Fresh look at old projects may yield new opportunity for Ormonde

Gold mining company has identified several targets for further investigation

Photograph: iStock

Photograph: iStock

 

Ormonde Mining says that a fresh look at its Spanish gold exploration projects has highlighted new potential for the company.

In an update to the market, the company said it had discovered potential to build on high grade gold mineralisation which was intersected by previous drilling campaigns.

Ormonde has identified several targets that could be advanced with low-cost work programmes, benefitting shareholders while also preserving the company’s cash balances “for driving value in potential resource sector M&A opportunities”.

“In this regard, Ormonde’s management team has several very interesting options under consideration,” said executive chairman Jonathan Henry.

“Gold projects have been a key focus of these efforts, together with opportunities across a range of commodities, global jurisdictions and risk profiles. The priority remains on concluding a resource sector transaction which would add substantial value for Ormonde’s shareholders.”

Around 100 projects have been reviewed, with a small number marked for further consideration. Among the projects under review were the Salamanca and Zamora gold projects in western Spain, a joint venture with Shearwater Group. This showed potential opportunities to follow up on high grade gold results returned by earlier drilling.

The company also confirmed it would hold a physical AGM in September, rather than opting for the virtual AGM that many others have chosen in the midst of the coronavirus pandemic.