Ormonde eyes gold prospect

Ormonde Mining (OMP-V) has agreed to earn a half-interest in the Mgusu gold property in the Victoria Goldfields district of Tanzania.

The property consists of two prospecting licences and three claim blocks which, combined, constitute 135 sq. km of the Geita greenstone belt. Previous exploration by property vendor Pangea Goldfields (PGD-T) outlined several mineralized structures, one of which hosts 1.8 million tonnes averaging 4.6 grams gold per tonne. The resource, which was calculated using a 1-gram cutoff, falls into the inferred category and extends from surface to a vertical depth of 150 metres.

To earn its interest, Ormonde is required to spend US$2.5 million on exploration and pay US$100,000 in cash over the next three years. The agreement specifies that US$300,000 must be spent in the first year.

Drilling is to begin shortly.

Meanwhile, Pangea has completed a diamond drill program at its Fenn-Gib property in the Matheson area of northern Ontario. Funding was provided by St Andrew Goldfields (SAS-T), which can earn a half-interest in the property by spending $6 million on exploration and paying $200,000 cash. Also, should the property advance to production, St Andrew would be required to process ore at its nearby Stock mill.

Of the 49 holes drilled, 39 were collared to infill a proposed outline of an open pit, with the remainder drilled to test mineralization downdip.

Eleven of the “open-pit” holes intersected various widths of mineralization averaging between 6 and 30 grams gold. Highlights included: 13.9 metres (60-73.9 metres) of 10.2 grams in hole 190; 3 metres (139-142 metres) of 16.5 grams in hole 191; and 5.1 metres (32.4-37.5 metres) of 12.1 grams in hole 34.

In addition, three holes returned wide intervals of mineralization, including 94 metres averaging 1.7 grams in hole 184; 19.9 metres and a separate 31.1 metres averaging 4.2 and 2.6 grams, respectively, in hole 197; and 67 metres averaging 2.3 grams in hole 34.

Pangea is using the new data to calculate a resource estimate for the property. A previous calculation pegged the resource at 1.9 million tonnes grading 5.13 grams gold, assuming 15% dilution and a 3-gram cutoff grade.

Also, an induced-polarization survey has outlined several new targets. One of these extends the entire length of the property and is believed to reflect a splay off the Porcupine-Destor fault zone.