Sampling in Eritrea Shows Gold up to 23g/t

Ortac Resources Ltd / Epic: OTC / Market: AIM / Sector: Mining & Exploration 2014

14 April 2014

Ortac Resources Ltd ("Ortac" or "the Company")

 Rock Chip Sampling in Eritrea Shows Gold up to 23 Grammes per Tonne

Ortac Resources Ltd, the AIM listed exploration and development company reports that Andiamo Exploration Ltd ("Andiamo"), a company with which it entered into a strategic alliance on 13 January 2014, has received the results of a rock chip sampling programme across its Ber Gebey prospect ("Ber Gebey").

A previously unidentified zone of silica-barite rock ("SBR") has returned gold values up to 23 grammes per tonne on surface.

Results Discussion

Ber Gebey is located 4km north east of the Yacob Dewar deposit ("Yacob Dewar"), where Ortac and Andiamo are currently undertaking a 1,400m diamond drill programme to further define the known high-grade copper and gold mineralisation. Ber Gebey is believed to represent a Volcanogenic Massive Sulphide ("VMS") style mineral deposit similar to that already discovered at Yacob Dewar. Ber Gebey, like Yacob Dewar, is defined by the presence of a gossan outcropping at surface however previous drilling by Andiamo focussed on this gossan has so far failed to discover any significant mineralisation.

Following Ortac's investment into Andiamo, it was decided to re-evaluate the area between Yacob Dewar and Ber Gebey. A programme of concurrent mapping, rock chip sampling and soil sampling on 100m centres was undertaken to the south of the Ber Gebey gossan and to the north east of Yacob Dewar. Andiamo's geologists were able to visually identify a zone of previously undiscovered SBR on surface extending south of the Ber Gebey gossan for up to 600m. The presence of the SBR is significant as this rock type hosts the high-grade gold mineralisation at Yacob Dewar. Rock chip samples from these outcrops have now returned gold values up to 23g/t on the surface. The full table of results is shown below:

Vassilios Carellas, Ortac CEO, said: "The results of the mapping and rock chip sampling programme are very encouraging. The identification of the SBR in outcrop to the south of Ber Gebey goes a long way to confirming our theory that the mineralised structure at Yacob Dewar extends 4km north east, at least as far as Ber Gebey. The fact that this newly discovered SBR is also strongly mineralised on surface is a good indication that a significantly mineralised body is present at depth."

A series of trenches are now planned in order to further define the mineralised zone, followed by an initial programme of 5 diamond drill holes to be undertaken once the drilling at Yacob Dewar has been completed.

The information in this report is based on information provided by Andiamo Exploration Ltd and compiled on behalf of Ortac by Mr Owen Mihalop. The Andiamo rock chip samples were sent to Intertek Genalysis Laboratories in Perth, Australia for sample preparation and assaying. All sample collection, storage, transport, security, sample preparation and assay methodologies employed by Andiamo have been previously audited by SRK Consulting (UK) Ltd in respect to National Instrument 43-101, as prescribed by the Canadian Exchange Commission, and reported to be compliant as per its guidelines. Mr Mihalop has reviewed the third party data on behalf of Ortac Resources and takes responsibility for the data and geological interpretation. Mr Owen Mihalop (MCSM, BSc (Hons), MSc, MIMMM, CEng) is Technical Director for Ortac Resources Limited and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined under the JORC Code (2012) and as a Qualified Person under NI 43-101. Mr Mihalop consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears. 

ENDS

Glossary

Au - the chemical symbol for gold.

Ag - the chemical symbol for silver.

g/t - the number of grammes of an element contained within one tonne of the host rock.

m - metre, a unit of length as per the International System of Units.

Mineralisation - the process or processes by which a mineral is introduced into a rock, resulting in a valuable or potentially valuable deposit. It is a general term, incorporating various types; e.g., fissure filling, impregnation, and replacement.

Mineralised Structure - a volume of rock which contains mineralisation.

Gossan - an intensely oxidized, iron and silica rich, weathered or decomposed rock, usually the upper and exposed part of an ore deposit or mineral vein.

Outcrop - a visible exposure of bedrock on the earth's surface.

Volcanogenic Massive Sulphide - a type of metal sulphide mineral deposit formed by volcanic activity in submarine environments.