Resource Update

RNS Number : 0296R

Ovoca Gold PLC

22 October 2013

 

Ovoca Gold Plc ("Ovoca" or the "Company")

Stakhanovskiy Resource Update

Ovoca Gold ("Ovoca" or the "Company") is pleased to provide a Resource estimate for the Stakhanovskiy Project.  The Resource estimate has been reported in accordance with the JORC Code and is based on documentation prepared by a Competent Person.

Highlights

A Resource estimate, prepared in accordance with the JORC Code, has been completed for Ovoca's Stakhanovskiy Project, based on sampling information available as at the end of 2012.  The estimate incorporates four shallow dipping, gold-bearing beresite dyke zones which comprise a total Identified Mineral Resource of 4.4 Mt containing 2.3 g/t Au, comprising 327 koz Au.  This estimate is based on a cut-off grade of 0.5 g/t Au.

Resource Estimate

Resource modelling at the Stakhanovskiy Project has identified four mineralised areas, namely Zabolocheniy, Albitoviy, Burovaya, and Berezitoviy. Each mineralised zone is characterised by a unique dip and strike and gold bearing zones can vary in width from less than 1 m to more than 5 m. Geological boundaries were used to determine the mineralised zones and in some areas this effectively means that a cut-off grade of 0.0 g/t Au was used to establish the wireframes.

Most of the mineralisation is shallow dipping and drilling is yet to close the mineralisation off at depth, hence additional resource potential remains.  Modelling indicates that mineralisation extends to approximately 50 m to 60 m depth.  Zabolocheniy is the steepest and best drilled domain and in some areas this structure has been modelled to approximately 100 m depth.  Zabolocheniy retains the greatest potential for future resource development. Additional potential also exists at Burovaya and selected areas of Berezitoviy.

Most of the mineralisation is characterised by low average grades:

·        Albitoviy comprises 1.14 Mt containing 0.23 g/t Au in three mineralised zones;

·        Berezitoviy comprises 2.73 Mt containing 0.63 g/t Au in two mineralised zones;

·        Burovaya comprises 1.44 Mt containing 1.15 g/t Au in one mineralised zone; and

·        Zabolocheniy comprises 6.73 Mt containing 1.22 g/t Au in one mineralised zone.

The mineralisation wireframes have been constructed based on; diamond drilling (7,301 m), reverse circulation drilling (7,110 m) and trenches (7,281 m). 

The total Identified Mineral Resource for Stakhanovskiy is detailed in Table 1.

Table  1           Stakhanovskiy Mineral Resources by Classification

Resource Category	Tonnes (Mt)	Au Grade (g/t)	Gold (koz)
Open Pit
Measured + Indicated	2.8	2.6	231
Inferred	1.6	1.9	96
Total	4.4	2.3	327

Note:

a)                     Results are rounded to one decimal place in this table to reflect the level of accuracy of the estimate.

b)             Resources reported to cut-off grade = 0.5 g/t Au and top-cutting was applied to sample composites.

Considerable portions of the resource are less than 2.0 m wide and much of this mineralisation will be uneconomic.  Given that the mineralised domains are quite narrow, open pit mining would comprise a significant volume of waste and a high stripping ratio is anticipated.

Further, in presenting the Mineral Resource statement the following limitations apply:

At the request of Ovoca, the Mineral Resources are quoted at an in-situ cut-off grade of 0.5 g/t Au. The Resource cut-off grade identifies an area of potential economic interest and the Competent Person cannot confirm at this stage that the Mineral Resources reported at this cut-off grade are economic.  However due to the coarse-grained nature of the mineralisation and the difficulties associated with the estimation of such deposits, it is understood that Ovoca will consider mining to the geological boundaries, effectively utilizing a cut-off grade of 0.0 g/t Au, in order to maximise gold recovery and therefore a cut-off grade of 0.5 g/t Au is considered appropriate for evaluation and reporting purposes at this stage of the project.

No Ore Reserve estimate has been generated based on this Mineral Resource estimate.

