VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 2, 2017) - Orca Gold Inc. (TSX VENTURE:ORG) ("Orca" or the "Company") is pleased to announce an updated Mineral Resource Estimate on the Company's Block 14 Gold Project in the Republic of the Sudan, and provide guidance on the high-grade underground potential at Block 14.
Highlights
- Drilling within the Preliminary Economic Assessment ("PEA") pit shells has confirmed the Mineral Resource and reduced the Inferred Resources to less than 3% of total materials within those shells:
- The updated Mineral Resource estimate, using a cut-off grade of 1.0g/t, comprises an Indicated Resource of 30.6 Mt grading 1.82g/t for 1.792 Moz of gold and an Inferred Resource of 9.7 Mt grading 1.7g/t for an additional 0.536 Moz;
- Drilling at a number of locations in Block 14 (See Figure 1 in this news release) has confirmed the potential of high-grade mineralization below the PEA pit designs:
- Wadi Doum: four plunging high grade shoots within and at the edge of the current resource contain high-grade mineralisation with intercepts including 25m at 18.40g/t (MET004DD), 27m at 5.47g/t (GSRC615), 30m at 8.06g/t (GSRC542), 30m at 5.83g/t (GSRC690) and 14m at 13.37g/t (GSRC691);
- Galat Sufar South: Intercepts at the footwall of the Main Zone included 30m at 7.98g/t (GSRC082), 17m at 4.72g/t (GSRC001) and 20m at 7.18g/t (MET007DD) while a high-grade plunging shoot intersected 100m south of the Main Zone footwall returned intercepts of 19m at 13.6g/t (GSRC003), 16m at 17.97g/t (GSRC081) and 7m at 9.67g/t (GSRC183);
- Liseiwi Target: Short drill programme confirms high-grade mineralisation with assay results of 10m at 15.32g/t (GSRC596), 8m at 12.8g/t (GSRC599) and 17m at 5.03g/t (GSRC595).
Mineral Resource Estimate
The Mineral Resource update was undertaken by MPR Geological Consultants of Perth, Western Australia as part of the Pre-Feasibility Study ("PFS") currently in progress. 6,236m of reverse circulation and 826m of diamond core drilling were completed to upgrade Inferred Resources to Indicated Resources. The programme targeted the 10% of material within the designed pits used in the Preliminary Economic Assessment (see Company News Release on July 26, 2016). Results of the Mineral Resource update are shown below at a range of cut-off grades:
Block 14 Mineral Resource Update February 2017
| Deposit | Cut off | Indicated | Inferred | ||||
| Au g/t | Mt | Au g/t | Au koz | Mt | Au g/t | Au koz | |
| Galat Sufar South | 0.50 | 64.3 | 1.17 | 2,426 | 22.3 | 1.1 | 787 |
| 0.60 | 54.1 | 1.29 | 2,246 | 18.3 | 1.2 | 716 | |
| 0.70 | 45.8 | 1.41 | 2,073 | 15.1 | 1.3 | 651 | |
| 0.80 | 39.0 | 1.52 | 1,909 | 12.6 | 1.5 | 591 | |
| 0.90 | 33.3 | 1.64 | 1,755 | 10.6 | 1.6 | 535 | |
| 1.00 | 28.6 | 1.75 | 1,609 | 9.0 | 1.7 | 485 | |
| 1.10 | 24.5 | 1.87 | 1,473 | 7.6 | 1.8 | 438 | |
| 1.20 | 21.1 | 1.99 | 1,347 | 6.4 | 1.9 | 395 | |
| Wadi Doum | 0.50 | 3.8 | 1.83 | 222 | 2.9 | 1.1 | 98 |
| 0.60 | 3.2 | 2.04 | 213 | 2.1 | 1.3 | 84 | |
| 0.70 | 2.8 | 2.24 | 204 | 1.5 | 1.5 | 72 | |
| 0.80 | 2.5 | 2.44 | 196 | 1.2 | 1.7 | 64 | |
| 0.90 | 2.2 | 2.62 | 189 | 0.9 | 1.9 | 57 | |
| 1.00 | 2.0 | 2.79 | 183 | 0.7 | 2.2 | 52 | |
| 1.10 | 1.9 | 2.95 | 177 | 0.6 | 2.4 | 47 | |
| 1.20 | 1.7 | 3.10 | 172 | 0.5 | 2.6 | 44 | |
| Combined | 0.50 | 68.0 | 1.21 | 2,648 | 25.1 | 1.1 | 884 |
| 0.60 | 57.3 | 1.33 | 2,459 | 20.3 | 1.2 | 800 | |
| 0.70 | 48.6 | 1.46 | 2,277 | 16.7 | 1.3 | 723 | |
| 0.80 | 41.5 | 1.58 | 2,105 | 13.8 | 1.5 | 654 | |
| 0.90 | 35.6 | 1.70 | 1,944 | 11.5 | 1.6 | 592 | |
| 1.00 | 30.6 | 1.82 | 1,792 | 9.7 | 1.7 | 536 | |
| 1.10 | 26.4 | 1.94 | 1,650 | 8.2 | 1.8 | 485 | |
| 1.20 | 22.8 | 2.07 | 1,518 | 6.9 | 2.0 | 439 | |
| Notes: Defined under Canadian National Instrument 43-101 ("NI 43-101"), Standards of Disclosure for Mineral Projects. Numbers may not add up due to rounding. | |||||||
In comparison to the previous estimate (July 2016), Indicated Resources have increased by 10% or 159 koz and Inferred Resources have decreased by 15% or 98koz. The drilling was directed within the PEA design shells and has reduced the Inferred Resources within those shells to less than 3% of total material. Accordingly, the infill programme has successfully confirmed and expanded the PEA resource estimate.
