Oropa
Limited (ASX: ORP)
ASX
RELEASE
14 MARCH 2008
OROPA RAISES ADDITIONAL FUNDS TO ADVANCE
INTERNATIONAL GOLD PROJECT
HIGHLIGHTS
- A $533,900 share placement completed, $500,000 of which
is to an existing long standing investor.
- Funds will be specifically used to finalise updated
resource calculations incorporating new drilling data and to underpin an
initial exploration program targeting a potentially
large epithermal system at Hutabargot Julu.
- Updated resource calculation expected by the end of
March – excellent potential to increase existing Inferred Resources
totalling 710,000oz.
- More sampling and drilling results from Hutabargot Julu expected
in late March, early April.
- Recent gold price increases together with the potential
for additional resource ounces have significantly improved the project
economics in the opinion of directors. On that
basis, the company will pursue a Scoping Study to
explore the economics of mining.
- These exciting new developments will focus on delivering
value to shareholders.
Oropa Ltd (ASX: ORP – “Oropa”)
announces that it has completed a share placement comprising 13,347,483 shares
at a price of 4 cents per share to sophisticated and overseas investors to
raise a total of A$533,899.00.
The funds
raised will be used to underpin expanded drilling programs at the
Company’s 75%-owned Pungkut Gold
Project in Indonesia
targeting a further increase in its resource inventory and to follow up recent
exploration success. Oropa’s inferred resource stocks inventory currently
total 710,000 ounces within the Sihayo 1 North and Sambung deposits.
The share
placement was completed pursuant to the “excluded offer” provisions
of the Corporations Act, 2001. The shares issued pursuant to the placement will
rank equally in all respects with the existing ordinary shares of the Company.
Following the completion of the share placement, Oropa will have 178,997,367
shares on issue.
Successful diamond
drilling programs over the past few months have successfully extended the
current Inferred Resource at Sihayo 1 North to the west, returning encouraging
intersections including 22.75m @ 4.84 g/t Au from 41m and 2m @ 6.38 g/t Au from
2m.
Work is currently
progressing on a revised resource estimate for Sihayo 1 North, which is
scheduled to be completed and announced later this month.
Once the updated
resource estimate is completed, Oropa intends to initiate a Scoping Study to
establish the viability of developing a mine based on the Sihayo 1 North and
Sambung resources. There are a number of positive market and project specific
developments that support this initiative, specifically;
- A 70%
increase in the gold price over the past 2 years and continued favourable
longer term outlook from most commentators.
- The
development of neighbouring Martabe, by Oxiana Limited, located only 70km
away from Pungkut, which has significantly improved infrastructure and
skills in the region.
- The
relatively shallow and high grade nature of the existing, primarily oxide
mineralisation, allowing for straight forward open pit mining and
processing using proven technology.
- The
very significant exploration potential of the broader province where Oropa
holds in excess of 660sqkm of tenements with some 20 identified targets.
The drilling program at the Hutabargot Julu Prospect is
targeting a potentially large, high-grade epithermal gold system. This prospect
was identified by International epithermal expert Richard Sillitoe as being a
priority target.
Yours faithfully,
OROPA LIMITED
Philip C Christie
Director
Note 1: It is advised that in accordance
with the Australian Stock Exchange Limited Listing Rule 5.6, the information in
this report that relates to Exploration Results is based on information
compiled by Mr. Dean Pluckhahn, who is a Member of the Australasian Institute
of Mining and Metallurgy. Mr. Pluckhahn is a full time employee of Oropa Ltd
and has sufficient experience which is relevant to the style of mineralisation
and type of deposit which is under consideration and to the activity which he
is undertaking to qualify as a
Competent Person as defined in the 2004
Edition of the “Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore
Reserves”. Mr. Dean Pluckhahn consents to the inclusion in this report of
the matters based on his information in the form and context in which it
appears.
Note 2: All statements in this report,
other than statements of historical facts that address future timings,
activities, events and developments that the Company expects, are forward
looking statements. Although Oropa Ltd, its subsidiaries, officers and
consultants believe the expectations expressed in such forward looking
statements are based on reasonable expectations, investors are cautioned that
such statements are not guarantees of future performance and actual results or
developments may differ materially from those in the
forward looking statements. Factors that
could cause actual results to differ materially from forward looking statements
include, amongst other things commodity prices, continued availability of
capital and financing, timing and receipt of environmental and other regulatory
approvals, and general economic, market or business conditions.
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