Orogen Gold PLC Mutsk Gold Mineralisation Substantially Extended (0081J)
06 September 2016 - 8:00AM
UK Regulatory
TIDMORE
RNS Number : 0081J
Orogen Gold PLC
06 September 2016
06 September 2016
Orogen Gold plc
("Orogen" or the "Company")
Mutsk gold project Armenia
Drilling Substantially Extends Gold Deposit Footprint at Mutsk,
Armenia
Orogen Gold plc (AIM: ORE), the AIM quoted gold exploration
company, provides the following positive news on its recent diamond
drilling programme at the Mutsk gold project in southern
Armenia.
Highlights:
-- Limited drilling programme doubles deposit footprint
-- Multiple bands of hydrothermal alteration and gold mineralisation intersected
-- Gold zone remains open further to the south and east and to
depth, with many areas untested
-- Company preparing updated deposit model and follow-up plan
Colin Bird, Chief Executive of Orogen, commented: "This is a
very pleasing result for the Company. The last two drilling
programmes have been aimed specifically at defining the "gold
envelope" at Mutsk. Relatively small expenditure has doubled the
target and further scope remains. Our near-term detailed modelling
will allow us to fully understand dips, trends and therefore target
future drilling from a sound base. The outcome is particularly
gratifying against the backdrop of a renewed interest in gold
mining and developments within the regions we are operating
in."
Diamond drilling at the Mutsk gold property recommenced in early
July 2016 with the twin aim of extending the footprint of the gold
deposit and achieving the 80% project earn-in target by end August
2016. The programme has been completed for now, with the drilling
of a total of 1,015 metres in seven holes directed towards the
east. As announced on 31 August 2016 the earn-in target was
achieved on schedule.
The holes were focussed to the east and south of the main gold
zone at Mutsk. Six of the seven holes completed cut sections of
hydrothermal alteration with associated gold-bearing intervals.
This limited programme exceeded expectations by approximately
doubling the overall footprint of the gold mineralisation to an
area of 600m north to south by 200m east to west. The main gold
zone remains open further to the east and south. In addition the
northern gold zone has not yet been fully delineated.
Several of the holes hit multiple gold intervals over total
downhole widths of up to 130m. The main assay intervals of interest
are summarised in the table below.
Results for the first three holes in the programme, OG16-50 to
OG16-52 were reported in an earlier RNS release dated 08 August
2016. Among the more interesting intercepts from the later holes
are 8.9m@1.14g/t Au from 44.1m depth in OG16-54 and 5.8m@1.68g/t Au
from 67.2m depth in OG16-53.
Hole OG16-54 is particularly interesting as it extends the gold
zone further to the south where grades appear to pick up again. The
remaining holes confirm the occurrence of gold mineralised bands
towards the east and southeast of the main gold zone. It appears
that the gold bands may plunge steeply towards the west on some
sections, with more pervasive mineralisation where hydrothermal
alteration is more widespread.
Mutsk 2016 Drilling - Main
Au Intervals
-------------------------------------------
Hole From To Interval Au
No. (m) (m) (m)* g/t
--------- ------ ------ --------- -----
OG16-50 8.0 21.0 13.0 1.13
--------- ------ ------ --------- -----
incl. 9.0 15.0 6.0 1.63
--------- ------ ------ --------- -----
and 45.0 57.0 12.0 0.69
--------- ------ ------ --------- -----
incl. 45.0 50.8 5.8 1.03
--------- ------ ------ --------- -----
and 127.0 138.5 11.5 0.81
--------- ------ ------ --------- -----
OG16-51 65.0 74.0 9.0 0.32
--------- ------ ------ --------- -----
OG16-52 51.0 57.7 6.7 0.43
--------- ------ ------ --------- -----
and 72.5 81.6 9.1 0.66
--------- ------ ------ --------- -----
and 129.0 131.6 2.6 0.55
--------- ------ ------ --------- -----
and 138.0 149.0 11.0 1.00
--------- ------ ------ --------- -----
incl. 144.8 149.0 4.2 1.62
--------- ------ ------ --------- -----
and 164.2 176.0 11.8 1.06
--------- ------ ------ --------- -----
incl. 172.6 176.0 3.4 1.48
--------- ------ ------ --------- -----
OG16-53 67.2 73.0 5.8 1.68
--------- ------ ------ --------- -----
and 116.0 119.2 3.2 1.09
--------- ------ ------ --------- -----
OG16-54 44.1 53.0 8.9 1.14
--------- ------ ------ --------- -----
incl. 49.3 53.0 3.7 1.85
--------- ------ ------ --------- -----
and 58.9 63.0 4.1 1.60
--------- ------ ------ --------- -----
OG16-56 56.3 61.5 5.2 0.77
--------- ------ ------ --------- -----
and 73.9 77.0 3.1 0.78
--------- ------ ------ --------- -----
and 103.0 113.0 10.0 0.47
--------- ------ ------ --------- -----
and 121.0 122.0 1.0 2.63
--------- ------ ------ --------- -----
*Downhole intervals quoted - true widths may be less
Assay results remain in line with, or ahead of, those recorded
at Lydian's Amulsar project, 30km from Mutsk, where development has
recently commenced on a 2.4Moz ore reserve grading 0.78g/t Au.
The Company will now assess the significance of the new gold
extensions at Mutsk, and will prepare a follow-up plan over the
coming weeks to further expand the gold resource and to consider
other work required to advance the project towards maiden resource
status.
For maps of the Mutsk property please refer to the Mutsk project
page on the Orogen website at www.orogengold.com
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 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 (5
million ounces in Measured, Indicated and Inferred Resources at an
average grade of 0.7g/t Au) located 30km to the northwest, also in
Armenia. Lydian has recently announced that it has secured the
financing for the project and has commenced construction.
Orogen has just completed earning an 80% interest in the
property and can increase that holding if its' local partners elect
not to contribute towards future work programmes.
-ENDS-
Technical Sign-Off
Ed Slowey, Operations Director 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
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
gold exploration and is currently operating two gold exploration
projects: a) at Mutsk in Armenia and b) at Silverton in Nevada,
USA. 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. In Nevada, an earn-in agreement was
recently announced covering the Silverton gold-silver prospect,
giving Orogen the right to earn in to an initial 51% interest in
the property. Anomalous gold values are recorded from bedrock
across much of the property, but previous drilling is not
considered to have adequately tested the potential gold
sources.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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