24th Apr 2006 07:01
Ormonde Mining PLC24 April 2006 24 April 2006 Ormonde Mining plc La Zarza JORC-Compliant Mineral Resource Estimate DUBLIN & LONDON: 24 April 2006 - Ormonde Mining plc ("Ormonde" or "the Company")reports its first JORC-compliant Mineral Resource estimate for the La ZarzaProject in the Pyrite Belt mining district of southern Spain, where it isearning a minimum 70 per cent interest. This is the first estimate whichcomplies with an internationally recognised reporting standard to be publishedon the Project. HIGHLIGHTS • Total Indicated and Inferred resources estimated to be 6.8 million tonnes containing 85,000 tonnes of copper, 486,000 ounces of gold and 6.9 million ounces of silver, for an in-situ resource equivalent to 163,000 tonnes of copper, or 1.3 million ounces of gold • Sixty-five per cent of the total resource tonnage in the Indicated category • Immediate potential to increase resources through current infill drilling and planned deeper drilling; the deposit is open at depth with the present resource estimated down to a depth of 500 metres, with the deepest hole containing intervals of 8 metres at 2.6 per cent copper overlying 12 metres at 8.3 g/t gold The copper resource is comparable to the previously quoted figures (SEIEMSA,1997). The gold resource is lower due to less continuity of the zone whencompared with the previous operator's interpretation, combined with Ormonde'suse of a conservative estimation method. The Company anticipates that currentdrilling will significantly increase the gold resource. Kerr Anderson, Managing Director, said today, "Our resource estimation shows that at La Zarza we have a largecopper-gold-silver resource with the potential to become a successful miningoperation, which could produce circa 65,000 ounces gold equivalent per year." "The resource estimate will now be used in conjunction with the metallurgicaltestwork in our Preliminary Assessment Study ("PAS"). Testwork results to-dateindicate that copper, gold and silver can all be recovered to copperconcentrates by standard flotation methods, which has a very positive impact onthe project economics by significantly reducing both capital and operating costsfrom those initially envisaged." "La Zarza is therefore proving to be a robust project. We are in the process ofappointing various firms to assist us with the engineering design now underway,and we look forward to completing the PAS during this quarter and thereaftergoing into the Bankable Feasibility Study." LA ZARZA MINERAL RESOURCES Copper and gold resources have been estimated within La Zarza's Silicatado unitbased on data from Ormonde's drilling programmes, the results of which have beenreported in the Company's drilling updates, and a database of previous operatordrilling. The resources currently extend from near-surface to 500 metres depth,and are stated as follows (see Note 1): Resource zone & Tonnes Copper Gold Silver Cu Equiv Au Equiv category (millions) Grade Contained Grade Contained Grade (g Contained Contained Contained (%) metal (t) (g/t) metal (oz) /t) metal (Moz) metal (t) metal (oz)Copper Silicatadoat 1.5% cut-offIndicated 2.7 2.1 57,100 0.6 52,500 25.0 2.2 69,000 544,700Inferred 0.3 2.1 5,800 0.6 5,500 20.4 0.2 6,900 54,700 Sub-total 3.0 2.1 62,900 t 0.6 58,000 oz 24.6 2.4 Moz 75,900 t 599,400 oz Gold Silicatadoat 2.0 g/t cut-offIndicated 1.8 0.5 9,700 3.4 197,500 39.2 2.3 40,200 317,100Inferred 2.0 0.6 12,300 3.5 230,700 34.0 2.2 46,900 370,200 Sub-total 3.9 0.6 22,000 t 3.5 428,100 oz 36.4 4.5 Moz 87,100 t 687,300 oz TOTAL 6.8 84,900 t 486,100 oz 6.9 Moz 163,000 t 1,286,700 oz In-situ metal equivalents are shown for comparative purposes, based onlonger-term metal prices of US$3,750/tonne Cu, US$475/oz Au and US$9.00/oz Ag. The following table illustrates the increased tonnages in the Copper Silicatadoresource figures (Indicated + Inferred) if a lower cut-off grade is used toreflect current copper prices: Cu Cut-off Tonnes Copper Gold Silver Cu Equiv Au Equiv Grade (millions) Grade (%) Contained Grade Contained Grade Contained Contained Contained metal (g/t) metal (g/t) metal metal metal 1.0% 6.3 1.6 101,600 t 0.7 139,400 23.7 4.8 Moz 130,700 t 1,031,700 oz oz ONGOING DRILLING Ormonde's current Phase 3 drilling programme is infilling key areas of theresource and will test extensions of the deposit. The infill drilling isexpected to increase the grades in certain areas of the resource zones. We alsoexpect this drilling to allow a large amount of the Inferred resources to beupgraded to the Indicated resource category. Step-out drilling will test extensions of the mineralization, in particular atdepth where the deposit remains open and where some of the highest grades havebeen intersected. The deepest hole drilled on the deposit, ZA1, intersected 8metres grading 2.6 per cent copper overlying 12 metres grading 8.3 g/t gold at avertical depth of 450 metres. Other additional potential to be evaluated in the ongoing programme includes anassessment of the zinc content, which to-date has not been systematicallyevaluated or included in any resource estimation. Significant intersectionsinclude 21 metres at 5.0 per cent zinc and 12 metres at 4.4 per cent zinc.Metallurgical testwork has shown that it may be possible to produce a saleablezinc concentrate as an extension to the flotation process, and this wouldclearly add value to the Project. NOTE 1 Mineral Resources are reported in compliance with the standards set out in theJORC Code (2004). Resources have been modelled and estimated using the Dataminesoftware package by Prehenita, S.L., a consultant to Ormonde, and have beenapproved by Kerr Anderson PhD EurGeol PGeo, Managing Director of Ormonde. Dr.Anderson is a member of the Institute of Geologists of Ireland. He hassufficient experience which is relevant to the style of mineralization and typeof deposit under consideration to qualify as a Competent Person as defined inthe 2004 Edition of the JORC Code and a qualified person as defined in theGuidance Note for Mining, Oil and Gas Companies, March 2006, of the London StockExchange. Further details on the Mineral Resources can be found in the