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Ormonde to concentrate on gold-tungsten projects as it farms-out ‘gold-only’ projects to Aurum mining

Last updated: 18:13 14 Mar 2011 AEDT, First published: 19:13 14 Mar 2011 AEDT

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Ormonde Mining (LON:ORM) has agreed a deal with Aurum Mining (LON:AUR) to set up a joint venture for its gold exploration projects in the Zamora and Salamanca regions of Spain.

The company has decided to treat its ‘gold-tungsten’ and its ‘gold-only’ projects separately. 

Consequently it plans to concentrate its internal cash resources on the gold-tungsten projects - Dora, Marta, Can, Saturno and Bollo.

Here work programmes are being developed and the next phase of exploration will get underway shortly - first up will be the Bollo prospect which hosted a small open pit tungsten mine in the 1970s. At Bollo previous grab sampling, on the old dumps, returned average gold grades of 8.3 grams per tonne.

Meanwhile at the Dora prospect, wide low-grade intersections of gold have been encountered in the limited drilling and trenching work done to date.

The company says that this suggests a significant gold mineralised system.

Ormonde highlighted the findings of last year’s independent report by CSA Global, which concluded that the gold-tungsten projects in Salamanca ‘incorporate all the major features of a classic intrusion related gold system (IRGS)’.

IRGS systems are known to host multi-million ounce deposits globally.

Ormonde plans to have the Barruecopardo tungsten mine up and running by the end of 2012, initially mining 500,000 tonnes of ore per year after a steady ramp-up.

Meanwhile Ormonde’s gold-only projects are being farmed-out to Aurum Mining.

Under the terms of the deal Aurum can earn a controlling stake in the assets - 60 percent in two permits in the Zamora Province and a 54 percent stake in two permits in Salamanca – by spending €500,000 on exploration in 18 months.

"I am pleased that through our own exploration programme and the Joint Venture agreed with Aurum we can advance the exploration of our highly prospective licences in the Salamanca and Zamora region,” said Ormonde managing director Kerr Anderson.

Ormonde and Aurum have already agreed to carry-out a two-stage drill programme which will include 1,000 metres of drilling.

 

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