Orca Gold Increases Indicated Resources to +3.3 Moz at its Block 14 Gold Project Sudan
VANCOUVER, Sept. 19, 2018 /CNW/ - Orca Gold Inc. (TSX.V:ORG) ("Orca" or the "Company") is pleased to announce an updated Mineral Resource Estimate (the "Estimate") for the Company's Block 14 Gold Project in the Republic of the Sudan. This estimate will form the basis for the Feasibility Study due for delivery in November this year.
- The Mineral Resource Estimate of the Galat Sufar South ("GSS") and Wadi Doum deposits comprises an Indicated resource of 79.9Mt grading 1.30g/t Au for 3.342 Moz of gold and an Inferred resource of 18.5Mt grading 1.2g/t Au for 0.711 Moz of gold (at a cut-off grade of 0.6g/t)
- The increase in Indicated resources will directly impact the Estimate, which will form the basis for the Feasibility Study due for release in November 2018
- Notable intercepts from the 2018 resource expansion drilling program include (*previously released):
|GALAT SUFAR SOUTH:|
|GSRC727: 123m grading 1.96g/t*||GSRC753: 7m grading 20.77g/t||GSRC786: 10m grading 7.74g/t|
|GSRC728: 50m grading 3.05g/t*||GSRC768: 23m grading 5.02g/t||GSRC788: 26m grading 4.01g/t|
|GSRC734: 61m grading 1.67g/t*||GSRC773: 42m grading 2.08g/t||GSRC794A: 31m grading 2.61g/t|
|GSRC735: 78m grading 1.92g/t*||GSRC774: 23m grading 3.04g/t||GSRC796: 13m grading 3.90g/t|
|GSRC737: 71m grading 2.60g/t*||GSRC776: 12m grading 6.49g/t||GSRC797: 10m grading 8.49g/t|
|GSRC746: 68m grading 3.48g/t||GSRC779: 34m grading 2.22g/t||GSRC798: 27m grading 2.51g/t|
|GSRC746: 27m grading 9.47g/t||GSRC782: 28m grading 3.21g/t||GSRC805: 10m grading 3.95g/t|
|GSRC806: 14m grading 8.96g/t||GSDD059: 12.6m grading 8.46g/t|
|GSRC807: 5m grading 15.23g/t||MET015DD: 6.8m grading 5.29g/t|
|GSRC810: 32m grading 1.88g/t|
|MET015DD: 4m grading 21.14g/t|
- The highlighted intercepts demonstrate a higher-grade core within both the GSS and Wadi Doum deposits. It is anticipated that this will result in the mining of higher grades in the early years of the project, significantly impacting economics
- The latest Mineral Resource Estimate is based on 111,761 metres of drilling in 756 holes
Mineral Resource Estimate
The Mineral Resource Estimate was undertaken by MPR Geological Consultants of Perth, Western Australia ("MPR") as part of the Feasibility Study. MPR estimated mineral resources for the GSS and Wadi Doum deposits using Multiple Indicator Kriging ("MIK") based on mineralised domains interpreted by MPR and Orca.
Results of the Mineral Resource Estimate are shown below at a range of cut-off grades:
Table 1: Block 14 Mineral Resource Estimate
|Mt||Au g/t||Ag g/t||Au Koz||Ag Koz||Mt||Au g/t||Ag g/t||Au Koz||Ag Koz|
|Galat Sufar South||0.3||129.0||0.92||1.19||3,823||4,954||35.4||0.8||1.1||901||1,289|
Notes:The Mineral Resource has been prepared in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum "CIM Definition Standards for Mineral Resources and Mineral Reserves" (CIM, 2014). Numbers may not add up due to rounding.
Relative to the previous Mineral Resource Estimates, this Mineral Resource Estimate is based on an additional 10,792m of drilling in 7 diamond holes and 57 reverse circulation ("RC") holes completed at GSS and an additional 1,882m of drilling in 3 diamond holes and 8 RC holes completed at Wadi Doum. All intercepts from 2018's drill program are outlined in Appendix I of this news release.
