www.ortacresources.com
Ortac Resources Limited is an AIM listed exploration and development company focused on natural resource projects in Europe. The Company is centred on creating shared value through responsible natural resource development.
The Company has a current JORC compliant resource of 1.36 million ounces (‘Moz’) of gold equivalent (‘Au Eq’) from its Šturec Project in Slovakia, and a scoping study on the project was completed in January 2012 which demonstrated a post-tax NPV of $309m and IRR 36% at current metal price $1,586Au oz Eq. The Company’s objective is to complete a bankable feasibility study (BFS) and environmental and social impact assessment (ESIA) of the project, with a view to bringing the Šturec Project into production for the benefit of all stakeholders.
The Company’s strategy is to utilise its highly experienced board and management team and its solid foothold in Central Europe to consolidate additional natural resource development opportunities to build shareholder value.
Ortac Resources: Šturec scoping study expected in the second week of January - UPDATE
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Ortac Resources (LON:OTC) says the publication of a scoping study at the Šturec deposit in Slovakia is due within weeks.
This will be part of a pipeline of news, which will continue the momentum of the past six months, said the firm, which released its half year results today.
Ortac can then start a baseline environmental impact assessment at Šturec and the surrounding area.
Chairman Anthony Balme also said in today's statement: "Ortac benefits from a healthy balance sheet, which places the company favourably during the challenging market conditions which prevail at present.
"With £8.65 million in cash and investments as at December 6, 2011 we remain well positioned to fund further acquisitions and to further build value within the company,"
For the six months to September 30 this year, the firm posted a loss on ordinary activities of £595,000 compared to a loss of £1,157,000 in 2010.
The firm pointed out that this loss was before the £596,000 impairment provision in respect of the carrying value of Ortac's investment in the Rio Paranaíba project, which was acquired by the company as part of the reverse takeover of Templar Minerals Ltd.
The retained loss for the six months was £1,118,000 (2010: £314,000) and the loss per share was £0.08 (2010: £0.03).
The scoping study at Šturec is expected to be released in the second week of January next year, added Balme.
Initial indications have proved extremely encouraging, he said, adding that further drilling was in the pipeline.
Ortac currently hosts a JORC compliant resource of 1.1 million ounces of gold equivalent at the flagship Kremnica gold project, of which Šturec is a part.
The chairman also told investors that exploration programmes at two additional assets - Cejkov and Zlatá Bana - began in October.
Cejkov, around 200km east of Kremnica, has been the subject of several exploration campaigns dating back to 1966, which have delivered encouraging results.
The Zlatá Bana licence, believes the firm, is one of the most prospective precious and base metal deposits in Eastern Slovakia.
The area contains a non-compliant resource of 0.5 million ounces of gold equivalent and a 1,200m drilling programme has recently been completed with the aim of verifying previous results and the possible occurrence of gold mineralisation in the northern part of the licence, the firm said.
"With the key scoping study news to come in January, we see a good opportunity for investors to gain exposure to this developing European gold story," said analyst Matthew McDonald at broker Seymour Pierce, which rates the stock a 'buy', targeting a price of 2.7 pence.
