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The latest estimate showed that more than one million ounces of gold equivalent resource is classified in the Measured and Indicated categories and is above the open pit economic cut-off grade of 0.44 grams per tonne of gold established in January’s scoping study.
The company said the results provide Ortac with excellent scope to conduct the PFS, which it aims to deliver by the end of the first quarter of 2013, and classify a maiden JORC compliant ore reserves at Šturec.
Current work programmes commissioned and underway include preliminary geotechnical and environmental studies, metallurgical testwork studies and process plant and infrastructure design and cost estimation.
ENVIGEO, a Slovakia-based environmental consultancy, has been approved to carry out baseline environmental studies and to assist in the production of a preliminary environmental report.
This is the first step in the permitting application process and will lead to a full Environmental and Social Impact Assessment (ESIA) of the project, the company added.
Ortac’s chief executive Vassilios Carellas said: “The technical studies at the Šturec Deposit are reaching a stage of maturity that will enhance the company's knowledge of the project's fundamentals with respect to the economics as well as the partnerships that can be forged through the responsible development of this resource.
“This information enables us to enter open dialogue with all stakeholders to ensure that all project proposals respect the investment and development criteria of all concerned.
“With the near term completion of key milestones in the pipeline for Ortac, we remain in a strong position to achieve our strategic objectives, supported by a strong cash treasury of £7.2 million and further cemented by our £20 million equity financing facility.”
The company also said that progress was being made on its wider portfolio including assay results from the Eastern Slovak licences.
Drilling at Zlatá Baňa included best results of 12.5 metres and 6.35 metres at grades of 2.4 and 1.98g/t Au equivalent respectively.
The drill programme aimed to confirm the results of historical drilling at the site as well as to test a number of previously undrilled anomalies.
Ortac has now engaged Snowden Mining Industry Consultants to produce an updated Mineral Resource estimate for Zlatá Baňa.
Best results from the Cejkov drill programme included 0.3 metres at 8.63/t Au equivalent.
Although drilling struck some mineralisation at Cejkov, the company does not intend to spend any more at the site and will focus on the Šturec deposit.
The City broker Seymour Pierce this morning repeated its ‘buy’ recommendation and 4 pence a share price target.
The latter is combines the net present value of the company’s project using a US$1,200 gold price and the cash position of £7.2 million, which represents 66 per cent of the company’s market capitalisation.
At 11.20 the stock was changing hands for 0.474 pence.