TIDMORE
RNS Number : 8344D
Orogen Gold PLC
03 February 2015
3 February 2015
Orogen Gold plc
("Orogen" or the "Company")
Mutsk gold project update and Issue of Equity
Orogen Gold plc (AIM: ORE), the AIM quoted gold exploration
company, provides the following update on the Company's exploration
programme at the Mutsk gold project in southern Armenia ("Mutsk
project") and the issuing of shares to Orogen's Armenian
partners.
Highlights
-- Independent geological review report concludes:
- Gold mineralisation at Mutsk overlies a large hydrothermal
system of which only a small portion has been explored to date
- The gold mineralising system is preserved from erosion - gold zones intact
- Broad, low-grade mineralized zones appear to be stacked into multiple layers
- Further exploration recommended off-trend from the mineralized zone discovered thus far
- Banded veining logged in 2014 drilling indicates potential for higher grade mineralized zones
- Analogies can be drawn with other large scale epithermal gold occurrences
-- Continuation notice issued to Georaid CJSC and 110,886,804
new ordinary shares issued in line with JV agreement
Ed Slowey, Chief Executive of Orogen, commented: "The
independent geological overview report of the Mutsk project
confirms our optimism regarding the potential scale of the
discovery and points towards some additional drill targets, related
to structural junctions and possible high grade gold zones at
deeper levels. Analogies with other large-scale low-sulphidation
epithermal deposits also help to highlight the potential of the
project.
"The Company has also announced that is has forwarded a
continuation notice and issued shares to our Armenian partners as
required by our joint venture agreement, demonstrating our belief
in the future of the project and further aligning both parties
interests.
"Orogen is working towards finalising of data compilation and
geological modelling following the 2013 and 2014 Mutsk drilling
programmes and will report on conclusions and future plans arising
from this work in the coming weeks."
1. Mutsk Project Update
An independent geological overview report on the Mutsk gold
property was commissioned by the Company late in 2014 to assist
with understanding of the project and to help with future
exploration targeting. The report was written by Dr. Jim Oliver, a
North American geologist with extensive experience in epithermal
and porphyry mineral deposits. His main conclusions are summarised
below:
- The Mutsk low-sulphidation epithermal gold occurrence
represents a "very interesting" geological and mineralising
environment. The gold mineralisation overlies a very large
hydrothermal system of which only a small portion has been explored
to date.
- Study of data for Mutsk suggests that gold mineralized zones
have been formed relatively close to the paleo-topographic surface
and that the bulk of the mineralized interval will therefore be
intact.
- Detailed study of drill core strongly indicates a positive
correlation between gold and sulphide phases.
- The assay data suggests that broad, low-grade mineralized
zones are stacked, with some level of lithological control on these
bodies. Mineralized panels of rock may have a strike length of a
few hundred metres and may be up to, and potentially exceed, 80
metres in thickness.
- Drilling indicates that magmatic breccias exist off-trend from
the main Mutsk mineralized zone and that focused exploration
efforts within these new trends could produce positive results. The
points of convergence of structural trends may localize gold
mineralization and warrant additional drill testing.
- Many low-sulphidation epithermal gold occurrences have
productive vertical thicknesses in the 300 to 600 metre range.
Higher grade core zones are found in several of these deposits.
Colliform banded quartz veins most commonly occur within the upper
levels such systems. Well-formed colliform banded
quartz-sulphide-carbonate veins are documented at Mutsk. If boiling
zones exist below these veins at Mutsk, then higher grade
mineralized core zones may be located.
- The presence of high level diatremes at Mutsk may be
suggestive of low sulphidation gold occurrences which are analogous
to Montana Tunnels (Montana - USA, approximately 44 million tonnes
of 0.55 g/t Au), Rosia Montana (Romania, 214.9 million tonnes @
1.46 g/t Au) and Kelian (Indonesia, 55 million tonnes of 2.0 g/t
Au). However, exploration at Mutsk is at a relatively early stage
and there can be no certainty as yet that a similar deposit exists
there.
2. Continuation Notice and Issue of Shares
Under the terms of its joint venture agreement (the "Agreement")
with Georaid CJSC ("Georaid") in relation to the Mutsk project the
Company is required to allot Ordinary shares in the Company to the
value of US$100,000 if it wishes to continue exploration on the
Mutsk property beyond 31 December 2014. Orogen has exercised its
continuation rights and has issued a total of 110,886,804 new
ordinary shares of 0.01p each in the Company (the "New Shares"), in
accordance with the Agreement.
Admission
Application has been made for the New Shares to be admitted to
trading on AIM, which is expected to take place on 6 February 2015.
Following admission, the enlarged issued share capital of the
Company will constitute 3,671,318,987 Ordinary Shares.
Total Voting Rights
For the purposes of the Disclosure and Transparency Rules, the
Company's total issued share capital following the issue of the New
Shares will comprise 3,671,318,987 ordinary shares of 0.01p each
with one voting right per share. There are no shares held in
treasury.
The above figure may be used by shareholders as the denominator
for the calculations by which they will determine if they are
required to notify their interest in, or a change to their interest
in, the Company, under the Disclosure and Transparency Rules.
About the Mutsk Project
The Mutsk Project is located in southern Armenia at about 2,000m
elevation and is three and a half hours' drive southeast of the
capital Yerevan. The site is accessible most of the year other than
during the core winter months.
Limited historic exploration had been carried out until drilling
by Georaid CJSC in 2011, which intersected low sulphidation
epithermal-type pyrite-gold mineralisation in altered and
brecciated tuffs, similar in age and gold grade to those that host
the Lydian International high sulphidation Amulsar gold deposit
(4.1 million ounces in Measured, Indicated and Inferred Resources
at an average grade of 1g/t Au) located 30km to the northwest, also
in Armenia.
Orogen has an exclusive agreement with Georaid CJSC to earn an
80% interest in the property by spending a total of US$2.5m by the
end of August 2016.
-ENDS-
Approval
Ed Slowey, CEO of Orogen, is a Competent Person as defined by
various international instruments and takes responsibility for the
release of this information.
Enquiries:
Orogen Gold Plc +353 1662 8395
Ed Slowey, CEO
Alan Mooney, FD
----------------------------------------- ---------------------
Cairn Financial Advisers LLP (Nominated
Adviser) +44 (0) 20 7148 7900
Avi Robinson / Liam Murray
Hume Capital Securities Plc (Broker) +44 (0) 20 3693 1470
Jon Belliss
----------------------------------------- ---------------------
Walbrook (Public Relations and Investor
Relations) +44 (0) 20 7933 8780
Paul Cornelius / Guy McDougall
----------------------------------------- ---------------------
About Orogen Gold
Orogen Gold plc is a UK public company quoted on the London
Stock Exchange AIM market (ticker: ORE). The Company is focused on
mineral exploration and development in Europe and is currently
operating two gold exploration projects: a) at Mutsk in Armenia and
b) at Deli Jovan in Serbia. The Mutsk gold project in Armenia was
optioned by Orogen early in 2013 to follow-up reports of a new
epithermal discovery within an established gold district. At Deli
Jovan the historic high-grade gold mining camp was last in
production prior to World War II and has been significantly
under-explored in modern times. The Mutsk project has been
prioritised by the Company due to the clear potential evident on
the property.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCTTMRTMBIMBIA
Orogen Gold (LSE:ORE)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Orogen Gold (LSE:ORE)
Historical Stock Chart
Von Jul 2023 bis Jul 2024