Work undertaken by African Mining Consultants on the Misisi gold project in the Democratic Republic of Congo has confirmed an interim inferred mineral resource of just over 1 mln ounces of gold at an average grade of 2.27 grams per tonne gold.
Misisi is owned by Casa Mining Limited, a private vehicle, in turn approximately 45%-owned by Ortac Resources Limited (LON:OTC), assuming the conversion of a loan note.
What’s more, if the cut-off grade at Misisi is lowered from the 1.5 grams used in the base case to 0.5 grams, the resource rises to 1.57 mln ounces at an average grade of 1.65 grams per tonne.
"This is an extremely positive development for Ortac, as a major shareholder in CASA,” said Ortac chief executive Vassilios Carellas.
“This latest Mineral Resource Estimate firmly demonstrates the clear potential to increase the gold mineral resources at the Akyanga Deposit. One of the findings of the independent AMC report that is particularly encouraging is that the average gold grade for the million ounce core at Akyanga has now increased to over 2.20 grams per tonne gold.”
An upcoming drill programme will now test extensions to the open-ended mineralisation.
“The geology is very much pointing positively towards the view that a commercially viable and recoverable gold asset is about to be proven in what is a free milling orebody," Carellas added.
Akyanga shaping up "as a robust and coherent structure"
In a note to clients, analysts at broker SPAngel said: “The relatively high grade cut-off applied to Akyanga suggests that the mineralisation, which continues to remain open and which has indications of the presence of higher grade shoots within the mineralised envelope, is shaping up as a robust and coherent structure. “
They added: “The planned future drilling should provide further insights and we look forward to further results as the exploration programme continues.”
In response, in late afternoon trading, Ortac shares were around 3.9%, or 0.12p higher at 3.38p.
-- Adds broker comment, share price --