Arc Minerals Regulatory News (ARCM)

Ortac Resources Ltd / Epic: OTC / Market: AIM / Sector: Mining & Exploration 2014

28 April 2014

Ortac Resources Ltd ("Ortac" or "the Company")

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.

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."

Drilling Programme

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.

Drill Hole YDD-040

Drill Hole YDD-043

The information in this report is based on information provided by Andiamo Exploration Ltd and compiled on behalf of Ortac by Mr Owen Mihalop. The Yacob Dewar drill samples were sent to Intertek Genalysis Laboratories in Perth, Australia for sample preparation and assaying. All sample collection, storage, transport, security, sample preparation and assay methodologies employed by Andiamo have been previously audited by SRK Consulting (UK) Ltd in respect to National Instrument 43-101, as prescribed by the Canadian Exchange Commission, and reported to be compliant as per its guidelines. Mr Mihalop has reviewed the third party data on behalf of Ortac Resources and takes responsibility for the data and geological interpretation. Mr Owen Mihalop (MCSM, BSc (Hons), MSc, MIMMM, CEng) is Technical Director 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) and as a Qualified Person under NI 43-101. Mr Mihalop consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears. 

ENDS

Glossary

Cu - the chemical symbol for copper.

m - metre, a unit of length as per the International System of Units.

Mineralisation - the process or processes by which a mineral is introduced into a rock, resulting in a valuable or potentially valuable deposit. It is a general term, incorporating various types; e.g., fissure filling, impregnation, and replacement.