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Ormonde Mining PLC - Business Update June 2020

RNS Number : 3252P
Ormonde Mining PLC
09 June 2020
 

9 June 2020

 

Ormonde Mining plc

("Ormonde" or "the Company")

 

 

Existing Gold Projects and General Business Update

 

Ormonde announces an update on its Spanish gold projects, advances in its ongoing review of new opportunities and the proposed date for its 2020 Annual General Meeting ("AGM").

 

Highlights:

 

·     Cost-effective work programme to be advanced at certain existing Spanish gold projects, following up on numerous high grade intersections encountered from previous diamond drilling on licence areas, ranging between 11.4 grams per tonne ("g/t") to 65.8 g/t gold over widths of 1-2 metres.

 

·     Focus remains on continuing assessment of resource sector prospects with potential to add substantial shareholder value.  Around 100 projects have been reviewed to date, with a small number of opportunities shortlisted for further active consideration.

 

·     The Company concurs with the view of shareholders that a physical AGM is more beneficial to shareholders than a virtual one. Accordingly, considering the Irish Government's phased approach to reopening the country for business and the health and safety of shareholders and employees, the Ormonde AGM is being arranged for 16 September 2020 in Dublin. A Notice of AGM with full details, including any virtual access, will be posted to shareholders together with the Company's Annual Report later in June.

 

 

Jonathan Henry, Ormonde's Executive Chairman, commented:

 

"I am very pleased to report that a fresh look at Ormonde's Spanish gold exploration projects has highlighted the potential to build on high grade gold mineralisation which was intersected by previous drilling campaigns. We have identified several targets within the project portfolio which can be advanced, to the benefit of shareholders in a positive gold market environment, with low cost work programmes, while continuing to conserve the Company's cash balances for driving value in potential resource sector M&A opportunities.

 

In this regard, Ormonde's management team has several very interesting options under consideration. Gold projects have been a key focus of these efforts, together with opportunities across a range of commodities, global jurisdictions and risk profiles. The priority remains on concluding a resource sector transaction which would add substantial value for Ormonde's shareholders."

 

 

Spanish Gold Projects Update

 

During the Covid-19 lockdown, Ormonde has completed an internal desktop review on the Salamanca and Zamora gold projects in western Spain, held in joint venture with Shearwater Group plc ("JV"). The review highlights opportunities to follow up on high grade gold results returned by earlier drilling carried out by Ormonde and the JV. Narrow but high grade and shallow-level drill intercepts are found in multiple holes at two prospect locations, where there is clear scope for more substantially developed ore shoots and untested extensions within these structurally controlled mineralised zones.



 

At the El Facho prospect in Zamora (44% Ormonde), the highest grade intercepts from previously reported drillholes include:

 

Hole name

Drilled by

Year

Downhole depth (m)

Downhole width (m)*

Gold grade (g/t)

P14

Spanish Govt

1993

74

1

65.8

P15

Spanish Govt

1993

132

2

11.1

P17

Spanish Govt

1994

44

1

14.8

ORMP-1

Ormonde

2006

73

1

16.6

ORMP-4

Ormonde

2007

40

1

18.9

ORMP-10

JV

2011

102

1

21.3

ORMP-14

JV

2011

143

1

11.4

* Approximate true widths are 70-90% of downhole width

 

At the MML prospect in Salamanca (49% Ormonde), the highest grade intercepts from previously reported drillholes include:

 

Hole name

Drilled by

Year

Downhole depth (m)

Downhole width (m)*

Gold grade (g/t)

PERDD001

JV

2012

46.9

1.1

22.7




110.7

1.4

21.5

PERDD005

JV

2012

106

1

13.4

PERDD007

JV

2012

50

1

19.5

PERDD010

JV

2012

92

1

33.2

* Approximate true widths are 70-90% of downhole width

 

In addition, several earlier stage prospects, where no drilling has yet been carried out, have been identified as good gold exploration targets warranting further work.

 

Further work programmes are to be advanced in a material but cost-effective way in the near to medium term.

 

Notes:

Fraser Gardiner, MAIG, Chief Operating Officer of Ormonde Mining plc, and a qualified person as defined in the Note for Mining, Oil and Gas Companies, June 2009, of the London Stock Exchange, has reviewed and approved the technical information contained in this announcement.

 

The full results of drillholes contained in this announcement have been previously published by Ormonde as follows:

07 August 2007: P14, P15, P17, ORMP-1, ORMP-4

28 March 2012: ORMP-10, ORMP-14

11 March 2013: PERDD001, PERDD005, PERDD007, PERDD010

 

Enquiries to:

 

Ormonde Mining plc

Jonathan Henry, Executive Chairman

Paul Carroll, Chief Financial Officer

Fraser Gardiner, Chief Operating Officer

Tel: +353 (0)1 801 4184

 

Davy (Nomad, Euronext Growth Advisor and Joint Broker)

John Frain / Barry Murphy

Tel: +353 (0)1 679 6363

 

SP Angel Corporate Finance LLP (Joint Broker)

Ewan Leggat

Tel: +44 (0)20 3 470 0470

 

Capital M Consultants

Simon Rothschild

Mob: +44 (0)7703 167065

 

Murray Consultants

Mark Brennock

Tel: +353 (0)1 4980300

Mob: +353 (0)87 2335923

 

 

For more information, visit www.ormondemining.com.


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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