ormondemining.com
Ormonde Mining Plc is an AIM & ESM listed mineral resource company which is developing mining projects and carrying out exploration in Spain.
Ormonde's key activities:
The Barruecopardo Tungsten Project - Ormonde aims to develop a world class low cost mining operation at Barruecopardo to produce ~12% of non-Chinese annual global mine production from mid 2013;
The La Zarza Copper-Gold Project - Joint Venture with Antofagasta Minerals - a large “massive sulphide” deposit with significant copper, gold and zinc resources; exploration for an enlargement to the copper resource is being funded by Antofagasta.
Gold exploration in several highly prospective areas of western Spain
UPDATE: Ormonde Mining reveals positive results from Zamora gold project
---Adds broker comment and share price---
Ormonde Mining (LON:ORM) today revealed positive initial drill results from its Zamora gold project in western Spain, including 12 metres at 3.4 grammes of the yellow metal per tonne.
Two holes were sunk on the project through the firm's joint venture with Aurum Mining and both returned gold values of good grade and width, said Ormonde.
Hole ORMP-10 returned a higher grade interval of 12 metres with 3.4 grams per tonne (g/t) of gold from a depth of 89 metres within an overall interval of 30 metres at 1.6 grams gold from 75m depth.
Meanwhile, hole ORMP-11 revealed an interval of 10 metres grading 2.1 g/t gold from 102 metres depth.
Ormonde's managing director Kerr Anderson said the results were "very good " and had demonstrated the best mineralised intervals to date on the Facho structure.
He added: "The joint venture is now planning a more expansive drilling programme as a result of these holes and I look forward to reporting on progress from this programme".
City broker Fairfax described the latest results as “promising”. If they are repeated in follow-up drilling then they offer the potential for an opencast or underground operation, it added.
“The drill intersections are close to ‘true width’ the grades look potentially mineable and of sufficient thickness,” Fairfax explained.
“The project now needs to be evaluated to see if mineralisation extends closer to surface and in sufficient tonnage to support a mine and processing plant.”
Previous drilling by Ormonde at the Facho structure revealed a ‘best interval’ of 23 metres at 1.1 g/t of gold, including a high-grade interval of one metre with 16.6 g/t.
A third hole was drilled on a second unrelated structure around one kilometre to the east of the Facho structure and only minor alteration and veining was observed in this hole and results are awaited, said the company.
The company told investors that the next drilling campaign will include a short-hole programme on the Peralonso permit in Salamanca Province, where previous trenching has shown a best interval of 5 metres at a grade of 5.4 grams per tonne of gold.
In March this year, Ormonde entered into the joint venture with Aurum Mining, whereby Aurum will fund the next stage of exploration activities on Ormonde’s gold-only prospects which comprise four areas, including one under application, and cover an area of 106 square kilometres.
Aurum has forwarded the total funds due under the agreed initial programme and is now progressing towards spending the required €500,000 over an eighteen month period to earn its majority interest in the permits.
The shares, which are up by more than a third in the past year, were unchanged at 8 pence at 2.00pm.
