Sep 13 2013
Orca Gold Inc. ("Orca" or the "Company") is pleased to report the successful completion of the second drilling campaign of an initial exploration program at the Galat Sufar South ("GSS") prospect on its Block 14 mineral license in Sudan.
Based on the results of a comprehensive analysis of the initial exploration programs at GSS the Board of Directors has approved:
- an exploration budget aimed at delineating an NI 43-101 compliant initial resource at GSS by the end of the first quarter of 2014; and
- the second required option payment to increase Orca's interest in the Block 14 license to 52.5%.
On September 9, 2013, Orca made a second option payment of US$3 million to its joint venture partner. This payment increases Orca's interest in the joint venture company, Meyas Sand Minerals Co. Ltd ("MSMCL") from 35.0% to 52.5%. Orca must make a final option payment of US$3 million by September 20, 2014 to retain and increase its interest in MSMCL to 70%.
Results from the second drilling campaign at GSS continue to exhibit wide intercepts and excellent grades (eg: holes GSDD004: 59m @ 2.43 g/t, GSRC161: 26m @ 3.78 g/t, GSDD008: 48m @ 2.26 g/t, GSRC174: 32m @ 6.63 g/t). The entire results are set out in Schedule A to this release and in full represent 5,897 metres of drilling completed since the last exploration update (News Release: May 16, 2013). A total of 15,940 metres of drilling (13,790m of RC and 2,150m diamond) has been completed to date at GSS. For ease of reference, the results reported previously are attached as Schedule B. The Orca exploration team is extremely encouraged by the consistent widths of high grade material being intersected.
Mineralization at GSS is hosted in and is typical of structurally controlled, mesothermal, shear zone hosted gold systems. The geology is dominated by calc-alkaline volcaniclastics which are in places interbedded with marls and dolomites and intruded by small, syenite and granite stocks. The dominant alteration associated with gold mineralisation is sericite + silica +/- carbonate. Pyrite is the main sulphide present.
Mineralisation is divided into two domains. The Main Zone is a N-S and NW trending series of mineralized bodies associated with intense shearing and quartz sericite alteration. The East Zone is 500m east of Main Zone where broad zones of ENE trending mineralisation have been intersected in an area of similar alteration with small, brecciated granitic stocks. The gap area between the Main and East Zones remains substantially untested. This gap, like much of the area around GSS is under sand cover. To date exploration at GSS has focused on outcroppings and extensions thereof. There remains a wider area of alteration (as mapped by geophysics) and prospective geology around GSS, much of it under sand cover that is highly prospective and still to be explored. Part of the next seven month work program will be aimed at testing the gap and other covered areas.
The excellent results of the just completed exploration program, including an assessment of the future potential of GSS, was the basis for a positive recommendation by Orca's management to its Board to carry out a second, aggressive, exploration program. This $7 million program will include:
- ~18,000 metres of infill drilling aimed at delineating an NI 43-101 compliant initial resource at GSS by the end of Q1 2014
- An additional 10,000 metres of drilling targeted at areas outside the contemplated initial resource area
- Metallurgical testwork on composite samples from GSS
- Baseline environmental work
- Initial hydrological studies
- Scoping level engineering for indicative operating and capital costs
Simon Jackson, President & CEO, said, "We are very excited by the discovery of GSS and its potential. Exploration to date indicates solid widths to the mineralization accompanied by significant grade. Our internal review of results from our first program provides a compelling basis for increasing our interest in Block 14 and advancing our pace of exploration. Our initial entry into Block 14 was always with the objective of finding a deposit that is capable of becoming a commercial mining operation, and we believe that GSS is showing early signs that it has real potential to fulfill that objective."
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 a strong balance sheet that includes over $50 million in cash.
The technical contents of this release have been approved by Stuart Mills, BSc., MSc, a Qualified Person pursuant to NI-43101. Mr. Mills is the Sudan Manager of the Company and a Member of the Institute of Materials, Mining and Metallurgy. 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:
Simon Jackson, President, CEO and Director
Source: http://www.orcagold.com