Ormonde Mining La Zarza Results Bolster

Monday, December 05, 2005 5:22:34 AM ET
Dow Jones Newswires



0904 GMT [Dow Jones] Ormonde Mining's (ORM.DB) results from La Zarza in southern Spain should support the stock, says Seymour Pierce. "We view this as a further positive step on the path to the development of La Zarza, and reiterate our buy recommendation on Ormonde with a 24p target price." Trades +3.7% at 9.9p. (DWE)

http://www.newratings.com/analyst_news/article_1149090.html

ORM - Ormonde Mining

Latest Prices
Name Price %
Ormonde Mining 10.53p +10.50%

FTSE AIM All-Share 1,015 -0.07%
Mining 11,934 -1.71%

LONDON (SHARECAST) - Ormonde Mining has reported positive test results from the La Zarza Gold-Copper Project in southern Spain.

The group said a total of gold recovered from saleable floatation concentrates and gold recovered from pyrite concentrates should be higher than originally targeted.

"The unexpected recovery of a significant proportion of the gold by standard flotation to copper and lead concentrates is a very positive development which gives the company considerable confidence in the testwork programme
http://www.sharecast.com/cgi-bin/sharecast/story.cgi?story_id=584019

all this news and harldly any buying... amazing, either the market is asleep, or people are just plane mad missing an easy opportunity like this

Moving on up --- have the Irish got some info ?

Or is it a top tip in tomorrow's mags ?

3 x 10 mil trades , buy or sell ? looks like a sell

New article, click HERE

This small tungsten miner (9.8m cap) is reccommended in todays' Shares as a buy.
They reckon it may become an investor favourite.Currently priced at 5.1p,
Any views out there?

Depends how much the punters want to chase it.

They normally go nuts for these stocks but as i hold i expect it to drop
again later, they never seem to rise 100% when i hold them :-))

Exactly so,I was looking to buy first thing,but the asking price was already up by a quarter,so decided to pass.
Looks a good bet however to keep tabs on.

have held a few of these for years off and on -now looking to get in again-but not while its sitting on that spike.Had i not been preoccupied with other matters i would have bought when chart ema s s showed it to be a technical buy at 3.75 and underlined that fact most strongly at a tad shy of 4p .......

Shares makes its case for the stock based largely on Chinas' demand for tungsten.

i believe so cp - seems very volatile - began day with offer of 5.75 and went to 6.50 on low volume -now offering at 6.0 ......hmmm ...ill watch this one...

Study suggests major cash flows for Ormonde tungsten project
StockMarketWire.com
Ormonde Mining says an independent study by consultants Scott Wilson indicates substantial net cash flows from open-pit mining at its Barruecopardo Tungsten Project in Spain.

The report suggests the optimum approach in the initial 10-year period would be by open pit at a design production capacity of 0.5m tonnes a year, an increase of 25% on previous estimated initial production rates.

It says the base case project is capable of generating 9.3m a year of averaged pre-tax operating cash flows for 10 years at the current tungsten price.

MD Kerr Anderson said, 'This is an excellent outcome for Ormonde Mining. The results have exceeded our expectations both in terms of net cash flow projections and the life of the open pit portion of the project.

'The study supports the directors' view that Barruecopardo would be amongst the largest producers of tungsten in the world outside of China, with real potential to further increase production rates post start-up.'

Story provided by StockMarketWire.com


I just checked out tungsten prices.-currently about $29. a kilo and is on the rise.
The expectation will be to mine .5 million tons a year.
At $29,000 a ton ,we are talking about $14,500,000,000. ($14.5 billion)

cp RNS says current tungsten price is $245 per metric ton, too many zeros!!

Thanks Halifax,what I picked up was the price of pure tungsten bars, so that makes .5 mill tons about $125. mill. '

I bought into this one today as it is coming to life! Looks as though the tungsten is pushing the sp up or good news coming.

Up over 1/3 in 10 days.
At the time of teir recommendation,Shares felt this tiddler could become a big winner--right so far.

Ormonde Mining plc

Interim Results for the Six Months Ended 30 June 2010

DUBLIN & LONDON: 28 September 2010 - Ormonde Mining plc, the Spain-focused development and exploration company, is pleased to announce its unaudited interim results for the six months ended 30 June 2010.

Highlights:

Barruecopardo
Barruecopardo mineral resource upgraded to 11 million tonnes of 0.45% WO3, with 60% of the resource now in Indicated status

Scott Wilson Mining study demonstrates increased production rates, a 10 year open pit prior to underground mining and very robust economics

Tungsten price continues to rise due to increasing supply side constraints.

La Zarza

Antofagasta opts to continue to fund exploration in the joint venture and applications submitted for further exploration permits.


Michael Donoghue, Chairman of the Company, commented today,


"The Company has made significant strides over the first half of the year: the independent Study on our tungsten project in Spain has been very encouraging both on an economic and technical level and we will now press forward with advancing the project towards production as rapidly as possible. The decision by Antofagasta to continue to fund the joint venture at La Zarza is also very encouraging".
Enquiries to:

Ormonde Mining plc

Kerr Anderson, Managing Director,
Tel: +353 (0)46 9073623
Bankside Consultants

Simon Rothschild / Louise Mason Tel: +44 (0)20 7367 8888 Mobile: +44 (0)7703 167065
Davy (Nominated Adviser & Joint Broker to Ormonde)

Fergal Meegan/Roland French Tel: + 353 (0)1 6796363
Fairfax I.S. PLC (Joint Broker)

Ewan Leggat/Katy Birkin Tel: +44 (0)207 598 5368

CHAIRMAN'S STATEMENT
OPERATIONAL REVIEW

I am very pleased to be in a position to report that we have made significant progress on all fronts during 2010 and we now are entering a period where we expect to move Barruecopardo towards the final engineering design phase with a view to development of a mining operation in 2012. Progress at our La Zarza project has also been very satisfactory with Antofagasta electing to continue to fund expenditure on this joint venture.

