by Philip Whiterow,
Eritrean Business News: Ortac Resources’ (LON:OTC) Eritrean associate Andiamo has confirmed near surface high-grade oxide copper and gold mineralisation at Yacob Dewar and identified a new gold and silver deposit nearby.
Vassilios Carellas, Ortac’s chief executive, said the trenching and shallow drilling results from Ber Gebey, the new gold and silver find, were just 3.5km along strike from Yacob Dewar and “especially pleasing”.
“Andiamo had previously drilled the gossan which outcrops at Ber Gebey without success; however, following a systematic programme of mapping, outcrop sampling and trenching, the main silica-barite trend has now been located.”
The new deposit extends south west of the gossan trending towards Yacob Dewar with the results demonstrating the potential for a new high-grade mineral deposit at Ber Gebey, he added.
At Yacob Dewar, Ortac will use the latest assay results to help define the extent of the copper and gold mineralisation.
The latest assay results from Yacob Dewar included copper grades of 2.8% over 18m, which included a 6% grade section, 3.56% over 2.85m and 1.45% over 4.75m, while there were gold and silver grades ranging from 19.57 g/t gold equivalent to 2.98 g/t over narrow widths in five holes.
At Ber Gebey, the best assay from shallow drilling was 3.97 g/t gold equivalent over 14.50m from 4.30m down, while the best from surface trenches was 4.19 g/t Au Eq over 14m and 4.35 g/t Au Eq over 4m.
Carellas added: “Today’s results have led Andiamo to now undertake a 20,000 metre systematic trenching and re-mapping programme across the entire length of the Yacob Dewar deposit to better define the surface expression of the gold-bearing VMS structure and the high-grade oxide copper zone.
“Ortac is on course to complete the technical work required to submit an application for a mining licence and fulfil our commitments to Andiamo under our subscription agreement.”
It has so far invested US$1mln in Andiamo in two tranches to give it an 18.85% stake.
Cantor Fitzgerald said that the results from Eritrea look exciting still, with consistent high grade copper and gold mineralisation identified close to surface.
“While a JORC resource estimate on the project would certainly help to crystallise some of the project’s inherent value in the longer term, regular updates on progress are providing good momentum in the interim.”
Buy with a target price of 5.5p is the broker’s view. The shares rose 7% to 0.27p.