Ortac resumes mining in Slovakia
Arc Minerals Limited NPV (DI)
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16:55 25/04/24
Ortac Resources had recommenced mining in Slovakia, it confirmed on Tuesday, fulfilling its condition required by the Slovak authorities to preserve its right to exploit the Šturec ore deposit in the Kremnica Mining License Area for a minimum period of three years.
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The AIM-traded firm had announced the reissue of the small scale underground mining permit on 22 June.
Its board said the “positive development” enabled it to continue to work towards establishing a commercial mine on the licence.
“A pre-feasibility study was completed in 2013 by SRK Consulting confirming the economic viability of the project, in addition to identifying multiple development scenarios,” the board explained in its statement.
“Šturec is estimated to contain measured and indicated mineral resources of 1.01 Moz at a grade of 2.05 g/t Au Eq, and inferred mineral resources of 0.31 Moz at a grade of 1 g/t Au Eq.
“The PFS also deemed that a development project would likely have a favourable payback period, estimated at 3.5 years, and would present investors with a post-tax internal rate of return of 26%.”
Ortac said it remains in “active discussions” with its potential local joint venture partner to develop the Šturec Gold Project, which could potentially realise approximately 873,000 oz of gold equivalent from the current mineral resource, in accordance with findings from the PFS.
“With low total life of mine cash costs - $555/oz - and a good operating climate in Slovakia the company is confident that further development of the licence will benefit all stakeholders involved.”