Ortac reveals latest drill results

Ortac Resources (OTC) reiterated that its Šturec gold-silver Project in central Slovakia had the potential to become “a significant gold production asset”.

The announcement came as the company reported drill results which continued to show reasonable gold and silver mineralisation from viable open pit depths of up to 240 meters.

"These intersections demonstrate the robustness of our Šturec project and provide further evidence that the recently completed scoping study is based on sound principals," said chief executive Vassilios Carellas said.

"The grades and widths of these intersections indicate that modern efficient open pit mining methods are ideally suited to the Šturec deposit," he added.

Of particular note is the Borehole STOR-3.11, which demonstrated that there were significant high grade structures present that had not been extracted during previous underground mining activities.

"[There is] considerable potential to follow these high grade structures to the south and deeper into previously unexplored areas," confirmed the company.

Ortac is now working towards a pre-feasibility and feasibility on the project.

With cash in the bank to cover the cost of the ongoing evaluation work, and the gold price remaining 'firm', Asa Bridle, analyst at Seymour Pierce reiterated her ‘buy’ recommendation, with a target price of 4p for the shares.

Shares in the company edged upwards on the news and were changing hands at 0.85p.

For more on Ortac, read this month's interview with the firm: View from the top - Ortac Resources.