RNS

RNS Number : 3820Q
Ortac Resources Limited
29 February 2016
 

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

 

29 February 2016

ORTAC RESOURCES LTD 

("ORTAC" OR THE "COMPANY")

 

Strategic investment into Casa Mining Limited, DRC

 

Ortac Resources Ltd ("Ortac"), the AIM listed exploration and mine development company, is pleased to announce that it has today participated in a private placing with 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:

·     CASA holds the rights to three mining licenses (133km2) located in the South Kivu province in the eastern Congo gold belt of the DRC;

·     Over US$30 million spent since 2009, identifying a 60km long 'corridor' prospective for gold, multiple prospects identified with some drill and trench tested returning significant intercepts;

·     Initial near surface inferred resource of 1.2 Moz @ 1.7 g/t Au at Akyanga Deposit; open along strike and down dip;

·     Positive Scoping Study at Akyanga confirming the potential viability of a 100,000 oz gold per year heap leach operation, with a total operating cost of under US$650/oz;

·     CASA looking to commence commercial production at Akyanga with an initial gravity plant for a modest initial capital outlay; and

·     Equity placing of US$62,500 securing Ortac an initial interest of approximately 12% in the share capital of CASA, as enlarged by the equity placing.

 

Vassilios Carellas, Ortac's CEO, commented: "The business environment in the DRC has improved significantly over the past 10 years, allowing new investment to come in that has resulted in a number of new major mines being developed in the country over this period. Similarly, over the last six years CASA has invested heavily into its licenses and has gained significant geological and technical knowledge of this gold belt. Our investment in CASA enables Ortac to secure exposure to a near term cash generating, low risk gold production operation, which can be brought into production quickly. Further, the investment enables Ortac and CASA to advance the larger scale opportunity of the Akyanga project, which holds real potential for a much larger gold mining operation. I am delighted to secure for Ortac shareholders, access to another very exciting cash generating mining operation, this time in the gold sector, which is one of the few commodity classes in the natural resources space that is holding up well in terms of price and demand fundamentals."

 

The Investment

Through a private placement carried out by CASA, Ortac has subscribed for 625,000 shares for a consideration of US$62,500 resulting in an 11.99% interest in the share capital of CASA, as enlarged by the placing. In addition to the subscription by Ortac, the Chairman of Ortac, Mr. Anthony Balme, a shareholder of CASA since 2009, exercised his rights between associated companies Carter Capital Ltd and AMC Ltd resulting in Mr Balme having an interest in 124,558 shares in the share capital of CASA, representing approximately 2.39% of the issued share capital of CASA, as enlarged by the 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 and is 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 approximately US$30m was spent developing these licenses. In addition to the regional geophysical surveys completed over these license areas in 2011, CASA has 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 US$1,200/oz gold selling price and 0.5 g/t Au cut-off grade optimised pit shell, which 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 Engineering Projects Ltd ("MDM"), in conjunction with SRK Consulting UK Limited ("SRK"), completed a scoping feasibility study for the Akyanga deposit resulting in an ungeared NPV (8%) and IRR of US$171m and 35% respectively at a US$1,300/oz gold price. This assumes a contract mining scenario with an initial capital cost estimate of US$87.4m and a total operating cost of US$628/oz.

As a result of the fact that a large percentage of the gold is reported to be coarse, CASA is at present investigating the option of initially commencing operations at a reduced rate with a gravity circuit, which has a significantly lower capital requirement (approximately US$5m) with the view to expand operations thereafter.

 

**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 and the MDM-SRK Scoping Study have not been independently verified by Ortac Resources Ltd.  Mr Vassilios Carellas (BSc (Hons), MAusIMM) is the Chief Executive Officer of 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.  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

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

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.

 

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

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

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

means gram per tonne.

 

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

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.

 

Km

means kilometres.

 

Koz

means thousand ounces.

 

m

means metres.

 

MDM

MDM Engineering Projects Ltd.

 

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.

 

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

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
ACQTFMPTMBITBMF