Report supports Ormonde Mining’s plans to develop Salamanca prospects into large gold resource

Ormonde Mining (LON:ORM) has received a geological report on its properties

in the Salamanca province in Spain, which it said outlined significant gold potential and recommended priority drilling targets on the main prospects identified to date.
The company commissioned the report to review the best way to progress and realise value from these gold assets, while intending to focus on its tungsten project in Salamanca, which is expected to start producing in 2012.
Shares

in the company rallied 17.5% on the update in lte morning trade.
The report indicates that Ormonde's Salamanca permit area incorporates all the major features of classic intrusion related gold systems. This kind of systems host a considerable number of large scale, lower grade gold deposits in various parts of the world, including Mokrsko in the Czech Republic, Dublin Gulch, Yukon and Fort Knox, Alaska, with resources ranging between 3 and 4 Moz (million ounces), said Ormonde.

Specifically, the CSA report stated that the scale of the sheeted vein systems in the western part of the Salamanca block suggested that the company uncovered a major gold mineralising system, only part of which had been tested to date. The work carried out to date at the Dora prospect also suggested the presence of a large gold system, while Ormonde has identified a number of sheared quartz vein systems associated with exceptionally high gold grades in the eastern part of the Salamanca permit block. Most of these targets are also untested.

“Should follow-up exploration be successful, and considering the scale of comparative type known deposits, then Ormonde's Salamanca permit block could prove to be a district with multi-million ounce gold potential,” CSA Global stated in the report.
“This report strongly supports our view that we have several quality gold prospects on our highly prospective ground in Salamanca which could develop into significant gold resources, and now warrant further drilling and investigation,” said managing director of Ormonde Kerr Anderson.
Ormonde said that the best way to advance the work programmes on its gold properties recommended in the report would be through third party funding via joint venture with possible options now being pursed.
Ormonde has a 90% interest in several permits in the Salamanca Province in joint venture with the regional government affiliated company Sociedad de Investigación y Explotación Minera de Castilla y León (SIEMCALSA) which holds 10%.