Last checked at 8 May 2012 07:00
Ortac Resources Ltd / Epic: OTC / Market: AIM / Sector: Mining & Exploration
8 May 2012
Ortac Resources Ltd ('Ortac' or 'the Company')
Updated Mineral Resource Estimate for Šturec Project, Slovakia
Ortac Resources Ltd, the AIM listed exploration and development company focussed on natural resource projects in Europe, is pleased to report an updated Mineral Resource estimate for its Šturec Project located in central Slovakia ('the Šturec Project').
Overview
·; Total Mineral Resource, classified in accordance with the JORC Code (2004), increased by 24% to 1.36Moz Au Eq from 1.1Moz Au Eq
·; The proportion of the Mineral Resource classified in the Measured and Indicated categories increased by 75% to over 1.0Moz from 579,000ozUpdated Mineral Resource estimate represents a key milestone in the development of the Šturec Project
·; Potential for further resource upside - the high grade Schramen vein structure remains open at depth and along strike as a future exploration target
Ortac CEO Vassilios Carellas said, "This is a further key development in the advancement of the Šturec Project. Following the completion of our Scoping Study earlier this year, which confirmed highly positive economic fundamentals for the Šturec Project, this updated Mineral Resource estimate further increases the scope and potential of this valuable asset.
"The infill drilling campaign undertaken during 2011 has resulted in the resource being increased from 1.1Moz Au Eq to over 1.3Moz Au Eq, but much more significantly, the proportion of material classified in the Measured and Indicated categories has increased by 75% to over 1.0Moz. It is also encouraging to note that the grade of the Measured and Indicated Resource in the new model has not been unduly lowered despite reporting at a lower cut-off grade. This new classified resource gives us further confidence going into the next stage of technical studies."
Detailed Results
Snowden Mining Industry Consultants ('Snowden') was commissioned by Ortac to update the Mineral Resource estimate for its Šturec Project located in central Slovakia. The updated Mineral Resource estimate includes the results of the 2011 diamond drilling campaign and is classified in accordance with the requirements of the JORC Code (2004). The resource is divided into an open pit resource and an underground resource. The open pit resource is defined by an economic open pit shell with a cut-off grade of 0.26g/t Au; material inside this pit shell is reported at a cut-off grade of 0.40g/t Au. The underground resource is defined as material outside the economic open pit shell, which is greater than a cut-off grade of 2.85g/t Au. The updated Mineral Resource is detailed in Table 1 below:
Table 1: Mineral Resources for the Šturec Deposit
Classified in Accordance with the JORC Code (2004) - Snowden, May 2012
Resource Category | Resource Type | Cut-Off Grade | Mass (Kt) | Au Grade g/t | Ag Grade g/t | Contained Metal Koz Au Eq* |
Measured | Open Pit | 0.4 | 3,000 | 1.69 | 13.54 | 187 |
Indicated | Open Pit | 0.4 | 12,400 | 1.76 | 15.17 | 823 |
M+I | Open Pit | 0.4 | 15,400 | 1.75 | 14.85 | 1,010 |
Inferred | Open Pit | 0.4 | 9,700 | 0.89 | 5.08 | 310 |
Total | Open Pit | 0.4 | 25,100 | 1.42 | 11.07 | 1,320 |
Indicated | Underground | 2.85 | 19 | 3.60 | 23.81 | 2 |
Inferred | Underground | 2.85 | 310 | 3.50 | 19.73 | 39 |
Total | Underground | 2.85 | 328 | 3.51 | 19.96 | 41 |
Measured | OP + UG | 3,000 | 1.69 | 13.54 | 187 | |
Indicated | OP + UG | 12,400 | 1.76 | 15.18 | 825 | |
M+I | OP + UG | 15,400 | 1.75 | 14.86 | 1,012 | |
Inferred | OP + UG | 10,000 | 0.97 | 5.53 | 349 | |
Total Resource | OP + UG | 25,400 | 1.44 | 11.18 | 1,361 |
Notes:
Open pit resource is defined by an economic pit shell with a cut-off grade of 0.26g/t Au; and
*Gold Equivalent (Au_Eq) grades are calculated using a 50:1 ratio of silver to gold values.
The gold-silver mineralisation at the Šturec Project is part of a large low-sulphidation quartz-sericite-adularia epithermal-hydrothermal system hosted in Tertiary andesite volcanic flows and tuffs and lesser diorites and rhyolite dikes. It has been mined and explored since the 8th century with extensive modern exploration through drilling, adits and some open pit mining from the early 1960s through to the present day.
The Snowden grade-tonnage estimate uses data from the sampling of adits, surface and underground diamond drill core, surface reverse circulation drilling and trench samples. The database was compiled and verified by Ortac. Snowden's checks indicate that the data is of sufficient quality to support the resource classifications applied. Multiple Indicator Kriging was used to estimate the gold and silver grades into a block model constrained by the Ortac geological interpretation. This model reflects the interpreted structure and geology. Search ellipses and ranges used in estimation reflect the spatial continuity and trends of the mineralisation in each of the mineralised domains.
Density estimation was based on the density of the mineralisation (based on core measurements) and on the measurement of bulk density from adits through the mineralised zone. Variations in the density are known to exist due to the nature of the broken mineralisation, and this has been estimated and incorporated into the model. Snowden based the classification of the Mineral Resource upon a number of criteria, including the confidence in the geological interpretation, the integrity of the data, the spacing between the data, and the grade continuity as demonstrated by the variography. The resource estimate in Table 1 has been classified using the guidelines of the JORC Code (2004).
Competent Persons
The Mineral Resource for the Šturec Deposit was estimated by Snowden Mining Industry Consultants and is dated 1 May 2012. The competent person responsible for the estimation is Mr. Ivor Jones, (BSc (Hons), MSc, FAusIMM, CPgeo), Group General Manager - Geosciences at Snowden Mining Industry Consultants. The resource estimate is based upon the data and interpretations provided by Ortac. Mr. Jones has sufficient experience relevant to the 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 (2004). Mr. Jones consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.
Mr. Owen Mihalop, (MCSM, BSc (Hons), MSc, MIMMM, CEng) is Technical Director for Ortac Resources Ltd and provided the sample database as well as geological interpretations for the Mineral Resource estimation. Mr. Mihalop 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 (2004).
The information in this announcement is based on information compiled by Mr. Owen Mihalop (who takes responsibility for the data and geological interpretation). 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 and is a Qualified Person in accordance with the guidance note for Mining, Oil & Gas Companies issued by the London Stock Exchange in respect of AIM Companies.
**ENDS**
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Glossary
Au
The chemical symbol for gold.
Ag
The chemical symbol for silver
g/t
grammes per tonne
Gold equivalent
Gold equivalent ounces include silver ounces, converted to a gold equivalent based on a ratio of 50:1.
Measured Mineral Resource
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 drillholes. The locations are spaced closely enough to confirm geological and grade continuity.
Indicated Mineral Resource
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.
Inferred Mineral Resource
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.
JORC Code (2004) Mineral Resource
A Mineral Resource estimate which meets the requirements of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, as published by the Joint Ore Reserves Committee of The Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia.
m
metre
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.
Mineralised Structure
A volume of rock which contains mineralisation.