Indicated Resources Increased 24% At Block 14 Gold Project

 

VANCOUVER - Orca Gold Inc. reported a new Mineral Resource Estimate for the Company's Block 14 Gold Project in the Republic of the Sudan.

The updated Mineral Resource Estimate of the Galat Sufar South (GSS) and Wadi Doum deposits comprises an Indicated resource of 72.7 Mt grading 1.30g/t Au for 3.05 Moz of gold and an Inferred resource of 19.8 Mt grading 1.2g/t Au for 0.75 Moz of gold. Drilling at GSS in 2017 successfully resulted in an increase of Indicated resources at 0.6 g/t cut off of 588 koz Au representing an increase of 24% over the February 2017 Mineral Resource Estimate; and 368 koz of Inferred Resources have been added to the current model.

The new Mineral Resource Estimate is based on 98,754m of drilling in 688 holes. For the first time, a silver grade is reported comprising an Indicated resource of 72.7 Mt grading 1.71g/t Ag for 3.99 Moz of silver and an Inferred resource of 19.8 Mt grading 1.6g/t Ag, for 1.05 Moz of silver.

The new Mineral Resource Estimate is based on an additional 12,449m of diamond drilling in 34 holes, assayed sections of a further 15 geotechnical core holes and 2,806m of reverse circulation (RC) drilling in 14 holes completed at GSS. The resource dataset now comprises 98,754m of drilling in 688 holes. No drilling was completed at Wadi Doum in this first phase of the ongoing program. Samples used for the results described herein were 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 were taken and blanks and standards are added to every batch submitted.

The recent drill program has resulted in significant advances in the understanding of the geology at GSS. A three-dimensional lithological model has now been developed providing a more accurate framework for the Mineral Resource Estimate and further exploration. Drilling will resume at GSS by the end of January 2018 to continue the conversion of Inferred resources to Indicated category based on this new lithological model. The combined GSS strike length is 3.5km and the mineralization remains open in all directions.

Drilling is also planned at Wadi Doum to extend the resource at depth and follow up on a number of shoots that are expected to add further higher-grade material to the deposit.

Richard Clark, CEO and Director said, “The recent drilling at GSS has successfully increased the indicated resource at GSS. The conversion of inferred resources and the addition of new resources at GSS supports continued drilling to expand the scope of this exceptional deposit even further. Our resource expansion program will also extend to the Wadi Doum deposit with an objective to increase the tonnage of higher grade material that will be mined in the early years of production. We look forward to further announcements based on ongoing drilling culminating in the delivery of the Feasibility Study in early Q2 2018."