Ormonde reviews copper project

Ormonde Mining said it would review its position on exploration options at the La Zarza Copper Project in Spain after partner Antofagasta said it would not continue to fund further investigations.

The two firms entered an agreement in 2009 that would fund exploration for further copper resources at the permit. Under the deal, Antofagasta could earn an initial 51 per cent interest in the La Zarza permit area by invetsing $7 million on exploration activities over a three-year period.

However, the company said it did not believe a deposit of sufficient size and scale to meet its requirements does not currently exist the permit, and it was therefore ceasing its option.

Ormonde said the programmes completed in the past year have provided important information and results, which would be valuable in its assessment of the potential for further copper resources.

"Although Antofagasta has taken the decision to opt out of the agreement, it is understood to be principally based upon the group's corporate requirements with regards to minimum deposit size and scale at La Zarza," managing director of Ormonde Kerr Anderson, said. "We will provide further information on our deliberations in due course."