Positive Results from Second Phase Trenching / Drilling at Chah-e-Zard
Persian Gold (AIM: PNG), the Irish based Iranian gold explorer, is pleased to announce that the second phase of trenching and drilling in the Southern Gold Zone of the Chah-e-Zard project has been completed. The Chah-e-Zard gold project is located near the city of Yazd in central Iran. Persian Gold has previously announced diamond drill intercepts of 122 metres of 1.95 g/t Gold and 40 metres of 1.24 g/t Gold from holes ZDH-3 and ZDH-1 respectively. Both of these holes, from the first phase of drilling, were located in the southern zone of the prospect.
The second phase of exploration work, focused on this zone, consisted of trenching and drilling to delineate near surface oxide gold mineralization for potential future open pit mining.
A total of 25 trenches for a distance of 1,513 metres were completed. The trenches are approximately 50 to 100 metres long, one metre wide and excavated to a depth of 0.5 to 2.0 metres. A total of 596 samples from the trenches were collected.
Twenty-two diamond drill holes have now been completed for a total of 1,693 metres. These holes were drilled to an average depth of 60 to 80 metres. A total of 1,554 samples were taken.
All 2,150 samples from the trenches and drill holes have been delivered to the sample preparation lab in Tehran. Initial results for the first 410 trench samples have been received from OMAC labs in Ireland and include gold intercepts of:
Trenching has confirmed that within the phreatic breccia zone, the gold mineralization correlates with the hydrothermal breccias that are strongly silicified and structurally controlled. The contact between the mineralised zone and phreatic breccia is sharp. The drill core indicates a series of steeply dipping silicified structures, which are thought to represent the main mineralized component of this gold system.
Further trench results and the drilling results are expected in the near future.
Commenting on these results, John Teeling, Chairman of Persian Gold, stated:
'These results are very positive and demonstrate that a near surface oxide gold deposit is present in the southern area. If the 22 holes drilled confirm the presence of commercial gold at depth, we will move to pre-feasibility stage.'
Information in this announcement relating to exploration results has been reviewed by Mr. A.Babakhani, an independent geologist and consultant to Persian Gold, who is a qualified person under AIM guidelines.
Persian Gold Plc
John Teeling +353 1 833 2833
Paddy Blewer +44 (0) 20 7457 2020
Nick Elwes +44 (0) 20 7457 2020
Blue Oar Securities
John Wakefield +44 (0) 117 933 0020
Simon Moynagh +44 (0) 117 933 0020
This information is provided by RNS The company news service from the London Stock Exchange
... Payvand News - 01/09/08 ... --