Orca Gold Inc.
TSX VENTURE : ORG

Orca Gold Inc.

February 04, 2015 09:42 ET

Orca Gold Indicated and Inferred Resources at Block 14 Increase by 24% and 48% Respectively

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 4, 2015) - Orca Gold Inc. (TSX VENTURE:ORG) ("Orca" or the "Company") is pleased to announce an updated Mineral Resource Estimate for its Block 14 mineral license in Sudan.

The Mineral Resource estimate, using a cut-off grade of 1.0 g/t, now comprises an Indicated Resource of 27.64Mt grading 1.83g/t for 1.63 million ounces of gold (a 24% increase over January 2014) and an Inferred Resource of 10.28Mt grading 1.8g/t for an additional 0.59 million ounces (a 48% increase over January 2014). This includes resources from both Galat Sufar South ("GSS") and Wadi Doum, a second target 55km east of GSS previously known as EG 3.2 (figure 1).

The Mineral Resource estimates were carried out by independent consultant Nic Johnson of MPR Geological Consultants of Perth, Western Australia, and are shown below at various cut off grades:

Combined Resources

COG Indicated Inferred
Mt Au g/t Koz Mt Au g/t Koz
0.2 110.99 0.82 2 934 53.72 0.7 1 216
0.4 74.54 1.08 2 595 30.50 1.0 1 005
0.5 62.41 1.21 2 421 24.79 1.2 923
0.6 52.55 1.33 2 247 20.47 1.3 847
0.8 37.79 1.58 1 917 14.33 1.5 710
1.0 27.64 1.83 1 625 10.28 1.8 594
1.2 20.49 2.08 1 373 7.49 2.1 495
1.5 13.33 2.48 1 065 4.81 2.5 380
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

Galat Sufar South

COG Indicated Inferred
Mt Au g/t Koz Mt Au g/t Koz
0.2 108.09 0.80 2 783 41.45 0.7 960
0.4 72.30 1.05 2 450 24.79 1.0 809
0.5 60.40 1.17 2 278 20.45 1.1 746
0.6 50.72 1.29 2 108 17.03 1.3 686
0.8 36.27 1.53 1 785 12.04 1.5 575
1.0 26.35 1.77 1 499 8.65 1.7 477
1.2 19.37 2.01 1 253 6.27 2.0 393
1.5 12.40 2.39 953 3.96 2.3 293
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

Wadi Doum

COG Indicated Inferred
Mt Au g/t Koz Mt Au g/t Koz
0.2 2.90 1.63 152 12.27 0.7 256
0.4 2.24 2.02 146 5.71 1.1 197
0.5 2.01 2.20 142 4.34 1.3 177
0.6 1.82 2.37 139 3.44 1.5 161
0.8 1.52 2.71 132 2.29 1.8 136
1.0 1.30 3.02 126 1.63 2.2 117
1.2 1.12 3.31 120 1.22 2.6 102
1.5 0.93 3.72 111 0.85 3.2 86
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

The Mineral Resource has been estimated using the results of 71,072 metres of drilling (5,060m of diamond drilling and 66,012m of reverse circulation drilling, including 8,751m at Wadi Doum) completed between November 2012 and December 2014.

87% of the Indicated Mineral Resource and 54% of the Inferred Mineral Resource lie within 150 metres of surface.

Oxide material comprises approximately 20% of the Indicated Mineral Resource and 9% of the Inferred Mineral resource as shown in the table below:

Deposit Category Indicated Inferred
Mt Au g/t Koz Mt Au g/t Koz
GSS Oxide 5.32 1.78 305 0.74 1.6 37
Transition 4.75 1.79 273 0.50 1.6 26
Fresh 16.27 1.76 921 7.40 1.7 414
Total 26.35 1.77 1 499 8.65 1.7 477
Wadi Doum Oxide 0.13 3.27 14 0.19 2.7 17
Transition 0.08 3.11 8 0.08 2.3 6
Fresh 1.09 2.98 104 1.35 2.2 94
Total 1.30 3.02 126 1.62 2.2 117
Total 27.65 1.83 1,625 10.27 1.8 594
Numbers may not add up due to rounding

Resource additions at GSS derived from drilling in the Gap area between the East and Main zones, in the J Zone and within the 1.65km strike of the North East Zone as shown in figure 2 below.

Mineralisation at GSS is hosted by strongly sheared and sericite-quartz altered diorite. Gold is fine and is closely associated with pyrite.

The new Resource at Wadi Doum (previously EG3.2) is hosted in very similar lithologies with gold strongly associated with an area of intense sericite alteration and pyrite mineralisation.

The core of the Resource at Wadi Doum is a 200m long, sigmoidal area of high grade mineralisation up to 70m in width that is being exploited in part by artisanal miners. Drilling in this area has yielded numerous high grade intercepts as shown in the table below and in figure 3.

