AMN - SUDAN: Block 14 indicated gold resource up 24%

Indicated resources have been increased by 24% to 3.05 million ounces of gold at Orca Gold's Block 14 project in the Republic of the Sudan. An updated resource estimated has been prepared for the Galat Sufar South (GSS) and Wadi Doum deposits.

The indicated resource now stands at 72.7 million tonnes grading 1.30 g/t gold while the new inferred resource for Block 14 is 19.8 million tonnes at 1.2 g/t for 750,000 ounces.

Recent drilling at GSS has increased indicated resources at a 0.6 g/t cut-off by 588,000 ounces over the February 2017 estimate. There have been 368,000 ounces of inferred resources added to the current model.

The overall estimate is based on 98,754 metres of drilling in 688 holes with the updated resource based on 12,449 metres of diamond drilling in 34 holes and 2806 metres of reverse circulation drilling in 14 holes.

No drilling was completed at Wadi Doum in this first phase of the ongoing program.

For the first time, a silver grade is reported comprising an indicated resource of 72.7 million tonnes at 1.71 g/t silver for 3.99 million ounces and an inferred resource of 19.8 million tonnes grading 1.6 g/t for 1.05 million ounces of silver.

The new resource estimate was undertaken by MPR Geological Consultants of Perth, Western Australia as part of a feasibility study, which is in progress.

The recent drilling program has resulted in significant advances in the understanding of the geology at GSS. A three-dimensional lithological model has now been developed providing a more accurate framework for the resource estimate and further exploration.

Drilling will resume at GSS by the end of January to continue the conversion of inferred resources to the indicated category based on this new lithological model.

The combined GSS strike length is 3.5km and the mineralisation remains open in all directions.

Drilling is also planned at Wadi Doum to extend the resource at depth and follow up on a number of shoots that are expected to add further higher-grade material to the deposit.

Orca's CEO Richard Clark said "The conversion of inferred resources and the addition of new resources at GSS supports continued drilling to expand the scope of this exceptional deposit even further.

"Our resource expansion program will also extend to the Wadi Doum deposit with an objective to increase the tonnage of higher grade material that will be mined in the early years of production.

"We look forward to further announcements based on ongoing drilling culminating in the delivery of the feasibility study early in the second quarter of 2018."

www.orcagold.com