Ormonde Mining Announcements

RNS Number : 1042F Ormonde Mining PLC 06 October 2008  
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06 October 2008

Ormonde Mining plc

High Grade Results From Initial Infill Drilling of Thick Tungsten Zone at Barruecopardo

DUBLIN & LONDON: 06 October 2008 - Ormonde Mining plc ("Ormonde" or the "Company") is pleased to report very encouraging drilling results from its Barruecopardo Tungsten Project in Salamanca, Spain (the "Project").

Highlights

·         The first hole in the Company’s infill drilling programme (BAR-47) has returned an interval of 51 metres grading 0.3% WO3.  This intersection has an estimated true thickness of 34 metres and includes a high-grade interval of 10 metres grading 0.7% WO3.

·         This result, from the Project’s main resource zone, the Filon Principal Zone, demonstrates that widths and grades intersected are in line with Ormonde’s previous widely spaced drilling. This zone could be amenable to either bulk mining or higher grade selective mining.
 
·         Further drilling in progress to infill the main resource blocks is aimed at providing the detail required to facilitate the initial design of a mining project, based upon the current resource of 3.0 million tonnes grading 0.6% WO3.
 
·         In addition, deeper drilling has intersected the depth extension of the deposit, including high grade tungsten intervals of 1 metre grading 1.1% and 3 metres grading 0.8% WO3, some 100 metres below the depth of previous drilling.
 

Kerr Anderson, Managing Director, said:

"We are very pleased with these great drilling results, both in terms of the infill assays and very encouragingly in starting to provide evidence of a depth extension of the deposit below the level of previous drilling.  We look forward to reporting further results from the programme as assays are received."
New Drilling Results

Hole
From (m)
Width (m)
True Width (m)
WO3%
Zone
Infill drilling

BAR-47
168.0
51.0
33.8
0.27
FP
including
205.0
10.0
6.6
0.65
FP
including
205.0
2.0
1.6
1.08
FP
Deeper drilling

BAR-46
291.0
18.0
13.8
0.26
FP
including
291.0
1.0
0.8
1.08
FP

299.0
1.0
0.8
1.06
FP

304.0
3.0
2.3
0.79
FP
BAR-46B
287.0
1.0
0.8
0.71
FP

321.0
1.0
0.8
0.99
FP

369.0
8.0
6.1
0.30
FC

Zone codes:
FP = Filon Principal Zone
FC = Filon Central Zone
Drill hole BAR-47 was drilled under the main open pit to test the thick Filon Principal Zone, on a 50 metre infill section between previous holes BAR-26B and BAR-35, which had returned the following results:

Hole
From (m)
Width (m)
True Width (m)
WO3%
Zone
BAR-26B
138.0
67.0
49.0
0.30
FP
including
138.0
7.0
5.5
1.10
FP

185.0
4.0
2.9
0.93
FP

203.0
2.0
1.5
1.87
FP
BAR-35
124.0
82.0
62.6
0.25
FP
including
141.0
5.0
3.8
0.89
FP

160.0
2.0
1.5
4.48
FP

190.0
1.0
0.8
2.11
FP

The results of BAR-47 are therefore in line with expectations and support the view that this zone could be amenable to either bulk mining or higher grade selective mining methods.

Drill holes BAR-46 and 46B intersected the depth continuation of the tungsten mineralisation, and demonstrate that the Barruecopardo Deposit extends for at least 100 metres below the level of the current published resource.  This is the first drilling at these depths of the deposit and serves to indicate further depth continuity along this 1.5 kilometre long, steeply-dipping deposit.

Drill hole BAR-46 was abandoned before reaching its target depth due to technical difficulties, and the hole was re-drilled and completed as BAR-46B.  
Notes on assay method:
BAR-47 - Assays are reported using the fusion XRF method.
BAR-46 and 46B - Assays are reported using the ICP lithium metaborate fusion method. All values greater than 0.1% tungsten are subsequently analysed by the fusion XRF method.
Kerr Anderson PhD EurGeol PGeo, Managing Director of Ormonde Mining plc, and a qualified person as defined in the Guidance Note for Mining, Oil and Gas Companies, March 2006, of the London Stock Exchange, has reviewed and approved the technical information contained in this announcement.

A glossary explaining technical terms contained in this announcement can be found at www.ormondemining.com/invest/glossary.html.
Enquiries to:

Ormonde Mining plc
Kerr Anderson, Managing Director,
Fraser Gardiner, Director
Tel: +353 (0)46 9073623

Bankside Consultants
Simon Rothschild / Louise Mason  Tel: +44 (0)20 7367 8888  Mob: +44 (0)7703 167065

Davy (Nomad / IEX Adviser)
Fergal Meegan Tel: +353 (0)1 6796363

Brewin Dolphin (UK Adviser)
Alexander Dewar Tel: +44 (0)131 529 0276
ENDS
About Tungsten
Tungsten is most frequently used as tungsten monocarbide, which has a hardness close to diamond, in cemented carbides. The principal tungsten applications include its use in cutting steels and in tungsten alloys, electronics, and chemical products.

Prices of tungsten concentrates are expected to remain buoyant for the long term, and are currently quoted by the Metal Bulletin in the range $160-$180 per metric tonne unit. A metric tonne unit is equal to 10kg of WO3, which equates to 1.0% contained WO3 in the rock.  More information can be found on Ormonde's tungsten information page at http://www.ormondemining.com/about-tungsten/index.html. 
About Ormonde
Ormonde Mining plc is quoted on the AIM in London and the IEX in Dublin. Ormonde is a mineral development and exploration company focused on Spain, with the objective of developing mining projects and taking them into production.

For more information please visit www.ormondemining.com.
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