RNS

RNS Number : 9966G
Ortac Resources Limited
12 August 2016
 

Ortac Resources Ltd / Epic: OTC / Market: AIM / Sector: Mining & Exploration

 

ORTAC RESOURCES LTD 

("ORTAC" OR THE "COMPANY")

 

Casa Mining Limited - Update and Further Investment

 

Ortac Resources Ltd ("Ortac"), the AIM listed exploration and mine development company, is pleased to provide an update on its investment in CASA Mining Limited ("CASA"), a private company registered in Mauritius that holds prospective gold mining and exploration licences in the Democratic Republic of Congo ("DRC").

 

Highlights:

·     Gold resource potential increased at Akyanga at a 0.5g/t Cut-off to over 2.3 Moz of Gold (non-JORC Code)

·     Ortac increases it shareholding in CASA to over 13% of enlarged share capital in CASA

 

Vassilios Carellas, Ortac's CEO, commented: "This latest gold resource estimate, although currently not JORC Code compliant, demonstrates the gold resource potential at CASA's Misisi project. The prospect is still open-ended along strike and down dip, which bodes well for CASA's aspirations to the development of this project and offers the potential for further increases in the resource."

 

Background Information

 

CASA engaged several independent experts for an internal workshop to review the Akyanga resource, following which it was decided to re-visit the modelling and resource estimation of the Akyanga Ridge gold prospect based on the following reasoning:

·    Additional drilling data obtained after the maiden SRK estimation of 1.2 Moz inferred gold resource (0.5g/t cut-off)

·     Better understanding of the geology, specific structural geology and control on the mineralisation

·    Delineate areas for additional exploration drilling in an attempt to add resources (the prospect is open-ended along strike as well as dip)

·    Assist with the planning of further resource drilling in order to move inferred resources to the indicated category.

The work carried out by these independent experts and the derived estimate of the reported gold resource has been undertaken using acceptable international practice, with consideration of the relevant CIM Best Practice Guidelines. However, in its current format, the contents of the report provided to CASA are not JORC Code compliant and the gold resource estimate should be viewed as indicative of the resource potential.

 

A summary of the updated gold resource based on grade tonnage curves are tabulated below.

 

 

 Resource (Non JORC)

Cut -Off (g/t Au)

Tonnes (t)

Grade (g/t Au)

Ounces (Au)

0.0

86,959,046

0.90

2,514,620

0.1

70,942,557

1.10

2,499,060

0.3

61,470,560

1.23

2,437,120

0.5

51,263,974

1.40

2,304,778

1.0

25,656,758

2.07

1,705,180

1.5

14,113,340

2.77

1,254,855

2.0

8,490,789

3.45

942,603

 

Investment

Through a private placement carried out by CASA, Ortac has subscribed for 166,667 shares in CASA at a price of US$0.30 per share for a total consideration of $50,000 resulting in Ortac now holding a 13.1% interest in the enlarged share capital of CASA. In addition, for a period of two months, Ortac has the right to subscribe for a further 233,333 shares in CASA at US$0.30 per share and to subscribe for any unallocated placing shares from CASA's current placing.

 

About Casa Mining Limited

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.

**ENDS**

 

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. 

 

 

Contacts

 

Ortac Resources Ltd

Vassilios Carellas (CEO)

 

+44 (0) 20 7389 9050

SP Angel (Nominated Adviser & Broker)

Ewan Leggat / Tercel Moore

 

Beaufort Securities (Joint Broker)

Jon Belliss / Elliot Hance

+44 (0) 20 3470 0470

 

 

+44 (0) 20 7382 8300

 

 

Yellow Jersey (Media Relations)

Dominic Barretto

+44 (0) 7768 537 739

 

 

 

 

Glossary

 

 

Au                                                          Au means gold.

 

carbon-in-column                          carbon-in-column or CIC means a technological operation in which gold and silver dissolved in clean leach solution are absorbed onto activated carbon which is layered horizontally in vertical columns.

 

Core drilling                                     core drilling means a drilling method that uses a rotating barrel and an annular-shaped, diamond impregnated rock-cutting bit to produce cylindrical rock cores and lift such cores to the surface, where they may be collected, examined and assayed.

CIM                                                     The CIM Definition Standards on Mineral Resources and Reserves (CIM Definition Standards) establish definitions and guidance on the definitions for mineral resources, mineral reserves, and mining studies used in Canada.

 

cut-off grade                                   cut-off grade means the minimum grade at which mineralized material can be economically mined and processed (used in the calculation of ore reserves).

 

diamond core drilling              diamond core drilling means a method of exploration in which rock samples from underground are retrieved as core (whole rock cylinders) for further examination and assaying.

 

Dip                                                        The inclination of a geologic structure (bed, vein, fault, etc.) from the horizontal; dip is always measured downwards at right angles to the strike.

 

Exploration                                 exploration means activity ultimately aimed at discovery of ore reserves for exploitation. Consists of sample collection and analysis, including reconnaissance, geophysical and geochemical surveys, trenching, drilling, etc.

 

Ga                                                          means a billion years.

 

Graben                                         means an elongated block of the earth's crust lying between two faults and displaced downwards relative to the blocks on either side, as in a rift valley.

 

g/t                                                        g/t means gram per tonne.

 

heap leach                                        heap leach means a technological operation in which crushed material is laid on a sloping, impervious pad where it is leached by cyanide solution to dissolve gold and/or silver. Metals are subsequently recovered from pregnant leach solution by CIC or the Merrill Crowe process.

 

Inferred resource                            inferred resource means that part of a resource for which tonnage, grade and content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological and/or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes which may be limited or of uncertain quality and reliability.

 

Indicated resource                          indicated resource means that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill-holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed.

 

JORC                                                     The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves ('the JORC Code'). The JORC Code provides a mandatory system for the classification of minerals Exploration Results, Mineral Resources and Ore Reserves according to the levels of confidence in geological knowledge and technical and economic considerations in Public Reports.

 

Km                                                         means kilometres.

 

Koz                                                        means thousand ounces.

 

m                                                           means metres.

 

MDM                                                   MDM Engineering Projects Ltd.

 

Mineral Resource                         Mineral Resource means a concentration or occurrence of material of intrinsic economic interest in or on the Earth's crust in such form, quality and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge. Mineral Resources are sub-divided, in order of increasing geological confidence, into Inferred, Indicated and Measured categories.

 

Moz                                                       means million ounces.

 

Mt                                                          means million tonnes.

 

not code compliant                   Not compliant to any internationally recognised method for estimating and calculating ore resources, such as JORC or National Instrument 43-101.

 

Oz                                                      Oz or oz means troy ounce (31.1035 g).

 

Production                                         means the amount of pure precious metals, measured in thousands of ounces for gold, millions of ounces for silver and tonnes for copper, produced following processing.

 

Prospect                                  means a mining property, the value of which has not been determined by exploration.

 

Reverse circulation                         means a drilling method that uses a rotating cutting bit within a double-walled drill pipe and produces rock chips rather than core. Air is circulated down to the bit between the inner and outer wall of the drill pipe. The chips are forced to the surface through the centre of the drill pipe and are collected, examined and assayed.

 

SRK                                                      SRK Consulting (UK) Limited (SRK) is an associate company of the international group holding company, SRK Consulting (Global) Limited (the SRK Group).

 

Strike                                                  means a horizontal extension of an ore body or mineralisation.

 

Tonne                                                means metric ton.

 

Trench                                          means a long, narrow excavation dug through overburden, or blasted out of rock, to expose a vein or ore structure.

 

 

For additional information please visit - www.ortacresources.com

 


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