New Joint Venture
17 Novembre 2003 - 8:30AM
UK Regulatory
RNS Number:1155S
Ormonde Mining PLC
17 November 2003
Ormonde Mining plc
Ormonde announces new Joint Venture on Spanish gold property
The Board of Ormonde Mining plc ("Ormonde" or "the Company") is very pleased to
announce that it has signed a Heads of Agreement with International Gold
Exploration IGE AB ("IGE"), a Swedish mining company listed on the Oslo Stock
Exchange, on Ormonde's 100% owned Tracia gold property in NW Spain. Tracia is
located approximately 60km SSE of the Corcoesto deposit in Galicia, which is
being developed as an open pit gold mine by Rio Narcea Gold Mines Ltd.
Under the terms of this Agreement, IGE can earn a 50% interest in the Tracia
gold property by spending Euro260,000 over a two-year period. Exploration is
already in progress with a view to drilling in the next six months.
The Tracia property was acquired by Ormonde earlier this year and already the
Company has identified gold mineralization associated with veining,
silicification and sulphides in altered granite in four principal locations,
with samples returning best values of 10.3, 11.1, 22.7 and 58.0 grammes per
tonne ("g/t") gold.
The Company believes that the deal with IGE will allow Ormonde to fast-track
Tracia towards a drilling programme at no cost to the Company, whilst it
continues to concentrate its efforts on the Salamon deposit where drilling is
currently underway, and on the Portas gold prospect, where drilling should
commence early next year, both in northern Spain.
At Salamon, where Ormonde is earning in to a minimum 51% in the gold deposit and
surrounding exploration ground, drilling commenced in October. This drilling is
designed to test for extensions to the existing resource in the upper part of
the deposit and to better define the higher grade zones for testing at greater
depths.
This drilling programme is now well underway and assays from the first 4 holes
of a 15-17 hole programme have been received to-date. These first holes were
drilled to investigate the previously poorly delineated, western extremity of
the deposit where the possibility existed for a near-surface gold zone as
suggested from surface trenches. These holes returned best intervals of 6.1m
grading 3.7 g/t gold (hole SS-36) and 4.9m grading 2.7 g/t gold (hole SS-38)
within wider lower grade zones. Drilling on the eastern and central parts of the
deposit is continuing and should be completed by the year end, with the bulk of
the assay results expected to be available early in the new year.
The Directors are most encouraged by ongoing developments on the Company's
Spanish projects, and further results will be released when available.
Enquiries to:
Kerr Anderson - Managing Director
Ormonde Mining plc
Tel: 00 353 46 9073623
kanderson@ormondemining.com
Colin Andrew - Chairman
Ormonde Mining plc
Tel: 00 353 87 241 2290
candrew@iol.ie
John Carroll - Director
Ormonde Mining plc
Tel: 00 353 1 492 2936
offacc@iol.ie
Eugenee Mulhern
Davy Corporate Finance Limited
Tel: 00 353 1 679 6363
17 November, 2003
ENDS
This information is provided by RNS
The company news service from the London Stock Exchange
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