TIDMOTC
RNS Number : 2498L
Ortac Resources Limited
30 September 2016
Ortac Resources Ltd / Epic: OTC / Market: AIM / Sector: Mining
& Exploration
30 September 2016
ORTAC RESOURCES LTD
("ORTAC" OR THE "COMPANY")
Further Investment in Casa Mining Ltd.
Ortac Resources Ltd ("Ortac"), the AIM listed exploration and
mine development company, is pleased to provide an update on its
investment in Casa Mining Ltd ("CASA"), a private company
registered in Mauritius that holds prospective gold mining and
exploration licences in the Democratic Republic of Congo
("DRC").
Highlights:
-- Ortac increases it shareholding in CASA to just under 20% of enlarged share capital in CASA
Vassilios Carellas, Ortac's CEO, commented: "The recently
announced placing has enabled Ortac to take up its option and
subscribe for further shares in CASA.
With over 1 million ounces of gold discovered so far, the Misisi
Gold Project, with its potential for a low cost, open pit
operation, is gaining a profile as a project that can be brought
into production quickly.
By increasing Ortac's stake in CASA, we can continue to play our
role as a supportive shareholder in the development and marketing
of Misisi, which is now bearing all the hallmarks of a project that
has the investment profile fitting with the current gold project
investment market."
Investment
Through a private placement carried out by CASA, Ortac has
increased its interest and holds 1,304,667 shares representing
19.63% of the enlarged share capital of CASA.
About Casa Mining Ltd.
CASA is a private Mauritian registered company that is the
71.25% owner and operator of the Misisi Gold Project located in
South Kivu, eastern DRC, approximately 350km south of Bukavu and
180km north of Kalemie.
The CASA licence holdings consist of three contiguous mining
licenses (133km(2) ), issued in March 2015 and valid for 30 years.
These licenses, which encompass a 60km strike length of the
Tanganyika graben within the Rusizian belt ("Misisi Corridor"),
include the Akyanga deposit along with the Lubitchako, Tulongwe,
Kilombwe and Mutshobwe prospects (targets).
Over the last six years over $30m was spent developing these
licenses. In addition to the regional geophysical surveys completed
over these license areas in 2011, CASA have carried out 19,522m of
diamond drilling, 2,720m of reverse circulation drilling and
excavated 6,274 line metres of trenches on their respective
licenses.
At CASA's most advanced project, the Akyanga deposit, SRK has
reported a Mineral Resource within a $1,200/oz gold selling price
and 0.5 g/t Au cut-off grade optimised pit shell. This comprises an
Inferred oxide gold Mineral Resource of 5.5 Mt at a grade of 1.5
g/t Au for approximately 272 koz of contained metal. SRK has
further reported an Inferred transition gold Mineral Resource of
16.2 Mt at a grade of 1.8 g/t Au for approximately 927 koz of
contained metal.
MDM, in conjunction with SRK, completed a scoping feasibility
study for the Akyanga deposit resulting in an ungeared NPV (8%) and
IRR of $171m and 35% respectively at a $1,300/oz gold price. This
assumes a contract mining scenario with an initial capital cost
estimate of $87.4m and a total operating cost of $628/oz.
Following the internal workshop and the non-code compliant
updated resource estimate of over 2.3 Moz of gold produced by
CASA's independent experts, it is currently reviewing its strategy
and weighing up its options in developing its Missisi project.
The Company will make further announcements as appropriate.
**S**
The information in this press release is based on information
provided by Casa Mining Limited and compiled on behalf of Ortac by
Mr Vassilios Carellas. The SRK JORC Mineral Resource estimate, the
MDM-SRK Scoping Study and the updated resource estimate by CASA's
independent experts have not been independently verified by Ortac
Resources Ltd. Mr Vassilios Carellas (BSc (Hons), MAusIMM) is the
Chief Executive Officer for Ortac Resources Limited and has
sufficient experience relevant to the style of mineralisation and
type of deposit under consideration and to the activity which he is
undertaking to qualify as a Competent Person as defined under the
JORC Code (2012). Mr Carellas consents to the inclusion in this
announcement of the matters based on his information in the form
and context in which it appears.
Contacts
Ortac Resources Ltd +44 (0) 20
Vassilios Carellas (CEO) 7389 9050
SP Angel (Nominated Adviser +44 (0) 20
& Broker) 3470 0470
Ewan Leggat / Lindsay Mair
Beaufort Securities (Joint Broker) +44 (0) 20
Jon Belliss / Elliot Hance 7382 8300
Peterhouse Corporate Finance +44 (0) 20
Limited (Joint Broker) 7469 0930
Guy Miller / Lucy Williams www.pcorpfin.com
For additional information please visit -
www.ortacresources.com
Glossary
Au Au means gold.
carbon-in-column carbon-in-column or CIC means a technological
operation in which gold and silver dissolved in clean leach
solution are absorbed onto activated carbon which is layered
horizontally in vertical columns.
