Ortac Resources reports completion of Šturec pre-feasibility study

Ortac Resources, a Europe-based exploration and development company, has announced the successful completion of a pre-feasibility study of the Šturec project, a component of the combined precious metals centre, geothermal heating and integrated tourism project due to be unveiled this month.

Ortac Resources, a Europe-based exploration and development company, has announced the successful completion of a pre-feasibility study of the turec project, a component of the combined precious metals centre, geothermal heating and integrated tourism project due to be unveiled this month.

The study gave a maiden ore reserve of 13.97m tonnes at 1.9g per tonne (g/t) gold equivalent, containing 873,000 oz gold equivalent, representing the portion of the 1.3m oz gold equivalent that has now been transferred through to the proven and probably ore reserve categories.

Ortac said the turec project base case demonstrates 'good economic viability', with a net present value at an 8.0% discount rate of $145m (post tax) and internal rate of return of 30%, confirming the potential robust value creation for shareholders and the local region.

The cash operating costs are estimated to be $555 per ounce of gold equivalent, while the pre-production capital expenditure is $124m.

The project has a projected life of 11 years with an average annual production of 71,000 ounces of gold equivalent, and the life of project revenue is estimated to be around $1,046m.

The report made the recommendation to progress to the bankable feasibility stage in order to assess the potential environmental, social and economic impacts and further define the engineering, environmental and social capital requirements for funding.

Ortac Resources Chief Executive Officer Vassilios Carellas said: "We are pleased with the results of this pre-feasibility study which recommends we move to public assessment and consultation.

"The results of the PFS highlight the potential of the turec project to act as an economic engine with the opportunity to drive further local development and co-created businesses.

"Our focus now is to build on the locally viable ideas and undertake an economic, social and environment assessment to help identify potential locally acceptable options to incorporate this economic engine into local development and conservation measures in a way that benefits all stakeholders alike."

NR

Recommended

Persimmon yields 12.3%, but can you trust the company to deliver?
Share tips

Persimmon yields 12.3%, but can you trust the company to deliver?

With a dividend yield of 12.3%, Persimmon looks like a highly attractive prospect for income investors. But that sort of yield can also indicate compa…
1 Jul 2022
Don’t try to time the bottom – start buying good companies now
Investment strategy

Don’t try to time the bottom – start buying good companies now

Markets are having a rough time, so you may be tempted to wait to try to call the bottom and pick up some bargains. But that would be a mistake, says …
1 Jul 2022
Share tips of the week – 1 July
Share tips

Share tips of the week – 1 July

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
1 Jul 2022
Bunzl: boring is good for business
Share tips

Bunzl: boring is good for business

Food-service distribution company Bunzl is not a terribly exciting business, but it looks cheap and could be a great investment, says Rupert Hargreave…
30 Jun 2022

Most Popular

Five dividend stocks to beat inflation
Share tips

Five dividend stocks to beat inflation

During periods of high inflation, dividend stocks tend to do better than the wider market. Here, Rupert Hargreaves pick five dividend stocks for incom…
30 Jun 2022
Don’t try to time the bottom – start buying good companies now
Investment strategy

Don’t try to time the bottom – start buying good companies now

Markets are having a rough time, so you may be tempted to wait to try to call the bottom and pick up some bargains. But that would be a mistake, says …
1 Jul 2022
The ten highest dividend yields on Aim
Income investing

The ten highest dividend yields on Aim

Rupert Hargreaves picks the highest-paying dividend stocks on Aim, London’s junior market for small and medium-sized growth companies.
29 Jun 2022