Ortac Resources Limited Commencement of mining activities in Slovakia (3089L)
July 18 2017 - 1:00AM
UK Regulatory
TIDMOTC
RNS Number : 3089L
Ortac Resources Limited
18 July 2017
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
turec 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.
turec 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 turec 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 +44 (0) 20
Vassilios Carellas (CEO) 3874 8664
SP Angel (Nominated Adviser
& Broker) +44 (0) 20
Ewan Leggat / Lindsay Mair 3470 0470
Celicourt Communications (PR) +44 (0) 20
Mark Antelme / Jimmy Lea 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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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