Orca Gold Inc. (TSXV: ORG) (“Orca” or the “Company”) is pleased to announce a Revised Feasibility Study indicating a material improvement in operating costs on the Company’s 70%-owned Block 14 Gold Project in the Republic of the Sudan. The Revised Feasibility Study incorporates updated costs and other economics from the original Feasibility Study released on November 7, 2018.
“The Revised Feasibility Study clearly demonstrates the improved economics and scope of the proposed development and operation at Block 14 following the early works engineering and selection of LNG to fuel the power station. At a production rate of almost 230,000 ounces of gold per annum for the first seven years, a low production cash cost per ounce and a significant exploration upside, this project stands out on an international scale,” commented Richard P. Clark, Chief Executive Officer of Orca. “With positive political change in Sudan progressing, the Company is confident of securing development financing in the coming months; discussions are ongoing.”
Pre-production capital costs are estimated at $321 ($328 Nov ’18) million including $34 ($36 Nov ’18) million in contingency and $179 ($181 Nov ’18) million for LOM Sustaining Capital.
The construction period is estimated at 27 months. The pipeline and generator supply fall on the critical path.
Mining and Processing:
The preferred mining option for Block 14 is a conventional truck and shovel open pit operation feeding a mineral processing circuit incorporating primary crushing, SAG and Ball mill grinding followed by carbon-in-pulp leaching, stripping and electrowinning.
Pre-production will enable the training of the mining crews and is estimated to produce 0.90Mt of waste stripping and 0.35Mt of ore, which will be stockpiled. The mining will be completed in eight years at an average mining rate of 22Mtpa. A low-grade stockpile (average 0.71g/t) will be created which enables processing of higher grade ore for the first 7 years of the mine life with an average grade of 1.49g/t. The stockpiled ore will be treated over the last 6.6 years.
77.3MT @ 1.07g/t will be mined from the GSS group of pits adjacent the processing plant. 2.6Mt @ 2.36g/t will be mined from the Wadi Doum satellite deposit and trucked 65km to the processing plant during the first five years of the mine life.
Operating costs are based on assumed fuel prices of $0.60/l ($0.70/l – Nov ’18) for diesel and LNG price $9.70/MMTU delivered to site ($0.525/l for HFO380 – Nov ’18). LOM power costs used equate to $0.1083/kWhr ($0.136/kWhr – Nov ’18).