TSXV-listed explorer Orca Gold has received an exclusive permit for the exploitation of water from the Area 5 aquifer.
Sudan – The Area 5 aquifer, located 85 km from the main Galat Sufar South deposit, was initially discovered in May 2017 through a specialised airborne geophysical survey, which identified an aquifer target size of 562 km2.
The water permit, which was granted by the Government of The Republic of The Sudan, is a strategic permit in the development of a gold mine on Block 14.
It entitles Orca Gold to extract the necessary water to support a 6 Mtpa mining and processing operation, which is the basis of the feasibility study (FS), which is currently in progress and scheduled for completion by April 2018.
Water permit specifics
The water permit covers an area of 980 km2. Through drilling and pump testing, Orca Gold defined a resource of 100 million cubic metres of fresh water within an area of 135 km2. The aquifer is open in all directions and would be available for additional production, if required.
Commenting on the receipt of the Water Permit, Rick Clark, CEO and director of Orca said that a determining factor in developing a mine in the desert, in addition to finding an ore body, is water.
“With the granting of this exclusive water rights over the Area 5 aquifer, the Government of Sudan has confirmed its full support of Orca and the development of a commercial gold operation at Block 14.
“With this key permit, we will now move towards the completion of a FS, which contemplates a processing operation of 6 Mtpa. As we continue to expand the gold resources at Block 14 through ongoing drilling, we look forward to delivering the results of the FS based on this robust water supply,” Clark concludes.
Feature image credit: Orca Gold