Orogen Gold PLC Silverton Project Drilling Results (6296T)
09 January 2017 - 6:00PM
UK Regulatory
TIDMORE
RNS Number : 6296T
Orogen Gold PLC
09 January 2017
09 January 2017
Orogen Gold Plc
("Orogen Gold", "Orogen" or "the Company")
Orogen reports on results from RC drilling 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, reports on the results from its initial
reverse circulation ("RC") drilling programme 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.
Highlights
-- Initial drill programme completed
-- Inclined RC holes cut extensive low-order gold mineralisation on the Silverton Fault Zone
-- Mineralised intervals up to 71.63m grading 0.20g/t Au, with values to 1.33g/t Au
-- 600m strike length of fault system tested at intermediate
depths in mineralised tuff-quartzite package
Colin Bird, CEO said: "Results from the initial test drilling
programme have shown that the gold mineralisation along the
Silverton Fault continues at depth over a wide interval. The
programme was designed to test for high grade feeder zones and as
such we did not identify any new lithology or conditions to support
this prognosis. The new results will be assessed along with
historic data in order to better understand mineralisation patterns
and if appropriate generate further targets to be drill tested in
2017. In the meantime we will concentrate on the more advanced
Mutsk gold project in Armenia, where the mineralisation footprint
was extended significantly in the last few months and boundaries
are yet to be defined."
Drilling Programme
Orogen completed a total of 1,274m of RC drilling in five holes
on two initial targets within the Silverton claim area in October
2016 and has now received gold assay results for samples from the
programme. Holes were targeted primarily at testing the Silverton
Fault Zone at depth beneath previous shallower vertical drilling
that had intercepted moderate to low grade gold and silver
mineralisation over significant widths in the fault hanging-wall.
The Silverton Fault appeared to be a potential feeder to widespread
shallow gold mineralisation.
Holes OS-2 to OS-5 were angled at 60 to 70 degrees towards the
west and northwest across the steeply east-dipping fault system
over a 600m strike length from north to south. The holes generally
confirmed earlier results, with low-grade gold occurring in a
package of iron-stained and pyrite-bearing felsitic tuff and
quartzite within the hanging-wall sequence above the fault
structure. Three of the four holes aimed at the fault zone
intersected gold mineralisation, including a wide interval in OS-2,
however the intercepts were not enhanced compared to the shallower
historic holes. The intervals are detailed in the table below:
Silverton Project, Nevada
- Au assay results
-------------------------------------------
Depth Depth
Hole from to Interval Au
No (m) (m) (m) g/t
------- ------- ------- --------- -----
OS-2 24.38 96.01 71.63 0.20
------- ------- ------- --------- -----
incl. 24.38 39.62 15.24 0.34
------- ------- ------- --------- -----
incl. 38.10 39.62 1.52 1.33
------- ------- ------- --------- -----
and 54.86 62.48 7.62 0.38
------- ------- ------- --------- -----
OS-3 0.00 16.76 16.76 0.11
------- ------- ------- --------- -----
and 102.11 106.68 4.57 0.35
------- ------- ------- --------- -----
OS-5 118.87 123.44 4.57 0.28
------- ------- ------- --------- -----
Hole OS-1 was drilled vertically in the northeast segment of the
property to test the mineralised tuff unit proximal to a possible
caldera boundary fault structure. While the geology was much as
expected, no significant gold mineralisation was encountered.
Orogen will now assess the drilling results in tandem with the
historic gold data and other potential targets on the Property
prior to consideration of further work in 2017.
Sample assaying for the completed drilling programme was
undertaken at the ALS Minerals analytical laboratory in Reno,
Nevada. QAQC protocols included insertion of standard, blank and
duplicate samples for check assay.
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 c/o Walbrook
Colin Bird, CEO
--------------------------------- ------------
Cairn Financial Advisers
LLP (Nominated Adviser) +44 (0) 20
Liam Murray / Sandy Jamieson 7213 0880
--------------------------------- ------------
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 an
advanced 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
to over 1.3km extent 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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