Last checked at 18 Jul 2017 07:00
Ortac Resources Ltd / Epic: OTC / Market: AIM / Sector: Mining & Exploration
18 July 2017
ORTAC RESOURCES LTD
("ORTAC" OR THE "COMPANY")
Commencement of mining activities in Slovakia
Licence re-validated for a minimum period of three years
Following the Company's announcement of 22 June 2017 confirming the re-issuing of a small scale underground mining permit, the Company is pleased to confirm that it has now recommenced mining operations. The company has therefore fulfilled the condition required by Slovak regulations to preserve its right to exploit the Šturec ore deposit located in the Kremnica Mining License Area for a minimum period of three years.
This positive development enables the Company to continue to work towards establishing a commercial mine on the licence.
A Pre-feasibility study ("PFS") was completed in 2013 by SRK Consulting ("SRK") confirming the economic viability of the project, in addition to identifying multiple development scenarios. Šturec is estimated to contain Measured and Indicated Mineral Resources of 1.01 Moz at a grade of 2.05 g/t Au Eq. and Inferred Mineral Resources of 0.31 Moz at a grade of 1 g/t Au Eq. The PFS also deemed that a development project would likely have a favourable payback period, estimated at 3.5 years*, and would present investors with a post-tax Internal Rate of Return of 26%*.
Ortac remains in active discussions with its potential local JV partner to develop the Šturec Gold Project, which could potentially realise approximately 873,000 oz of gold equivalent from the current mineral resource, in accordance with findings from the PFS. With low total life of mine cash costs (US$555/oz**) and a good operating climate in Slovakia the Company is confident that further development of the licence will benefit all stakeholders involved.
*Assumes base case price of US$1,343/oz Au Eq and 8% discount rate and costs prevailing at time of PFS publication in 2013
** Based on costs prevailing at time of PFS publication in 2013
Vassilios Carellas, Ortac's CEO, commented:
"Today's positive update enables us to refocus our attention on this promising asset. The development of a commercial project has the potential to create hundreds of jobs in the area and boost the local economy. We can now focus on concluding agreements with our potential JV partner and executing a strategy that will ultimately generate long term value for all stakeholders."
Market Abuse Regulation ("MAR") Disclosure
Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
Contacts
Ortac Resources Ltd Vassilios Carellas (CEO)
| +44 (0) 20 3874 8664 |
SP Angel (Nominated Adviser & Broker) Ewan Leggat / Lindsay Mair
Celicourt Communications (PR) Mark Antelme / Jimmy Lea
| +44 (0) 20 3470 0470
+44 (0) 20 7520 9261
|
About Ortac
Ortac Resources Limited is an AIM listed exploration and mine development company focused on a diversified portfolio of mining projects with interests in Slovakia, Eritrea, the Democratic Republic of Congo and Zambia.
In addition to its 100% holding in the Kremnica Mining Licence Area in Slovakia, Ortac also holds an 18.48% interest in Andiamo Exploration Limited, a private company exploring for resources in Eritrea; a convertible in Zamsort Limited, a private company located in Zambia, which is convertible into a 19.35% interest; and a convertible in CASA Mining Ltd, a private gold mine development company advancing the large-scale Misisi Gold Project in the Democratic Republic of the Congo, which is convertible into a 45% interest.
For more information visit www.ortacresources.com