Orion Gold NL : 2015 Drilling Campaign Underway at Connors Arc

Microsoft Word - 20150113 ORN ASX Ann Update Drilling Final.docx

ASX Announcement / Media Release

13 January 2015

2015 Drilling Campaign Underway at Connors Arc Epithermal Gold-Silver Project

ASX Code: ORN

Issued Capital:

Ordinary Shares: 304M Options: 89M

Directors:DenisWaddell

Chairman
Errol Smart
Managing Director, CEO
Bill Oliver
Technical Director
Alexander Haller
Non-Executive Director

Management:KimHogg

Company Secretary
Martin Bouwmeester
Business Development Manager
Suite 2
64 Thomas Street
West Perth WA 6005
ABN 76 098 939 274
T: [phone]

E: [e-mail]

Highlights:

• Drilling re-commences at Connors Arc Project in Queensland.

• Drilling is testing a number of geological and geophysical targets identified in late 2014.

• Two diamond holes have been completed to date with first results expected during January 2015.

Orion Gold NL (ASX: ORN) is pleased to advise that drilling has resumed at the Aurora Flats Prospect within its 100%-owned Connors Arc Epithermal Gold- Silver Project in Central Queensland following the Christmas-New Year break.

Two diamond cored holes for approximately 730 metres have been completed to date. While some samples have been submitted for analysis, the majority of the core is still being "processed" (marked up, logged, cut and sampled) on site under the supervision of Orion's Managing Director, Errol Smart.

Initial assay results from the drilling are anticipated later in January 2015.

As previously announced (refer ASX Release 11 December 2014), the current drill program is designed to test a number of targets defined in the Company's exploration programs to date including:

• Testing below significant outcrops of epithermal quartz veins (+100 metres strike length with multiple swarms present);

(refer ASX Releases - 8 September 2014, 27 October 2014 and 6 November
2014)

• Testing below historical shallow drilling which returned anomalous and encouraging geochemical results; and

(refer ASX Releases - 15 July 2013 and 8 September 2014)

• Testing geophysical anomalies defined in the Company's ongoing high powered IP/resistivity survey.

(refer ASX Release - 21 November 2014 and 11 December 2014)

A number of the planned holes encompass areas where two or more of these indicators are coincident.

The Company looks forward to keeping investors updated with the progress of this important maiden drill program at Connors Arc as it progressively tests targets within this highly prospective emerging epithermal gold-silver project.

W:

www.oriongold.com.au

Figure 1. Drilling of RC pre-collar at Aurora Flats

Errol Smart

Managing Director and CEO

Company Enquiries:

Errol Smart - Managing Director and CEO Denis Waddell - Chairman

T: [phone]

E: [e-mail]

About Orion

Orion Gold is focused on acquiring, exploring and developing large tenement holdings or regional scale mineral opportunities in world-class mineral provinces. The Company has acquired quality projects in proven mineral provinces, including a substantial tenement holding in the Albany-Fraser Belt, host to Australia's two most significant discoveries of the last decade (the Tropicana Gold Deposit and the Nova Nickel-Copper-Cobalt Deposit). Part of this tenement holding was acquired from entities associated with Mark Creasy who is now a substantial shareholder in Orion. The project area was previously explored by Western Areas Ltd which identified mafic-ultramafic intrusives within the project area as well as nickel-copper-cobalt-PGE anomalies. Orion's intensive, systematic exploration programs have successfully defined 23 targets to date by a combination of geological, geochemical and geophysical methods.
The Company has identified a significant intermediate sulphidation epithermal gold and silver system at Aurora Flats on the Connors Arc in Queensland. The project lies between the well known Cracow and Mt Carlton epithermal mines. The Company is increasing its focus on this project, following promising reports from expert consultants.
Additionally the Company has an interest in the Walhalla Project located in Victoria, where it is focusing on exploration for Copper-PGE and has entered into an agreement with A1 Mining regarding the gold rights on the tenements.
The Company has an experienced management team with a proven track record in exploration, development and adding shareholder value.

Disclaimer

This release may include forward-looking statements. These forward-looking statements are based on management's expectations and beliefs concerning future events. Forward-looking statements inherently involve subjective judgement and analysis and are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Orion Gold NL. Actual results and developments may vary materially from those expressed in this release. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Orion Gold NL makes no undertaking to subsequently update or revise the forward-looking statements made in this release to reflect events or circumstances after the date of this release.