Orca Gold Inc.

TSX VENTURE : ORG


Orca Gold Inc.

April 15, 2013 08:00 ET

Orca Gold Provides Exploration Update

VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 15, 2013) - Orca Gold Inc. (TSX VENTURE:ORG) ("Orca Gold" or the "Company") is pleased to provide an exploration update.

On April 4, 2013, the Company reported the successful closing of a transaction between Canaco Resources Inc. and Shark Minerals Inc ("Shark") to form Orca Gold Inc. Orca Gold is engaged in the acquisition and exploration of minerals properties in Africa and is currently focused on a substantial land position in Sudan, owned by its wholly owned subsidiary, Shark.

In 2011, Shark acquired Blocks 14, 67 and 68 constituting a large land holding (20,020 square kilometres) in northern Sudan, near the border with Egypt, that forms part of the Arabian-Nubian Shield (refer map at Appendix A). These properties have had little, if any, modern exploration prior to their acquisition by Shark and are considered highly prospective with artisanal mining activity throughout the area. Shark has been exploring Block 14 for the past 16 months and drilling is ongoing.

Exploration during the first quarter of 2013 has increased with 3 rigs (2 reverse circulation and one diamond core) now on site in the Block 14 permit.

The Company's camp and infrastructure in the area has been expanded and Orca now has in excess of 100 employees active on its permits in Northern Sudan.

Block 14

On January 21, 2013 Shark announced initial drill results for the Galat Sufar South prospect at Block 14. Gold mineralization was intersected in each of the 15 holes of this first drill program:

Hole Hole Type From To Metres Au g/t uncut Au g/t cut to 10g/t Zone
GSDD001 DD 80 161 81 1.22 Main Zone
GSDD002 DD 11 31 20 1.88 Main Zone
35 74 39 3.19 2.74
77 98 21 1.36
136 148 12 0.80
161 174 13 1.74
210 222 12 1.64
GSRC001 RC 26 85 59 2.67 Main Zone
94 120 26 2.48
GSRC002 RC 5 21 16 5.02 3.59 Main Zone
42 49 7 1.17
54 95 41 2.30
GSRC003 RC 0 10 10 4.61 4.24 Main Zone
27 36 9 5.42 4.13
101 120 19 13.60 6.39
GSRC004 RC 68 77 9 1.21 Main Zone
86 121 35 1.42
GSRC005 RC 21 25 4 1.02 Main Zone
29 38 9 0.68
GSRC006 RC 18 25 7 13.18 6.99 Main Zone
110 120 10 2.77 2.61
GSRC007 RC 8 15 7 2.64 Main Zone
68 78 10 1.13
GSRC008 RC 12 18 6 1.92 Main Zone
81 99 18 0.86
GSRC009 RC 4 8 4 0.49 Main Zone
11 16 5 2.01
19 24 5 6.63
77 84 7 1.92
GSRC010 RC 23 34 11 0.65 Main Zone
GSRC011 RC 0 35 35 3.65 3.60 Eastern Zone
47 51 4 0.56
57 72 15 3.27 3.03
76 79 3 1.40
GSRC012 RC 0 63 63 2.39 2.03 Eastern Zone
66 84 18 0.76
89 94 5 2.61
99 106 7 0.84
GSRC013 RC 0 16 16 1.85 Eastern Zone
97 101 4 0.93

Note: Drilling results are quoted as downhole intersections. The geology of the prospect is not fully understood and the true width of the mineralisation is variable but is estimated to be between 40% and 90%. The reported intercepts for RC and diamond drilling were determined using a cut-off grade of 0.50g/t Au with a maximum of 3m internal dilution being incorporated into the intercept where appropriate. Intercepts have been reported both with and without the application of a 10g/t top cut.

These results identify two distinct zones at Galat Sufar South, the Main Zone and the Eastern Zone. Since the release of these 15 holes, an additional 29 holes (4,490m) have been completed at Galat Sufar South, aimed at extending the Main Zone and Eastern Zone mineralisation.

To date the Company has received results for 18 of these 29 holes, all 18 of which targeted the Eastern Zone. The results from these 18 holes have successfully extended the strike potential of the Eastern Zone and have identified new zones of mineralisation. Of particular note are holes GSRC027 and 28 which intersected a new zone of mineralisation to the east of the Eastern Zone (the "Far East Zone").

