Business
Joint Venture with Ormonde Mining plc
Joint Venture with Ormonde Mining plc.
About this update from Shearwater Group Plc
[{"type":"text","content":"\n \n\n\n\n\n\nRNS Number : 8297C Aurum Mining PLC 14 March 2011 \n \n\n\n\n\n\n\n\n\n14 March 2011 \n\n\n\n\n \nAURUM MINING PLC\n(\"Aurum\" or \"the Company\")\n \nJoint Venture with Ormonde Mining plc\n \nAurum Mining plc (AIM: AUR) is pleased to announce that it has entered into a joint venture agreement (the \"Agreement\") with Ormonde Mining plc (\"Ormonde\") (AIM: ORM) under which Aurum will partner with Ormonde in gold exploration over four permit areas in northwest Spain.\n \nThe ground holdings in this Agreement comprise two permit areas in Zamora province, in which a fully-owned subsidiary of Ormonde has a 100% interest and a single permit in Salamanca province in which the Ormonde subsidiary has a 90% interest. Ormonde also has an application for a further permit area in Salamanca province and this will also be included in the Agreement.\n \nOrmonde's main exploration focus in the region has been on the Barruecopardo tungsten deposit and some work has been targeted at gold exploration, including drilling on the Zamora permits, which has returned best intervals of 23m grading 1.1g/t gold (including a high-grade interval of one metre grading 16.6g/t gold) and 9m grading 1.5 g/t gold. No drilling has been carried out to date on the two permits at Salamanca, however there are significant soil geochemical anomalies, supported by results of prospecting and a limited amount of trenching, at the permit area.\n \nUnder the terms of the Agreement, Aurum has committed to expend Euros 500,000 on exploration work across these four permit areas in return for 60% of Ormonde's interest in these permit areas. Once Aurum has incurred the Euros 500,000 expenditure, it will own a 60% interest in the two permit areas in the Zamora province and a 54% interest in the two permit areas in the Salamanca province.\n \nAurum's committed expenditure will be incurred over an eighteen month period. During the first nine months Aurum will spend Euros 200,000 to carry out exploration work against a pre-agreed work programme. Funds will be allocated across all four permit areas. Once this work has been carried out and the results of the exploration analysed, Aurum will then spend a further Euros 300,000 on a second work plan which will be agreed between Aurum and Ormonde at that stage. Aurum will not leg...