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Ortac Resources says latest drill results further underpin prospectivity of Kremnica

Published: 07:40 22 Sep 2011 BST

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Miner Ortac Resources (LON:OTC) this morning revealed yet more positive drilling results from its Šturec deposit, part of the Kremnica gold project in Slovakia.

The highlights of this latest update included a 144.6 metre section at 1.36 grams per tonne of the precious metal and 8.85 grams from a 64.4 metre section from the same borehole, STOR-3.9.

A one metre section from borehole STOR-3.4 returned a grade of 36 grams per tonne of gold and 189 grams of silver.

Chief executive Vassilios Carellas said: "These intersections, which show positive grade and widths, further underpin the prospectivity of Kremnica for precious metals, and demonstrate the considerable additional resource potential of this asset.  

“Importantly, these results provide further confidence for the future conversion of the inferred resource at Šturec, along with the geological interpretation, which in almost all of the drill holes drilled to date has been remarkably accurate."

In June the company released the first data from its drilling programme, which revealed the gold grade to be higher than previously modelled.

The best results from the first two diamond drill holes included a 24 metre section grading 3.65 grams per tonne and 11 metres at 1.85 grams.

Ortac said the results have the potential to increase the JORC compliant resource, which currently stands at 1.1 million ounces. The management is hoping that figure will double.

Kremnica is 100 miles north-east of the Slovakian capital Bratislava and is an area of historic gold mining that has yielded over 4 million ounces of the precious metal. 

The mint there, dating back to 1328, bears testament to this. 

Ortac’s project in the area is well advanced, so there is little or no exploration risk, and analysts say initial gold production could be underway as early as 2013. 

The company has around £10 million in the bank, which means it is fully-funded through to the bankable feasibility in the next two years. 

In January the company posted a revised resource estimated compiled by the independent Snowden Mining Industry Consultants.

While the overall size of the resource increased by over 40 per cent, the amount in the measured and indicated categories fell by 6.5 per cent. 

The company announced in April that it had commenced with a 5,000metre drill program, which has provided us with these very encouraging results. 

This is to supplement the estimated US$24 million that has already been poured into a drilling programme by Tournigan, the project’s previous owners.

 

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