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Ormonde Mining says latest drill results confirm commercial tungsten grades at Barruecopardo

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Ormonde Mining (LON:ORM) said the latest drill results from its flagship Barruecopardo tungsten project in Spain continue to confirm good commercial grades and widths.

The AIM listed mining company today reported the results from the final seven holes in its infill drilling programme at Barruecopardo. Intersections reported today included 20 metres grading 0.34 percent tungsten and a broader interval of 25 metres grading 0.5 percent tungsten.

The results from the 21-hole infill drilling programme are being incorporated into a final resource estimate, which is currently being prepared by CSA Global as part of the feasibility study.

Ormonde said it will report on the new resource estimate “shortly”.

“The assay results from the final holes in the infill drilling campaign continue to confirm good commercial tungsten grades and widths. The overall drilling campaign has demonstrated the consistency and quality of mineralisation at Barruecopardo,” said managing director of Ormonde Mining Kerr Anderson.

A fortnight ago, Ormonde reported “extremely positive” interim results of the feasibility study at Barruecopardo, which led to “a very material increase” in indicated resources and, consequently, a 60 percent increase in projected annual tungsten production.

Following the publication of the interim report on the feasibility study, broker Fairfax estimated that assuming a tungsten price of US$350 per metric tonne, the project would generate average pre-tax operating cash flows of around €29 million per annum.

Such annual cash flows would be of the same order of magnitude as the firm’s current market cap, noted Fairfax.

Investors welcomed today's report as shares in Ormonde rose three percent to trade at 8.63 pence in early deals, valuing the company at £29.25million.

Quick facts: Ormonde Mining plc

Price: 0.725 GBX

AIM:ORM
Market: AIM
Market Cap: £3.43 m
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