Orca Gold's Robust Initial Resource and Successful Exploration Support Preliminary Economic Assessment at Block 14 - New CFO Appointment
In each of the last three years, Orca has discovered significant gold prospects on Block 14: Galat Sufar South ("GSS") in 2013, Wadi Doum in 2014 and Liseiwi in 2015. To date, Orca has defined an Indicated Resource of 27.6Mt grading 1.83g/t for 1.63 million ounces of gold and an Inferred Resource of 10.3Mt grading 1.8g/t for an additional 0.6 million, based on a 1g/t cut-off grade (News Release: February 4, 2015).
The focus of exploration in 2015 was to continue to identify and develop new targets on Block 14 and to expand the resources at GSS and Wadi Doum.
The highlight of the year was the discovery at Liseiwi (News Release: September 17, 2015) where an initial reverse circulation ("RC") drill program included intersections of 10m grading 15.32/11.65g/t (uncut/cut to 20g/t), 24m at 3.89/2.97g/t and 8m at 12.80/8.55g/t with 8m at 5.21g/t. Further drilling is required to define an initial resource at Liseiwi.
At Wadi Doum, additional reverse circulation drilling close to the base of the existing resource included intersections of 31m at 4.88/3.95g/t and 33m at 4.66/3.82g/t showing the high grade mineralisation to be resolving into two distinct shoots. Two core twin holes were also completed for geology and metallurgical samples intersecting 30.8m grading 14.99/4.44g/t and 28m grading 5.50/5.22g/t.
Within the GSS Resource, drilling on the 320° Zone included intersections of 12m at 5.19/5.02g/t and 9m at 5.06/4.31g/t adding definition and extension to the high grade shoot targeted.
At the NE Target, just outside the current GSS Resource, GSRC626 intersected 16m at 4.41g/t extending the known mineralisation to the east from previous drilling which intersected 19m at 6.04/4.69g/t and 18m at 3.32/3.24g/t.
These results continue to show the potential for Block 14 to provide further high grade discoveries and exploration in 2016 will aim to develop these targets further (all drill results are listed in the table below).
Based on the 62,321m of drilling completed to date, the resources at GSS and Wadi Doum look to be well suited to open pit mining with mineralisation up to 85m in width and 79% of the resources situated within 150m of surface.
Orca's focus of activities in 2016 will be the completion of a PEA to confirm preliminary economics for GSS and Wadi Doum. In addition, given the strong upside potential of Block 14, exploration will continue, targeting the identification of new satellite deposits, like Wadi Doum and Liseiwi, towards further enhancing project economics. The Company is cognisant of the difficult conditions in the capital markets and of the importance of carefully managing its current treasury. Accordingly, careful consideration has resulted in an operating budget that will advance Block 14 under strict financial oversight.
The PEA will be compiled and supervised by SGS Time Mining of South Africa using inputs from Orca and a group of internationally recognised consultants:
|Mineral Processing / Infrastructure / Power||SGS Time Mining Ltd|
|PEA Oversight||Kevin Ross, Mining Consultant|
|Mineral Resources||Nic Johnson, MPR Geological Consultants Pty Ltd|
|Mining Schedule / Optimisation / Geotechnical||SRK Consulting (UK) Ltd|
|Metallurgical Test Work Programme||SGS Mineral Services Ltd|
|Metallurgical Oversight||Mike Hallewell, MPH Minerals Consultancy Ltd|
|Hydrogeology||GCS Water and Environmental Consultants|
|Water Supply Study||Propipe Process and Pipeline Projects|
|Environmental and Social||Carl Nicholas, Mineesia Ltd|
The PEA is expected to be completed early in H2/2016 after which the Company will consider the appropriate next steps in the ongoing development of Block 14.
Orca is pleased to announce the appointment of Jeffrey Yip as the Company's Chief Financial Officer, effective immediately. Mr. Yip will replace Mr. Alessandro Bitelli who has been the company's CFO since April 2013.
Mr. Yip is a member of the Chartered Professional Accounts of British Columbia (CPA, CA) and has held the position of Corporate Controller of the Company since April 2013. Prior to joining Orca, Mr. Yip was the Corporate Controller for RB Energy Inc., a TSX-listed iodine producer with assets in Chile and Canada, and Rusoro Mining Ltd., a junior gold producer with operations in Venezuela.
Commenting on Mr. Yip's appointment, Hugh Stuart, President and CEO, said "We are delighted that Jeff has agreed to become the new CFO of Orca. On behalf of the Board I would like to thank Alessandro for his contributions to Orca and wish him the best for the future. Alessandro was one of the founders of Orca and the Company has benefitted greatly from his experience. Alessandro will continue to act for Orca as an advisor."
Orca Gold Inc. is a Canadian resource company focused on exploration opportunities in Africa. The Company has an experienced board of directors and management team and a strong balance sheet, with a treasury of approximately CAD 18 million at year end.
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.
|Prospect||Hole||From||To||Metres||Au g/t Uncut||Au g/t Cut to 20g/t||Au g/t Cut to 10g/t|
|Liseiwi||GSRC592||No significant Intercept|
|GSRC635||No significant Intercept|
|GSRC637||No significant Intercept|
|GSRC638||No significant Intercept|
|GSRC640||No significant Intercept|
|GSRC617||No significant Intercept|
|GSRC625||No significant Intercept|
|Target M||GSRC627||No significant Intercept|
|GSRC630||No significant Intercept|
|GSRC631||No significant Intercept|
|Wadi Doum Metallurgical Holes||MET004DD||40||50||10||0.68|
Note: Due to the preliminary nature of much of this drilling true widths are true widths thought to be between 65 and 90% of intercept width.