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.
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 No.||From (m)||To (m)||Interval (m)||Au g/t|
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.
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.
|Orogen Gold plc
Colin Bird, CEO
|Cairn Financial Advisers LLP (Nominated Adviser)
Liam Murray / Sandy Jamieson
|+44 (0) 20 7213 0880|
|Beaufort Securities Limited (Broker)
|+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. The Company announced planned commencement of RC drilling at the project in an RNS dated 13 October 2016.