Last checked at 28 Sep 2010 07:00
Ortac Resources Ltd / Epic: OTC / Market: AIM / Sector: Mining & Exploration
28 September 2010
Ortac Resources Limited ('Ortac' or 'the Company')
Snowden Appointed & Resource Remodelling Commences
at Kremnica Gold Project
Ortac Resources Limited, the AIM listed exploration and development company focussed on the development of precious metal projects in Europe, announces that, as contemplated in our AIM Admission Document, it has appointed Snowden Mining Industry Consultants Pty Ltd ('Snowden') to commence resource remodelling and complete a scoping study at its highly prospective Kremnica Gold Project in Slovakia ('Kremnica' or 'the Project'). Kremnica, which is the Company's initial focus has a current resource of c.760,000 ounces ('oz') of gold ('Au') equivalent. The mineralisation will be remodelled and updated by Snowden and classified in accordance with the JORC Code ahead of the publication of a preliminary scoping study in Q1 2011.
Ortac has completed a significant rework of the geological model which will form the basis of this study. Snowden will update the grade model, utilising the historical drilling data that has been compiled over the past 10-15 years, which will enable Ortac to better understand the mineralisation of the Project. Snowden's subsequent scoping study will include a starter pit concept study and an optimal mine mining study. The optimal mine mining study will investigate various strategies involving open pit and underground mining methods and identify and implement the optimum development strategy.
Ortac Resources Limited CEO Vassilios Carellas said, "This appointment marks a key milestone in the implementation of our defined development plan aimed at progressing Kremnica towards production. The resource estimate, remodelling and subsequent publication of a preliminary scoping study allow the board to establish the best possible path to production, thereby maximising the potential for all stakeholders."
Resource Estimation
The Competent Person's report assigned mineral resources to the Kremnica project as follows:
| Kremnica in situ Resource at 0.75 g/t Gold Equivalent (AuEq) cut off | ||||||||
| Resource Category | Quantity | Grade (g/t) | Metal (oz) | |||||
|
| Tonnes | SG | AuEq | Au | Ag | AuEq | Au | Ag |
| Measured | 3,419,000 | 2.24 | 2.30 | 2.01 | 16.20 | 252,700 | 220,600 | 1,780,700 |
| Indicated | 4,631,000 | 2.25 | 2.45 | 2.12 | 18.41 | 364,500 | 315,200 | 2,742,100 |
| Measured + Indicated | 8,050,000 | 2.24 | 2.38 | 2.07 | 17.47 | 617,200 | 535,800 | 4,522,800 |
| Inferred | 2,895,000 | 2.34 | 1.57 | 1.40 | 9.46 | 145,900 | 130,000 | 880,400 |
| TOTAL | 10,945,000 | 2.27 | 2.17 | 1.89 | 15.35 | 763,100 | 665,800 | 5,403,200 |
**ENDS**
| For further information please visit www.ortacresources.com or contact: | ||
| Vassilios Carellas | Ortac Resources Ltd | Tel: +44 (0) 20 7440 0646 |
| Charles Wood | Ortac Resources Ltd | Tel: +44 (0) 20 7440 0646 |
| Roland Cornish | Beaumont Cornish Limited | Tel: +44 (0) 20 7628 3396 |
| Rosalind Hill Abrahams | Beaumont Cornish Limited | Tel: +44 (0) 20 7628 3396 |
| Hugo de Salis | St Brides Media & Finance Ltd | Tel: +44 (0) 20 7236 1177 |
| Lottie Brocklehurst | St Brides Media & Finance Ltd | Tel: +44 (0) 20 7236 1177 |
Competent Person
The information in this Announcement that relates to Mineral Exploration results and Mineral Resources, together with any related assessments and interpretations, have been verified by and approved for release by Vassilios Carellas, a qualified geologist and full-time employee of the Company. Vassilios Carellas has sufficient experience which is 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 in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Vassilios Carellas consents to the inclusion of the information contained in this release in the form and context in which it appears.
Glossary of terms used in the Announcement:
| 'Mineral Resource' | is a concentration or occurrence of material of intrinsic economic interest in or on the Earth's crust in such form, quality and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge. Mineral Resources are sub-divided, in order of increasing geological confidence, into Inferred, Indicated and Measured categories.
|
| 'Inferred Mineral Resource' | is that part of a Mineral Resource for which tonnage, grade and mineral content can be estimated with a low level of confidence. It is inferred from geological evidence and assumed but not verified geological and/or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes which may be limited or of uncertain quality and reliability.
|
| 'Indicated Mineral Resource'
| is that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of confidence. It is based on exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to confirm geological and/or grade continuity but are spaced closely enough for continuity to be assumed. |
| 'Measured Mineral Resource' | is that part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a high level of confidence. It is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are spaced closely enough to confirm geological and grade continuity |
| 'Mineral Resource estimate' | An estimate of tonnage and grade (mineral content) of a deposit by a variety of techniques including geometrical classical methods and or geostatistical methods. |
| 'Mt' | Million Tonnes |
| 'Moz' | Million Ounces |
The technical information in the Announcement was prepared under the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (JORC).
Notes:
Ortac Resources Limited is an AIM listed exploration and development company focussed on the development of precious metal projects in Europe. Its focus is on the Carpatho Balkan Metallogenic Belt, initially the Central Slovakian Volcanic Field where past and present production and resources exceed 9 million ounces of gold.
The Company's initial project is the Kremnica Gold Project in Slovakia which has been reported to contain in excess of 1.5 million ounces gold equivalent. The Company has produced an interim JORC compliant resource statement of 0.76 million ounces of gold equivalent and expects to produce an updated resource estimate before the end of 2010 in excess of 1 million ounces gold equivalent.
The Company's objective is to complete a definitive feasibility study and environmental impact assessment with a view of bringing the Kremnica Gold Project into production.
The Company's strategy is to utilise its highly experienced board and management team and its solid foothold in Central Europe to consolidate additional precious metal development opportunities to build shareholder value.