20th Jan 2005 07:30
Ormonde Mining PLC20 January 2005 Ormonde Mining plc Ormonde Buys Back 50 per cent of the Tracia Gold Project, Spain. Second Prospect Returns High-Grade Gold Intervals in Trenches. DUBLIN & LONDON: 20 January 2005 - Ormonde Mining plc ("Ormonde" or "theCompany") announces that it has resumed 100 per cent ownership of the TraciaGold Project in northwest Spain ("the Project"), where a first-phase drillingprogramme is currently in progress and new results from trenches have identifiedfurther intervals of high-grade gold mineralization. Trenching results includegrades of 34.7, 23.9, 11.3 and 8.9 grams per tonne ("g/t") gold. ACQUISITION OF IGE INTEREST Swedish company International Gold Exploration (IGE) AB ("IGE") earned a 50 percent interest in the Project through an earn-in agreement with Ormonde andrecently assigned its interest to Minmet plc ("Minmet"). Ormonde has subsequently acquired Minmet's interest for a consideration of2,667,235 Ormonde shares, thereby consolidating its 100 per cent ownership ofthe Project, which includes the Tracia Permit and extensive geochemistry datacollected within a surrounding area of 2,000 square kilometres. The sharesissued to Minmet are subject to a lock-in period of 6 months. During the period of its earn-in, IGE funded several programmes including soilsampling, detailed prospecting and rock sampling, trenching, a regional streamsediment geochemistry survey and initial drilling, at a cost of €260,000.Ormonde originally acquired the Project in 2003 for a nominal sum. Managing Director of Ormonde, Kerr Anderson commented, "The activities funded by IGE have added significant value to the TraciaProject, so we are delighted to have bought back their interest. The IGE earn-inhas allowed Ormonde to fast-track the Project to the drilling stage, and nowthat we have identified several quality targets we will continue with this rapiddevelopment. We anticipate that the current drilling programme will continue toadd value, from which our shareholders can now benefit in full. New trenchingresults from the Casaldrago Prospect further demonstrate the Project'spotential, and we look forward to the forthcoming drilling at this locality." NEW HIGH-GRADE TRENCH INTERVALS Drilling is currently testing the Fieitoso Prospect where trenching returnedseveral mineralized intervals reported on 7th December, 2004. New assay resultsfrom trenching in a second target area, Casaldrago, show that further high-gradegold zones exist within broad mineralized intervals including: • 2.0 metres grading 23.9 g/t gold, within a zone of 9.0 metres grading 6.1 g/t gold • 1.0 metre grading 34.7 g/t gold • 1.5 metres grading 11.3 g/t gold, within 9.0 metres grading 2.7 g/t gold • 2.0 metres grading 8.9 g/t gold, within 25.0 metres grading 1.1 g/t gold • 1.0 metre grading 5.4 g/t gold, within 9.0 metres grading 1.0 g/t gold. Trenching at a third prospect, Baltar, has returned the following interval: • 3.2 metres grading 17.0 g/t gold. Mineralization is typically associated with zones of silicification and discretesulphide-bearing quartz veins in a granitic host rock. BACKGROUND TO THE TRACIA PROJECT The principal target at Tracia is an "intrusion-related" gold depositcharacterized by veins and highly altered, silicified granitic host rockassociated with arsenopyrite and minor pyrite. Intrusion-related gold depositsinclude many multi-million ounce deposits worldwide (e.g. Fort Knox with 5.4Moz, and Pogo with 5.8 Moz, both in Alaska). The Salave deposit in nearbyAsturias is a local analogy, 160 kilometres northeast of Tracia, where RioNarcea Gold Mines Ltd is conducting a feasibility study and has recentlypublished estimated measured and indicated mineral resources of 1.5 millionounces at a grade of 3.0 g/t gold. BROCHURE OF PARTICULARS Application has been made to the Irish Stock Exchange for 2,667,235 New OrdinaryShares of nominal value €0.025 each in the Company, to be admitted to dealing onthe Exploration Securities Market of the Irish Stock Exchange and it is expectedthat dealings will commence therein on 25 January, 2005. The shares have beenallotted pursuant to the acquisition of the IGE interest in the Tracia GoldProject and will rank pari passu in all respects with the existing issuedOrdinary Shares in the Company. 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)207 444 4153 Mobile: +44 (0)7703 167065 ENDS BACKGROUND INFORMATION Ormonde Mining is listed on the Irish Stock Exchange and also trades on London'sSEAQ platform. The Company is focused on acquiring and developing high-gradegold projects in Spain. Ormonde's portfolio contains advanced projects withsubstantial gold (and copper) resources, including La Zarza with one millionounces of gold, and other properties where the Company anticipates that drillingwill identify significant new resources. The Company has a strong local Spanishmanagement team, supported by a Board with extensive exploration expertise inthe region and mine development experience. For more information, please visit www.ormondemining.com or contact the Companyat [email protected]. 20 January 2005 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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