Source - RNS
RNS Number : 4657I
Orogen Gold PLC
31 August 2016


Orogen Gold plc

("Orogen" or the "Company")


Mutsk gold project Armenia


Orogen Gives Notification of 80% Earn-in at Mutsk, Armenia

Orogen Gold plc (AIM: ORE), the AIM quoted gold exploration company, provides the following update on the Company's interest in the Mutsk gold project in southern Armenia.




·           Orogen gives notice of USD 2.5 million earn-in prior to the required date of 31 August 2016

·           Orogen carrying out administration to register its 80% interest in the project

·           Joint Venture partner Georaid have the option to maintain their 20% interest in the property by pro rata funding share or dilute their interest by non-contribution

·           Previous two drill programmes have demonstrated potential for property size growth

·           Final results from the recently completed drill programme to be released shortly


In accordance with the terms of the Joint Venture Agreement between the Company and its Armenian partner Georaid CJSC ("Georaid"), signed in February 2014, Orogen has notified the current Georaid principals that it has completed exploration expenditures of US$2.5 million on the Mutsk property prior to the required date of 31st August 2016.

Orogen will now proceed to exercise its option to acquire an 80% interest in Georaid which holds the exploration licence covering the Mutsk property.

Moving forward, the current Georaid principals have the option to maintain their 20% interest in the project by funding their pro-rata share of future exploration expenditure or they may opt to dilute their interest further by not contributing to future costs.


Colin Bird, Chief Executive of Orogen, commented: "This is a significant milestone in our joint venture on the Mutsk gold project. This completed earn-in is coincident with our pleasing technical results from our previous two drilling programmes. We have yet to report on the final drill holes but the overall prognosis is that the Mutsk property has significant potential to grow in strike length (N/S) and to the east."



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 in 2011 and subsequent follow-up by Orogen, 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 (4.1 million ounces in Measured, Indicated and Inferred Resources at an average grade of 1g/t Au) located 30km to the northwest, also in Armenia. Lydian has secured the financing for the project and has recently commenced construction at site.







Orogen Gold plc

Colin Bird, CEO

Alan Mooney, FD

+353 1662 8395

Cairn Financial Advisers LLP (Nominated Adviser)

Liam Murray

Sandy Jamieson

+44 (0) 20 7148 7900

Beaufort Securities Limited (Broker)

Jon Belliss

+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 mineral exploration and development and is currently operating gold exploration projects at Mutsk in Armenia and the Silverton project in Nevada USA.

This information is provided by RNS
The company news service from the London Stock Exchange

Related Charts

Orogen Gold (ORE)

-0.00p (-8.57%)
delayed 18:15PM