Ortac Resources (LON:OTC) , the AIM quoted gold exploration and development company working in Slovakia, has launched a drilling campaign at its Kremnica gold project. The programme is scheduled to involve 5,000 metres of diamond drilling and is being carried out in tandem with a scoping study of the project.
Kremnica already boasts a JORC-compliant resource of 1.1 million ounces of gold but Ortac now wants to take closer look at areas of the deposit where there is currently little or no information. Ortac joined the AIM market last September when ex-Kryso Resources MD Vassilios Carellas led a series of deals involving the acquisition of the Slovakian gold assets of TSX-listed Tournigan Energy (TSX:TVC). Mr Carellas has since brought in Snowden Mining Industry Consultants to re-work all the old data and launch a scoping study at Kremnica. With £8.4m raised from investors in February, the latest drill plans, along with additional geological and geotechnical data, should increase the resource and push additional ounces into higher confidence Indicated and Measured categories. In an interview with Stockopedia in March, Mr Carellas said he hoped the forthcoming drill programme would culminate in a resource of about 1.5 million ounces.
The plans for the drilling programme were submitted to the various stakeholders and regulatory authorities in March this year. Following receipt of the necessary approvals to start, a local contractor, Geovrty-Drillrock s.r.o., a company with extensive previous experience of drilling the style of mineralisation at Kremnica, commenced the programme. Ortac is still working closely with Snowden and newly appointed Knight Piesold Canada and a number of independent consultants in advancing the scoping study. Elements recently completed include the conducting of additional metallurgical test work, blasting and vibration studies as well as the re-design and locating of tailings storage facilities. The results of the report are expected in the second half of 2011.
Mr Carellas said: “I am delighted to announce the commencement of the drilling campaign at Kremnica, our flagship project. The programme will focus on targeting areas of the deposit where we have limited information, and where results will enable the company to get a better geological understanding of these areas, whilst at the same time expanding and upgrading our current 1.1Moz Au eq. The scoping study is also advancing well, with the completion of a number of important elements. These have been completed in tandem with a number of our consultants who have made a number of site visits in recent months, and who are working closely with our technical team, in order to complete the study as soon as practicable. We remain fully committed to advancing this highly prospective project and we are working closely with all parties to take it up the development curve and unlocking value for the benefit of all stakeholders.”
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