Ormonde signals potential ore find

EXPLORATION company Ormonde Mining says drilling at its Barruecopardo system in northern Spain indicates potential for a new tungsten find.

Ormonde describes the metal ore found at the site as high-grade, adding that the latest results also signal the possible presence of tungsten zones in the immediate area.

“The widths and grades of tungsten mineralisation intersected in our drilling are encouraging, and highlight the potential to delineate a new hard rock resource at Barruecopardo,” said managing director, Kerr Anderson.

Last May, Ormonde placed more than 15 million new shares in the company at a price of 29.4 cent to fund its Spanish operations.

The placing, represented about 10% of the existing share capital, and raised just under €4.5m. It said the money would be underpin its strategy of building a gold mining business.

In particular, the proceeds will be used to conduct the feasibility study on the La Zarza copper-gold project and to advance its gold-tungsten interests in Salamanca.

Following yesterday’s announcement, shares in the group were unchanged at 21cents. Yesterday’s announcement confirmed a “hard rock” tungsten extension in the area of Western Spain where the group is already involved in a tungsten tailings project.

It is believed the latest find is an extension of the original mine that produced the tailings in the first instance.

Job Langbroek, exploration analyst, Davy Stockbrokers, said the grades were as good, if not better than those being found elsewhere in other areas of Western Spain.

He added, however, that further drilling was required to determine the extent of the mine, but, so far, the group has proved skilful in using local knowledge to enhance its presence in that part of the country.

Tungsten is used mainly as a filament in light bulbs.