Listed explorer Ormonde Mining expects initial drilling on its La Zarza Spanish gold prospect to be completed by July.

The company told shareholders at its annual general meeting yesterday that the initial drilling programme on its La Zarza gold and copper project in southern Spain was almost complete and should be finished by next July.

Chairman Mike Donoghue told the meeting that the company would then begin a "scoping" process that would, in turn, lead to a full feasibility study.

Mr Donoghue added that this would be carried out between July and December.

"We are treating this as something that could get us to full production, and we are hoping to get it to the next level," he said.

La Zarza, which is located between Seville and the Spanish-Portuguese border in the south of the country, has the potential to produce at least one million ounces of gold, the company said.

The prospect is on the site of an old pyrite mine, and consequently has a comprehensive infrastructure in place that includes between 20 kilometres and 30 kilometres of underground development.

Mr Donoghue said the existing structure covers between 60 per cent and 70 per cent of the ore body.

Ormonde has four other gold prospects in the northern half of Spain - at Tracia, Salamón, Trives and Salamanca. However, La Zarza is closest to being developed.

Mr Donoghue said that the company was moving past the acquisition phase and into development.

Ormonde is listed in Dublin and London and has 152 million shares in issue. Last year, it lost €376,140 before tax.

At the end of December, the company had shareholders' funds of €2.3 million.