Oropa secures A$6.47m loan for N. Sumatra FS gold project

Australian mining firm Oropa Limited has secured an A$6.47 million staged funding package to fund the ongoing feasibility study (FS) of its 75 percent owned Sihayo gold project at the Pungkut Contract of Work in North Sumatra.

The funds raised will be used to progress the FS and expand the resource base at the Sihayo gold project which contains a JORC compliant Inferred Resource of 13.2 Mt at 2.4g/t gold (containing 1.01 million ounces of gold), the company said on Tuesday.

The fund raising is being managed by Singapore based Mining Advisory Consultants Pte Limited, it said

The company?s CEO Tony Martin said ?This capital raising represents a significant milestone for Oropa. The Company is now in an excellent position to rapidly move forward with the Feasibility Study at Sihayo, and subject to a positive outcome, advance the project to production, taking advantage of this period of record high gold prices.?

In October 2008, results of the Scoping Study conducted by independent consultant SRK confirmed the potential to develop the resources at Sihayo into a profitable mining operation. More recently, drilling immediately surrounding the resource has shown there is significant potential to expand the size of this resource. (denny)