The Company advises that a new program of scout drilling has commenced at its Walhalla Gold Project in Victoria.  The initial Reverse Circulation holes of the drill program are underway and are testing targets at Sir John Franklin (Orion currently 25%, earning 85%) and Holy Terror (Orion 100%. This program will be followed by a diamond drilling program to test targets based on recent structural modelling at New Dawn – Toombon (Orion 85%), Lily of the Valley and Longfellow’s (Orion 100%).

Scout drilling of these targets is the commencement of testing of areas of higher prospectivity identified from detailed structural studies, which identified and extrapolated mineralisation controls throughout the Orion tenements in this region.  These targets lie at the intersections of structures and the intersections of structures with competent lithological units that would provide suitable host rocks along the Cohen’s Trend, for over 35 kilometres northward from Walhalla. The initial program is expected to take 8 weeks to complete, with first assay results expected by late April.

Restructure of Tenement Holdings in Victoria Following an extensive technical review of the mineralisation models applicable to the Walhalla Tenement area and the recognition of the important role of regional shear zones in the exploration models, Orion has informed the Department of Primary Industries in Victoria that it proposes to reduce its current holdings and progress certain additional applications on ground it now ranks as having superior exploration potential. In the future, Orion’s gold exploration in Victoria will be focused on structural targets evaluated to hold potential for laterally and vertically extensive shear-hosted bodies similar to the Cohen’s Reef style of mineralisation (which historically produced approximately 1.5Moz at >1 ounce of gold per tonne).  Limited testing of potential bulk mineralisation targets, such as Holy Terror will also be conducted.