REG - Orosur Mining Inc - Colombia update

Orosur MiningAnnouncement

02/12/2022 07:00

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RNS Number : 3527I  Orosur Mining Inc  02 December 2022

 

 

 

Orosur Mining Inc - Colombia update

 

·    Assays received from four additional diamond holes at Pepas and
Pupino.

·    Results provide guidance for future targeting.

·    Near-term focus will shift from drilling to groundwork to better
define local structural controls.

·    Finalisation of Phase 2 of JV continuing.

 

London, December 2(nd) 2022, Orosur Mining Inc. ("Orosur" or the "Company")
(TSXV:OMI,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 joint venture ("JV") between Newmont
Corporation ("Newmont") (NYSE:NEM, TSX:NEM) and Agnico Eagle Mines Limited
("Agnico") (NYSE:AEM,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 four additional diamond drill holes from the Pepas and
Pupino prospects have been received.

 

Both the Pupino and Pepas prospects are located in the northern region of the
Anzá Project, roughly 8km and 12km, respectively north-northeast from the
central APTA prospect that had seen most drilling at Anzá up until early
2022.

 

Key intersections are noted below.

 

 Hole Number     From (m)     To (m)     Interval (m)    Au (g/t)    Ag (g/t)    Zn (%)
 PEP006          No significant results
 PEP008          145.90       147.50     1.60            1.05        2.05        0.04
 PEP009          456.95       494.00     37.05           0.30        1.10        0.21
 including       492.35       494.00     1.65            3.49        5.21        0.19
 PEP009          504.00       518.05     14.05           0.38        1.75        0.07
 including       516.30       517.40     1.10            2.16        8.36        0.20
 PUP002          No significant results

 

Table 1.  Drill Intercepts.

 

 

Geology and Drilling

Drilling activities commenced at Pepas in April 2022, and at the nearby Pupino
prospect soon afterward. Assay results from the first six holes from Pepas
were released on September 6(th) ,2022 and October 21(st) ,2022, which
included thick, high grade gold intersections in holes PEP001 (150.90m @
3.00g/t Au), PEP005 (36.85m @ 2.85m Au) and PEP007 (80.55m @ 3.05m Au).

 

All three of these holes were drilled in different orientations from the same
drill pad, with gold mineralisation starting from surface. While the
intersections were encouraging, the fact that the drill pad was positioned
within the mineralised body, with holes drilling outward, was problematic in
terms of being able to effectively define the shape and orientation of the
body and so provide guidance for later drilling.

 

Two new drill pads were constructed some 200m southwest and 300m northwest
respectively from the original drill pad to drill holes PEP008 and PEP009
(Figure 1). Moving the rigs to the west was based on the assumption that the
mineralised body dipped toward the west, and therefore these two holes were
targeted at the presumed down-dip extension, vertically below the previous
drilling.

 

Figure 1.  Drill Plan, Pepas Prospect

 

 

PEP006

PEP006 was the last of a group of earlier holes drilled some distance to the
north of the mineralised body intersected at PEP001 and was drilled to a depth
of 882m.  No significant gold intersections were encountered; however, this
was expected as previous drilling in the area (PEP004) had also been negative.

 

PEP008 and PEP009

PEP008 was drilled from the southwest toward the northeast to test directly
below the mineralised intersections identified in holes PEP001.  The hole was
drilled to a depth of 647m. The step back for this new pad was substantial
such that PEP008 passed some 220m vertically below PEP001.

 

PEP009 was drilled to a depth of 602m well north of the previously identified
mineralised body and was intended to test an interpreted faulted offset
extension of the Pepas body based upon surface mapping and low-level gold
mineralisation that had been previously intersected in hole PEP003 (announced
September 6(th), 2022).  Again, the step back was substantial with PEP009
projected to intersect the targeted structures over 300m below previous
drilling.

 

Both holes intersected mineralised structures, largely as expected, but with
lower levels of gold mineralisation than intersected in previous drilling.

 

Subsequent analysis and interpretation of drill core from these and previous
holes has now suggested three distinct phases of structurally controlled
veining, with the youngest phase being the polymetallic sheeted veining that
produced the thick intersections of high-grade gold intersected at Pepas in
earlier holes. It is also likely that these various vein systems have
different orientations, with the most important potentially dipping away from
hole PEP008.  As a result, hole PEP008, being drilled from the west, may have
drilled under this important later structure.

 

PUP002

PUP002 was drilled to the south at the Pupino prospect to a depth of 301m to
test several mapped structures that showed evidence of epithermal
alteration.  The hole intersected several veins with sulphide mineralisation,
but with no substantial gold anomalism.

 

As noted previously, drilling at Pupino had ceased some time ago due to
logistical difficulties and the need to develop new camp facilities.

 

Temporary Suspension of Drilling

The Company has been informed that MMA has decided to temporarily suspend
drilling activities at the Project to focus on field mapping, sampling and
trenching activities will continue across the Project to define further
drilling targets, including additional surface works specifically in the Pepas
prospect area.

 

Phase 2 of Exploration Agreement.

As previously announced on September 9(th), 2022, MMA has provided the Company
with a "Phase 1 Earn-In Notice", thereby effectively notifying the Company of
MMA's intention of moving to Phase 2 of the Exploration Agreement.  Phase 2
would cover a period of a maximum of four years, over which time MMA would be
required to invest US$20M in the Project

As previously noted, this process entails the formation of a new Mining
Company, the governance of which will be based on terms in the existing
Exploration Agreement.  The process is progressing on schedule and is
expected to be completed in the next few months.

 

 

 

Orosur CEO Brad George commented:

 

"While these drill results are not as exciting as hoped, this is not
surprising.  Epithermal gold systems by their nature are complex and several
phases of drilling are often required to properly define the geometry before
more substantial drilling can then be undertaken.  In the meantime, we
continue the work necessary to create the corporate structure for the
MMA-Orosur joint venture and hope to have this in place in the next few
months."

 

 

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.

 

Neither TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.

 

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
 PEP-004  403508       705671        838                -59.8     99.8
 PEP-005  403373       704990        1008               -49.8     94.6
 PEP-007  403374       704990        1008               -69.9     170
 PEP-008  403232       704803        971                -50       60
 PEP-009  403032       705057        1055               -50       80

 PUP-001  403572       700326        927                -49.8     250.5
 PUP-002  403411       699536        781                -50       116

 

*  Coordinates WGS84, UTM Zone 18

 

About Orosur Mining Inc.

 

Orosur Mining Inc. (TSXV: 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. It has discontinued operations in
Uruguay.

 

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 ("MMA"), a 50/50 joint venture between Newmont Corporation
(NYSE:NEM, TSX:NGT), and Agnico Eagle Mines Limited  (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 MMA of those plans, MMA's decision to
continue with the Exploration Agreement, 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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