Orca Gold Announces an Initial Resource at Galat Sufar South
January 29, 2014 (Source: Marketwired) — Orca Gold Inc. (TSX VENTURE:ORG) (“Orca” or the “Company”) is pleased to declare the first Indicated and Inferred Mineral Resource estimate at its Galat Sufar South (“GSS”) prospect on its Block 14 mineral license in Sudan.
The Mineral Resource estimate, using a cut-off grade of 1.0 g/t, comprises an Indicated Resource of 22.2Mt at 1.84g/t for 1.3 million ounces gold and an Inferred Resource of 6.5Mt at 1.9g/t for an additional 400,000 ounces gold. Greater than 90% of the Mineral Resource is within 100 metres of surface.
The Mineral Resource estimate was carried out by independent consultant Nic Johnson of MPR Geological Consultants of Perth, Western Australia and is shown below at various cut off grades:
|COG||Mt||Au g/t||‘000 Oz||Mt||Au g/t||‘000 Oz|
|Notes:||Defined under Canadian National Instrument 43‐101 (“NI 43‐101”), Standards of Disclosure for Mineral Projects Numbers may not add up due to rounding|
The Mineral Resource has been estimated using the results of 35,637 metres of drilling (4,093m of diamond drilling and 31,544m of reverse circulation drilling) completed between November 2012 and December 2013.
Mineralisation is hosted by intermediate intrusives and volcaniclastics and is associated with intense quartz-sericite-carbonate alteration and pyrite. Drilling has focused on two distinct areas:
- The Main Zone consists of N-S and N-W trending mineralized bodies with a combined strike length of 550m and has been drilled to an average depth of 150m below surface (max 250m). The Main zone remains open on strike and at depth.
- The East Zone (400m east of Main Zone) comprises mineralisation in several sub-zones within an area of 800m by 300m with the primary trend extending over a strike length of 435m. It has been drilled to an average depth of 140m (max 330m) and remains open to the north and east.
Mineralisation in both areas is notable for the width and consistency of gold mineralisation with true width in the Main Zone exceeding 90m in some sections and in the East Zone frequently exceeding 60m.
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Approximately 19% of the Indicated Mineral Resource comprises oxidized material (18% of Inferred Mineral Resource) at a 1.0g/t cut off as detailed below:
|Zone||Mt||Au g/t||‘000 Oz||Mt||Au g/t||‘000 Oz|
|Notes:||Numbers may not add up due to rounding|
Orca has conducted initial metallurgical testing on four drill core and three RC chip composite samples. Results from direct leach testwork suggest recoveries ranging from 85-89% in the East Zone (oxide, transition and fresh) and 79-95% in Main Zone Fresh material. Fast leach kinetics were observed and for all samples reagent consumption was relatively low. Further diagnostic leach testwork is ongoing.
The 400 metre gap area between the Main and East Zones remains substantially untested and Orca will now focus on exploration of extensions to the resource and on targets within a 5km radius of the resource.
Orca has now been working in Sudan for over three years and enjoys an excellent working relationship with the Geological Research Authority of Sudan (“GRAS”) and Ministry of Mines. The Mineral Resource at GSS is the first major gold discovery in Sudan by a North American company, validating Orca’s investment decision and cementing its first mover advantage. With Centamin Egypt’s +15 million ounce Sukari Mine, located to the north of GSS in Egypt, Orca’s Resource confirms the exciting potential of the Arabian-Nubian Shield.
Simon Jackson, President and CEO, said, “The release of the Mineral Resource at GSS is a milestone event for Orca. The size and grade of the resource illustrate the great potential of Sudan to host significant gold deposits and we look forward to results of ongoing exploration aimed at increasing our resource inventory at Block 14. The robust resource supports our original objective of finding a deposit that is capable of becoming a commercial mining operation, and we believe that GSS continues to show signs that it has real potential to fulfill that objective. We are extremely happy with our decision to invest in Sudan and Block 14 and are excited by the future prospects for the Company.”
Orca Gold Inc. is a Canadian resource company focussed on exploration opportunities in Africa. The Company has an experienced board of directors and management team and a strong balance sheet that includes a substantial treasury.
The technical contents of this release have been approved by Hugh Stuart, BSc, MSc, a Qualified Person pursuant to NI-43101. Mr. Stuart is the Vice President Exploration of the Company and a Chartered Geologist and Fellow of the Geological Society of London.
The Mineral Resource estimate was carried out by Nic Johnson of MPR Geological Consultants of Perth, Western Australia who is considered to be independent of Orca Gold. Mr Johnson is a member in good standing of the Australian Institute of Geologists and has sufficient experience which is relevant to the commodity, style of mineralisation under consideration and activity which he is undertaking to qualify as a Qualified Person under National Instrument 43‐101. Mr Johnson consents to the inclusion in this press release of the information, in the form and context in which it appears.
Samples used for the results described herein are prepared and analyzed by fire assay using a 50 gram charge at the ALS Chemex facility at Rosia Montana in Romania in compliance with industry standards. Field duplicate samples are taken and blanks and standards are added to every batch submitted.
On behalf of the Board of Directors:
Simon Jackson, President, CEO and Director
Cautionary Statement Regarding Forward-Looking Information
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “anticipate”, “believe”, “plan”, “expect”, “intend”, “estimate”, “forecast”, “project”, “budget”, “schedule”, “may”, “will”, “could”, “might”, “should” or variations of such words or similar words or expressions or statements that certain events “may” or “will” occur. Forward-looking statements in this press release include, but are not limited to, statements relating to indicates and inferred mineral resources, the potential to expand the resource targets in the Main and East Zones, the plans of the Company to conduct preliminary metallurgical testwork and increase its ownership in Block 14 and the future potential of GSS to become a commercial mining operation, including exploration activities. Forward-looking information is based on reasonable assumptions that have been made by the Company as at the date of such information and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: risks associated with mineral exploration and development; metal and mineral prices; availability of capital; accuracy of the Company’s projections and estimates; interest and exchange rates; competition; stock price fluctuations; availability of drilling equipment and access; actual results of current exploration activities; government regulation; local political instability or unrest, local economic instability; global economic developments; environmental risks; insurance risks; capital expenditures; operating or technical difficulties in connection with development activities; personnel relations; the speculative nature of strategic metal exploration and development including the risks of diminishing quantities of grades of reserves; contests over title to properties; and changes in project parameters as plans continue to be refined.
Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to the price of gold; the demand for gold; the ability to carry on exploration and development activities; the timely receipt of any required approvals; the ability to obtain qualified personnel, equipment and services in a timely and cost-efficient manner; the ability to operate in a safe, efficient and effective manner; the expected timing, costs, and results of a PEA; the expected burn rate; the regulatory framework regarding environmental matters, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. The Company does not undertake any obligation to update forward-looking information if circumstances or management’s estimates, assumptions or opinions should change, except as required by applicable law. Accordingly, readers should not place undue reliance on forward-looking information contained herein.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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