AMN - SUDAN: Resource estimate on way for Block 14

Orca Gold remains on schedule to deliver a new resource estimate at the Block 14 Gold Project in Sudan by the end of the year. The estimate will form part of a feasibility study for the project, which is due for completion in the first few months of 2018.

A Revised PEA, using a gold price of US$1100/ounce for mine design and US$1200/ounce for economic analysis, showed a project with in-pit mineral resources of 41 million tonnes @ 1.46 g/t for 1.928 million ounces in the indicated category and 3.4 million tonnes @ 1.56 g/t for 173,000 ounces in the inferred category.

It also showed a mill throughput of 3.4 million tonnes/annum, strong economics with an after-tax NPV7% of US$227.7 million and an IRR of 23.1%. On the basis of this study, the company moved straight into a feasibility study, which is being conducted by a group of internationally recognised consultants managed by Lycopodium Minerals.

The resource expansion will form part of this work. Orca says the pit designs used in the Revised PEA were restricted by a lack of information at depth in a number of areas of the deposit. In late August, it commenced a 25,000-metre drill program to extend the resource model at depth at Galat Sufar South (GSS) and Wadi Doum.

Four diamond core rigs are operating at GSS with approximately 6000 metres completed to date and first results expected shortly.

Orca intends to announce a new resource in December, then will continue beyond that with further resource expansion and the testing of the numerous high grade targets, which exist in Block 14.

The airborne geophysical survey completed in Q2 was successful in discovering a previously unknown aquifer system 85km west of Block 14. The survey indicates that this aquifer has an area of at least 562sqkm and that it is open to the north and west.

Initial drilling of this aquifer in June 2017 defined a water resource over 63sqkm, sufficient to support a 3.4 mtpa process plant for a mine life of at least 13 years. The company is drilling an additional four water exploration holes with the objective of significantly extending the water resource to support a larger process operation.

The first hole of this new program intersected the aquifer on September 15. The remaining three holes are expected to be completed by the end of September.

The initial discovery of the new larger water supply allowed plant throughput to be increased to 3.4 mtpa, from 1.8 mtpa in the 2016 PEA. Anticipating further expansion of this resource, Orca’s mining consultant, Deswick UK Ltd, has analysed mining options up to 6.0 mtpa, based upon estimated process and capital costs supplied by Lycopodium.

Modelling of these throughput scenarios will be refined upon completion of the current water drilling program. A final decision on the ultimate mining and process plant capacity is expected to be made and reported in October.

Orca’s CEOc Rick Clark said, “We are flat out with our drilling on site and the study work being conducted by our consultants. Our move straight to a feasibility study and our current program are a function of the confidence that we and our consultants have in Block 14 and The Sudan.

“The Revised PEA highlighted one of the leading undeveloped gold projects in Africa and we are optimistic that the feasibility study will establish a significant further increase in project scope and economics.”

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