Barruecopardo

A significant mineral resource upgrade was completed in May, with both a doubling of the resource to 11 million tonnes at 0.45% WO3 (JORC-compliant) and the upgrading of 60% of the resource from Inferred to Indicated status. Following this, the Company engaged consultants Scott Wilson Mining to carry out anindependent technical and economic Study, with an emphasis on the initial years of a mining operation. The results of this Study show that the optimum approach to mining in the initial 10 year period, based solely upon current Indicated Resources, would be by open pit at a design production capacity of 500,000 tonnes per annum, an increase of 25% on the previously estimated initial production rates. The Board regards the Study as very encouraging, not only in terms of an improved production rate, but also due to the assessment that the project would support an open pit operation for ten years prior to the development of an underground mine.

At current tungsten prices, this Base Case is capable of generating Euro 9M per year of averaged pre-tax operating cash flows for 10 years; rising to Euro 14M per year at the higher tungsten prices suggested by commodity analysts, who forecast a tungsten market supply deficit in the next few years. The initial capital cost for the Base Case is Euro 30M. The Study also considered the possibility of further increasing the open pit production rate to 800,000 tonnes per annum for 10 years (Expanded Case) by the inclusion of the Inferred Resources. This could result in the project generating Euro 16M per year of averaged pre-tax operating cash flows at the current tungsten price.

These cash flows, relative to the low capital cost, would support a high level of debt financing for the capital development stage of the project. Your Company is advancing its discussions with both concentrate off-take end-users and various banks with a view to putting in place an appropriate mix of debt, off-take contracts and possibly a component of joint venture/equity funding, when the engineering design phase and permitting has been completed.

The Scott Wilson Study considered only material that could be mined by open pit in the first 10 years of an operation. Your Company anticipates that mining would be continued by underground methods post completion of the Base Case 10-year open pit, to provide for a long life mine.

Drilling is resuming on site, focussed on infilling between the relevant previous drillholes, and work on the engineering design phase is scheduled for 2011, with the objective of bringing a mining operation into production by late 2012.
La Zarza

Exploration activities at La Zarza, through the joint venture with Antofagasta Minerals, proceeded during the first half of the year with drilling, geophysical surveying and work on a revised structural interpretation for the massive sulphides. This work formed the basis for a new global resource estimate (non-JORC compliant) of 61M tonnes, grading 0.8% copper, 0.9g/t gold, 0.6% lead, 2.0% zinc and 5.7g/t silver. This resource includes a much smaller but higher grade copper and gold "Silicatado" resource, which was the subject of Ormonde's earlier studies. Encouragingly, after completion of its first year expenditures, Antofagasta has opted to continue to fund exploration on the joint venture.

Ormonde has submitted applications to the provincial mining authority for additional permits covering the strike extension of the La Zarza system and controlling structures. These permits are to be included in the Joint venture and work programmes will be extended over the new permit areas.


Salamanca Gold Properties

While the Company concentrates its funds and resources on progressing Barruecopardo to production, the Board is at the same time anxious to advance exploration of its highly prospective gold properties in Salamanca. With this in mind, the Board commissioned an independent report on these properties by CSA Global Pty Ltd. The report concluded that the properties incorporate all the major features of classic intrusion related gold systems, which host a considerable number of large scale, lower grade, gold mines in various parts of the World.

The Board concluded that the best way to advance the work programmes on these gold properties, as recommended in this report, would be through third party funding via a joint venture. Expressions of interest have been received from several parties and these are being pursued.
CORPORATE

Ormonde's operating loss for the period was 258k (242k for the 6 months to June 2009), which reflects a continued containment of administrative expenses. We raised 726k (net of expenses) through a placement at the end of June for the Company's activities on Barruecopardo and general working capital purposes.

Looking ahead, the favourable outlook for the tungsten market, as the supply-demand situation tightens, is underpinning a strengthening of the tungsten price, and I believe the prognosis for the future of tungsten producers is very positive. Against this backdrop, work on Barruecopardo has yielded very favourable technical and economic results. We intend to move this project forward as rapidly as possible to become a major tungsten producer,

In closing I would like to welcome Fairfax as our joint broker with Davy. This additional mining research and marketing capability in the London investment community will be of great benefit to your Company as we progress forward.

Michael J. Donoghue

Chairman

28 September 2010

Here are broker Faifax comments from 6 Sept.

Fairfax Securities mining veteran John Meyer said that Ormonde Minings (LON:ORM) Barruecopardo tungsten project represents one of the highest grade, lowest capital cost undeveloped tungsten projects, and the project has the potential to become one of the largest Western World producers.

In its initiating coverage, Fairfax described Barruecopardo as a rare asset that could become of strategic importance to the European Union - which recently classified Tungsten as a critical raw material.

According to Fairfax, a forecast tungsten market deficit could push prices back to the peak levels, last seen in 2005/6, of just under $300/mtu.

The analyst initiated its coverage with 11p target, which it based on a conservative NPV (Net Present Value) of Barruecopardo. Fairfax highlighted that the resource also remains open along strike and at depth, and there is potential for post start-up production rates of up to 800ktpa

Thanks chessplayer. Is it correct that this is the only quoted tungsten producer on the lse?

I couldn't say.I notice that Thor mining is listed on Aim.
market cap of 6 million I note that they are up by 50% since the beginning of this month.(currently at 1.55 p)

Down this morning,but looks to be a lot of buying.(6.38 down.38)

The afore mentioned Thor Mining has jumped 29% today to 2p.
Mind you,the bid offer spread is a big one.