Slovakia-focused Ortac Resources Ltd says that the authorities have approved trial underground mining at its Sturec gold deposit.
This will be the first mining of the deposit for at least two decades. Trial mining will begin shortly and the ore will be processed locally. The mining will be carried out by local contractors.
This is an initial step on the road to building a70,000 ounces a year gold mine at Sturec. There is a JORC-compliant ore reserve of 1.32 million ounces. There are 787,000 ounces of recoverable proven and probable ore reserves and at an annualised production rate of 70,000 ounces of gold the cash costs should be less than $600 per ounce.
Ortac owns 25% of Andiamo Exploration, which recently announced drilling results for its Yacob Dewar oxide copper-gold project in Eritrea. The initial drilling results suggest that there is an economic grade.
At 0.27p a share, Ortac is valued at £6.79m. In January, Ortac raised £500,000 at 0.25p a share.
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