High-Grade Underground Potential Identified
The recent infill drill programme at Block 14 has confirmed the potential of high-grade mineralization below the PEA pit designs. Similar potential has also been identified at the Liseiwi target.
Wadi Doum
At Wadi Doum, high-grade mineralisation has been identified in four plunging high grade shoots within or at the edge of the current resource. Significant intercepts include: 25m at 18.4g/t (MET004DD), 27m at 5.47g/t (GSRC615), 30m at 8.06g/t (GSRC542), 30m at 5.83g/t (GSRC690) and 14m at 13.37g/t (GSRC691), occurring at, close to the base of, or at the edge of the PEA design pit. (See Figure 2 in this news release).
Galat Sufar South
At Galat Sufar South, high grades were intersected at the footwall of the Main Zone (Main Zone FW) of the deposit where intercepts of 30m at 7.98g/t (GSRC082), 17m at 4.72g/t (GSRC001) and 20m at 7.18g/t (MET007DD) were received. In addition, a high-grade plunging shoot (320 Zone Shoot) was intersected 100m south of the Main Zone footwall returning intercepts of 19m at 13.6g/t (GSRC003), 16m at 17.97g/t (GSRC081) and 7m at 9.67g/t (GSRC183) (See Figure 3 in this news release).
Liseiwi Target - Confirmed High-Grade Mineralization
In late 2016, the Company completed a short programme of seven reverse circulation holes at the Liseiwi prospect, 15km north of Wadi Doum. Assay results are highlighted by intersects of 10m at 15.32g/t (GSRC596), 8m at 12.8g/t (GSRC599) and 17m at 5.03g/t (GSRC595). (See Figure 4 in this news release).
Exploration in the first half of 2017 will focus on further developing Liseiwi as a high-grade target within the project area, as well as on the underground potential at Wadi Doum and Galat Sufar South, by extending the high-grade mineralization to depth).
Commenting on these updates at Block 14, Rick Clark, CEO and Director of Orca, said, "The updated Mineral Resource achieved exactly what was planned with the conversion of most of the Inferred Mineral resources within the PEA design shells into the Indicated category. The new Resource will form the basis of the PFS and declaration of the first Mineral Reserves on the project. The conversion programme also confirmed the potential of high-grade underground options at both the Wadi Doum and Galat Sufar South deposits. Furthermore, the confirmation of high-grade mineralization at the Liseiwi target, north of Wadi Doum, could represent an expanded development opportunity at Block 14. We look forward to announcing the results of the upcoming drill programmes as they become available."
About Orca Gold Inc.
Orca Gold Inc. (TSX VENTURE:ORG) is a Canadian resource company focused on exploration and development opportunities in Africa, where it is currently focused on the development of its 70%-owned Block 14 project in the Republic of the Sudan. The Company has an experienced board of directors and management team and a strong balance sheet, with a treasury in excess of $9.5 million as at December 31, 2016.
The technical contents of this release have been approved by Hugh Stuart, BSc, MSc, a Qualified Person pursuant to National Instrument 43-101. Mr. Stuart is the President of the Company and a Chartered Geologist and Fellow of the Geological Society of London.
The Mineral Resource estimate was carried out by Nic Johnson of MPR Geological Consultants of Perth, Western Australia who is considered to be independent of Orca Gold Inc. Mr. Johnson is a member in good standing of the Australian Institute of Geoscientists and has sufficient experience which is relevant to the commodity, style of mineralization under consideration and activity which he is undertaking to qualify as a Qualified Person under National Instrument 43‐101. Mr. Johnson consents to the inclusion in this press release of the information, in the form and context in which it appears. Samples used for the results described herein are prepared and analyzed by fire assay using a 50 gram charge at the ALS Chemex facility at Rosia Montana in Romania in compliance with industry standards. Field duplicate samples are taken and blanks and standards are added to every batch submitted.
Figure 1 - Block 14, Showing Galat Sufar South and Wadi Doum Deposits as well as Liseiwi Target
Figure 2 - High-Grade Shoots Within Wadi Doum Deposit
Figure 3 - Main Zone Footwall Structure and 320 Zone High-Grade Shoot within Galat Sufar South
Figure 4 - Liseiwi Target High-Grade Drill Section