Core drilling core drilling means a drilling method that uses a
rotating barrel and an annular-shaped, diamond impregnated
rock-cutting bit to produce cylindrical rock cores and lift such
cores to the surface, where they may be collected, examined and
assayed.
CIM The CIM Definition Standards on Mineral Resources and
Reserves (CIM Definition Standards) establish definitions and
guidance on the definitions for mineral resources, mineral
reserves, and mining studies used in Canada.
cut-off grade cut-off grade means the minimum grade at which
mineralized material can be economically mined and processed (used
in the calculation of ore reserves).
diamond core drilling diamond core drilling means a method of
exploration in which rock samples from underground are retrieved as
core (whole rock cylinders) for further examination and
assaying.
Dip The inclination of a geologic structure (bed, vein, fault,
etc.) from the horizontal; dip is always measured downwards at
right angles to the strike.
Exploration exploration means activity ultimately aimed at
discovery of ore reserves for exploitation. Consists of sample
collection and analysis, including reconnaissance, geophysical and
geochemical surveys, trenching, drilling, etc.
Ga means a billion years.
Graben means an elongated block of the earth's crust lying
between two faults and displaced downwards relative to the blocks
on either side, as in a rift valley.
g/t g/t means gram per tonne.
heap leach heap leach means a technological operation in which
crushed material is laid on a sloping, impervious pad where it is
leached by cyanide solution to dissolve gold and/or silver. Metals
are subsequently recovered from pregnant leach solution by CIC or
the Merrill Crowe process.
Inferred resource inferred resource means that part of a
resource for which tonnage, grade and content can be estimated with
a low level of confidence. It is inferred from geological evidence
and assumed but not verified geological and/or grade continuity. It
is based on information gathered through appropriate techniques
from locations such as outcrops, trenches, pits, workings and drill
holes which may be limited or of uncertain quality and
reliability.
Indicated resource indicated resource means that part of a
Mineral Resource for which tonnage, densities, shape, physical
characteristics, grade and mineral content can be estimated with a
reasonable level of confidence. It is based on exploration,
sampling and testing information gathered through appropriate
techniques from locations such as outcrops, trenches, pits,
workings and drill-holes. The locations are too widely or
inappropriately spaced to confirm geological and/or grade
continuity but are spaced closely enough for continuity to be
assumed.
JORC The Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves ('the JORC Code'). The JORC Code
provides a mandatory system for the classification of minerals
Exploration Results, Mineral Resources and Ore Reserves according
to the levels of confidence in geological knowledge and technical
and economic considerations in Public Reports.
Km means kilometres.
Koz means thousand ounces.
m means metres.
MDM MDM Engineering Projects Ltd.
Mineral Resource Mineral Resource means a concentration or
occurrence of material of intrinsic economic interest in or on the
Earth's crust in such form, quality and quantity that there are
reasonable prospects for eventual economic extraction. The
location, quantity, grade, geological characteristics and
continuity of a Mineral Resource are known, estimated or
interpreted from specific geological evidence and knowledge.
Mineral Resources are sub-divided, in order of increasing
geological confidence, into Inferred, Indicated and Measured
categories.
Moz means million ounces.
Mt means million tonnes.
not code compliant Not compliant to any internationally
recognised method for estimating and calculating ore resources,
such as JORC or National Instrument 43-101.
Oz Oz or oz means troy ounce (31.1035 g).
Production means the amount of pure precious metals, measured in
thousands of ounces for gold, millions of ounces for silver and
tonnes for copper, produced following processing.
Prospect means a mining property, the value of which has not
been determined by exploration.
Reverse circulation means a drilling method that uses a rotating
cutting bit within a double-walled drill pipe and produces rock
chips rather than core. Air is circulated down to the bit between
the inner and outer wall of the drill pipe. The chips are forced to
the surface through the centre of the drill pipe and are collected,
examined and assayed.
SRK SRK Consulting (UK) Limited (SRK) is an associate company of
the international group holding company, SRK Consulting (Global)
Limited (the SRK Group).
Strike means a horizontal extension of an ore body or
mineralisation.
Tonne means metric ton.
Trench means a long, narrow excavation dug through overburden,
or blasted out of rock, to expose a vein or ore structure.
For additional information please visit -
www.ortacresources.com
This information is provided by RNS
The company news service from the London Stock Exchange
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