REG - Orosur Mining Inc - Colombia update

Orosur MiningAnnouncement

22/10/2024 07:00

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RNS Number : 0292J  Orosur Mining Inc  22 October 2024

 

 

 

Orosur Mining Inc - Colombia update

 

·    High grade and highly anomalous rock chip, channel and soil samples
across a wide area at Pepas increase the prospectivity of the region.

 

·    Historical sampling results from the El Cedro and El Roble prospects
suggest highly prospective porphyry system that the Company plans to follow up
in the near term.

 

London, October 22nd 2024. 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 Anzá Project ("Project") in Colombia.

 

As announced on September 10(th) 2024, the Company has signed a definitive,
binding Share Purchase Agreement ("SPA") that once completed, would see the
Company returning to 100% ownership of the Anzá Project, in return for
deferred, production based consideration.

 

The Anzá project comprises a number of granted exploration licences and
applications on the prolific Mid-Cauca belt of Colombia, approximately 50km
west of Medellin. The total licence package previously under joint venture
currently totalled some 175km2 in area, however the size of the Project may
increase substantially with additional applications made by the Company and
acquired as part of the SPA.

 

 

 

Figure 1.  Anzá Project - Prospect Locations

 

Pepas Prospect

The Pepas Prospect is in the northern extents of the Anzá Project, over 10km
north of the central base at APTA.

 

Field work commenced at Pepas in late 2021 as the gradual abatement of Covid
allowed field crews to venture further afield from APTA base.

 

Mapping work by the Company's JV partner identified Pepas as a small window of
attractive altered tuffs and other volcanics, roughly 1000m x 500m in size,
along the main structure thought to control mineralisation in the vicinity
(Figure 2).

 

Figure 2, Pepas Prospect.

 

 

The area is rugged, thickly wooded and heavily weathered, with sparse
outcrop.  Where identified, rock chip samples were taken and this work
identified highly anomalous results, with assays at times in excess of several
grammes per tonne of gold over a wide area (Figure 3).  In particular, a
small outcrop of silicified tuff, roughly 20m2 in size was identified and
channel sampled in early 2022, returning assays between 3.41g/t Au to 95.5g/t
Au.

 

Drilling of hole PEP-001 was commenced in June 2022, positioned to intersect
the interpreted depth extension of this anomalous outcrop. Assay results from
PEP-001, announced on September 6(th), 2022, showed high grade gold
mineralisation from surface, with the hole returning a composite intersection
of 150.90m @ 3.0g/t Au from surface.

 

Two additional holes were then drilled from this same pad, with results
announced on October 21(st) 2022, with PEP-005 returning 35.5m @ 2.12g/t Au
and PEP-007 returning 80.55m @ 3.05g/t Au. (Figure 3).

 

Later holes at the Pepas prosect were drilled some considerable distance from
this original drill pad, and did not return similar results. It is the view of
the Company that the form, orientation and controlling structures of the gold
mineralisation at Pepas, first identified in hole PEP-001, remain unresolved
by this later drilling, and that the Pepas target remains largely untested.

 

Figure 3.  Pepas Prospect, detailed scale - drilling and sampling

 

 

 

During 2024, while the Company was negotiating the return of the Project from
its JV partners, staff at the Company were granted access to the Pepas site in
order to commence the necessary logistical planning and social and community
liaison to allow the Company to drill once the agreement had completed.

 

As part of this process, the Company's geological teams undertook more
detailed sampling and geological mapping across the Pepas prospect to gain a
better understanding of potential geological controls to target future
drilling.

 

The Company's exploration teams carried out soil and rock chip sampling across
the prospect, concentrating on roads and tracks that had been newly opened to
facilitate planned drilling.  In addition, the Company identified two
abandoned artisanal mining tunnels (A and B, Figure 3) close to the original
silicified tuff targeted by hole PEP-001.

 

Channel rock-chip sampling of the new tracks have identified a large extent of
highly anomalous mineralisation over an area roughly 120m in length, with
multiple rock chip results over 2g/t Au, several over 5g/t Au and one of 80g/t
Au.

 

The abandoned artisanal tunnels were entered and mapped by the Company's
geological teams, taking 1m composite channel samples along the entire length
of each tunnel, roughly 20m in each case.

