10th May 2007 07:01
Ormonde Mining PLC10 May 2007 10 May 2007 Ormonde Mining plc Ormonde Reports High-Grade Tungsten in Salamanca Drilling DUBLIN & LONDON: 10 May 2007 - Ormonde Mining plc ("Ormonde" or "the Company")reports positive tungsten results from initial holes in its follow-up drillingprogramme on the northern extension of the historically-mined Barruecopardo veinsystem, located in the Salamanca Province in western Spain (previously referredto as "hard-rock" tungsten target). Main Points • Results from the first two follow-up holes have returned high-grade tungsten intervals of 2.0 metres grading 2.1% and 2.0 metres grading 1.5% WO3 (tungsten trioxide) respectively from the main vein structure • These holes were drilled 50 metres to the south and north respectively of a previous Ormonde hole which returned 3.0 metres grading 1.1%WO3 within a zone of 7.7 metres grading 0.5%WO3 • Further holes have been drilled along the main vein structure over a strike length of 500 metres and results will be reported when available Kerr Anderson, Managing Director, said today, "The follow-up drilling programme is designed to establish whether there issufficient continuity in the high-grade tungsten mineralization in the main veinsystem to delineate a tungsten resource. Whilst recognising that results offurther holes are clearly required, these initial results are very encouraging". Drilling Results The follow-up drilling programme has been carried out to establish continuity ofthe high tungsten grades intersected in the first drilling programme on thenorthern extension of the Barruecopardo vein system as reported in January.Eight core drill holes (BAR-9 to BAR-16) have been completed on 50 metre spacedsections to test the steeply-dipping main vein structure over 500 metres ofstrike length. Assay results for the first two holes, BAR-9 and 10 arepresented below. These holes were drilled 50 metres to the south and northrespectively of hole BAR-3, also included in the table. Hole From (m) To (m) Length (m) WO3 % BAR-9 119.0 124.0 5.0 0.9including 119.0 121.0 2.0 2.1 BAR-10 125.0 127.0 2.0 1.5 BAR-3 101.5 109.2 7.7 0.5including 101.9 104.9 3.0 1.1 In interpreting these results the following should be noted: • Much of Western production comes from small, narrow vein undergrounddeposits. For comparison, ore reserve grades at two of the main Westernproducing mines, Cantung (Canada) and Panasquiera (Portugal) are 1.17% and 0.23%WO3, respectively. • The Barruecopardo tungsten mineralization contains coarse grainedtungsten minerals which will yield a strong nugget effect and necessitatesclosely spaced drilling and application of an upper cut for resource definition. • Current prices for tungsten concentrates are in the region of US$170per metric tonne unit (or US$17,000 per tonne of tungsten trioxide, WO3), with agrade of 1% WO3 having an in-the-ground value of approximately US$170 per tonneof mineralized rock. Prices have been reported as high as US$220 during thepast 12 months. Kerr Anderson PhD EurGeol PGeo, Managing Director of Ormonde Mining plc, and aqualified person as defined in the Guidance Note for Mining, Oil and GasCompanies, March 2006, of the London Stock Exchange, has reviewed and approvedthe technical information contained in this announcement. A glossary explaining technical terms contained in this announcement can befound at www.ormondemining.com/glossary.htm. 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, Bankside Consultants Tel: +44 (0)20 7367 8871 Mob: +44 (0)7703 167065 Additional Information Ormonde Mining plc is quoted on the AIM in London and the IEX in Dublin. TheCompany's objective is to enhance shareholder value by developing miningprojects in Spain and taking them into production. A Bankable Feasibility Studyis currently underway at the La Zarza Copper-Gold Project, tungstenopportunities are being evaluated in the Salamanca area and several goldexploration targets are being tested in northwest Spain. For more information on the Company and its projects please visitwww.ormondemining.com or download the latest Investor Information Sheet fromwww.ormondemining.com/pdf/ORMinfo.pdf. About Tungsten Tungsten is most frequently used as tungsten monocarbide, which has a hardnessclose to diamond, in cemented carbides. The most well-known use of tungsten isin lighting filaments, and other important applications include improving steelproperties and use in tungsten alloys, electronics, and chemical products. Prices of tungsten concentrates are expected to remain buoyant for the longterm, and are currently quoted by the Metal Bulletin in the range $160-$180 permetric tonne unit. A metric tonne unit is equal to 10kg of WO3, which equatesto 1.0% contained WO3 in the rock. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
ORM.L