Orca Gold Drills 17.4 m at 7.92 g/t Au and Confirms High-Grade Potential at its Block 14 Gold Project in The Republic of The Sudan
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 21, 2017) - Orca Gold Inc. (TSX VENTURE:ORG) ("Orca" or the "Company") is pleased to announce further results from the ongoing 25,000-metre drilling campaign at its Block 14 Gold Project in The Republic of The Sudan.
Drilling Hits High-Grade Shoot Below and Outside Current Resource:
- Drill hole GSDD020A successfully intercepted a high-grade, steeply plunging shoot at depth, returning 17.4m @ 7.92 g/t Au between 354.6m and 372.0m
- The Company will review and evaluate the underground potential at Block 14 if drilling continues to confirm increase of grade at depth
Drilling Confirms Overall Grade Increases at Depth in GSS:
- 30 drill holes, totaling 11,000 metres, have been drilled as part of the Company's current exploration campaign
- Current drilling confirms an overall increase in grade below the GSS current resource, which the Company anticipates will have a positive impact on the resource update and consequently the economic results in the Feasibility Study scheduled for completion in Q2 2018
To date, approximately 11,000 metres (30 holes) of a 25,000-metre programme have been completed. Four diamond core rigs are currently operating at Galat Sufar South ("GSS"), which have been joined by an additional reverse circulation rig in this last week.
The objectives of this programme are to upgrade in-pit resources to Measured and Indicated category and test the potential for resource expansion below the pit shells that formed the basis of the revised preliminary economic assessment of the Block 14 Gold Project (the "Revised PEA") (see News Release dated May 30, 2017).
Results for the first seven core holes from the programme were announced previously (see Company News Release dated October 17, 2017). The table below shows results for the next 10 holes. The balance of the completed holes is in the lab for assaying and will be announced once the results are received.
|Hole||From||To||Metres||Au g/t Uncut||Comments|
|NOTE: True widths are between 60% and 70% of intercept width|
All holes listed were drilled in the East Zone of the GSS deposit (See Figures 1, 2 & 3 in news release). The results continue to confirm and upgrade mineral resources within the revised PEA pit designs (Infill) and extend mineralization below the previous resource (Outside Resource).
Importantly, the latest drill results confirm an overall increase in grade below the current resource. The Company believes that this will have a positive impact on a new resource calculation and consequently the economic results of the Feasibility Study scheduled for completion in early Q2 2018. Additionally, hole GSDD020A successfully intercepted a high-grade steeply plunging shoot at depth, returning 17.4m @ 7.92 g/t Au between 354.6m and 372.0m. This high-grade intercept, outside and below the current resource, highlights the potential to examine underground options at GSS.
"Drilling at GSS is progressing well with results continuing to demonstrate the potential for the Feasibility Study pits to expand from those contemplated in the Revised PEA. The Company intends to release a new resource update in early 2018, which will form the basis of our Feasibility Study," commented Rick Clark, CEO and Director of Orca. "The intercept in the high-grade shoot is not only impressive in grade but is also significant in width. Ongoing drilling will further test this and other high grade structures at depth towards a review of underground options at both GSS and Wadi Doum. This is an exciting development for Orca and we look forward to reporting on this opportunity as we move into the new year."
To view Figures 1, 2, and 3 please click on the following link: http://media3.marketwire.com/docs/1105095_FIGURES-1-3.pdf
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 focused on its 70%-owned Block 14 Gold Project in the Republic of the Sudan. Block 14 is situated on a 2,170 km2 concession. The Company is currently conducting a Definitive Feasibility Study on the project, which is scheduled for completion in early Q2 2018.
The Revised PEA of Block 14 (see 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 3.4 Mtpa, and strong economics with an after-tax NPV7% of US$ 227.7 million and an IRR of 23.1%.
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 DFS; 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.