Ortac Resources Ltd / Epic: OTC / Market: AIM / Sector: Mining & Exploration
22 August 2017
ORTAC RESOURCES LTD
("ORTAC" or the "COMPANY")
CASA commences drilling at 1.5 Moz Akyanga deposit
Potential to increase estimated gold resources to over 2Moz
Ortac Resources Ltd ("Ortac"), the AIM listed exploration and mine development company, is pleased to announce that CASA has commenced exploration drilling operations at the 1.5 Moz Akyanga deposit in the Democratic Republic of the Congo ("DRC").
CASA Mining Ltd ("CASA"), is a private company focused on developing the Akyanga deposit, a highly prospective section of the Misisi gold project, in the DRC. Ortac currently owns 22.2% of CASA and also has a convertible loan note, which, if exercised, will increase Ortac's shareholding to approximately 45%.
The current program involves circa 5,000m of diamond drilling, with the first phase of approximately 2,200m - aimed to assess:
· The grade continuity across the current interpreted domains, in particular at the southern end of the deposit;
· The potential for average grades of >2.0 g/t within a conceptual pit shell;
· The potential for tonnages of >2.0 Moz of contained gold within the Akyanga Deposit area;
· Geological controls on the emplacement of gold mineralisation; and
· Future requirements to complete infill drilling for indicated resources.
The first phase of the programme is aimed for completion in October 2017, whereupon Ortac will update the market on progress.
Vassilios Carellas, Ortac's CEO, commented:
"We are pleased that drilling is underway at Akyanga, as this program has the potential to demonstrate a high grade gold resource in excess of 2.0 Moz and confirm our view that a commercial mining operation on the licence would be economically viable. We look forward to updating our stakeholders on progress and the project's revised mineral resource."
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
Ortac Resources Ltd
Vassilios Carellas (CEO)
+44 (0) 20 3874 8664
SP Angel (Nominated Adviser & Broker)
Ewan Leggat / Lindsay Mair / Soltan Tagiev
Celicourt Communications (PR)
Mark Antelme / Jimmy Lea
+44 (0) 20 3470 0470
+44 (0) 20 7520 9261
Ortac Resources Limited is an AIM listed exploration and mine development company focused on a diversified portfolio of mining projects with interests in Slovakia, Eritrea, the Democratic Republic of Congo and Zambia.
Ortac's current holdings include:
· 100% ownership of the Kremnica Mining Licence Area in Slovakia;
· An 18.48% interest in Andiamo Exploration Limited, a private company exploring for resources in Eritrea;
· A 14 percent equity interest in Zamsort Limited, a private company focused on a prospective copper and cobalt licence in Zambia, with the c. 6 percent balance and interest (convertible note) being rolled forward to the end of 2018;
· A convertible loan note in CASA Mining Ltd, which including Ortac's existing stake of 22.2%, takes Ortac shareholding to 45% upon conversion.
For more information visit www.ortacresources.com
CASA is a private Mauritian registered company that is the 71.25% owner and operator of the Misisi Gold Project located in South Kivu, eastern DRC, approximately 350km south of Bukavu and 180km north of Kalemie.
The CASA licence area consists of three contiguous mining licenses (133km2), issued in March 2015 and valid for 30 years. These licenses encompass a 60km strike length of the Tanganyika graben within the Rusizian belt ("Misisi Corridor"), including the Akyanga deposit along with the Lubitchako, Tulongwe, Kilombwe and Mutshobwe prospects.
The licences have benefited from considerable capital expenditure to date, including regional geophysical surveys completed in 2011, 19,522m of diamond drilling, 2,720m of reverse circulation drilling and excavated 6,274 line metres of trenches.
At CASA's most advanced project, the Akyanga deposit, SRK has reported a JORC certified Mineral Resource within a $1,200/oz gold selling price and 0.5 g/t Au cut-off grade optimised pit shell. This comprises an Inferred oxide gold Mineral Resource of 5.5 Mt at a grade of 1.5 g/t Au for approximately 272 koz of contained metal. SRK has further reported an Inferred transition gold Mineral Resource of 16.2 Mt at a grade of 1.8 g/t Au for approximately 927 koz of contained metal.
MDM, in conjunction with SRK, completed a scoping feasibility study for an 80,000 oz/yr heap leach operation at the Akyanga deposit resulting in an ungeared NPV (8%) and IRR of $171m and 35% respectively at a $1,300/oz gold price. This assumes a contract mining scenario with an initial capital cost estimate of $87.4m and a total operating cost of $628/oz.
CASA engaged African Mining Consultants ("AMC") to assist with a review and re-interpretation of the geological model, initiated during this internal workshop, with the aim of investigating its effect on the potential resource at the Akyanga Deposit.
AMC reported the 2017 mineral resource, within a US$1,250/oz gold selling price optimised pit shell, which defined a 1.05Moz JORC inferred resource @ 2.27 g/t Au (using a 1.5 g/t Au cut-off) within a lower grade envelope of 1.57Moz @ 1.65 g/t Au.
This information is provided by RNS