AMN - SUDAN: Orca begins Block 14 feasibility study

Based on very positive conclusions of a revised preliminary economic assessment (PEA), Orca Gold has commenced a feasibility study for the Gold Project in the Republic of the Sudan. The study is scheduled for completion in Q1 of 2018.

The revised PEA was completed earlier this year and the supporting NI 43-101 Technical Report has now been filed.

The revised PEA is based on contract mining with material treated at Galat Sufar South (GSS) through a 3.4 mtpa standard carbon-in-leach processing plant.

Process water will be supplied from a bore field 85km southwest of GSS where the company has discovered a new and extensive water resource in a Nubian sandstone aquifer system.

Using a gold price of US$1100/ounce for mine design, and US$1200/ounce for economic analysis, highlights of the revised PEA include:

• Pre-tax NPV of US$278.2 million and an IRR of 26.5%, which is a 78% improvement on the July 2016 PEA;

• After-tax NPV of US$ 227.7 million and an IRR of 23.1%;

• In-pit mineral resources comprising 41 million tonnes grading 1.46 g/t for 1.928 million ounces  in the indicated category, which is 57% higher than the 2016 PEA, and 3.4 million tonnes grading 1.56 g/t for 173,000 ounces in the inferred category, which is 25% higher than the original PEA;

• 92% of the in-pit resource is in the indicated category, the balance of which is in inferred;

• 1.63 million ounces of gold produced from indicated resources and 147,000 ounces from inferred resources over the life of mine (LOM);

• Mine life of 13.2 years with average annual LOM production of 135,000 ounces;

• Average annual production in years 1-5 of 146,000 ounces;

• Average gold recovery of 84.5%;

• Cash costs of US$701/ounce for LOM and all-in sustaining costs of US$752/ounces for LOM;

• Pre-production capital costs of US$211 million, including a 25% contingency;

• Sustaining capital costs of US$92 million; and

• Payback period of 3.0 years, after-tax, from commencement of production.

Orca Gold is a Canadian resource company focused on exploration opportunities in Africa. Its flagship asset is the 70%-owned Block 14 Gold Project, which is on a 2170sqkm concession.

http://orcagold.com/