Ormonde Mining PLC Business Update June 2020 (3252P)

TIDMORM

RNS Number : 3252P

Ormonde Mining PLC

09 June 2020

9 June 2020

Ormonde Mi n i ng p lc

("Or m onde" or "the C o m pany ")

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    Year    Downhole    Downhole     Gold grade 
                 by                depth     width (m)*      (g/t) 
                                    (m) 
              Spanish 
    P14         Govt     1993       74           1           65.8 
             ---------  ------  ---------  ------------  ----------- 
              Spanish 
    P15         Govt     1993      132           2           11.1 
             ---------  ------  ---------  ------------  ----------- 
              Spanish 
    P17         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    Year    Downhole    Downhole     Gold grade 
                 by                depth     width (m)*      (g/t) 
                                    (m) 
  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

Enqu iries t o:

Ormonde Mining plc

Jonathan Henry, Executive Chairman

Paul Carroll, Chief Financial Officer

Fraser Gardiner, Chief Operating Officer

Tel: [phone]

Davy (Nomad, Euronext Growth Advisor and Joint Broker)

John Frain / Barry Murphy

Tel: [phone]

SP Angel Corporate Finance LLP (Joint Broker)

Ewan Leggat

Tel: [phone]

Capital M Consultants

Simon Rothschild

Mob: [phone]

Murray Consultants

Mark Brennock

Tel: [phone]

Mob: [phone]

For more information, visit www.ormondemining.com .

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June 09, 2020 02:00 ET (06:00 GMT)