Glossary of Technical Terms

"Au"	Periodic Table abbreviation for gold.
"Beresite"	Refers to the style of alteration of the original igneous host rock.  The alteration generates quartz (SiO2), sericite (a form of white mica KAl2[AlSi3O10](OH)2) and carbonate minerals.
"cut-off grade"	The gold grade used for evaluation, in that all material reported comprises at least the specified cut-off grade or higher grade.
"diamond drilling"	A type of drilling which aims to recover a continuous core (cylinder) of rock for geological examination and analysis.  The rotary drilling machine uses drill bits of varying diameters which are impregnated with industrial diamonds to cut through rock.  Common sample core diameters range from 33mm to 83mm.
"dip and strike"	Refers to the orientation of the mineralisation.  Dip is a measure of vertical inclination, between 0-90 degrees. Strike is a measure of direction between 0-180 degrees or 0-360 degrees, depending on compass convention.
"grade"	The measure of concentration of mineral or metal (in this case gold) within mineralised rock.
"JORC Code"	The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves ('the JORC Code') is a professional code of practice that sets minimum standards for Public Reporting of minerals Exploration Results, Mineral Resources and Ore Reserves. The JORC Code provides a mandatory system for the classification of minerals Exploration Results, Mineral Resources and Ore Reserves according to the levels of confidence in geological knowledge and technical and economic considerations in Public Reports.
"mineralisation"	Refers to a zone of "potential" economic interest.  Mineralisation maybe too low grade to be classified as Resource or Reserve.  Mineralisation is a geological term and no reference to economic value should be inferred by the use of this term.
"Mt"	Million tonnes (metric)
"open pit mining"	A method of mining which involves the extraction of ore and waste via surface mining methods.
"ore, ore reserve"	A 'Mineral/Ore Reserve' is the economically mineable material derived from a Measured and/or Indicated Mineral Resource.  It is inclusive of diluting materials and allows for losses that may occur when the material is mined. Appropriate assessments, which may include feasibility studies, have been carried out, including consideration of, and modification by, realistically assumed mining, metallurgical, economic, marketing, legal, environmental, social, and governmental factors.  These assessments demonstrate at the time of reporting that extraction is reasonably justified.  Mineral/Ore Reserves are sub-divided in order of increasing confidence into Probable Mineral/Ore Reserves and Proved Mineral/Ore Reserves.
"reverse circulation drilling"	A method of rotary percussion drilling which injects compressed air into the drillhole as a means of recovering broken sample for geological inspection and analysis.  Reverse circulation drillholes commonly produce drillholes between 125mm and 150mm in diameter.
"shallow dipping"	Refers to the inclination angle (measured from vertical) of a 3 dimensional body or 2 dimensional surface.  A shallow dipping zone or surface would generally have an inclination or 50 degrees or less.  The term may refer to mineralised or unmineralised zones or surfaces.
"stripping ratio"	Refers to the ratio of ore versus waste.
"top-cutting"	A method used to limit the impact of unrepresentative high grade sample values which, if used may result in an overestimate of contained metal/mineral of the mineralised zone.
"trenches"	A surface excavation used to collect geology and sample information.
"wireframe"	The structure made up of triangles to simulate the shape of a two dimensional or three dimensional zone.  The wireframe is created using mine planning or other Computer Aided Drafting software.

CEO Comments:

"…The Stakhanovskiy 2012 bulk sampling program has only tested a 2km2 area of gold mineralisation found within the dykes that are mapped by geological and IP geophysical methods and are inferred by geological mapping to be semi-continuous on the 72km2 license. An updated Resource Estimate not only converts our previous resource estimate to higher resource categories but also proves the potential of the licensed area and encourages our team to continue the development of the project…"

Contacts:

Ovoca Gold Plc

Kirill Golovanov [phone]

Davy - NOMAD, ESM Adviser and Broker

John Frain/Daragh O'Reilly [phone]

The above information has been compiled and verified by Mr. Andrew Aitchison for the purposes of the AIM Note for Mining and Oil & Gas Companies issued by the London Stock Exchange in June 2009. Mr. Aitchison is a member of The Australasian Institute of Mining and Metallurgy and is a Competent Person for the type of minerals being reported on in this statement, in accordance with the JORC Code (2004).  Mr. Aitchison is a geologist with over 24 years of work experience in gold and base metals exploration, mining and project development in numerous countries.

 

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