Vassilios Carellas, Ortac CEO, commented: "These initial results are extremely encouraging and support our revised geological interpretation: namely that the copper mineralisation intersected by Andiamo's previous drill programmes continues to the south with excellent grades across broad intersections.
These initial good results also come at a time when our Šturec gold project in Slovakia is set to enter an important phase that will serve to shape our next stage of its development.
"We look forward to continuing our partnership with Andiamo and to receiving the remaining assay results from this initial drill programme, which our investment in Andiamo has funded and where our strategy to advance both our Eritrean and Slovakian investments serve to help broaden our potential investment returns for shareholders."
The initial 1,500m drill program at Yacob Dewar, budgeted at US$500,000 has now been completed and the first batch of samples sent for analysis contained core from two drill holes. Drill hole YDD-040, which was terminated in mineralisation, was collared 50m south of Andiamo's previous drill hole YDD-025, which assayed 63m at 2.43 per cent Copper. Drill hole YDD-043 is located a further 50m south of the collar of YDD-040. Both drill holes were angled at 50 degrees to the west with the start of the mineralisation intersected a few metres below surface. The tables below give the full results from both holes.
First Drill Assay Results Received from the Yacob Dewar, Eritrean Copper-Gold Project
Investment in Andiamo Exploration Ltd now Increased to 25.37%
Drill results include:
· 1.38% copper over 53m from surface
· 1.32% over 42.5m from surface
Ortac now holds 10.0 million shares (25.37%) of Andiamo for an investment of US$1.5million
Ortac Resources Ltd, the AIM listed exploration and mine development company, announces that Andiamo Exploration Ltd ("Andiamo") has received assays for two drill holes from its 1,500m drill program at its Yacob Dewar copper-gold project, Eritrea. Results are 53m at 1.38 per cent copper and 42.5m at 1.32 per cent copper respectively, secured from an oxide ore body.
Ortac has now completed payment of the third and final tranche of US$500,000 under the conditional subscription agreement with Andiamo, as reported in the Company's announcement on 13 January 2014. As a result, Ortac's stake now stands at 25.37 per cent (10.0 million shares) and puts the Company's total investment into Andiamo at US$1.5million.
The financial terms of the subscription agreement have now been met by Ortac and on completion of a Technical and Economic Assessment expected by 30 June 2015, Ortac will have the right to subscribe for a further 10 million ordinary shares of 0.1p each in Andiamo at US$0.20 per ordinary share that would take its shareholding in Andiamo to more than 40% of its then issued share capital.
The price target was originally given on the basis of the company getting permission to mine in Kremnica, so it could be 3-5 years. Andiamo would be quicker. It would be rather more dificult to predict a realistic value before then as the price is so much sentiment driven. We have been nearly 3p on sentiment in the past. I dare say 0.2p is too low the other way - you get the potential of a successful project in for almost nothing, with only a risk of future dilution. I think the price will be much higher when (not if) the sector is re-rated. There should be an upturn eventually after a period of sustained cost cutting IMO.
The market has not responded to any news that ortac takes out, I wonder why these broker's make ridiculous suggestion on price targets 0.05p. No sense at all, when you have got other companies with better cash at bank, and revenue flowing through it's balance sheet. I believe OTC has potential but a target of 0.05p is a joke and not realistic for at least another 3 - 5 years.
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