Persian Gold plc
AIM : PNG.L

July 07, 2005 10:00 ET

Persian Gold plc Completes First Phase of Gold Sampling Over the World Class Alunite deposits of the Alborz Mountains with Positive Results

LONDON, UNITED KINGDOM--(CCNMatthews - July 7, 2005) -

Highlights

- First phase of rock chip geochemical sampling completed

- Multiple gold anomalies discovered, some with grades over 2 g/t Au

- Applications submitted for five additional exploration licences

Persian Gold plc (AIM:PNG.L), which is exploring for gold in the Alborz Mountains of northwestern Iran, is pleased to announce that as a result of its initial sampling and analysis, the Company is applying for five exploration licences covering an additional 200 square kilometers. Field crews have begun the second phase follow up sampling of the initial gold anomalies that have been discovered to date.

Sampling has focused on some of the world's largest volcanic hosted alunite deposits identified over 20 years ago. Strong silicification and acid leaching textures have been observed in many locations in association with the alunite alteration. The following high grade alunite resources, as defined by the state geologic survey, have been targeted for sampling by Persian Gold:

Hasan-Abad & Sirdan, 401 million tons

Zaaj-Kan, 121 million tons

Yuzbash-Chay, 171 million tons

Zaaj-Kandy, 165 million tons

Takand, 97 million tons

The first phase of the rock chip geochemical sampling program has been completed. From over 2,500 geochemical analyses, a number of strong gold anomalies have been discovered. Applications have been made to replace the 1800 sq km study concession with multiple 40 sq km exploration licences.

John Teeling, Chairman of Persian Gold, said today: "These results are very encouraging. The positive results, while at a very early stage, have led us to increase the number of applications for full exploration licences from 3 to 8".

Monir Davoudzadeh, former senior manager of the Iranian Geologic Survey and senior technical adviser to Persian Gold, stated: "The discovery process for most of the major gold deposits of the quartz-alunite type (high-sulphidation) follows a common process:

- Identification of large areas of quartz-alunite alteration in volcanic rocks

- Wide spaced first phase rock chip geochemical sampling for gold

- Interpretation of initial gold anomalies followed by detailed sampling

- Drilling of gold anomalies and resource definition

In our current program, Persian Gold is well advanced in the exploration and discovery process. The initial gold anomalies, especially in two areas, are most encouraging in that they are found in areas of strong quartz-alunite alteration with silica-iron oxide breccias indicating a strong and dynamic hydrothermal system. These are very similar in nature to the geological and alteration characteristics of the Andean belt of high sulphidation gold deposits in South America where a number of world class gold mines have been discovered during the past 15 years. I am very pleased with the results of our program to date and we are anxious to proceed with the second stage of geochemical sampling."

Note to editors:

- Persian Gold plc trades on the Alternative Investment Market of the London Stock exchange under the symbol PNG.L

- It has 56M shares in issue of which 70% are controlled by management.

- The directors and managers have extensive exploration experience for gold, diamonds and hydrocarbons. John Teeling, with James Finn and David Horgan, has established eight stock exchange listed resource companies.

Contact Information

  • Persian Gold plc
    John Teeling
    Chairman
    + 353 87 258 1178
    www.persiangoldplc.com
    or
    Bell Pottinger Corporate & Financial
    Nick Lambert
    + 44 207 861 3232
    or
    Rowan Dartington
    Ian Rice
    + 44 117 933 0020