REG - Orosur Mining Inc - Argentina Update

Orosur MiningAnnouncement

15/02/2022 07:00

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RNS Number : 6546B  Orosur Mining Inc  15 February 2022

 

 

 

 

Orosur Mining Inc. - Argentina Update

 

·    JV signed with Deseado Dorado S.A.S on the El Pantano Gold Project in
Argentina.

·    Over 600km2 in key gold province.

·    Option to earn 100% by investing US$3m over 5 years in exploration.

 

London, February 15(th), 2022. Orosur Mining Inc. ("Orosur" or the "Company")
(TSX-V/AIM:OMI), is pleased to announce that it has signed an Exploration
& Joint Venture ("JV") agreement ("Agreement") with private Argentinean
company DESEADO DORADO S.A.S and its shareholders ("Deseado") in relation to
the El Pantano Gold Project in the Province of Santa Cruz, Argentina
("Project").

 

For the full PDF version of the announcement with Figures 1-4 included, please
refer to:

http://www.rns-pdf.londonstockexchange.com/rns/6546B_1-2022-2-14.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/6546B_1-2022-2-14.pdf)

 

Details

The Agreement covers nine licences owned by Deseado, that combined, total
607km2 in the prolific Deseado Massif region of Santa Cruz Province in
southern Argentina, roughly 45km from Anglo Gold's Cerro Vanguardia mining
camp.

 

The general terms of the Agreement allow for the Company to earn 100% equity
in the Project by investing US$3m over five years in two phases:

·    Phase 1, earn 51% by investing US$1m over an initial 3-year period.

·    Phase 2, move to 100% ownership by investing an additional US$2m over
a subsequent 2-year period and granting Deseado a residual 2% net smelter
return royalty on the Project.

 

The Agreement will involve the Company securing its position by direct
ownership in the holding company, Deseado Dorado S.A.S. For added security of
tenure, the Company will commence with 100% ownership of Deseado.

 

Formalisation of the Agreement ownership structure is expected to take several
weeks.  However, as the Company's geological team and directors have already
made several visits to the Project, desk top targeting work has already begun,
thus allowing exploration work to commence promptly once the structure is
finalised.

 

Location and Geology

 

The Project comprises nine contiguous exploration licences that total 607km2.

 

Access to the Project is by good, paved road several hours drive south from
the regional city of Comodoro Rivadavia, and then roughly 50km travel on good
quality dirt roads west from the Tres Cerros Roadhouse.

 

The region is arid and sparsely populated, largely as a result of the near
complete devastation of the region's agricultural industry by ashfall from the
1991 eruption of Mt Hudson.  Several large and widely spaced estancias remain
and may be used as bases for field activities.

A major, national-scale power line runs parallel to the main highway, thus
providing plentiful scheme power to the region, and there is sufficient
surface and ground water supplies in the region to provide process water to
mining operations.

 

 

Figure 1. Regional Location

 

The Deseado Massif is a large area (>60,000km2) of mid to late Jurassic
volcanic rocks in southern Argentina.  The region has in recent decades been
shown to host numerous high-grade tier-1 gold and silver deposits, the two
largest being Anglo Gold's Cerro Vanguardia mine and Newmont Mining's Cerro
Negro deposit.  Other substantial projects include Yamana Gold's Cerro Moro
and Pan American Silver's Manantial Espejo silver deposit.

 

 

 

Figure 2. Simplified geology map, Deseado Massif

 

Gold and Silver deposits in the Deseado Massif are generally low to
intermediate sulfidation epithermal vein style.  The most substantial
deposits are generally constrained to the extensive areas of Jurassic
volcanics and are dominated by major SE-NW structural corridors.

 

Prospectivity

The Project is almost completely dominated by Jurassic volcanic rocks that are
known to be the primary host of gold and silver mineralisation across the
Massif. Much of the area, however, is covered by late basalts, which when
coupled with the Project's remote location has possibly contributed to a lower
level of historical exploration that might otherwise have been expected given
its attractive geology.

 

 

 

Figure 3. Project satellite imagery

 

 

Preliminary field inspections undertaken by the Company's geological team have
noted large erosional windows within the basalt cover that have exposed
extensive areas of prospective volcanics, swarms of gold bearing quartz veins
and areas of pervasive silicification all within a major SE-NW regional
structure that is clearly evident on regional government airborne magnetic
data.

