Orca Gold Provides Update on the Feasibility Study and Exploration at its Block 14 Gold Project in The Republic of The Sudan
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sep 18, 2017) - Orca Gold Inc. (TSX VENTURE:ORG) ("Orca" or the "Company") is pleased to provide an update on current activities relating to the ongoing Feasibility Study (FS) and exploration activities at its Block 14 Gold Project in The Republic of The Sudan.
A Revised PEA* of Block 14 (see Company news release dated May 30, 2017), using a gold price of US$ 1,100/oz for mine design and US$ 1,200/oz for economic analysis, showed a project with in-pit mineral resources of 41.0Mt @ 1.46g/t for 1,928 Koz in the Indicated category and 3.4Mt @ 1.56g/t for 173 Koz in the Inferred category, a mill throughput of 3.4Mtpa, strong economics with an after-tax NPV7% of US$ 227.7 million and an IRR of 23.1%. On the basis of this study, the Company moved straight into a FS.
The FS, which is being conducted by a group of internationally recognized consultants managed by Lycopodium Minerals Pty Ltd, is well underway and comprised of several elements:
Resource Expansion
The pit designs used in the Revised PEA were restricted by a lack of information at depth in a number of areas of the deposit. In late August, the Company commenced a 25,000-metre drill programme to extend the resource model at depth at both Galat Sufar South (GSS) and Wadi Doum.
Four diamond core rigs are currently operating at GSS with approximately 6,000 metres completed to date and first results expected shortly.
The Company intends to announce a new Mineral Resource in December, then will continue beyond that with further resource expansion and the testing of the numerous high grade targets, which exist in Block 14.
Water Resource Expansion Drilling
The airborne geophysical survey completed in Q2 was successful in discovering a previously unknown aquifer system 85km west of Block 14 (see Company news release dated May 30, 2017). The survey indicates that this aquifer has an area of at least 562km2 and that it is open to the north and west. Initial drilling of this aquifer in June 2017 defined a water resource over 63km2, sufficient to support a 3.4Mtpa process plant for a +13-year mine life - the basis of the Revised PEA.
The Company is currently drilling an additional four water exploration holes with the objective of significantly extending the water resource to support a larger process operation at Block 14.
The first hole of this new water drilling programme successfully intersected the aquifer on September 15, 2017. The remaining three holes are expected to be completed by the end of September.
Throughput Study
The initial discovery of the new larger water supply for the project allowed the plant throughput to be increased to 3.4Mtpa (from 1.8Mtpa in the 2016 PEA). Anticipating further expansion of this water resource, the Company's mining consultant, Deswick UK Ltd, has analyzed mining options up to 6.0Mtpa, based upon estimated process and capital costs supplied by Lycopodium. Modelling of these throughput scenarios will be refined upon completion of the current water drilling programme. A final decision on the ultimate mining and process plant capacity is expected to be made and reported in October.
Metallurgical Testwork
65 variability samples and a number of composites are currently being tested by SGS Vancouver.
Geotechnical Drilling
A 1,200-metre geotechnical drill program is 40% complete.
Engineering Studies
On completion of the Throughput Study in early October, the FS plant capacity will be established and Lycopodium will commence detailed engineering work.
Delivery of Feasibility Study
The FS is due for completion in late Q1/early Q2 2018.
Commenting on the current activity at Block 14, Rick Clark, CEO and Director of Orca, said, "We are flat with our drilling on site and the study work being conducted by our consultants. Our move straight to a Feasibility Study and our current program are a function of the confidence that we and our consultants have in Block 14 and The Sudan. The Revised PEA highlighted one of the leading undeveloped gold projects in Africa and we are optimistic that the Feasibility Study will establish a significant further increase in project scope and economics. We look forward to keeping the market updated over the coming months."
*The Preliminary Economic Assessment is preliminary in nature, that it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
About Orca Gold Inc.
