Kremnica Gold Project
Introduction
The Kremnica Gold Project is located in central Slovakia. The town of Kremnica lies 17 km west of central Slovakia's largest city, Banská Bystrica. The project area is accessible from Vienna, Austria by driving east across the border into Slovakia and then northeast through Bratislava, Nitra, Zlaté Moravce, and Ziar nad Hronom.
The Kremnica project comprises three licences: the Kremnica Mining Licence with an area of 11.79 km2, the Lutila Exploration Licence with an area of 63.2 km2 and the Vyhne Exploration Licence of 36.90km2.
History
Gold mining commenced at Kremnica in the 8th century and historical output totals 46,000 kg (1.5 million ounces) of gold and 208,000 kg (6.7 million ounces) of silver recovered. Production was mostly from underground mine workings but also from small open pits.
The Slovak Geological Survey carried out extensive exploration in the Kremnica area from 1981-87, drilling 34 holes for over 25,000m although much of which was outside the main area of interest at Kremnica: the Šturec zone. The State-owned company, Rudne Bane, operated at Kremnica from 1987 to 1992. It undertook extensive adit development within the Šturec zone and produced 50,028 tonnes of mineral averaging 1.54 g/t Au from a small open pit.
Geology & Structure
The geology of the Kremnica gold deposit is well established. The Šturec zone is continuously mineralised for 1,200 m along strike, is typically 100 to 150 m wide and extends to a known depth of at least 300m. The main part of the Šturec zone is the Schramen Vein, which is up to 100 m wide along a 500 m strike section and accounts for some 90% of the gold contained in the Kremnica measured and indicated resources.
It is a massive to sheeted quartz vein that strikes almost due north, generally dips steeply to the east, and thins to the north, south, and at depth. Some additional exploration is required to clarify the extent and continuity of hanging and footwall mineralisation in the Šturec zone.
Resource
The Company completed an updated mineral resource estimate for its Kremnica Gold Project which provided a total JORC Code compliant resource to 1.1 Moz of gold equivalent.
Mineral Resource Estimates for the Kremnica Gold Project - 0.75 g/t Au cut-off |
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|---|---|---|---|---|---|---|---|---|
Quantity |
Grade |
Contained Metal |
||||||
Resource Category |
Tonne (kT) |
Density |
Au (g/t) |
Ag (g/t) |
Au_Eq (g/t) |
Au (k oz) |
Ag (k oz) |
Au_Eq (k oz) |
Measured |
1,600 |
2.11 |
1.84 |
15.1 |
2.14 |
96 |
790 |
112 |
Indicated |
6,700 |
2.21 |
1.86 |
15.6 |
2.17 |
400 |
3,353 |
467 |
Meas. + Indic. |
8,300 |
2.19 |
1.85 |
15.5 |
2.16 |
495 |
4,143 |
579 |
Inferred |
9,100 |
2.29 |
1.51 |
11.2 |
1.74 |
443 |
3,284 |
508 |
Total |
17,400 |
2.24 |
1.68 |
13.3 |
1.94 |
938 |
7,427 |
1,087 |
Notes:
- Tonnes and ounces rounded to 2 significant figures.
- Au Eq (Gold Equivalent) has been calculated for each block with Au Eq ratio of 50 parts Ag for every 1 part Au. This is based on LME values: Au $1344 per ounce, Ag $27.14 per ounce (24/01/2011)
- The figures in the table above are gross and net, i.e. 100% attributable to the holder.
- The holder/operator of this asset is Kremnica Gold Mining, i.e. a 100% subsidiary of Ortac Resources Limited
The Company intends to publish a preliminary scoping study in the second half of 2011, following which it aims to complete a definitive feasibility study and environmental impact assessment with a view of bringing the Kremnica Gold Project into production
The Board is confident that Kremnica has the potential to achieve a 2Moz equivalent resource through additional exploratory drilling, with the existing resource at Kremnica only calculated along 1.1km of the 6.5km known strike length which is open in both directions and at depth. Figure 1 shows the target locations within Kremnica and the resource potential for each target.
