REG - Orosur Mining Inc - Colombia update

Orosur MiningAnnouncement

06/09/2022 07:16

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RNS Number : 3516Y  Orosur Mining Inc  06 September 2022

 

 

 

Orosur Mining Inc - Colombia update

 

·    Assays from first drill three diamond drill holes at Pepas prospect,
in the north of the Anzá Project - PEP001, PEP002 and PEP003

·    Assay results from PEP001 have returned a substantial, high-grade
gold intersection of 150.90m @ 3.00g/t Au (from surface).

·    Additional holes are currently underway across Pepas and Pupino
prospects.

·    The Company's JV partner, Minera Monte Águila has informed the
Company that it has met its expenditure commitment of US$4million for the
current JV year.

 

London, September 6(th), 2022. Orosur Mining Inc. ("Orosur" or the "Company")
(TSXV/AIM:OMI), is pleased to announce an update on the progress of
exploration activities at the Company's flagship Anzá Project ("Project") in
Colombia.

 

The Project is the subject of an Exploration Agreement with Venture Option
("Exploration Agreement") with Colombian company Minera Monte Águila
("MMA").  MMA is itself a 50/50 JV between Newmont Corporation ("Newmont")
(NYSE:NEM, TSX:NEM) and Agnico Eagle Mines Limited ("Agnico") (TSX:AEM), and
is the Colombian vehicle by which these two companies jointly exercise their
rights and obligations with respect to the Exploration Agreement over the
Project.

 

MMA is the operator of the Project after exercising its right to assume
operational control in the second half of 2021.

 

Assay Results

Assay results for the first three diamond drill holes (PEP001, 002, 003) at
the new Pepas prospect have been received.  The Pepas prospect is the most
northern prospect of the Project, approximately 12 kilometres north northeast
of the central APTA prospect, where most drilling has been historically
focussed to date.

 

Key intersections are noted below.

 

 Hole Number     From (m)     To (m)     Interval (m)    Au (g/t)    Ag (g/t)    Zn (%)
 PEP001          0.00         150.90     150.90          3.00        3.16        0.15
 including       34.45        136.85     102.40          3.73        2.27        0.15
 PEP002          0.00         37.25      37.25           0.54        0.55        0.06
 PEP003          23.40        55.95      32.55           0.61        1.2         0.01
 PEP003          82.85        89.40      6.55            0.65        3.92        0.01
 PEP003          91.80        96.00      4.20            1.30        1.23        -
 PEP003          120.50       123.40     2.90            0.89        4.66        0.08
 PEP003          252.05       261.25     9.20            0.74        0.64        0.05

 

Table 1.  Drill Intercepts.

 

Geology and Drilling

Drilling activities commenced at Pepas in April 2022, and at the nearby Pupino
prospect soon afterward.  Three diamond drill rigs are currently operating at
Pepas with one at Pupino.

 

Nine holes have been completed, attempted or are underway at Pepas, across
approximately 1 kilometre of strike of the main structural corridor defined by
the Aragon and Tonusco faults, targeting a range of lithologies and geological
features. However, three of these holes encountered difficult drilling
conditions from broken ground related to major structures and were terminated
at shallow depths. These holes are being, or will be redrilled, although with
some modifications to orientation on the basis of recent results.

 

One hole has been completed at Pupino, with a second underway.

 

Drilling assay results have been delayed due to difficult ground conditions
and the need to undertake re-assay of numerous samples to resolve overlimit
issues and meet QAQC requirements.

 

The first hole at Pepas, PEP001, was drilled to a depth of 384m to test highly
anomalous rock chip samples that had been identified from previous mapping
programs, and publicly announced on March 8(th), 2022. The hole intersected a
quartz vein stockwork and breccia zone from surface, demonstrating pervasive
stockwork veining related to extensive gold mineralisation. The hole was
drilled oblique to the zone of vein-development, and with only one hole, the
geometry and dimensions of the zone have yet to be fully resolved.  However,
surface exposures of vein development suggest an east-west strike, with a
moderate to steep southerly dip.

 

Figure 1.  Drill section, PEP001

 

Hole PEP002 was drilled from the same pad as PEP001, but in a westerly
direction to better understand the geometry of mineralisation and the
controlling structures. This hole intersected only a short interval of the
breccia zone, before entering the local host rocks and then being terminated
at 74m due to difficult drilling conditions.

Hole PEP003 was collared some 150m northwest of PEP001 and drilled to a depth
of 311m in different lithologies, to test the presumed northeast extension of
the primary structures identified in PEP001.  Some mineralised structures
were intersected; however, it is likely that the primary structures trend more
northwest and this will be assessed with later holes.

 

Other early holes at Pepas were drilled some considerable distance from
PEP001, to test a wide variety of other geochemical and geophysical anomalies
or more conceptual targets.  This was an intentional strategy to assess a
number of targets in the first drilling pass, and then prioritise future
drilling to the most attractive targets once results are received and
assessed.

 

Current drilling is now being focussed on the mineralisation intersected in
PEP001, however some modifications were required to drill pad locations to
provide better drilling angles.

 

Joint Venture

MMA has informed the Company that it has exceeded its spending obligation of
US$4 million for the year ending Sept 6(th), 2022, as per the Exploration
Agreement, and as such has completed its Minimum Phase 1 Earn-In Work
Requirement.

 

MMA is thus now entitled to exercise its Phase 1 Earn-In Right by formally
providing the Company with a Phase 1 Earn-In Notice.

 

Upon receipt of the Phase 1 Earn-In Notice, the Company and MMA will begin the
process of forming a new mining venture (the "Mining Company") that will hold
title to the Project's concessions and applications.  Once formed, the
Company will have a 49% ownership interest in the Mining Company and MMA the
remaining 51%, with MMA being the manager.