Orca Gold Inc. (TSX VENTURE:ORG) is a Canadian resource company focused on exploration opportunities in Africa, where it is currently advancing its 70%-owned Block 14 Gold Project in The Republic of The Sudan. The Company is currently conducting a Feasibility Study on the Project, which is scheduled for completion in late Q1/early Q2 2018.
The technical contents of this release have been approved by Hugh Stuart, BSc, MSc, a Qualified Person pursuant to NI 43-101. Mr. Stuart is President of the Company and a Chartered Geologist and Fellow of the Geological Society of London.
On behalf of the Board of Directors:
Richard P. Clark, CEO and Director
Cautionary Statement Regarding Forward-Looking Information
This press release contains forward-looking information and forward-looking statements within the meaning of applicable Canadian securities laws, including statements regarding Orca's (the "Company", the "Corporation", "we" or "our") plans and expectations relating to the Block 14 project ("Block 14") in northern Sudan and the revised Preliminary Economic Assessment (the "Revised PEA") and Feasibility Study ("FS") currently being completed and/or conducted by the Corporation. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Statements concerning mineral resource estimates may also be deemed to constitute "forward-looking statements" to the extent that they involve estimates of the mineralization that will be encountered if the property is developed. The assumptions, risk and uncertainties outlined below are non-exhaustive. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results, performance or achievements of the Corporation, or industry results, may vary materially from those described in this press release.
Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, identified by words or phrases such as "expects", "anticipates", "believes", "plans", "projects", "estimates", "assumes", "intends", "strategy", "goals", "objectives", "potential", "possible" or variations thereof or stating that certain actions, events, conditions or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements.
Forward-looking statements and forward-looking information are not guarantees of future performance and are based upon a number of estimates and assumptions of management at the date the statements are made including without limitation, assumptions about the following (the "Forward-Looking Factors"): future prices of gold and other metals; successful exploration, development, and production of Block 14; the timing and completion of the FS; the timing and likelihood of a production decision; performance of contractual obligations by counterparties; operating conditions; political stability; obtaining governmental approvals and financing on time; financial projections and budgets; obtaining licenses and permits; government regulation of the Corporation's mining activities; environmental risks and expenses; market conditions; the securities market; price volatility of the Corporation's securities; currency exchange rates; foreign mining tax regimes; insurance and uninsured risks; financial projections and results; competition; availability of sufficient capital, infrastructure, equipment and labour; dependence on key personnel; dependence on outside parties; conflicts of interest; litigation; land title issues; local community issues; estimation of mineral resources; realization of mineral resources; timing and amount of estimated future production; the life of Block 14; reclamation obligations; changes in project parameters as plans continue to be evaluated; and anticipated costs and expenditures and our ability to achieve the Corporation's goals. While we consider these assumptions to be reasonable, the assumptions are inherently subject to significant business, social, economic, political, regulatory, competitive and other risks and uncertainties, and contingencies, many of which are based on factors and events that are not within the control of the Corporation and there is no assurance they will prove to be correct.
Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation known and unknown risks, uncertainties and other factors relating to the Forward-Looking Factors above, and those factors disclosed under the heading "Risk Factors" in the Corporation's documents filed from time to time with the securities regulators in the provinces of Canada.
In addition, a number of other factors could cause the actual results, performance or achievements of the Corporation to differ materially from any future results, performance or achievements expressed or implied by the forward-looking information, and there is no assurance that the actual results, performance or achievements of the Corporation will be consistent with them. For further details, reference is made to the risk factors discussed or referred to in the Corporation's annual and interim management's discussion and analyses on file with the Canadian securities regulatory authorities and available electronically on the SEDAR website at www.sedar.com. Although the Corporation has attempted to identify important factors that could cause actual actions, events, results, performance or achievements to differ materially from those described in forward-looking statements and forward-looking information, there may be other factors that cause actions, events, results, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements or information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Such forward-looking statements and information are made or given as at the date of this press release and the Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required under applicable securities law. The reader is cautioned not to place undue reliance on forward-looking statements or forward-looking information.
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.
Contact
Elina Chow
Investor Relations
416.645.0935 x 226