REG - Orosur Mining Inc - Operational Update

Orosur MiningAnnouncement

02/03/2023 07:00

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RNS Number : 5971R  Orosur Mining Inc  02 March 2023

 

 

 

Orosur Mining Inc - Operational Update

 

·    US$2m Anzá JV option payment received.

·    Anzá JV structuring advancing.

·    Mapping and sampling at El Pantano Project in Argentina yielding
positive results.

·    Major regional mapping campaign at Ariquemes Project in Brazil now
complete - results pending.

 

London, March 2(nd) 2023. Orosur Mining Inc. ("Orosur" or the "Company")
(TSXV/AIM:OMI), is pleased to provide an update on the progress of exploration
activities across its project portfolio.

 

Anzá Project - Colombia

Anzá is an advanced stage exploration project in the mid-Cauca belt of
northern Colombia, that plays host to most of that country's major gold
deposits.

 

Anzá comprises a number of contiguous granted exploration titles and
applications totalling over 200km(2).

 

Since late 2018, Anzá has been 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  (NYSE:NEM, TSX:NEM) and Agnico Eagle Mines Limited  (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.

 

The first phase of the Exploration Agreement was completed in September 2022,
with MMA spending over US$10m on the project and thereby earning an equity
interest of 51% in MMA.

 

MMA has also elected to move to Phase 2 of the JV, that will require it to
spend US$20m on the project over a maximum of four years to earn an additional
14% equity, taking its total ownership position to 65%.  The process of
moving to Phase 2 requires a substantial level of corporate restructuring in
order to crystallise MMA's 51% shareholding and to provide a mechanism for
Phases 2 and 3 to progress. This process is well underway but is expected to
take several months to complete.

 

As part of the move from Phase 1 to Phase 2, a US$2m option payment was
payable to Orosur. The Company is pleased to announce these funds have been
received, substantially strengthening the Company's balance sheet to over
US$4m in cash.

 

Over 40,000m of drilling has been undertaken at Anzá since 2014, with the
last holes being completed in late 2022 at the end of Phase 1.  Assays from
the final two holes have now been received (PEP10 and PEP11).  These holes
were the last in a program at the Pepas Prospect at Anzá and were planned to
test targets north of the high-grade mineralisation intersected in the earlier
holes.

 

Neither hole intersected substantial mineralisation, however this was to be
expected given the results from the previous holes that had been reported on
2(nd) December 2022.

 

Following completion of drilling, exploration work at Anzá has been wound
back to allow for the required corporate restructuring of the joint venture to
be completed, and to advance a variety of licence processes such as
integration of smaller licences and conversion of applications to granted
status.

 

 

El Pantano Project - Argentina

The El Pantano Project is an early-stage gold exploration project in Santa
Cruz province, southern Argentina.

 

The Project covers nine contiguous licences totalling 607km(2) in the prolific
Deseado Massif region, roughly 45km from Anglo Gold's Cerro Vanguardia mine.

 

The El Pantano Project is subject to an Exploration & Joint Venture
agreement ("Agreement") with private Argentinean company DESEADO DORADO S.A.S
and its shareholders ("Deseado"), the details of which were announced on
15(th) February 2022.

 

Since the end of the southern hemisphere winter break in September 2022, El
Pantano has been the subject of ongoing mapping, sampling and ground magnetic
surveys, designed to slowly build up the geological understanding of this
grass roots project.

 

A field visit has just been completed by the Orosur team and a specialist
structural geology consultant to examine the project and to develop
exploration models and a framework for potential mineralisation that would
form the basis of future targeting. The visit and an allied study of regional
geological and mining data has proved invaluable in developing a better
understanding of the primary controls on the style of mineralisation, and in
providing exploration strategies that will be employed, at El Pantano.

 

Results to date have been extremely encouraging, with the latest round of
mapping and sampling suggestive that El Pantano has potential to host a major,
previously unexplored low-sulphidation epithermal system. In the
low-sulphidation model, fluid boiling is the key gold depositional mechanism,
such that gold mineralisation is constrained to a distinct vertical zone, and
there may be limited or no gold anomalism at surface. Instead, pathfinder
elements are a more important guide to mineralisation, especially mercury (Hg)
and arsenic (As).  Recent work is expanding the picture of very large zones
of Hg and As anomalism along more than 8km strike of a major NW trending
structure. (Figure 1)

Figure 1.  As and Hg anomalism at El Pantano

 

 

Geological mapping, geochemical sampling and ground magnetic surveys are
continuing.  It is also planned that other geophysical methods such as
Induced Polarization (IP) may be employed before the winter break in late May.

 

Environmental permitting work is also underway that will allow drilling to be
undertaken later in the year.

 

Ariquemes Project - Brazil

The Ariquemes Project is a large-scale tin exploration project in Rondônia
State, Brazil, entirely within the world class Ariquemes Tin Field.  The
project comprises a large number of granted licences and applications that in
total cover more than 3,000km(2), representing the largest land holding in
this key mining district.

 

Ariquemes is a JV with Canadian listed Meridian Mining UK S (TSXV: MNO),
whereby Orosur has the right to earn a 75% stake in the project by investing
US$4m in exploration over a four-year period in two stages.

 

Despite being one of the world's major tin provinces, the region has seen
little or no modern exploration, as most of the mineral exploitation is
undertaken by local cooperatives. The Company was thus of the view that
substantial potential existed for new discoveries as the region was largely
untouched.

 

To this end, a large-scale regional sampling program has been underway for the
last several months, taking stream and drainage sediment samples over much of
the Ariquemes district.  This large program is now complete and final results
are pending.  Once received, it is anticipated that this regional dataset
will be able to provide vectors to potential mineralisation that will then
form the basis for more targeted exploration programs in the near term.

 

 

Orosur´s CEO Brad George commented:

 

"With work at Anzá slowed to concentrate on corporate restructuring of the JV
with MMA, the Company has been busy on its other projects.  Current results
are extremely positive and validate our decision to focus on early-stage
projects.  With our strong balance sheet, we are able to develop these
opportunities and we keenly anticipate being able to advance these projects
and possibly drill one later this year."

 

 

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
 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. (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. 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 ("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.

 

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.

 

 

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