Ortac Resources launches new drilling programme at Kremnica gold project
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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Ortac Resources Limited (Ortac), is engaged in the identification, acquisition, evaluation, and development of gold and base metal resource projects. The Company’s core asset is is the Sturec Deposit , located on its Slovak Precious Metals Project, located 17kilometers (KM) west of central Slovakia's largest city, Banska Bystrica. The project consists of three licences: the 11.8km2 Kremnica Mining Licence, which hosts the Sturec Deposit; and the respective 63.2km2 and 36.9km2 Lutila and Vyhne Exploration Licences. Ortac owns another 9 exploration licences across Slovakia, 2 of which are adjacent and to the south of the Slovak Precious Metals Project, while the remaining 7 are located in central and eastern Slovakia. During the fiscal year ended March 31, 2012, Ortac commenced confirmatory drill programmes at two projects within its portfolio in Eastern Slovakia, Cejkov and Zlata Bana. more »
3 Comments on this News show/hide all
otc is good value at these prices and as price of gold is predicted to go up,this stock is for the long term.imo
I agree, it is excellent value. I first bouhgt a year ago and bought more a few days back. They have made a couple of god announcements recentyl and are on target for an excellent return from Slovakia.
I guess the share price will not be 1p or so in 2013/2014!
An exract from their latest report :
"The Company has a current JORC compliant resource of 1.1Moz of gold equivalent from its flagship Kremnica Gold Project in Slovakia, and SRK Consulting (UK) Limited has been appointed to prepare a preliminary scoping study on the project, which is expected in Q4 2011. The Company’s objective is to complete a definitive feasibility study and environmental impact assessment with a view of bringing the Kremnica Gold Project into production."
Since I last wrote here, the OTC "story" has moved along steadily and I have bought more shares in OTC which I hope to hold at least until first production at Sturec. I listened to the CEO Vassilios Carrelas recently at the Proactive event and was impressed.
The presentation he gave indicated that the company expect to complete a Bankable Feasibility Study [BFS] by the end of this year [Q4 2012]. They still have to obtain approval for an Environmental Impact Assessment [EIA] and to receive mine permits from the Slovakian Govt and mining authorities. The time scale for these is naturally outside of OTC's direct control. But at a recent presentation in London, Vassilios Carrelas indicated that OTC were hoping that these two items might be obtained in a similar time frame, i.e. by Q4 2012. However I believe that it would be wise to assume that they would take up to 12 months longer. So, OTC might not have the BFS, EIA and permitting until Q4 2014.
OTC will still need to raise circa US$150 million in project capital funding [source slide 8, scenario 3, of the 1st March 2012 Presentation]. It remains to be seen whether this will be via equity fundraising or debt or via a buy-in. Hopefully this will not be via the issue of additional shares and warrants as the large dilution to existing shareholders would be a negative as far as I was concerned
I assume that it would take 12 to 18 months from start to finish for the open pit production facilities for Sturec 1 to be designed, approved and built. As this cannot proceed until after the EIA and permitting are received, I see the earliest possible first production date at Sturec of somewhere between Q4 2015 to Q2 2016. However I may be surprised and if, for example, the EIA and permitting were received earlier, say by the end of this year or during 2013, the time to first production at Sturec might well be much shorter that I have indicated.
At present all one can do is to wait and see! Hopefully OTC’s management will keep the Sturec open pit project as their absolute prime project and not expend too much finance and corporate energy elsewhere in Slovakia over the next year or two.