Hole Hole Type From To Metres Au g/t Uncut Au g/t cut to 10g/t Comments
GSRC014 RC 31 39 8 5.15 4.55 Eastern Zone
45 56 11 1.57
120 133 13 0.80
GSRC015 RC 11 15 4 1.09 Eastern Zone
19 22 3 1.01
24 30 6 4.03 3.29
35 47 12 1.23
54 59 5 0.90
99 107 8 0.75
GSRC016 RC 53 60 7 2.18 Eastern Zone
GSRC017 RC 36 47 11 0.92 Eastern Zone
123 140 17 2.58
GSRC018 RC 23 27 4 1.07 Eastern Zone
43 49 6 1.76
51 57 6 1.06
66 79 13 0.98
GSRC019 RC 7 11 4 3.02 Eastern Zone
43 48 5 1.36
55 59 4 0.69
86 90 4 0.74
GSRC020 RC 5 9 4 0.80 Eastern Zone
17 21 4 1.54
26 39 13 1.46
100 103 3 3.00
GSRC021 RC 1 4 3 0.96 Eastern Zone
7 39 32 1.45
44 48 4 1.57
57 65 8 1.71
80 87 7 2.33
93 98 5 2.80
GSRC022 RC 1 15 14 2.15 Eastern Zone
GSRC023 RC 0 52 52 1.90 Hole ends in grade
62 67 5 0.97
70 81 11 1.01
83 109 26 1.07
112 120 8 2.06
GSRC024 RC 13 16 3 0.97 Eastern Zone
19 36 17 7.46 6.90
40 58 18 1.33
GSRC025 RC NSI Eastern Zone
GSRC026 RC NSI Eastern Zone
GSRC027 RC 8 28 20 2.08 Far East Zone
45 56 11 2.02
98 104 6 2.03
127 134 7 0.71
GSRC028 RC 22 27 5 0.58 Far East Zone
45 48 3 0.64
50 63 13 2.25 1.75
70 75 5 0.83
GSRC029 RC NSI Far East Zone
GSRC030 RC 92 95 3 11.43 7.08 Far East Zone
GSRC031 RC 8 15 7 0.72 Far East Zone

Note: Drilling results are quoted as downhole intersections. The geology of the prospect is not fully understood and the true width of the mineralisation is variable but is estimated to be between 40% and 90%. The reported intercepts for RC and diamond drilling were determined using a cut-off grade of 0.50g/t Au with a maximum of 3m internal dilution being incorporated into the intercept where appropriate. Intercepts have been reported both with and without the application of a 10g/t top cut.

The geology and structural controls on the Eastern Zone are not yet fully understood due to surface cover and intense artisanal workings in the area. Mineralisation is hosted by strongly foliated, sericite-carbonate rich, silicified schists close to a granite body which is also mineralized. Mineralisation shows a strong correlation with pyrite content, which is the dominant sulphide. Structure is complex and it is clear at this early stage that there are several mineralized trends in this zone. A summary of the current interpretation is shown in Appendix B below.

Results from the second program of drilling on the Main Zone are yet to be received. The objective of this second program was to extend the 150m of strike length of the Main Zone identified in the first drill campaign.

Chip channel sampling (2-5m sampling interval) is also being used as a reconnaissance tool to extend the footprint of the Galat Sufar South prospect (17km completed in Block 14 to date). This sampling is targeting areas of strong sericite-carbonate alteration and foliation similar to that identified to date by drilling. Over 2,400 of these samples are currently being processed in the laboratory. Results received to date have reported broad, lower grade intercepts that correlate well with lithology and structure. Once all assays have been received new targets will be drill tested. Results to date are shown on the figure in Appendix C below.

Other Drill Targets in Block 14

First pass drilling has now been completed at the following high priority prospects at Block 14 (Appendix D). Results from these drill holes are pending.

To view Appendix A, B, C and D accompanying this press release, please visit the following link: http://media3.marketwire.com/docs/org415i.pdf

Mussieye: Four holes (447m) have been drilled over 200m on a north south structure which is the subject of intense, mechanised artisanal hard rock mining in two pits to a depth of approximately 40m.

Area 3: Six holes (750m) have tested a 400m strike length of artisanal workings related to structures developed north and south of an east west trending intrusive body. Chip channel sampling in 2012 returned 16m grading 2.38g/t and 16m grading 0.61g/t from this prospect.

Area 3 West: Five holes (720m) have been completed on this north - south structure within intermediate intrusives which is currently subject to significant artisanal mining over 200m of strike length.

Galat Azurag: Artisanal workings have been mapped over a strike length of 4.5km along a strong, north east trending zone of deformation up to 50m wide (and containing strike parallel granitic dykes) developed along the contact between a large dioritic intrusive and carbonate sediments to the north. As at the end of March 2013, fourteen holes have been completed at this target. Results are pending.

Several other targets at Block 14 area are drill ready and will be tested during the next quarter.

Generative Exploration

High resolution satellite imagery is being used extensively to identify historical and current artisanal mining within the Company's large exploration portfolio. Follow up mapping and prospecting is then being used to prioritise targets and direct more detailed exploration.

Prospecting, grab sampling and chip channel traverses have also been carried out in 4 target areas within the Block 67 and Block 68 permits and we are in the process of generating initial drill targets on these licenses.

Simon Jackson, President & CEO, said, "While it is early days at our prospects in northern Sudan, we believe that our exploration results to date and the extensive artisanal mining activity on our licenses show that we are exploring highly prospective geology. Orca is in an enviable position with a large, virtually untested, land position, a significant treasury and an experienced team of geologists familiar with this type of environment. We are very excited to be in this position and look forward to reporting further exploration results."

About Orca

Orca Gold Inc. is a Canadian resource company focussed on exploration opportunities in Africa. The Company has an experienced board of directors and management team and over $60 million in cash.

The technical contents of this release have been reviewed by Stuart Mills, B.Sc., M.Sc., a Qualified Person pursuant to NI 43-101. Mr. Mills is the Sudan Manager of the Company and a Member of the Institute of Materials, Mining and Metallurgy. Samples 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:

Simon Jackson, 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 the plans of the Company following the Acquisition, 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; political or 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. Neither the Company nor East Africa Metals undertakes 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, except in accordance with applicable securities laws.

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.

Contact Information

  • Orca Gold Inc.
    Simon Jackson
    President, CEO and Director
    604-689-7842
    604-689-5452 (FAX)