Orca Gold Announces Commencement of 25,000m Drill Programme on its Block 14 Gold Project in the Republic of the Sudan
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jul 27, 2017) - Orca Gold Inc. (TSX VENTURE:ORG) ("Orca" or the "Company") is pleased to announce that a 25,000-metre drill programme is underway on the Company's Block 14 Gold Project, located in the Republic of the Sudan. This drilling is aimed at expanding the current resource below the optimized pits set out in the recently updated Preliminary Economic Assessment (see Company news release on May 30, 2017) and will update the model to be used in the Feasibility Study that is scheduled for completion by the end of Q1 2018.
The updated PEA is based on a mill throughput of 3.4Mtpa, using a gold price of US$1,100/oz for mine design and US$1,200/oz for economic analysis. In-pit mineral resources comprise 41.0Mt grading 1.46 g/t for 1,928 Koz in the Indicated category and 3.4Mt grading 1.56 g/t for 173 Koz in the Inferred category. The project shows strong economics with an after-tax NPV7% of US$227.7 million and an IRR of 23.1%.
The open pit designs that form the basis of the updated PEA were restricted from going deeper due to a lack of geological information. Accordingly, the primary objective of the current drill programme is to expand the resource information in critical areas allowing the pit designs to develop to their full economic potential.
"Facilitated by our recent discovery of a significant water supply, we can now optimize the existing resources of Block 14 to target production in excess of 150,000 ounces per year," commented Hugh Stuart, President & Director of Orca Gold. "Beyond this production optimization, we are excited to launch a new drill programme aimed at unlocking the full potential of our project. We are looking to expand the resource base below current pit designs, establish an initial resource at the Liseiwi satelite prospect, 15km north of the Wadi Doum deposit, and test the high-grade structures recently identified below GSS and Wadi Doum. We anticipate and look forward to releasing the results of our programme throughout the coming months."
Three diamond core rigs are currently on site with a further core rig and one reverse circulation rig due to arrive within the next week. The resource expansion and high-grade targeting programme, scheduled for completion by the end of October, will form the basis of a new resource calculation by year end and will culminate in the delivery of a Feasibility Study for Block 14 by the end of Q1 2018.
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 Feasibility Study on the project, which is scheduled for completion in Q1 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 Preliminary Economic Assessment (the "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