http://www.proactiveinvestors.co.uk/companies/news/70215/update-ortac-resources-associate-unearths-possible-new-deposit-in-eritrea-70215.html
UPDATE - Ortac Resources' associate unearths possible new deposit in Eritrea
By Philip Whiterow July 09 2014, 3:05pm
-- adds broker comment--
Ortac Resources' (LON:OTC) Eritrean associate Andiamo has confirmed near
surface high-grade oxide copper and gold mineralisation at Yacob Dewar and
identified a new gold and silver deposit nearby.
Vassilios Carellas, Ortac's chief executive, said the trenching and shallow
drilling results from Ber Gebey, the new gold and silver find, were just
3.5km along strike from Yacob Dewar and "especially pleasing".
"Andiamo had previously drilled the gossan which outcrops at Ber Gebey
without success; however, following a systematic programme of mapping,
outcrop sampling and trenching, the main silica-barite trend has now been
located."
The new deposit extends south west of the gossan trending towards Yacob
Dewar with the results demonstrating the potential for a new high-grade
mineral deposit at Ber Gebey, he added.
At Yacob Dewar, Ortac will use the latest assay results to help define the
extent of the copper and gold mineralisation.
The latest assay results from Yacob Dewar included copper grades of 2.8%
over 18m, which included a 6% grade section, 3.56% over 2.85m and 1.45%
over 4.75m, while there were gold and silver grades ranging from 19.57 g/t
gold equivalent to 2.98 g/t over narrow widths in five holes.
At Ber Gebey, the best assay from shallow drilling was 3.97 g/t gold
equivalent over 14.50m from 4.30m down, while the best from surface
trenches was 4.19 g/t Au Eq over 14m and 4.35 g/t Au Eq over 4m.
Carellas added: "Today's results have led Andiamo to now undertake a 20,000
metre systematic trenching and re-mapping programme across the entire
length of the Yacob Dewar deposit to better define the surface expression
of the gold-bearing VMS structure and the high-grade oxide copper zone.
"Ortac is on course to complete the technical work required to submit an
application for a mining licence and fulfil our commitments to Andiamo
under our subscription agreement."
It has so far invested US$1mln in Andiamo in two tranches to give it an
18.85% stake.
Cantor Fitzgerald said that the results from Eritrea look exciting still,
with consistent high grade copper and gold mineralisation identified close
to surface.
"While a JORC resource estimate on the project would certainly help to
crystallise some of the project's inherent value in the longer term,
regular updates on progress are providing good momentum in the interim."
Buy with a target price of 5.5p is the broker's view. The shares rose 7% to
0.27p.
Received on Thu Jul 10 2014 - 23:17:40 EDT