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Company Orogen Gold PLC
TIDM ORE
Headline

Highly prospective Armenia gold property optioned

Released 07:00 22-Jan-2013
Number 0315W07

RNS Number : 0315W
Orogen Gold PLC
22 January 2013
 



 

22 January 2013

 

Orogen Gold Plc

("Orogen Gold", "Orogen" or "the Company")

 

Highly prospective gold property optioned within emerging epithermal gold district in Armenia

 

Orogen Gold, the AIM quoted mineral exploration company focused on gold exploration and development in Europe, has signed a Memorandum of Understanding ("MOU") with Georaid CJSC ("Georaid"), an Armenian registered company, covering the Mutsk gold project in southern Armenia.  

 

Highlights

 

·     Exclusive right to undertake a confirmatory due diligence exploration programme over the 24km² exploration licence by the end of August 2013

 

·     Option to earn an 80% interest in the property by spending a total of US$2.5m by the end of August   2016

 

·     Drilling of seven shallow reconnaissance diamond drill holes by Georaid shows extensive alteration and gold mineralisation along a minimum 850m strike extent

 

·     Prospect remains untested along strike and to depth

 

·     Drill core assays up to 2.75g/t Au over 5m within a wider zone of 14.4m assaying 1.09g/t Au, subject to verification

 

·     Located 30km southeast of Lydian International's Amulsar gold deposit (2.3 million ounce open pit reserve @ 0.8g/t Au)

 

 

Orogen CEO, Ed Slowey, commented "While the Company's primary focus remains firmly on the Deli Jovan gold project in Serbia, management is always open to exciting new gold exploration opportunities consistent with our geographical focus and expertise in south-eastern Europe.  The Mutsk project in Armenia represents a rare opportunity to acquire a project with early indications of significant gold mineralisation within an emerging epithermal gold district which includes Lydian International's major Amulsar deposit.  Preliminary drilling has identified the new Mutsk gold discovery in this district which is open-ended, untested to depth and potentially open-pittable.  We look forward to updating shareholders over the coming months on progress of our initial evaluation programme at the site.

 

"In addition, at Deli Jovan, management has completed analysis of drilling and trenching results from the 2012 programme and will be updating shareholders shortly on plans for follow-up work on the primary targets in the current year."

 

Mutsk MOU

 

The MOU signed with Georaid covers two phases of work on the Mutsk property.

 

·     The Phase 1 Evaluation Programme runs to 31 August 2013 and gives Orogen an opportunity to conduct a confirmatory exploration programme, including a small diamond drilling component.  Minimum expenditure during this phase is set at US$150,000, which will be fully covered by the funds raised recently through the exercise of the Darwin Strategic Equity Finance Facility.

 

·     Orogen then has the right to continue into Phase 2 of the programme, which runs to 31 August 2016.  For a total exploration spend of US$2.5m Orogen can earn an 80% interest in the project.

 

About the Mutsk Project

 

Mutsk is located in southern Armenia at about 2,000m elevation and is three hours' drive from the capital Yerevan.  The site is accessible most of the year other than the core winter months.  A map showing the location of the project is available on the company's website at http://www.orogengold.com/armenia-maps/

 

Very limited historic exploration had been carried out until the recent exploration by Georaid, which included seven shallow reconnaissance diamond drill holes totalling 355m over an 850m strike length.  Most of the holes intersected low sulphidation epithermal-type pyrite-gold mineralisation in altered and brecciated tuffs, similar in age to those that host the high sulphidation Amulsar deposit.  In a number of the holes the mineralisation is open to depth, with five of the holes reporting grades in excess of 0.5g/t Au.  Intercepts recorded include*:

 

B-1

7.5m @ 0.19g/t Au from 12.5-21.0m

3.0m @ 1.58g/t Au from 26.0-29.0m



B-3

3.0m @ 1.56g/t Au from 21.2-24.2m

2.0m @ 1.03g/t Au from 45.2-47.2m



B-4

4.0m @ 0.47g/t Au from 18.0-22.0m



B-5

20.4m @ 0.79g/t Au from 15.0 to 35.4m

Including 14.4m @ 1.09g/t Au from 21.0-35.4m

Including 5.0m @ 2.75g/t Au from 21.0-26.0m

 

 

B-7

5.1m @ 1.26g/t Au from 26.9-32.0m

 

*All holes are vertical.  Several of the intercepts may be more extensive than recorded above, as not all core was sampled and assayed. Where internal sampling gaps occur within the quoted intercepts, these have been conservatively ascribed a zero value.

 

Only 4km2 of the permit has been mapped to date, with 2km2 being covered by geophysical surveying. Initial interpretation suggests that the target extends to an area of at least 1,500m by 200m, with a possible strike extent of 3.5km.

 

Sampling, Assaying, and Quality Assurance / Quality Control

 

All recent work on the Mutsk property has been carried out by Georaid.  Drilling, logging and core sampling appears to have been carried out in a competent manner and remaining drill core as well as all project data has been viewed by Orogen.  Split core samples were assayed at the ISO 17025 accredited ALS Minerals analytical laboratory in Rosia Montana, Romania. QAQC in relation to core handling and sample preparation would require improvement to bring it to JORC standard and this will be addressed in the planned work programme.  

 

Ed Slowey, CEO of Orogen, is a Competent Person as defined by various international instruments and takes responsibility for the release of this information.

 

Deli Jovan, Serbia - Overview

 

Following a successful first phase underground sampling and surface drilling programme at the historic Gindusa mine area in 2012 which demonstrated significant vertical continuity on the gold-bearing vein system there, as well as highly encouraging results from a trench at the Gindusa West prospect which intersected a 3 metre zone assaying @ 29.6g/t Au (see news release dated 5 December 2012), Orogen is now preparing its 2013 follow-up programme.  This will include further trenching and drilling on the priority targets at Gindusa as well as testing of the undrilled Latovo prospect.  The Company will provide an update to shareholders on the 2013 plan in due course. 

 

 

Enquiries:

 

Orogen Gold Plc

+353 1662 8395

Ed Slowey, CEO

Alan Mooney, FD

WH Ireland Limited

+44 (0) 20 7220 1666

Tim Feather

James Bavister

Newgate Threadneedle

+44 (0) 20 7653 9840

Richard Gotla

Beth Harris

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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Highly prospective Armenia gold property optioned - RNS