Technical Notessection at the end of this announcement. A glossary of terms is also appended. ABOUT ORMONDE Ormonde Mining plc is quoted on the AIM in London and the IEX in Dublin. TheCompany's strategy is to enhance shareholder value by developing gold-focusedprojects in Spain and taking them into production. Ormonde has a strong localSpanish management team, supported by a Board with extensive mine developmentand exploration experience. For more information and contact details including email, please visitwww.ormondemining.com. Enquiries to: Kerr Anderson, Managing Director,Ormonde Mining plc Tel: +353 (0)46 9073623 Fraser Gardiner, Director,Ormonde Mining plc Tel: +353 (0)86 3931178 Simon Rothschild, PR and IR adviser,Bankside Consultants Tel: +44 (0)20 7367 8871 GLOSSARY TERM DEFINITION Competent Person A person who is a Member or Fellow of The Australasian Institute of Mining and Metallurgy, or of the Australian Institute of Geoscientists, or of a ' Recognised Overseas Professional Organisation' ('ROPO') included in a list promulgated from time to time. A 'Competent Person' must have a minimum of five years experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which that person is undertaking. g/t Grams per tonne Indicated Mineral Resource That part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed. Inferred Mineral Resource That part of a Mineral Resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological and/or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes which may be limited or of uncertain quality and reliability. JORC Code (2004) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves "The JORC Code" 2004 Edition. Mineral Resource A concentration or occurrence of intrinsic economic interest in or on the Earth's crust in such form, quality and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated, or interpreted from specific geological evidence and knowledge. Mineral Resources are sub-divided, in order of increasing geological confidence, into Inferred, Indicated and Measured categories. oz / Moz Ounce / million ounces t Tonne TECHNICAL NOTESDATA USED The Mineral Resource estimation is based wholly on drilling data from Ormonde'sPhase One and Phase Two drilling programmes and the database of historicaldrilling by SEIEMSA and other previous operators. Historical drill holes whichwere not considered to be reliable were removed from the Mineral Resourcedataset. Underground channel samples reported by SEIEMSA and used for their1997 resource estimation could not be verified and are therefore not included inOrmonde's Mineral Resource dataset. SAMPLING, LABORATORIES AND QUALITY CONTROL MEASURES All drilling on the project has been core drilling. All Ormonde's drilling hasbeen with either HQ or NQ core diameter. All Ormonde's holes have hadappropriate collar surveys by an independent licensed Spanish surveyor, and downhole surveys. All core has been routinely logged, including records of corerecovery, by an experienced geologist. Relevant core intervals were split inhalf by diamond saw, with half being sent for assay and the other half beingretained in the core boxes for reference. Samples are analysed at ALS Chemex, Vancouver and ASA-OMAC Laboratories,Ireland. Initial sample preparation involving crushing of the half core to 85%passing 2mm is carried out at a local sample preparation facility. A onekilogram split of the -2mm material is then sent directly to the laboratory forpulverising and assay by appropriate methods. Reference samples which includeblanks, internationally accredited standards and duplicates are routinelyincluded in each sample batch as quality control measures. ESTIMATION METHODOLOGY The Mineral Resource estimate has been carried out using the Datamine softwarepackage by Spanish consultancy company, Prehenita, S.L.. Prehenita geologistJose Manuel Prada is a mine geologist with 20 years of experience including 12years in the field of resource estimation. He is an expert in the use ofDatamine having carried out several resource and reserve estimation projects.He is highly experienced in the geology of the Iberian Pyrite Belt and asProject Geologist for La Zarza since June 2004 he is appropriately qualified toconduct the Mineral Resource estimate. Geological & Block Model Development Ormonde logging data, historical drill logs and historical cross sections andunderground level plans have been used to develop a 3-dimensional wireframemodel for the main mineralized units which comprise the La Zarza deposit. Theresource estimate was carried out entirely within the Silicatado unit. A block model was created constrained by the boundaries of the Silicatado unit.The blocks have dimensions of 10 x 10 x 10 metres. Determination of Block Density A total of 595 Specific Gravity measurements have been taken from Ormonde coresamples on-site. Check measurements on selected samples carried out by GEOPRINhave confirmed the quality of Ormonde's measurements. Correlation betweenSpecific Gravity values and Sulphur content determined by assay is sufficientlystrong that Sulphur content has been used to determine the average density ofresource blocks based on a regression equation . Estimation Methods The resource estimation process used can be summarized as follows: • Compositing of individual assay intervals to 2 metre composites, followed by statistical analysis of the composite dataset • Construction of multi-directional variograms and determination of appropriate search ellipses • Estimation of metal grades in the block model using Ordinary Kriging, with cross-validation by Indicator and Point Kriging Resource Categorization "Gold Silicatado" has been defined for the purpose of resource classification asany blocks containing over 2 g/t gold. Separate resource classification hasbeen undertaken for Copper Silicatado and Gold Silicatado, based on theproperties of copper and gold variograms, respectively, and in accordance withthe guidelines set out in the JORC Code (2004). See the Glossary fordefinitions of the JORC resource categories. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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