Orosur Mining Inc. - Colombia Anzá Gold Project Exploration Update
Orosur Mining Inc. - Colombia Anzá Gold Project Exploration Update
Orosur Mining Inc.
Orosur Mining Inc. (“Orosur” or “the Company”) (TSX/AIM: OMI), the South American-focused gold producer, developer and explorer is pleased to announce an update of its exploration activities at its wholly-owned, high grade Anzá gold project (“Anza”) located in the Mid Cauca Belt in Colombia.
Completion of preliminary geological model
Orosur has completed a preliminary geological model for the Aragon-Pastorera Trend Area (“APTA”) of the Anzá project, based predominantly on 17,408m of existing diamond core drilling data from 53 holes previously drilled. 3,000m of this core has been re-logged, with special attention given to the lithology, alteration suites, structural trends and grade distribution.
Based on this information, a geological estimate of an exploratory gold potential of a portion of the APTA has been prepared with the assistance of Mine Development Associates (“MDA”) of Reno, Nevada. The resulting potential ranges between 1.6 M - 2.3 M tonnes averaging between 3.2 - 3.7g/t Au. This estimate is based on current drilling and is expected to grow as future exploration drilling is conducted.
The Company believes that the mineralized zones in the APTA continue, both at depth and at the surface, to the north and south of the limited area which has been analysed to date and included in the preliminary model. As such, there is the potential for a much larger resource base to be identified.
The APTA extends 2 km along strike of the vein-like deposit; but only accounts for a small portion of the total Anzá project, which covers approximately 105 km² in total.
Previous drilling of Anzá has shown consistent high grade gold intercepts over significant widths as well as coincident zinc mineralization. Anzá is situated in a well-known geological setting in Colombia already hosting a number of substantial gold projects. The Anzá project has existing mine and environmental permitting, and its existing infrastructure, including camps, roads, power and water, are in good standing.
Next steps in Colombia
During 2017, the Company plans to undertake a 15,000m - 30,000m drilling campaign to:
- Delineate maiden resources;
- Further define and expand the potential mineralization for APTA;
- Test mineralization in undrilled areas of the deposit where strong indications of economic gold occurrences exist; and
- Commence initial drilling of nearby untested and highly prospective targets.
Upon completion of this drilling campaign, the Company intends to prepare and publish a maiden N.I. 43-101 compliant resource report for the Anzá project.
The Company will update the market once the upcoming exploration programme has been designed and validated and a drilling contractor has been engaged.
Ignacio Salazar, CEO of Orosur, said:
“Orosur acquired Anzá in July 2014, through its nil premium all share acquisition of Waymar Resources, at a time when little to no value was being given to exploration projects. Our ambition at that time is now being rewarded with the encouraging initial exploration potential estimate for the drilled area. We look forward to finalizing plans for progressing the Anzá project with significant drilling activities during 2017.
“The Company believes that Anzá has significant upside and we expect the project to take a more prominent standing in our suite of South American gold assets in the months to come.”
About Anzá
Anzá is located in the Western Cordillera, 50 km west of the city of Medellín, 50 km south, along the Cauca lineament, of Continental Gold’s high grade Buriticá gold project (4.7 Moz measured and indicated (“M&I”) resource, grading 11.4 g/t Au) and 70 km from Red Eagle’s San Ramón project (479Koz M&I resource, grading 3.5 g/t Au) which is a vein like gold deposit in a shear zone with a similar mineralization style as the APTA in a different geological environment.
As previously announced in October 2016, initial preliminary metallurgy and density test work were completed utilising a combination of gravity concentration, flotation and cyanidation processing, with average gold recoveries ranging from 95.9 – 96.1%. This is in line with the metallurgical recoveries of development projects and producing mines in the region.
The site has environmental permits enabling both underground and open-pit mining operations. The Anzá project includes two small underground gypsum mines, each of which also have environmental and mining permits granted by the Colombian authorities. Historically, the gypsum mines have been operated by a third-party contractor; Orosur is currently in the process of taking over operatorship. The gypsum permits can be readily expanded, enabling Orosur the ability to fast-track permitting for future gold mining operations.
Access to the project is via a paved road to the town of Anzá and a 17 km gravel road operable all year round. The gypsum mine has been in operation at the site since 1991. It has excellent infrastructure, with power grid, abundant water and mine facilities on site. The elevation ranges from 700 m to 2,000 m above sea level.
