AMN - TANZANIA: OreCorp to accelerate Nyanzaga project

OreCorp has announced the maiden JORC 2012 compliant Mineral Resource Estimate on the Nyanzaga project in Tanzania of 21.3 million tonnes at 4.1 grams/tonne gold. This estimate is an important first milestone as OreCorp executes a strategy to accelerate Nyanzaga through the study and development phases.

OreCorp says it is committed to defining a project with the potential to generate robust cashflows and stakeholder value under the prevailing gold price range.

The Mineral Reserve Estimate has demonstrated the ability of OreCorp to make use of the significant amount of historical work and compress the timetable from discovery to investment decision, potentially minimising equity dilution to shareholders.

The highlights of the Mineral Reserve Estimate are as follows:

-          Updated MRE Model with a focus on higher grade zones, showing gold mineralisation continuity based on nominal drill hole intercepts which exceed 2.0 grams/tonne gold over 4 metre horizontal widths, has increased resource grade to 4.1 grams/tonne gold

-          The Resource maintains significant scale with 2.78 Moz at the cutoff grade of 1.5 grams/tonne gold (previously 0.4 grams/tonne) which is considered appropriate in the current gold price environment

-          83% of the Mineral Reserve Estimate is in the Measured and Indicated categories

-          1.5 million tonnes at 3.5 grams/tonne for 0.172 Moz has been identified in the near surface (<80 m depth) oxide and transitional zones

-          This MRE covers a strike length of approximately 300 metres, with widths of individual mineralised zones ranging from 6-20 metres and mineralisation extending about 800 metres below the topographic surface

-          Mineralisation is open at depth leaving scope for future additional resources to be delineated

-          The thickness and grade of the resource model will allow for the consideration of both open pit, underground and a combination of both mining scenarios

-          Whilst variables for underground mining have not been applied, the orientation and continuity of mineralisation, coupled with the high gold grade, would suggest potential for an underground operation

-          Nyanzaga retains significant optionality for the scale of operation.

The maiden Mineral Reserve Estimate for Nyanzaga will form the basis of the Scoping Study that is expected to be awarded to a team of consultant specialists. Work on the Mineral Resource Estimate has resulted in reduced tonnes and a higher grade for the Nyanzaga deposit. This outcome has the potential for higher project economic returns under a range of gold price scenarios.

http://orecorp.com.au

News courtesy of International Mining