 

 

Figure 4.  Channel sampling results, artisanal tunnel A

 

 

Figure 5, Channel sampling results, artisanal tunnel B

 

 

Mapping of these tunnels not only showed the same lithologies and alteration
as seen in nearby drilling (andesites, tuffs, silicification and brecciation)
but similar or higher gold grades.

 

The first tunnel sampled (tunnel A), returned channel sample assays varying
from 0.35g/t Au to 10.16g/t Au (Figure 4), while the second tunnel (tunnel B),
returned high-grade gold assays for most of its length (Figure 5), up to a
maximum of 195g/t Au near the mouth of the tunnel.

 

The Company considers these results to be highly encouraging not only in the
exceptional grades measured but the large area over which they were recorded.
In addition, the lithologies and structures mapped in the tunnels have
provided greater geological context to the gold mineralisation intersected in
hole PEP-001, some 61m distant from tunnel B (Figure 6).

 

In order to better define the orientation and controls of this mineralisation,
the Company plans to locate several new holes collared near the entrance of
tunnel B, oriented such as to intersect PEP-001 and the holes beneath.  It is
anticipated that once the orientation of mineralisation is better defined, its
scale can then begin to be assessed with gradual step out drilling.

 

In the meantime, geological teams continue mapping and sampling to better
define the prospect.

Figure 6. Pepas cross section

 

El Cedro/El Roble

El Cedro and El Roble were two prospects to the south of the Project area that
were first identified as a result of mapping and geochemical surveys by Anglo
American before the Company acquired the Anzá Project.

 

As with Pepas, the region remained largely untouched until the abatement of
Covid.

 

Geological mapping and sampling began in these southern prospects in 2022,
ramping up in 2023.  Interpretation of later mapping and sampling results
suggests that El Cedro and Roble could potentially be different parts of the
same porphyry system.  Porphyry lithologies and alteration assemblages have
been mapped over a roughly 2km x 2km area, with extensive areas of quartz
veining with highly anomalous gold values up to 10g/t Au (Figure 7).

 

Following the technical completion of the SPA, which the Company is actively
progressing, the Company plans to mobilise geological teams to map the area in
more detail, with the objective of identifying drill targets.

Figure 7. El Cedro and El Roble geology and rock chip samples

 

 

 

Orosur CEO Brad George commented:

 

"Mapping and sampling by ourselves and our previous JV partners are showing
the enormous potential across the Anzá project. Pepas particularly is showing
excellent numbers and we are aiming to be drilling here in the short term."

 

 

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.

 

 

About Orosur Mining Inc.

 

Orosur Mining Inc. (TSXV: OMI; AIM: OMI) is a minerals explorer and developer
currently operating in Colombia, Argentina and Nigeria.

 

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.

Sampling procedures within the artisanal mining tunnels involved systematic
channel sampling on both walls of the tunnel at a height of 1 meter from the
floor. Channel samples were taken with a length of 1 meter and a width of 0.1
meters, parallel to the tunnel walls, ensuring that all possible sectors were
covered as long as geomechanical conditions allowed.

 

In cases where it was necessary to avoid sampling across contrasting
lithologies or significant geological features, the sample length was adjusted
accordingly. As part of quality assurance (QA) protocols, reference standard
materials were inserted at a proportion of 10% to monitor laboratory
performance.  All samples were accurately mapped and subsequently sent to the
laboratory for analysis.

 

Gold assaying was undertaken at ACTLabs laboratory in Medellin, Colombia.

 

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, completion of the
Acquisition, approval of the TSXV of the acquisition, Orosur becoming operator
of the Anzá Project, the expected focus on the Pepas prospect, the
exploration plans in Colombia and the funding of those plans, and other events
or conditions that may occur in the future. 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 to, obtaining conditional approval of the TSXV and
meeting other conditions to closing the Acquisition, timing of closing of the
Acquisition and those as described in Section "Risks Factors" of the Company's
MD&A for the year ended May 31, 2023. 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. The Company's continuance as
a going concern is dependent upon its ability to obtain adequate financing,
and to reach a satisfactory closure 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

 

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