Hole From To Metres Au g/t Uncut Au g/t Cut to 10g/t Au g/t Cut to 20g/t
GSRC339 9 23 14 65.79 7.04 10.99
70 79 9 6.76 3.71 6.76
GSRC341 29 50 21 19.35 4.94 5.93
GSRC342 6 13 7 7.07 3.13 4.56
GSRC401 35 57 22 7.17 4.15 6.17
GSRC402 84 103 19 2.63 2.39 2.63
GSRC413 32 41 9 21.47 5.43 7.65
GSRC529 115 143 28 16.52 3.11 3.95
155 166 11 2.58 2.58 2.58
GSRC532 57 75 18 8.06 4.08 5.61
GSRC542 90 103 13 13.09 6.65 9.90
107 120 13 5.46 4.49 5.46
GSRC543 55 73 18 6.10 2.83 3.94
GSRC545 40 47 7 13.45 4.12 6.98
GSRC547 66 97 31 6.08 4.21 5.63
119 125 6 3.79 2.49 3.79
GSRC548 6 22 16 13.88 5.46 8.14
35 53 18 5.04 2.97 3.67
72 100 28 3.38 2.40 3.30
GSRC549 114 124 10 7.40 4.52 6.52
GSRC550 11 38 27 5.30 5.15 5.30
47 62 15 5.54 4.38 5.54
83 121 38 5.30 2.28 2.67
GSRC601 67 74 7 5.00 2.91 4.34
96 108 12 2.87
GSRC602 37 53 16 20.11 4.97 8.09
57 67 10 22.40 4.44 6.44
75 83 8 11.71 4.86 8.46
GSRC603 83 105 22 2.86 2.52 2.86
GSRC604 105 120 15 2.67 2.63 2.52
GSRC607 21 27 6 7.30 2.23 3.90
32 36 4 5.37 5.16 5.37
Note: Intercept widths are between 55 and 75% of true width

Orca is continuing to conduct metallurgical test work. Direct leach test work is currently returning recoveries of 92% for oxide, 87% for transition and 79% from fresh rock. Flotation is also being assessed and initial tests appear able to produce a concentrate containing 97% of the gold which, when combined with fine grinding (-32 micrometres) and intensive leaching, achieves recoveries of 81% in fresh rock. Test work is continuing.

Exploration within Orca's 7,000sqkm Block 14 permit is ongoing with new targets being developed from continued follow up of artisanal works and from alteration mapping. Target P, 9km southeast of GSS was discovered recently based on several small, old artisanal workings (see figure 1). Grab sampling of an altered and pyrite mineralised felsic dyke over a strike length of 600m has averaged 1.54g/t (66 samples).

The focus of exploration in 2015 will be to identify and develop new targets that will add satellite resources to GSS and to continue metallurgical test work to identify the optimum process route ahead of scoping studies.

Commenting on the results, Hugh Stuart, President and CEO, said, "The Resources at GSS and Wadi Doum are shallow and, therefore, potentially amenable to open pit mining. The focus in 2014 was to add further resources around GSS and to discover and define a second resource in Block 14. Both of those objectives have been achieved. Exploration in Block 14 is still at an early stage and we believe in the potential of delivering more discoveries as we move forward with our work."

About Orca

Orca Gold Inc. is a Canadian resource company focused on exploration opportunities in Africa. The Company has an experienced board of directors and management team and a strong balance sheet.

The technical contents of this release have been approved by Hugh Stuart, BSc, MSc, a Qualified Person pursuant to NI-43101. Mr. Stuart is President and CEO 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. 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 mineralisation 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.

On behalf of the Board of Directors:

Hugh Stuart, President, CEO and Director

Cautionary Statement Regarding Forward-Looking Information

This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "anticipate", "believe", "plan", "expect", "intend", "estimate", "forecast", "project", "budget", "schedule", "may", "will", "could", "might", "should" or variations of such words or similar words or expressions or statements that certain events "may" or "will" occur. Forward-looking statements in this press release include, but are not limited to, statements relating to indicates and inferred mineral resources, the potential to expand the resource targets in the Main and East Zones, the plans of the Company to conduct preliminary metallurgical testwork and increase its ownership in Block 14 and the future potential of GSS to become a commercial mining operation, including exploration activities. Forward-looking information is based on reasonable assumptions that have been made by the Company as at the date of such information and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: risks associated with mineral exploration and development; metal and mineral prices; availability of capital; accuracy of the Company's projections and estimates; interest and exchange rates; competition; stock price fluctuations; availability of drilling equipment and access; actual results of current exploration activities; government regulation; local political instability or unrest, local economic instability; global economic developments; environmental risks; insurance risks; capital expenditures; operating or technical difficulties in connection with development activities; personnel relations; the speculative nature of strategic metal exploration and development including the risks of diminishing quantities of grades of reserves; contests over title to properties; and changes in project parameters as plans continue to be refined.
Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to the price of gold; the demand for gold; the ability to carry on exploration and development activities; the timely receipt of any required approvals; the ability to obtain qualified personnel, equipment and services in a timely and cost-efficient manner; the ability to operate in a safe, efficient and effective manner; the expected timing, costs, and results of a PEA; the expected burn rate; the regulatory framework regarding environmental matters, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. The Company does not undertake any obligation to update forward-looking information if circumstances or management
's estimates, assumptions or opinions should change, except as required by applicable law. Accordingly, readers should not place undue reliance on forward-looking information contained herein.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

To view "Figure 1: Block 14 Locations" please visit the following link: http://media3.marketwire.com/docs/990636F1.jpg

To view "Figure 2: Resource Additions at Galat Sufar South" please visit the following link: http://media3.marketwire.com/docs/990636F2.jpg

To view "Figure 3: Schematic of Wadi Doum Prospect" please visit the following link: http://media3.marketwire.com/docs/990636F3.jpg

Contact Information

  • Orca Gold Inc.
    Hugh Stuart
    +44 7788 487462