Salamanca & Zamora Gold Exploration

Summary
  • Ormonde’s extensive gold properties in western Spain have the potential to host significant gold resources, as highlighted in a Geological Report prepared by independent consultants CSA Global (UK) Ltd (“CSA”), which outlined significant gold potential and recommended priority drilling targets on the main prospects identified.

  • The CSA Report indicates that Ormonde’s Salamanca permit area incorporates all the major features of classic intrusion related gold systems (“IRGS”). Such systems host a considerable number of large scale, lower grade gold deposits in various parts of the world, including Mokrsko in the Czech Republic (>3.2 Moz), Dublin Gulch, Yukon (3.9 Moz) and Fort Knox, Alaska (3.8 Moz). The CSA report comments that:

    • “A number of sheared quartz vein systems associated with exceptionally high gold grades have been identified by Ormonde in the eastern part of the Salamanca permit block. Most of these targets are untested by drilling”.

    • “Should follow-up exploration be successful, and considering the scale of comparative type known deposits, then Ormonde’s Salamanca permit block could prove to be a district with multi-million ounce gold potential”.

  • The gold ground-holdings are divided into gold-tungsten and gold-only prospects. In March 2011, the Company entered into a joint venture with Aurum Mining Plc (“Aurum”), whereby Aurum funded exploration activities on Ormonde’s gold-only prospects which comprise four permit areas over a total area of 106 square kilometres.

  • Following the completion of a total earn-in expenditure of €500k (in July 2012), Aurum earned a 60% interest in two permit areas in the Zamora Province (covering the Pino de Oro Project) and a 54% interest in a further two permits in the Salamanca Province (the Peralonso and Cabeza de Caballo areas). Ormonde is Manager of the Joint Venture.

  • Results from the Aurum JV have been very encouraging with initial drilling at Peralonso returning several gold intersects at shallow depth including 10m grading 3.4 g/t gold (from 46.9m depth). Initial trenching at Cabeza de Caballo has returned good gold grades over significant widths including 21m grading 3.7g/t gold. At the El Facho Prospect in Zamora a preliminary, non-JORC compliant Mineral Resource (undertaken to guide future drilling programmes) of 122,000-145,000 ounces of gold has been estimated based upon all drilling to-date.

Detailed Information top

Location:
Salamanca and Zamora Provinces, Castilla y Leon Region, Western Spain.

Ownership:
Ormonde (through its wholly owned Spanish subsidiaries) has a 100% interest in six investigation permits in Salamanca Province, totalling approximately 280 square kilometres. Through a joint venture with AIM listed Aurum Mining plc, it has a 46% interest in a further two permits in Salamanca totalling 69 square kilometres and a 40% interest in two additional permits in the Zamora Province totalling some 37 square kilometres. The six permits held 100% by Ormonde in the Salamanca Province are the same as those held for tungsten exploration. All the permits are issued for an initial period of 3 years, renewable for further periods of 3 years upon submission of work programmes to the regional authority, the Junta de Castilla y Leon.

Ormonde considers the Salamanca-Zamora area to be one of the most prospective gold terrains in Spain and is exploring for gold mineralisation associated with granites intruded into a variable sequence of meta-sediments. The permits cover mineral prospects and occurrences with potential for high-grade vein-hosted and large, bulk tonnage low-grade deposits.

Peralonso Gold Prospect top

Current Status: Joint Venture with Aurum Mining PLC (46% Ormonde); initial drilling on strong gold-in-soil geochemical anomaly (See Fig-1).

Results: Results from the first eleven holes (total of 1,268m) drilled on the Prospect returned mineralised intervals including:

  • PERDD001:     10m @ 3.4g/t Au from 46.9m depth, incl. 1.1m @ 22.7g/t Au, and 

                                    15m @ 2.3g/t Au from 109.1m depth, incl. 1.4m @ 21.5g/t Au.

  • PERDD007:     2m @ 10.2g/t Au from 49.0m depth
Cabeza de Caballo Gold Prospect top

Current Status: Joint Venture with Aurum Mining PLC (46% Ormonde); initial trenching on extensive gold-in-soil geochemical anomaly (800m of strike at 50ppb gold) being followed up by limited drilling (four holes for a total of 442 metres) (See Fig-2).

