Orca Gold to Deliver a Revised Feasibility Study on Block 14 and Report on Montage Drilling
VANCOUVER, Aug. 17, 2020 - Orca Gold Inc. (TSXV: ORG) ("Orca" or the "Company") is pleased to report that detailed engineering work since delivery of a Feasibility Study (see Company's news release on November 7, 2018) on the Company's 70%-owned Block 14 gold project in the Republic of the Sudan, has identified improvements which are likely to enhance the already strong economics or the Project. Orca expects to file a revised study in September 2020 reflecting these improvements, updating capital costs to Q2 2020 and highlighting the impact of current gold pricing on valuation.
NOVEMBER 2018 BLOCK 14 FEASIBILITY STUDY SUMMARY
| Probable Reserves | 79.94Mt @ 1.11g/t for 2.85 Moz | |
| Average Annual production: | ||
| First 7 Years | 5.8Mtpa @ 1.49g/t averaging 228,000oz Au/year | |
| Life of Mine ("LOM") | 167,000oz Au/year | |
| Mine Life | 13.6 years | |
| Production Costs: | Yrs 1 - 7 | LOM |
| Cash Costs | $689/oz | $707/oz |
| All-in Sustaining Costs ("AISC") | $789/oz | $783/oz |
| After-Tax Net Present Value ("NPV") Discount rate: 5%; Gold Price: $1,250/oz | $403 million | |
| After-Tax Internal Rate of Return ("IRR") | 24.2% | |
| Payback Period | 3.9 years | |
| Pre-Production Capital | $328 million | |
| Sustaining Capital | $181 million | |
Also in September 2020, the Company will update shareholders on the current drilling program underway at the Koné Prospect, Morondo Concession, in Côte d'Ivoire, which is owned and operated by Montage Gold Inc., a subsidiary of Orca. The objective of the current drilling at Kone' is to demonstrate the potential for a multi-million-ounce Inferred Resource. Upon achieving this objective Montage will initiate a further 50,000 metre drill program towards the delivery of a Feasibility Study.
On behalf of the Board of Directors,
"Rick Clark"
Rick Clark| CEO & Director | Orca Gold Inc. | 604.689.7842
ABOUT ORCA GOLD INC.
Orca Gold Inc. (TSXV: ORG) is a Canadian resource company focused on exploration and development opportunities in Africa. Led by a board of directors made up of industry experts and a management team with a track record of discovering and building significant mines globally, Orca is developing one of the leading gold projects in Africa. The Company is currently focused on its 70%-owned Block 14 Gold Project in the Republic of the Sudan on which a Feasibility Study was completed in November 2018.
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.
Cautionary Statement Regarding Forward-Looking Information
Certain information contained in this press release constitutes "forward-looking information", within the meaning of Canadian legislation. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur", "be achieved" or "has the potential to." Forward-looking statements contained in this press release may include statements regarding the timing and pricing of the common share issuances which involve known and unknown risks and uncertainties which may not prove to be accurate. Actual results and outcomes may differ materially from what is expressed or forecasted in these forward-looking statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Among those factors which could cause actual results to differ materially are the following: regulatory approvals, the ability of the parties to satisfy conditions precedent to the financing, market conditions and other risk factors listed from time to time in our reports filed with Canadian securities regulators on SEDAR at www.sedar.com. The forward-looking statements included in this press release are made as of the date of this press release and the Company 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 expressly required by applicable securities legislation.
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.
SOURCE Orca Gold Inc.
Contact
Elina Chow, Investor Relations Consultant, Catch Advisory Group Inc., 416.845.8495, info@orcagold.com