intersections in ORM7 - 10.0 metres grading 6.0 grams per tonne ("g/t") gold, and 15.0 metres grading 5.8 g/t gold (both within an interval of 66.0 metres grading 3.3 g/t gold). • ORM11 - 20.4 metres grading 6.5 g/t gold. • Investigative metallurgical testwork has commenced on selected composite samples from both gold and copper Silicatado. Managing Director of Ormonde, Kerr Anderson commented, "We are very pleased with the drilling results to-date, which confirm theexpected widths and grades of mineralization at La Zarza and support ourconfidence in the project. We are now progressing with the metallurgicaltestwork, which will lead into a scoping study to determine the outlineeconomics of a combined gold and copper operation at La Zarza. In addition,infill drilling is underway and we look forward to reporting further resultsfrom the ongoing programme." DRILLING RESULTS The principal objective of the initial drilling programme was to obtainrepresentative samples for metallurgical testwork from both gold and copperresources within the "Silicatado" unit. Gold and copper zones were drilled toprovide typical material from different parts of the deposit. The mainanalytical results obtained are tabulated below, with gold equivalent gradesbased on in-situ metal values shown for comparative purposes: Gold Silicatado: Hole From (m) Width (m) Gold g/t Silver g/t Copper % Gold equiv. ORM2 297.0 5.0 5.0 46.6 1.1 8.1 *ORM5 163.0 17.0 4.1 40.5 0.4 5.6 ORM7 127.0 10.0 6.0 61.3 0.4 7.9 ORM7 178.0 15.0 5.8 27.8 0.6 7.5 ORM11 68.0 20.4 6.5 84.3 0.5 9.0 Copper Silicatado: Hole From (m) Width (m) Gold g/t Silver g/t Copper % Gold equiv. *ORM1 77.0 6.0 1.2 52.0 2.0 6.3 ORM2 261.0 10.0 0.5 33.4 2.0 5.3 ORM3 379.0 5.0 0.6 25.6 2.1 5.5 *ORM4 357.8 11.2 0.3 25.4 2.1 5.2 (Notes: *= reported previously. Widths are approximately true width. Goldequivalents calculated using the following prices: $400/oz Au, $7/oz Ag, $2,700/t Cu). Hole ORM11 was added to the original programme to test an area of geologicalcomplexity in the area of ORM1. The hole was drilled close to an intersectionreported by the previous operator (19.0 metres grading 3.9 g/t gold) andconfirms the broad and continuous gold mineralization in this part of thedeposit. With regards to other holes drilled to-date, ORM6 was an exploratory step-outhole on the eastern margin of the known resources and did not return significantresults. ORM8 and ORM9 are exploration holes testing possible coppermineralization 800 metres to the west of the main deposit, with results awaited.ORM10 intersected a change in geology, probably due to faulting, in the area ofORM1 and recovered a narrow interval (approx. 3 metres) of Silicatado. METALLURGICAL TESTWORK PROGRAMME Composite core samples from both the gold and copper Silicatado have beenselected and investigative metallurgical testwork has commenced at WardellArmstrong International, UK. The testwork will indicate the most appropriatemethod to recover the economic minerals from the gold and copper resources at LaZarza, and will provide the basis for the economic scoping study. PHASE 2 DRILLING Infill drilling has commenced ahead of schedule to provide further data requiredto classify resources according to JORC Code (2004) guidelines. Drilling iscurrently testing parts of the deposit accessed by underground workingspreviously developed for mining of the adjacent pyrite deposit. Compilation ofthe underground mining drawings has been completed and a study to assess howthese workings could be integrated into a new mining operation is underway. BACKGROUND TO THE LA ZARZA PROJECT The La Zarza Gold-Copper Project is situated within a Mining Concession in thePyrite Belt in southwest Spain. Ormonde is currently earning a 70 per centinterest in the Project by funding programmes to the value of €1.8 millionduring a three year period, under an option agreement with the property owner,Nueva Tharsis S.A.L., signed in June 2004. Formerly mined for pyrite (iron sulphide) only, the La Zarza deposit alsocontains substantial amounts of gold, copper and silver mineralization.Ormonde's focus is on the following resources inferred by a previous operator:5.9 Mt grading 5.0 g/t gold and 50 g/t silver (950,000 ounces of gold, 9.5million ounces of silver), and an adjacent copper resource of 2.9 Mt grading 2.8% copper (81,000 tonnes of copper). These resources are hosted by the"Silicatado" rock type. Enquiries to: Kerr Anderson, Managing Director, Ormonde Mining plc Tel: +353 (0)46 9073623 Fraser Gardiner, Investor and Media Relations, Ormonde Mining plc Mobile: +353 (0)86 3931178 Simon Rothschild, Bankside Consultants Tel: +44 (0)20 7367 8871 Mobile: +44 (0)7703 167065 ENDS BACKGROUND INFORMATION Ormonde Mining is quoted on the AIM and IEX markets in London and Dublin,respectively. The Company is focused on acquiring and developing gold projectsin Spain where it has a strong local Spanish management team, supported by aBoard with extensive exploration expertise in the region and mine developmentexperience. For more information and contact details including email, please visitwww.ormondemining.com. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
ORM.L