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Orca Gold rises over 10% on new Sudan gold find

Published: 13:24 12 May 2014 EDT

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Africa-focused Orca Gold (CVE:ORG) unveiled Monday a new discovery at its Block 14 mineral license in Sudan, sending shares of the junior gold explorer up more than 10%. 

Recent first pass reverse circulation drilling at the EG3.2 prospect returned significant widths of lower grade mineralization surrounding "substantial high grade intercepts", the company told investors in a release earlier this morning.

The program was designed to test one of three areas of artisanal activity at the prospect, where chip channel sampling previously returned 13 metres of 3.15 grams per tonne (g/t) gold and 20 metres of 1.24 g/t gold, within an area of 150 metres by 65 metres. 

Channel samples from the other two areas of workings, which are thought to be parallel structures to the east, returned 30 metres of 1.38 g/t, 25 metres of 0.48 g/t and 25 metres at 2.62 g/t, Orca said. 

"We are excited by the high grade intercepts at EG3.2. This drill program was our first in the Eastern portion of the license and these initial results support our belief that Block 14 will host multiple gold deposits," said president and CEO Simon Jackson in the release.

"We will continue to expand our exploration at EG3.2 to target the parallel zones to the east. Exploration is ongoing in other areas of Block 14 and we will keep the market informed as we move forward."

The Block 14 license spans some 7,000 square kilometres, with several other prospects identified that remain to be drilled. Exploration to date by Orca has focused on the Galat Sufar South area, 60 km to the west of EG3.2. Earlier this year, it announced a maiden resource for Galat Sufar of 1.3 million indicated ounces of gold and 400,000 ounces of inferred gold.

Shares of Orca popped over 10.6% on Monday, to 52 Canadian cents. So far this year, the stock has gained more than 25%. 

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