Orogen Gold PLC Mutsk gold project Armenia (4657I)
31 August 2016 - 8:00AM
UK Regulatory
TIDMORE
RNS Number : 4657I
Orogen Gold PLC
31 August 2016
Orogen Gold plc
("Orogen" or the "Company")
Mutsk gold project Armenia
Orogen Gives Notification of 80% Earn-in at Mutsk, Armenia
Orogen Gold plc (AIM: ORE), the AIM quoted gold exploration
company, provides the following update on the Company's interest in
the Mutsk gold project in southern Armenia.
Highlights:
-- Orogen gives notice of USD 2.5 million earn-in prior to the
required date of 31 August 2016
-- Orogen carrying out administration to register its 80% interest in the project
-- Joint Venture partner Georaid have the option to maintain
their 20% interest in the property by pro rata funding share or
dilute their interest by non-contribution
-- Previous two drill programmes have demonstrated potential for property size growth
-- Final results from the recently completed drill programme to be released shortly
In accordance with the terms of the Joint Venture Agreement
between the Company and its Armenian partner Georaid CJSC
("Georaid"), signed in February 2014, Orogen has notified the
current Georaid principals that it has completed exploration
expenditures of US$2.5 million on the Mutsk property prior to the
required date of 31(st) August 2016.
Orogen will now proceed to exercise its option to acquire an 80%
interest in Georaid which holds the exploration licence covering
the Mutsk property.
Moving forward, the current Georaid principals have the option
to maintain their 20% interest in the project by funding their
pro-rata share of future exploration expenditure or they may opt to
dilute their interest further by not contributing to future
costs.
Colin Bird, Chief Executive of Orogen, commented: "This is a
significant milestone in our joint venture on the Mutsk gold
project. This completed earn-in is coincident with our pleasing
technical results from our previous two drilling programmes. We
have yet to report on the final drill holes but the overall
prognosis is that the Mutsk property has significant potential to
grow in strike length (N/S) and to the east."
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 from the capital
Yerevan. The site is accessible most of the year other than during
the core winter months. Maps showing the location and details of
the project are available on the Company's website.
Limited historic exploration had been carried out until drilling
by Georaid in 2011 and subsequent follow-up by Orogen, 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. Lydian has secured
the financing for the project and has recently commenced
construction at site.
-ENDS-
Enquiries:
Orogen Gold plc
Colin Bird, CEO +353 1662
Alan Mooney, FD 8395
--------------------------------- ----------
Cairn Financial Advisers
LLP (Nominated Adviser)
Liam Murray +44 (0) 20
Sandy Jamieson 7148 7900
--------------------------------- ----------
Beaufort Securities Limited
(Broker) +44 (0) 20
Jon Belliss 7382 8300
--------------------------------- ----------
Walbrook (Public Relations
and Investor Relations) +44 (0) 20
Paul Cornelius / Gary Middleton 7933 8780
--------------------------------- ----------
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 and is currently operating gold
exploration projects at Mutsk in Armenia and the Silverton project
in Nevada USA.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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