Ormonde Mining (LON:ORM) this morning unveiled more encouraging drill results from the El Facho structure on the Zamora gold project in Spain.
Zamora is being developed in a joint venture with Aurum Mining (LON:AUR).
The nine-hole programme included ORMP-14, which returned a one metre section grading 11.35 grams per tonne of the precious metal.
More typical of the results gleaned in this round was ORMP-15, which returned 22 metres grading 1.94 grams per tonne of the precious metal.
This was found at a depth of 99 metres and within an overall interval of 49 metres grading 1.16 grams per tonne.
ORMP-13, meanwhile, returned 10 metres at 0.56 grams per tonne.
Ormonde said it also received infill assays from previous drill hole ORMP-10, which was completed last year.
It now shows an overall mineralised interval of 80 metres grading 0.76 grams per tonne of gold (from 25 metre depth).
Within this is a higher grade interval of 12 metres at 3.4 grams per tonne.
So far 11 of the 12 holes drilled at El Facho have encountered gold mineralisation in excess of one gram per tonne across a number intersections.
Ormonde managing director Kerr Anderson said: "We are very pleased with the first assay results from the current drilling programme at the El Facho structure which again show good widths and grades of gold.
“The results of the remaining six holes completed in the programme will be reported when available. Upon receipt of all the assay results, the joint venture hopes to develop an initial resource estimate for this gold structure."
Ormonde’s primary focus is the development of the Barruecopardo tungsten mine in Salamanca, Spain, which has the potential when it comes on line next year to be a significant world producer of the metal.
In March last year, Ormonde entered into a joint venture with Aurum which allowed the latter to earn a 60 per cent interest in two permits in the Zamora province and a 54 per cent interest in a further two permits in the Salamanca province, with the total permit area being 106 square kilometres, by spending €500,000 on exploration activities over an 18 month period.
In a note on Aurum, broker Fairfax said the results from El Facho are beyond its expectations.
Analyst John Meyer said: “The team have done well to choose these prospects and to show so much potential so quickly. We look forward to better news to come from these and other licenses in the region.”