Ortac Resources Ltd / Epic: OTC / Market: AIM / Sector: Mining & Exploration
31 March 2017
ORTAC RESOURCES LTD
("ORTAC" OR THE "COMPANY")
Further Investment in Casa Mining Ltd.
Ortac Resources Ltd ("Ortac"), the AIM listed exploration and mine development company, is pleased to provide an update on its investment in Casa Mining Ltd ("CASA"), a private company registered in Mauritius that holds prospective gold mining and exploration licences in the Democratic Republic of Congo ("DRC").
Ortac is pleased to announce that it has increased its shareholding in CASA by acquiring a further 100,000 shares through a private placement at a price of US$0.50 per share and has been issued with a further 30,556 down round adjustment shares. Following this announcement, Ortac will hold an interest in 1,691,889 shares of CASA representing 22.80% of the enlarged share capital of CASA.
Vassilios Carellas, Ortac's CEO, commented: "The placing is part of a slightly larger placing that CASA have completed that will enable the company to complete further technical work on their flagship Misisi gold project where they are targeting a 3 million ounce gold resource and where funds raised from this current placing will be used to finanalise drill selection targets in advance of a planned drilling programme later this year."
About Casa Mining Ltd.
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 holdings consist of three contiguous mining licenses (133km2), issued in March 2015 and valid for 30 years. These licenses, which encompass a 60km strike length of the Tanganyika graben within the Rusizian belt ("Misisi Corridor"), include the Akyanga deposit along with the Lubitchako, Tulongwe, Kilombwe and Mutshobwe prospects (targets).
Over the last six years over $30m was spent developing these licenses. In addition to the regional geophysical surveys completed over these license areas in 2011, CASA have carried out 19,522m of diamond drilling, 2,720m of reverse circulation drilling and excavated 6,274 line metres of trenches on their respective licenses.
At CASA's most advanced project, the Akyanga deposit, SRK has reported a 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 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.
Following the internal workshop and the non-code compliant updated resource estimate of over 2.3 Moz of gold produced by CASA's independent experts, it is currently reviewing its strategy and weighing up its options in developing its Missisi project.
The Company will make further announcements as appropriate.
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.
The information in this press release is based on information provided by Casa Mining Limited and compiled on behalf of Ortac by Mr Vassilios Carellas. The SRK JORC Mineral Resource estimate, the MDM-SRK Scoping Study and the updated resource estimate by CASA's independent experts have not been independently verified by Ortac Resources Ltd. Mr Vassilios Carellas (BSc (Hons), MAusIMM) is the Chief Executive Officer for Ortac Resources Limited and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined under the JORC Code (2012). Mr Carellas consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.
Ortac Resources Ltd
Vassilios Carellas (CEO)
+44 (0) 20 7389 9050
SP Angel (Nominated Adviser & Broker)
Ewan Leggat / Lindsay Mair
Beaufort Securities (Joint Broker)
Jon Belliss / Elliot Hance
+44 (0) 20 3470 0470
+44 (0) 20 7382 8300
Peterhouse Corporate Finance Limited (Joint Broker)
Guy Miller / Lucy Williams
+44 (0) 20 7469 0930
For additional information please visit - www.ortacresources.com
This information is provided by RNS