Orca Gold Provides Update on the Feasibility Study and Exploration at its Block 14 Gold Project in The Republic of The Sudan

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 18, 2017) - Orca Gold Inc. (TSX VENTURE:ORG) ("Orca" or the "Company") is pleased to provide an update on current activities relating to the ongoing Feasibility Study (FS) and exploration activities at its Block 14 Gold Project in The Republic of The Sudan.

A Revised PEA* of Block 14 (see Company news release dated May 30, 2017), using a gold price of US$ 1,100/oz for mine design and US$ 1,200/oz for economic analysis, showed a project with in-pit mineral resources of 41.0Mt @ 1.46g/t for 1,928 Koz in the Indicated category and 3.4Mt @ 1.56g/t for 173 Koz in the Inferred category, a mill throughput of 3.4Mtpa, strong economics with an after-tax NPV_7% of US$ 227.7 million and an IRR of 23.1%. On the basis of this study, the Company moved straight into a FS.

The FS, which is being conducted by a group of internationally recognized consultants managed by Lycopodium Minerals Pty Ltd, is well underway and comprised of several elements:

Resource Expansion

The pit designs used in the Revised PEA were restricted by a lack of information at depth in a number of areas of the deposit. In late August, the Company commenced a 25,000-metre drill programme to extend the resource model at depth at both Galat Sufar South (GSS) and Wadi Doum.

Four diamond core rigs are currently operating at GSS with approximately 6,000 metres completed to date and first results expected shortly.

The Company intends to announce a new Mineral Resource in December, then will continue beyond that with further resource expansion and the testing of the numerous high grade targets, which exist in Block 14.

Water Resource Expansion Drilling

The airborne geophysical survey completed in Q2 was successful in discovering a previously unknown aquifer system 85km west of Block 14 (see Company news release dated May 30, 2017). The survey indicates that this aquifer has an area of at least 562km² and that it is open to the north and west. Initial drilling of this aquifer in June 2017 defined a water resource over 63km², sufficient to support a 3.4Mtpa process plant for a +13-year mine life - the basis of the Revised PEA.