Ortac Resources is currently under maintenance and will be back online shortly.

Anthony Balme
Chairmans Statement
Highlights 2014

Findings from the Scoping Study conducted on the company's Šturec deposit were published in 2012 and serve to re-affirm the value and economic viability of this previously producing asset at Kremnica in Slovakia.

Ortac has exclusive rights to mine from the KMLA until at least June 2014

In a particularly challenging market environment, your Company has over the last 12 months achieved the milestones we set ourselves from when I last reported to you. Foremost was satisfying the terms of the Mining License Area in Slovakia and secondly, our investment into Andiamo Exploration Limited a company whose gold-copper project we believe has the potential to be brought into production fairly quickly and with modest capital expenditure.


Since the completion of the Pre-Feasibility Study in April 2013, our main technical focus has been in two areas: the preparation and submission of an underground trial mining application that would satisfy the terms of our mining license and allow us to extract bulk samples for trial processing, and secondly the completion of a Biodiversity Baseline Study covering an area of 50 km2 surrounding the Šturec deposit- which is an important element in the development of the project.

Trial underground mining commenced in June 2014 and sufficient material has been extracted for testing and processing. This work satisfied the terms of the Kremnica Mining License Area, which has now been superseded with a mining permit that can be extended on application to the Slovak Mining Bureau.

We are still awaiting a decision from the District Environmental Office in connection with our earlier application for trial surface mining, although we expect this to be made during the coming period. At the same time the Slovak Mining authorities have confirmed to us that Ortac’s rights to the Kremnica Mining license area (both surface and underground) are still in place.

Concerning the BBS, this 18 month long program was completed during the period and will form an important element to an Environmental and Social Impact Assessment program, which in turn will lead to the co-development of a finalised “master” project for Šturec.

Technical matters aside, we have continued our engagement program with key local stakeholders. Major efforts in these initiatives have been the implementation of specific communication along a number of channels intended to provide more information to all stakeholders. These have included regular releases of a bulletin called Ortac Info (see http://www.ortacresources.com/news/community/) and the previously reported upon release of our Sturec Land brochure (see http://www.sturecland.sk/brochure).

Concerning our Šturecland concept, this has been well received and we plan to begin to flesh out this concept even further during the course of this year.

As well as our own in-house initiatives, and as previously reported, we have supported, financially and in kind, the build up of ‘Forum Kremnicko’ (“the Forum”). Starting from scratch the Forum, which was set up to act as a platform catering for those who wish for better decision-making processes, has made good progress. Through the Forum, we have co-funded over 50 community projects from different areas such as culture, music, tourism, entrepreneurship, sport and access to information. These projects were implemented through local partnerships, with the support of local businesses, individuals, local organisations and the Forum itself. And we are pleased to report that the Forum presently has a further 50 projects currently being assessed.

Taken together these are substantial moves and we are beginning to see results from these investments into the local community.

During the period and after an extensive due diligence exercise over the last few years, we made an investment into Andiamo, a private UK incorporated mineral exploration company currently developing advanced, exploration stage Volcanogenic Massive Sulphide, gold-copper projects in Eritrea.

Andiamo’s main asset is its Yacob Dewar deposit, which appears to be a relatively high grade gold-copper oxide deposit that has the potential to be developed into a producing mine, at modest capital expenditure and within a relatively short time frame.

Our involvement has brought greater focus to Andiamo as it develops its core discovery, and our money has enabled Andiamo to carry out a further drilling campaign and initiated a detailed trenching program over a 1km strike length at Yacob Dewar, which we are confident will generate a commercial gold-copper project. We will be working closely with Andiamo over the coming period to move this project through the feasibility stage to enable it to apply for a Mining License for this deposit in the next 12-18 months.

Financial & Corporate Overview

During the period 1 April 2013 to date, and showing commitment to the Company the directors acquired a further 17.5 million shares in the Company (2013: 6.6m) representing 0.70% (2013:0.29 %) of the Company.

In addition, in January of this year we also raised a further 200,000,000 ordinary shares of no par value, which were issued at a price of 0.25 pence per share, for a cash consideration of £500,000 before share issue costs.

In line with expectations and with last year, we report a pre tax loss of £1.768m (2013: restated loss of £1.849m) and a loss per share of £0.08 (2013: £0.08 (restated)).


Notwithstanding the cost rationalisation measures implemented over the period and the reduction in head count, Ortac continues to possess a reasonable cash treasury and maintain a small, but core team, which has the capabilities to continue our development objectives, and enhance and build our portfolio of assets.

For the coming period, our team will be focussed on continuing with development of the initiatives implemented in Slovakia and assist Andiamo in completing the technical work required for an application for a mining permit to be granted at Yacob Dewar.

Finally and before thanking our shareholders for their valued support, I would like to express my personal thanks to the Ortac team and all those who have helped us, and been with us over the last year. As to our shareholders, despite the difficult global market conditions and the challenges faced by junior mining companies over the last few years, the support we have received is acknowledged and greatly appreciated and I would like to take this opportunity to thank you all and I look forward to updating you with further positive progress in the year ahead.

Anthony Balme
11 August 2014