Orogen Gold PLC Drilling To Commence At Silverton (4746M)
October 13 2016 - 6:00AM
UK Regulatory
TIDMORE
RNS Number : 4746M
Orogen Gold PLC
13 October 2016
13 October 2016
Orogen Gold Plc
("Orogen Gold", "Orogen" or "the Company")
Orogen prepares for drilling start-up at Silverton gold-silver
property Nevada, USA
Orogen (AIM:ORE) a precious metals exploration company with
projects in a developing gold province in Armenia and the Nevada
gold-silver district announces that it has signed a drilling
contract for an initial programme of reverse circulation drill
testing on Galileo Resources plc's ("Galileo") Silverton property
("Property") in Nevada USA. The Company has the right to earn a
majority interest in the Property under the terms of an earn-in
agreement with Galileo, the terms of which were first announced in
an RNS released on 27 June 2016, and are also included below.
Highlights
-- 1,200m drilling programme set to commence
-- Inclined drill holes planned to test the 100m wide Silverton
Fault system at depth for economic vein, stockwork and disseminated
gold and silver deposits
-- Earlier holes yielded several mineralised intervals ranging 1-5g/t Au and 100-600g/t Ag
-- Historic silver-gold mining on Silverton Fault
-- Drilling also planned on structural junction on east of
property with nearby intercepts up to 3.6g/t Au over 4.6m and
1.05g/t Au over 15.2m including 2.7g/t over 4.6m.
Ed Slowey, Operations Director said: "Orogen will focus on the
potential for deeper high grade feeder zones to the widespread gold
and silver mineralisation occurring throughout much of the
Silverton project area. We have identified two strong targets for
immediate drilling which we believe were not adequately tested by
historic exploration work. We are excited to get the drilling
programme up and running on this exceptionally gold-endowed
property"
Planned Drilling Programme
The planned programme totals circa 1,200m of reverse circulation
drilling. The holes are primarily laid out to test the potential of
the Silverton Fault system to host economic vein, stockwork and
disseminated gold and silver deposits at depth beneath the
shallower mineralisation encountered by previous explorers.
Historic vertical drilling on the southern end of the Silverton
Fault returned several mineralised intervals of 1.5m @ 1-5g/t Au
and 100-600g/t Ag within wider lower-grade zones. However, vertical
holes drilled into a steeply-dipping structure do not give an
accurate picture of the gold potential of the zone and Orogen will
drill deeper angled holes to obtain more representative intercepts
and to target potential higher grade feeder zones at depth.
In addition the Company proposes to test a further target
towards the east of the property where a mapped gold-mineralised
unconformity horizon truncates against a major caldera-margin
boundary structure. It is believed that this structure may have
been the conduit for hydrothermal fluids feeding much of the
widespread gold mineralisation on the property. Nearby historic
drilling through the unconformity zone, but away from the boundary
fault, returned intercepts up to 3.6g/t Au over 4.6m (hole S-4) and
1.05g/t Au over 15.2m (hole 88-13), including 2.7g/t over 4.6m. The
planned Orogen drilling will test the potential of the structural
junction to host high grade stockwork and disseminated gold-silver
mineralisation.
Drilling is expected to commence very shortly and to be
completed within 3-4 weeks, with follow-on sample assaying to be
undertaken at the ALS Minerals analytical laboratory in Reno.
The Silverton Property
The Property is located northeast of Tonopah in the central
Pancake Range. The Silverton claim block comprises 72 lode claims
staked by Newcrest in March 2002. The geologic environment is
similar to disseminated and bonanza epithermal gold mineralisation
at the Round Mountain mine Nevada. The Silverton property is
prospective for a range of deposit types, including bonanza style
epithermal gold mineralisation.
The property contains a >100ppb Au rock chip anomaly
measuring 2.5km x 3km. Au, Ag, As, and Hg mineralization are
broadly coincident. Within the anomaly, a section of the N-S
Silverton Fault measuring 1km x 0.5km returned chip samples values
assaying >0.5g/t Au. These are centred on a 100m wide silicified
contact between rhyolite to the east and carbonate rocks to the
west.
Small-scale mining operated in the area from 1930 to 1937 and in
1953. Total production for the district is <100,000 oz. silver,
<2,000 oz. gold and <1 ton of antimony. Over the last three
decades multiple companies including Olympic Mining, Westgold,
Newcrest and Pittston have explored the property for gold and
silver. Work completed comprised extensive geochemical sampling,
fluid inclusion studies, mapping, geophysics and drilling.
Earn-in Agreement
In June 2016 Orogen signed a definitive agreement with Galileo
pursuant to which Orogen has the right to earn-in to a 51% interest
in the Property by way of exploration expenditure of US$400,000
(the "First Expenditure") within 18 months and thereafter the
possibility to spend an additional US$1,500,000 (the "Second
Expenditure") within 30 months to earn-in a further 24% interest,
in total 75%, in the Property.
Galileo will have the right to participate pro rata after the
First Expenditure; should it exercise this right it would retain a
49% equity interest in Silverton (as opposed to being diluted down
to 25%).
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.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Enquiries:
Orogen Gold plc +353 1662
Colin Bird, CEO 8395
--------------------------------- ----------
Cairn Financial Advisers
LLP (Nominated Adviser) +44 (0) 20
Liam Murray / Sandy Jamieson 7148 7900
--------------------------------- ----------
Beaufort Securities Limited
(Broker) +44 (0) 20
Jon Belliss 7382 8300
--------------------------------- ----------
Walbrook (Public Relations
and Investor Relations) +44 (0) 20
Paul Cornelius / Gary Middleton 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
mineral exploration and development and is currently operating a
gold exploration project at Mutsk in Armenia as well as the
Silverton property. The Mutsk project was optioned by Orogen early
in 2013 to follow-up reports of a new epithermal discovery within
an established gold district. Exploration by Orogen has confirmed
and extended the gold discovery through diamond drilling and the
deposit remains open in several directions. Orogen has just
completed earning an 80% interest in the property and can increase
that holding if its' local partners elect not to contribute towards
future work programmes.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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