The APTA deposit is up to 200 m wide and at least 2.5 km long, with soil geochem showing gold content along the entire 7km Aragón fault. The deposit is open on strike, at surface and down-dip. Significant drill hole intercepts include:
| Hole Number | From (m) | To (m) | Interval (m) | Au g/t | Ag g/t | Zn (%) | ||||||
| MAP–11 | 213.0 | 219.0 | 6.0 | 18.26 | 1.95 | 0.35 | ||||||
| including | 217.5 | 219.0 | 1.5 | 72.30 | 6.90 | 0.93 | ||||||
| MAP–20 | 145.0 | 186.0 | 41.0 | 3.85 | 1.39 | 1.25 | ||||||
| including | 171.3 | 177.0 | 5.7 | 19.84 | 3.94 | 1.66 | ||||||
| MAP–21 | 224.0 | 242.0 | 18.0 | 14.14 | 2.05 | 2.83 | ||||||
| including | 225.0 | 229.4 | 4.4 | 45.62 | 5.47 | 10.59 | ||||||
| 252.0 | 253.0 | 1.0 | 10.85 | 1.80 | 0.67 | |||||||
| MAP–29 | 183.0 | 194.9 | 11.9 | 10.57 | 2.40 | 1.61 | ||||||
| including | 185.0 | 187.0 | 2.1 | 40.25 | 4.85 | 4.64 | ||||||
| MAP–33 | 157.1 | 179.5 | 22.4 | 10.42 | 1.87 | 1.56 | ||||||
| including | 165.0 | 170.8 | 5.8 | 29.49 | 3.37 | 2.81 | ||||||
| MAP–36 | 198.6 | 227.5 | 28.9 | 3.88 | 1.68 | 0.43 | ||||||
| including | 205.5 | 217.5 | 12.0 | 8.83 | 2.65 | 0.59 | ||||||
| MAP–38 | 123.4 | 124.5 | 1.1 | 15.40 | 3.60 | 1.94 | ||||||
| 172.0 | 212.5 | 40.5 | 14.09 | 3.82 | 1.95 | |||||||
| including | 179.5 | 186.0 | 6.5 | 70.99 | 6.34 | 0.12 | ||||||
| including | 184.6 | 186.0 | 1.4 | 176.00 | 15.20 | 0.39 | ||||||
| including | 202.0 | 205.4 | 3.4 | 20.89 | 9.71 | 4.75 | ||||||
| MAP–43 | 65.5 | 68.6 | 3.1 | 7.66 | 73.04 | 0.68 | ||||||
| 167.5 | 231.5 | 64.0 | 1.88 | 1.88 | 0.70 | |||||||
| including | 209.0 | 214.0 | 5.0 | 9.07 | 3.40 | 0.70 | ||||||
| MAP–47 | 105.0 | 118.3 | 13.3 | 2.24 | 316.25 | 1.00 | ||||||
| including | 106.0 | 110.5 | 4.5 | 4.69 | 768.89 | 2.34 | ||||||
| MAP–48 | 181.0 | 195.7 | 14.7 | 40.37 | 9.30 | 3.41 | ||||||
| including | 185.5 | 195.7 | 10.2 | 58.03 | 13.16 | 4.85 | ||||||
| including | 187.6 | 189.5 | 1.9 | 219.00 | 29.50 | 6.55 |
The Anzá land package, which is wholly owned by Orosur, includes multiple additional highly prospective potential gold targets. In addition to the APTA, there is an extensive area of more than 100 km² open to exploration. Charrascala and Guaimarala are two of the most highly promising additional gold targets. At Charrascala, there are existing outcrops with gold and copper mineralization. Favourable topography, existing infrastructure and the existence of a wide low-grade gold envelope in the Anzá land package provide further exploration, development and mining upside, all with strong indications of the potential for significant by-product mineralization.
To see a full PDF of the release with images, click here.
Stock Option Exercise
The Company also announces that it has issued 341,667 common shares of no par value ("Common Shares") following the exercise of options on January 24th, 2017 by an option holder as follows:
| Exercise Price | Options | |
| C$0.105 | 41,667 | |
| C$0.185 | 300,000 | |
| Total | 341,667 |
The net proceeds of the exercise amount to CAD$59,875. Application has been made for the Shares to be admitted to trading on AIM ("Admission"). It is expected that Admission will become effective and that dealings will commence on January 25th, 2017 in respect of the Shares. Following Admission, the total number of common shares currently issued and outstanding will be 100,293,071 and the total number of options outstanding is 7,892,425 following the options grant.
Qualified Person's Statement
The technical information related to the current assets of Orosur Mining in this announcement has been reviewed by Miguel Fuentealba, a Mining Engineer who is considered to be a Qualified Person under NI 43-101 reporting guidelines. Mr. Fuentealba is a graduate in Mining Engineering from the University of Santiago de Chile and is an AusIMM Member and Qualified Person of Chilean Mining Commission. Mr. Fuentealba has 20 years of professional experience in the field of mining engineering, mine development and management.
Forward Looking Statements
All statements, other than statements of historical fact, contained or incorporated by reference in this news release, including any information as to the future financial or operating performance of the Company, constitute "forward-looking statements" within the meaning of certain securities laws, including the "safe harbour" provisions of the Securities Act (Ontario) and 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. There can be no assurance that such statements will prove to be accurate. Such statements are subject to significant risks and uncertainties, and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements include, without limitation success of exploration activities; permitting time lines; the failure of plant; equipment or processes to operate as anticipated; accidents; labour disputes; requirements for additional capital title disputes or claims and limitations on insurance coverage. 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.
For more information, please visit www.orosur.ca
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'). 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. is a fully integrated gold producer, developer and explorer focused on identifying and advancing gold projects in South America. The Company operates the only producing gold mine in Uruguay (San Gregorio) and has assembled an exploration portfolio of high quality assets in Uruguay, Chile and Colombia. The Company is listed in Canada (TSX: OMI) and London (AIM: OMI).
Orosur Mining Inc.
Ignacio Salazar, +1-778-373-0100
Chief
Executive Officer
info@orosur.ca
or
Cantor
Fitzgerald Europe
David Porter / Craig Francis / Philip Davies,
+44 (0) 20 7894 7000
or
FTI Consulting
Ben
Brewerton / Oliver Winters / Sara Powell / Emerson Clarke, +44 (0) 20
3727 1000
View source version on businesswire.com: http://www.businesswire.com/news/home/20170118006349/en/
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