Results of the Mineral Resource update are shown below by oxidation category at a cut-off grade of 0.6g/t:
Table 2: Block 14 Mineral Resource Estimate by Oxidation (0.6g/t)
Notes: The Mineral Resource has been prepared in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum "CIM Definition Standards for Mineral Resources and Mineral Reserves" (CIM, 2014). Numbers may not add up due to rounding.
|Mt||Au g/t||Ag g/t||Au koz||Ag koz||Mt||Au g/t||Ag g/t||Au koz||Ag koz|
|Galat Sufar South||Oxide||9.6||1.32||1.41||409||437||1.0||1.0||1.1||31||35|
"The drilling completed in 2018 has been specifically aimed at developing Mineral Reserves as part of the Feasibility Study. Given the increase in the scope of the Block 14 project, driven by the 2017 discovery of a major fresh water aquifer system and the successful resource drilling campaigns, we expect to see a significant positive change in the scale and scope of the project with the delivery of the Feasibility Study in November. Exploration will now focus on the expansion of high-grade zones identified at Wadi Doum towards further enhancement of the economics and production potential at Block 14 and drill testing of additional high-grade targets previously identified," commented Richard Clark, CEO and Director of Orca Gold. "Block 14 has exceeded our expectations and continues to demonstrate that it has a lot more to offer. The delivery of our Feasibility Study will establish the initial economics of this project and will form the base for further growth of this exciting gold camp."
Drilling in 2018 has continued to add to the geological understanding of GSS and Wadi Doum culminating in the latest Mineral Resource Estimate. Further upside remains in both deposits as this understanding continues to evolve.
Drilling is ongoing at Block 14 focusing for the remainder of the year on Wadi Doum and satellite targets outside the current Resource. The Company is looking to expand the high-grade zones at Wadi Doum and further test the Liseiwi discovery, where previous drilling intersected 24m grading 3.89g/t, 10m grading 15.32g/t and 8m grading 12g/t.
The Mineral Resource Estimate will form the basis of the Feasibility Study, which is on target for completion in November 2018. Below is the status of the Study:
- Capital and operating cost estimates (Complete)
- Geotechnical assessment (Complete)
- Mining contractors have visited site and are preparing bids (In progress)
- Pit optimisation, design and mine scheduling (In progress)
- Fuel and power contracts (In progress)
- Environmental Impact Assessment (Submitted to the Sudan Government for approval)
- +100Mm3 Water Resource discovery (Permitted)
About Orca Gold Inc.
Orca Gold Inc. (TSX-V: ORG) is a Canadian resource company focused on exploration and development opportunities in Africa, where it is currently developing the 70%-owned Block 14 gold project in the Republic of the Sudan and the Morondo gold project in the West African country of Cote d'Ivoire. The Company has an experienced board of directors and management team and a strong balance sheet.
The technical contents of this release have been approved by Hugh Stuart, BSc, MSc, a Qualified Person pursuant to National Instrument 43-101. Mr. Stuart is the President of the Company, a Chartered Geologist and a 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 Inc. Mr. Johnson is a member in good standing of the Australian Institute of Geoscientists and has sufficient experience which is relevant to the commodity, style of mineralization 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.
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 Feasibility Study ("FS") currently being 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 presentation.
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; 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, 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 presentation 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.
Appendix I: All Results from Orca's 2018 Drill Program
GALAT SUFAR SOUTH 2018
|Hole||From||To||Metres||Au g/t Uncut|
|GSRC743||No Significant Intercept|
|GSRC750||No Significant Intercept|
|GSRC757||No Significant Intercept|
|GSRC758||No Significant Intercept|
|GSRC769||No Significant Intercept|
|GSRC772||No Significant Intercept|
|GSRD784||No Significant Intercept|
|GSRD785||No Significant Intercept|
|GSRC791||No Significant Intercept|
|GSRC795||No Significant Intercept|
|GSRC800||No Significant Intercept|
|GSRC804||No Significant Intercept|
WADI DOUM 2018
|Hole||From||To||Metres||Au g/t Uncut|
|GSRC808||No Significant Intercept|
|*Previously Reported Drill Intercepts|
Note: True widths are between 50 and 80% of drilled intercept length
SOURCE Orca Gold Inc.
Elina Chow, Investor Relations, Catch Advisory Group Inc., 416.645.0935 x 226, [email protected] CNW Group 2018