Results: Results from trenching returned best intervals of:

  • 21m @ 3.7g/t Au from a zone of intense quartz-sulphide veining within altered granites 
  • 4m @ 8.2g/t Au and 1m @ 14.0g/t Au within a similar mineralised zone some 19m wide.

Results from initial drilling returned a best interval of:

  • CABDD001: 24m @0.4g/t Au from surface

Pino de Oro Gold Project top

Current Status: Joint Venture with Aurum Mining PLC (40% Ormonde); preliminary non-JORC compliant Mineral Resource on the El Facho Prospect of some 3.8-4.8 million tonnes with overall grades from 0.9-1.0g/t gold using a 0.3g/t gold cut-off (total of 122,000-145,000 ounces). It is important to note that this resource has not been estimated in compliance with any internationally recognised standard and has been undertaken to guide further drilling programmes. The range in estimates is due to the use of differing modelling assumptions in the estimation process. Soil sampling has identified further target areas in close proximity to El Facho.

Previous Drilling: In the 1990s drilling was carried out on the Pino de Oro gold prospect in the Zamora Province, by Spanish government agencies which intersected high-grade gold mineralisation, with better intersections including 1.0m grading 65.8 g/t and 10.7m grading 3.7 g/t gold on the El Facho and La Solana structures. Drilling by Ormonde in 2007 confirmed the previous government drilling, with intersections including 1.0m grading 18.9 g/t, 1.0m grading 16.6 g/t and 3.0m grading 4.3 g/t gold.

Drilling by the Joint Venture: Drilling to date by the Joint Venture has been focused on the “El Facho” gold structure, where the Joint Venture has drilled eleven holes (ORMP-10, 11 and 13-21) (See Fig-3 and 4) for a total of 2,697 metres of drilling, bringing total drilling at El Facho to eighteen holes drilled by Ormonde / or the Joint Venture for a total of 3,658 metres. Gold mineralisation is hosted in steeply-dipping structures characterised by quartz veining, silicification and alteration in granites. The Joint Venture drilling was designed to test for extensions to the known gold intersections and in particular to ascertain whether broader mineralised intervals can be delineated.

Dora Gold Prospect top

Current Status: Ormonde 100%;initial drilling on a target defined by geological and geochemical field work.

Results: The first drilling and trenching returned very encouraging wide gold intersections in a sheeted vein system.

  • The Company identified its ground holdings in Salamanca as having potential to host large, granite-related gold systems and Dora has all the characteristics of such a system. The first hole on Dora, drilled on a gold-in-soil geochemical anomaly some 800m long by 400m wide, returned gold over a 62 metre interval averaging 0.5 g/t (from 32m depth), within a newly-defined sheeted vein system. A second hole drilled down-dip of the first returned183m grading 0.2 g/t gold (from 38 m depth);
  • A trench excavated across the part of the anomaly tested by this drillhole returned 25 metres grading 1.0 g/t gold within a broad zone of 57 metres averaging 0.7 g/t gold;
  • Gold occurs as continuous mineralisation within wide zones of sheeted quartz veining of a broadly similar nature to the other well known extensive systems hosting large, low-grade, granite-related gold deposits.
Other Prospects (100% Ormonde) top

Other Prospects Include:

Can: drilling by Ormonde on this sheeted vein system located within 3 kilometres of Dora intersected a regularly veined system greater than 50m wide; the widely spaced nature of individual veins resulted in a best interval of 0.5 g/t gold over 16.0m (from 22m depth; Hole SC-2).

Saturno: drilling of this quartz vein system in the 1980s returned a best interval of 10m grading 2.1 g/t gold (from 127m depth in hole SAT-1) including one metre grading 12.9 g/t gold.

Bollo: historic dump material sampling of sulphide-bearing, vuggy quartz returned an average grade of 8.3 g/t gold from 30 samples, with a maximum value of 58.6 g/t gold. This material was mined from a series of narrow quartz veins.