Orca Gold (TSXV: ORG) offices and project site in Sudan have not been impacted by the civilian protests in the nation or actions of the military, President and CEO Rick Clark said in a media release on Tuesday.
The company said it remains confident that its Block 14 gold project located in northern Sudan will achieve production as scheduled. All permits remain in place, and construction of the mine site has commenced.
Last week, Orca signed all the key development agreements required to proceed with the formal construction of a large commercial gold operation at Block 14. At the time, the company confirmed that it will be “business as usual” for its operations despite media reports of instability in the Sudanese political environment.
On Monday, what was once an uneasy alliance between the two factions of the Sudanese government escalated into a crisis after the military reportedly arrested Sudan’s Cabinet and a large number of pro-government party leaders, causing protests to erupt in several cities.
The recent political situation in Sudan resulted in unease among Orca’s shareholders, causing the company’s stock to plunge earlier this week.
“All agreements to advance our project have been signed and our decision to build this gold mine has not changed. This is supported by yesterday’s statement by General Abdel Fattah Abdelrahman al-Burhan that all commercial agreements will continue to be honored by the government,” Clark said.
The Block 14 project is considered to be one of the leading gold projects in Africa, with a net present value of over $1 billion at today’s gold price. Once complete, it will become the largest commercial mining operation in Sudan.
Gold production of the mine at Block 14 is estimated at 167,000 oz annually at an all-in sustaining cost of $751/oz.
Shares of Orca Gold rebounded 5.7% by 1:10 p.m. EDT Tuesday, giving the company a market capitalization of C$120.8 million ($97.5m).