 

MMA may elect to enter into Phase 2 of the Exploration Agreement, which would
require MMA to invest US$20m in qualifying exploration expenditure in the
Project over a maximum of four years.  If completed, such expenditure would
see MMA earning an additional 14% equity in the Mining Company for a total of
65%.  Orosur would accordingly dilute to 35%. Electing to enter Phase 2 would
also trigger a payment of US$2m to the Company.

 

Finalisation of the Mining Company and of its constituent documents - as per
key terms provided in the Exploration Agreement - may take several months;
however, during this period, exploration work on the Project may continue
uninterrupted at the Company's discretion.

 

 

Orosur CEO Brad George commented:

 

"Results from PEP001 largely speak for themselves. To return such a result for
the first hole in the first drill campaign in an untouched area is a
spectacular demonstration of the potential of the Anzá Project. With Covid
restrictions largely lifted, the increased pace of exploration bodes well for
an exciting future ahead."

 

 

For further information, visit www.orosur.ca (http://www.orosur.ca) , follow
on twitter @orosurm or 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 Communications and Investor Communications

Tim Thompson

Mark Edwards

Fergus Mellon

orosur@flagstaffcomms.com

Tel: +44 (0)207 129 1474

 

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.

Drill Hole Details - 2020/2022 Programme*

 Hole ID  Easting (m)  Northing (m)  Elevation asl (m)  Dip (°)   Azimuth (°)
 MAP-072  400088       694745        1075               -55       293
 MAP-073  400018       694503        1097               -58       295
 MAP-074  399981       694684        1110               -58       295
 MAP-075  400168       694723        1024               -55       295
 MAP-076  400019       694527        1107               -50       295
 MAP-077  400168       694723        1024               -69       295
 MAP-078  399917       694719        1112               -50       295
 MAP-079  399995       693976        960                -55       295
 MAP-080  400231       694580        966                -55       295
 MAP-081  400045       693950        920                -55       295
 MAP-082  400176       694797        1020               -50       296
 MAP-083  400176       694797        1020               -60       310
 MAP-084  400045       693950        920                -57       321
 MAP-085  400167       694552        1000               -46       247
 MAP-086  400067       694360        1068               -54       295
 MAP-087  400027       694168        988                -54       290
 MAP-088  400168       694723        1024               -55       341
 MAP-089  400067       694360        1068               -59       317
 MAP-090  400041       694630        1059               -56       296
 MAP-091  400060       694715        1089               -50       295
 MAP-092  399420       695235        1162               -50       138
 MAP-093  400055       694203        1006               -59       290
 MAP-094  399954       694347        1031               -64       303
 MAP-095  399722       695252        1113               -50       135
 MAP-096  399759       694632        1082               -57       127
 MAP-097  400054       694472        1087               -71       311
 MAP-098  399794       694730        1149               -65       130
 MAP-099  399098       695129        1157               -50       250
 MAP-100  400096       694431        1051               -59       283
 MAP-101  400286       694890        967                -50       331
 MAP-102  400095       694426        990                -61.5     303.5
 MAP-103  399793       694730        1162               -65.5     123.3
 MAP-104  399982       694294        1015               -60       297
 MAP-105  399793       694730        1162               -63.8     113.3

 PEP-001  403384       705000        1001               -50       150
 PEP-002  403384       705000        1001               -60       290
 PEP-003  403240       705142        1001               -49.60    95.2

 

*  Coordinates WGS84, UTM Zone 18

 

About Orosur Mining Inc.

 

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

 

About the Anzá Project

Anzá is a gold exploration project, comprising three exploration licences,
four exploration licence applications, and several small exploitation permits,
totalling 207.5km2 in the prolific Mid-Cauca belt of Colombia.

 

The Anzá Project is currently wholly owned by Orosur via its subsidiary,
Minera Anzá S.A.

 

The project is located 50km west of Medellin and is easily accessible by
all-weather roads and boasts excellent infrastructure including water, power,
communications and large exploration camp.

 

The Anzá Project is subject to an Exploration Agreement with Venture Option
dated September 7th, 2018, as announced on September 10th, 2018, between
Orosur's 100% subsidiary Minera Anzá S.A ("Minera Anzá") and Minera Monte
Águila SAS ("Monte Águila"), a 50/50 joint venture between Newmont
Corporation ("Newmont") (NYSE:NEM, TSX:NGT), and Agnico Eagle Mines Limited
("Agnico") (NYSE:AEM, TSX:AEM).

 

 

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 Inc. and a
qualified person as defined by National Instrument 43-101.

 

Orosur Mining staff follow standard operating and quality assurance procedures
to ensure that sampling techniques and sample results meet international
reporting standards.

 

Drill core is split in half over widths that vary between 0.3m and 2m,
depending upon the geological domain. One half is kept on site in the Minera
Anzá core storage facility, with the other sent for assay.

 

Industry standard QAQC protocols are put in place with approximately 20% of
total submitted samples being blanks, repeats or Certified Reference Materials
(CRMs).

 

Samples are sent to the Medellin preparation facility of ALS Colombia Ltd, and
then to the ISO 9001 certified ALS Chemex laboratory in Lima, Peru.

 

30-gram nominal weight samples are then subject to fire assay and AAS analysis
for gold with gravimetric re-finish for overlimit assays of >10g/t.
ICP-MS Ultra-Trace level multi-element four-acid digest analyses is also
undertaken for such elements as silver, copper, lead and zinc, etc.

 

Gold intersections are reported using a lower cut-off of 0.3g/t Au over 3m.

 

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 Agreeement, the formation
of a new mining company or mining venture to hold the project, the ability for
Loryser to implement the Creditor´s Agreement successfully in Uruguay 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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