Results from gold drilling ‘positive’

ORMONDE Mining, listed on both Dublin and London’s small companies markets, has had encouraging results from its gold prospecting in western Spain.

Gold deposits over a 62m-stretch of its Salamanca anomaly yielded an average 0.5 grammes per tonne.

With just one hole drilled the results have been classified as “encouraging” by the group.

The project has returned “very encouraging wide gold intersections in a sheeted vein system”, the statement said.

Ormonde said initial exploration of the region suggested it had the potential to deliver gold reserves and it “now believes it may have located such a system”, it said.

Significant further drilling is required in the area which will be undertaken over the next six months, chief executive Kerr Anderson said yesterday.

Since 2001, when Mr Anderson took over as chief executive, the company has targeted Spain as a good prospect given its tradition of gold, tungsten, copper and mineral production.

Davy Stockbrokers, who represent the group, said: “There results, which are the first records of gold in the area, are very encouraging and further bolster Ormonde’s growing Spanish portfolio.”

That includes a tungsten carbide prospect close to an old discovery at Barruecopardo while it is also working on a copper-gold-zinc project at La Zara.

At a time of soaring gold price now close to $800 demand is growing with India one of the biggest consumers through its extensive jewellery market.

With gold likely to hit $1,000 an ounce in the near term Mr Anderson believes prospects for gold mines “are extremely positive”.