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Drilling Recommences at Mutsk Project

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RNS Number : 0129D
Orogen Gold PLC
04 July 2016
 

4 July 2016                                         

Orogen Gold plc

("Orogen" or the "Company")

 

Mutsk gold project Armenia

 

Orogen to Recommence Drilling at Mutsk, Armenia

Orogen Gold plc (AIM: ORE), the AIM quoted gold exploration company, provides the following update on the Company's plans for 2016 at the Mutsk gold project in southern Armenia.

 

Highlights:

 

·           Orogen strongly encouraged by project re-appraisal following 2015 drilling

·           Ground geophysical survey for structural information completed in June 2016

·           Drilling to recommence, aimed at significantly extending footprint of gold zone

·           Achievement of 80% earn-in targeted for end August 2016

 

 

Colin Bird, Chief Executive of Orogen, commented: "This work programme will complete our earn-in at the Mutsk gold project in Armenia. Our recent work has allowed us to understand the nature and structure of the mineralisation. We have carried out additional ground geophysics to test, and hopefully, confirm our expectations for the final earn-in drilling programme. We are very encouraged that the nearby Amulsar gold project is financed and likely to be put into production. We will also continue our search to identify and acquire further projects which fit our short and mid-term mission."

A detailed review was undertaken on the Mutsk geology, geophysics and drilling data during the winter/spring season just passed. As reported in news releases late in 2015, Orogen was strongly encouraged by several of the drill intercepts encountered, including an interval of 21.0m width assaying 2.68g/t Au at shallow depth in hole OG15-46 at the north end of the gold zone and multiple gold-bearing zones encountered in hole OG15-47 at the southern end. These extended the strike length of the Mutsk gold zone to over 500m and the zone remains open to the south, with possible further extensions to the north, east and to depth.

In the coming season, the Company will continue its work with the aim of completing its 80% Joint Venture earn-in by end August 2016. Re-appraisal of the ground geophysics data led to a revised structural interpretation and an additional programme of ground magnetic surveying was undertaken in June 2016 to assist with further drill siting. The magnetic survey confirmed control of alteration and mineralisation along interpreted northwest and northeast trending structures. Information gained will help direct future drilling.

A contract has been signed to re-commence diamond drilling in early July 2016, designed to significantly extend the footprint of the gold zones so as to confirm the potential for a substantial gold deposit at Mutsk. Orogen looks forward to releasing further news to the market as work progresses through the summer.

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 (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 recently announced that it has secured the financing for the project and plans to commence construction in 2016.

Orogen has an exclusive agreement with Georaid CJSC to earn an 80% interest in the property by spending a total of US$2.5m by the end of August 2016.

 

-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

Alan Mooney, FD

+353 1662 8395

Cairn Financial Advisers LLP (Nominated Adviser)

Liam Murray

Sandy Jamieson

+44 (0) 20 7148 7900

Beaufort Securities Limited (Broker)

Jon Belliss

+44 (0) 20 7382 8300

Walbrook (Public Relations and Investor Relations)

Paul Cornelius / Gary Middleton

+44 (0) 20 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
 
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