10th Jul 2006 07:01
Ovoca Gold PLC10 July 2006 Encouraging Results from Kola Exploration Programme as Goltsovoye Feasibility Study Makes Good Early Progress Monday, 10th July, 2006 Ovoca Gold plc (LSE/AIM: OVG.L and IEX: OVX.I) the listed Gold and Silver MineDevelopment and Exploration Company is pleased to announce ongoing drillingresults on the Oleninskoye Gold Deposit and Pellapahk Copper-Molybdenum Deposit,Kolmozero-Voronya License, Kola Peninsula, Northwest Russia. In addition, theFeasibility Study at the Goltsovoye Deposit is advancing well, with drillingactivities already underway. Oleninskoye gold deposit Oleninskoye is currently undergoing drilling. Positive assay results have beenreceived from the Oleninskoye bore hole 'C-BF 075' returning an intersection of13.7 grammes per tonne gold over an intersection of 1.5 metres. In addition,three separate bore holes from Oleninskoye and one from South Leshayaintersected a tantalum bearing pegmatite at the projected depth of the orebodyintersection. These pegmatite dykes are narrow, near vertical, sheet likeintrusive bodies which cut across the general trend of the orebodies and hostrocks. The drill programme has been redesigned to intersect the orebodies. In addition, the company has been informed from the assay laboratory that assaysamples contain coarse irregularly dispersed gold grains. Coarse grains of goldup to 2 millimetres in diameter have been observed in both core and trenchsamples but assay results have not reflected what should have been a substantialgold grade. Standard sampling and assay techniques are not designed to takeinto account the presence of coarse irregularly dispersed gold grains known asthe 'nugget effect'. As a result the sampling and assay techniques have nowbeen modified and the orebody intersections are being resampled and assayedusing significantly larger samples and using wet screening techniques which arespecific for the analysis of orebodies containing coarse gold. Pellapahk copper-molybdenum deposit Drilling results from the Pellapahk copper-molybdenum deposit to the northwestof Oleninskoye continue to produce significant intersections. The Pellapahkdeposit was explored to a limited degree during the Soviet period and resultsfrom Ovoca's drilling have extended the area of known mineralisation to over 3kilometres and over a width of not less than 500 metres. Previous Sovietdrilling had produced average grades of from: 0.1% to 0.75% copper; 0.035% to0.125% molybdenum and 0.01 to 0.57 grammes per tonne gold. Borehole C-BF-67Bcontained multiple intersections containing the following: Interval metres From To Copper % Molybdenum % 18.0 26.0m 44.0m 0.11 0.057 13.5 70.6m 84.1m 0.17 0.031 25.2 94.6m 119.8m 0.16 0.035 Such results compare favourably with similar deposits such as Mineral Park innorthern Arizona with grades of 0.13% copper and 0.037% molybdenum. The resultsfrom further drilling on Pellapahk are expected soon. All intersections werewithin 100 metres from surface. Goltsovoye In addition, Ovoca is pleased to announce that the management team at theGoltsovoye Deposit in Magadan in Northeast Russia have made a good start on theBankable Feasibility Study. Personnel and equipment are on site and drillingactivities are already mobilised. Commenting on these preliminary exploration results, Chief Executive BarrieOakes said, "The presence of coarse gold has been identified in recent holes atOleninskoye and modifications to the sampling and assaying techniques have beenimplemented to deal with this nugget effect. The Pellapahk porphyry deposit hasnow been shown to extend over a 3 kilometre long and 500 metre wide area andindicates the presence of a large, potential world class open pittable, depositwhich is now undergoing more exploration to define its size and grade. We lookforward to the results from the ongoing drilling programmes at Pellapahk,Oleninskoye and South Leshaya and we will report them as they become available." Glossary: Coarse irregularly dispersed gold grains: gold grains which are usually visibleto the naked eye and greater than one millimetre diameter which do not have aregular distribution throughout the host rock Dykes: vertical or steeply dipping sheet like intrusive rock formations whichcut across other geological structures and rock strata at a high angle Pegmatite: a light coloured rock formed of coarse crystals often associatedwith rare metals Tantalum: greyish silver, heavy and very hard metal almost completely immune tochemical attack. It occurs in such minerals as columbite, tantalite andeuxenite The above information has been reviewed and verified by Mr. Roger Turner, Director and Chairman of Ovoca, for the purposes of the Guidance Note for Mining, Oil and Gas Companies issued by the London Stock Exchange in March 2006. Mr. Turner, with 40 years of mining engineering, management and consulting experience, graduated as a mining engineer from the Camborne School of Mines, has an M.S. degree in Economic Geology from Leicester University and is a member in good standing with the Institute of Mining and Metallurgy and a UK Chartered Engineer. Ovoca Gold Plc is an international exploration company quoted in London (OVG.L) and Dublin (OVX.IR), exploring for precious and base metals in Russia, Sweden and Ireland For further information please visit www.ovocagold.com or contact:Simon Beardsmore, Commercial Manager - Ovoca Gold Plc Nick Bias / Alex Buck - Buck Bias (UK PR) Tel: +44 (0)207 397 8159 Tel: +44 (0)7887 920 530 / +44 (0)7932 740 452 Email: [email protected] Email: [email protected] / [email protected] John Frain - Davy Richard Chase- Ambrian (AIM Broker) Tel: +353 (0)1 679 6363 +44 (0)207 776 6461 Email: [email protected] Email: [email protected] This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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