Orogen Gold PLC Mutsk Drilling Extends Project To Over 1 kilometre (3333Q)
November 29 2016 - 2:00AM
UK Regulatory
TIDMORE
RNS Number : 3333Q
Orogen Gold PLC
29 November 2016
29 November 2016
Orogen Gold plc
("Orogen" or the "Company")
Mutsk gold project Armenia
Latest drilling results almost double deposit strike length
Orogen Gold plc (AIM: ORE), the AIM quoted gold exploration
company, is pleased to announce an update to the step-out drilling
programme at the Mutsk gold project in southern Armenia previously
announced on 8 November 2016. The step-out programme has already
confirmed that gold mineralisation extends for over one kilometre
with scope for further expansion.
Highlights:
-- Latest drilling extends gold zone by 500m to south
-- Deposit strike length now 1.1km and alteration evident to at least 1.5km
-- Further step-out holes to north cut hydrothermal alteration - assays awaited
-- Limits of gold deposit still not defined
-- Orogen project ownership increases beyond 80%
Colin Bird, Chief Executive of Orogen, commented: "We decided to
drill the four holes north and south because of the excellent
results we received from the earlier programme reported on 6
September 2016. Alteration was intercepted in all four holes north
and south, with assay results from the first two giving very
positive results and we eagerly await the assay results for the
remaining two holes. Mutsk drilling this season has demonstrated
that it is a deposit of size and remains open ended to the north,
south and east. We are extremely encouraged by our results and we
will develop and refine our model during the seasonally closed
period. In the next drilling season we will aim to further extend
the deposit boundaries and thereafter move to infill drilling to
develop a resource which will put a value on Mutsk. We expect that
2017 will be a very busy and productive year."
The Company has now completed all four step-out diamond drill
holes to assess the potential strike extent of the Mutsk gold
deposit. All holes were drilled at 50 degrees towards the east.
Assay results have so far been received for two of the holes.
Results for the first hole, OG16-57, were reported on 8 November
2016 which extended the strike of the known gold zone by 160m to
the south of the previous drilling. The following hole OG16-58 was
collared a further 340m south again from OG16-57 (i.e. 500m south
from the Main Gold Zone which has been drilled in some detail).
OG16-58 cut two zones of gold mineralisation coincident with logged
hydrothermal alteration as follows:
Hole From To Interval Au
No. (m) (m) (m) g/t
--------- ------ ------ --------- -----
OG16-58 67.0 70.6 3.6 1.35
--------- ------ ------ --------- -----
and 123.0 125.5 2.5 0.76
--------- ------ ------ --------- -----
This hole puts the confirmed extent of gold mineralisation at
more than 1.1km, almost doubling the known strike length of the
deposit. The remaining two holes have been drilled at 200m
step-outs to the north from the previously reported gold zones and
both have intersected intervals of hydrothermal alteration which is
often associated with gold mineralisation at Mutsk. If gold values
are confirmed by assaying in these holes, then the deposit strike
length could extend to more than 1.5km, with mineralisation still
open further to the north and the south. This would increase the
strike length of the deposit by 150% for the drilling of just four
holes. There is also considerable scope for additional extensions
to the east and to depth.
Results for the last two holes will be reported when assays are
received.
Orogen's local partners elected not to contribute to the current
drilling programme, so Orogen's holding in the project will
increase beyond the previously reported 80% level in accordance
with the terms of the Joint Venture Agreement.
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
financing for mine construction and work has commenced on the
US$420m project, with first gold production planned for early
2018.
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.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Enquiries:
Orogen Gold plc c/o Walbrook
Colin Bird, CEO
--------------------------------- ------------
Cairn Financial Advisers
LLP (Nominated Adviser) +44 (0) 20
Liam Murray / Sandy Jamieson 7213 0880
--------------------------------- ------------
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.
The Company announced planned commencement of RC drilling at the
project in an RNS dated 13 October 2016.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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