 

 

 

Figure 4. Regional aeromag data showing clear SE-NW structural corridor

 

Previous soil and rock sampling programs have identified areas of gold
anomalism, and the flat and easily traversed terrain and nature of soil
development suggest the area to be amenable to very cost-effective exploration
techniques.

 

Rationale

The Project is early stage but demonstrates lithological and structural
components necessary for the development of gold and silver mineralisation.

 

The Project and the terms of the JV agreement are in line with the Company's
strategic plan of gaining access to very large parcels of highly prospective
exploration ground in proven geological provinces, in safe, mining friendly
jurisdictions, near to existing mines, at low cost.

 

With no upfront payments, a low commitment for the first phase, and a low-cost
path to 100% ownership, El Pantano provides the Company a substantial foothold
in one of the world's major gold provinces, with near term exploration plans
able to be funded within the constraints of the Company's existing balance
sheet.

 

Orosur CEO Brad George commented:

 

"Signing of the El Pantano JV is the end result of a long period of
negotiation and due diligence. A strong balance sheet, abatement of the Covid
pandemic and the freeing up of our highly skilled South American commercial
and geological team after the Anzá handover has provided Orosur an unique
opportunity to examine new projects in key regions. The addition of El Pantano
to Ariquemes, and our flagship project at Anzá, has transformed Orosur into a
well-balanced, South American mineral explorer with an exciting future."

 

 

For further information, please contact:

 

Orosur Mining Inc

Louis Castro, Chairman,

Brad George, CEO

info@orosur.ca

Tel: +1 (778) 373-0100

 

SP Angel Corporate Finance LLP - Nomad & Joint Broker

Jeff Keating / Caroline Rowe

Tel: +44 (0) 20 3 470 0470

 

Turner Pope Investments (TPI) Ltd - Joint Broker

Andy Thacker

James Pope

Tel: +44 (0)20 3657 0050

 

Flagstaff Strategic and Investor Communications

Tim Thompson

Mark Edwards

Fergus Mellon

Tel: +44 (0) 207 129 1474

orosur@flagstaffcomms.com (mailto:orosur@flagstaffcomms.com)

 

The information contained within this announcement is deemed by the
Company to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No. 596/2014 ('MAR') which has been incorporated
into UK law by the European Union (Withdrawal) Act 2018. Upon the
publication of this announcement via Regulatory Information Service ('RIS'),
this inside information is now considered to be in the public domain.

 

 

About Orosur Mining Inc.

 

Orosur Mining Inc. (TSX-V: OMI; AIM: OMI) is a minerals explorer and developer
focused on identifying and advancing projects in South America. The Company
currently operates in Colombia, Brazil and Uruguay.

 

Qualified Persons Statement

The information in this news release was compiled, reviewed, and verified by
Mr. Brad George, BSc hons (Geology and Geophysics), MBA, Member of the
Australian Institute of Geoscientists (MAIG), CEO of Orosur Mining Ltd and a
qualified person as defined by National Instrument 43-101.

 

Forward Looking Statements

 

All statements, other than statements of historical fact, contained in this
news release constitute "forward looking statements" within the meaning of
applicable securities laws, including but not limited to the "safe harbour"
provisions of the United States Private Securities Litigation Reform Act of
1995 and are based on expectations estimates and projections as of the date of
this news release.

 

Forward-looking statements include, without limitation, the exploration plans
in Colombia and the funding from Monte Águila of those plans, Monte
Águila´s decision to continue with the Exploration and Option agreement, the
ability for Loryser to continue and finalize with the remediation in Uruguay,
the ability to implement the Creditors' Agreement successfully as well as
continuation of the business of the Company as a going concern and other
events or conditions that may occur in the future. The Company's continuance
as a going concern is dependent upon its ability to obtain adequate financing,
to reach profitable levels of operations and to reach a satisfactory
implementation of the Creditor´s Agreement in Uruguay. These material
uncertainties may cast significant doubt upon the Company's ability to realize
its assets and discharge its liabilities in the normal course of business and
accordingly the appropriateness of the use of accounting principles applicable
to a going concern. There can be no assurance that such statements will prove
to be accurate. Actual results and future events could differ materially from
those anticipated in such forward looking statements. Such statements are
subject to significant risks and uncertainties including, but not limited,
those as described in Section "Risks Factors" of the MDA and the Annual
Information Form. The Company disclaims any intention or obligation to update
or revise any forward-looking statements whether as a result of new
information, future events and such forward-looking statements, except to the
extent required by applicable law.

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