Orosur Mining Inc.: Southern Uruguay Project Farm Out
Orosur Mining Inc.: Southern Uruguay Project Farm Out
Orosur Mining Inc.
Orosur Mining Inc. (“OMI” or the “Company”) (TSX VENTURE: OMI) (LSE: OMI) today announces that the Company has entered into an Option Agreement with Minerales Cala S.A. (“Minerales Cala”) which provides Minerales Cala the right to earn up to 80% interest on the Company’s Chamizo Gold project in Southern Uruguay (the “Assets”).
Minerales Cala is committed to spend US$ 150,000 in exploration work within a period of twenty four months to earn 51% interest in the Assets. Subsequently, Minerales Cala will have the right to earn a further 29% by incurring in a further US$ 350,000 in exploration expenditure.
After Minerales Cala has completed US$ 500,000 expenditure and consequently has earned 80% interest in the Assets, OMI will have the option to contribute its 20% proportionate share of expenditure. Should the Company choose not to contribute, dilution shall apply and if the Company’s interest falls below 10%, its interest will convert to a Net Smelter Royalty of 2%.
The Chamizo project highlights local quartz veining and associated gold mineralization hosted within a well defined shear zone occurring along the contact between foliated granodiorites and deformed meta-volcanics located in what is known as the “La Florida Greenstone Belt” of southern Uruguay. OMI completed surface mapping and sampling programs in 2007-2009. Historically approximately 10,000 meters in 120 exploration RC and diamond drill holes were completed between 1990 and 2002 by Compania Minera San Jose (CMSJ), and Compania Minera Aguilar (CMA) Additionally, a short RC drill program by Uruguay Minerals in 2002 of 367 RC meters in 5 holes was completed. The results of the drilling include sporadic zones of gold mineralization up to 10m wide with typical grades of 1-2g/t and rare intercepts of 2-5g/t. Single samples both at surface and in drilling have returned gold grades in the 5-15g/t range.
Mr. David Fowler, CEO commented, “We are pleased to have entered into this agreement with Minera Cala to invest in the Chamizo project. We look forward to Minera Cala testing a new conceptual model they have developed for the Chamizo area and other properties they own along strike of Chamizo.”
ENDS
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
About Orosur Mining Inc.
Orosur Mining Inc. is a fully integrated gold producer and exploration company focused on identifying and developing gold projects in Latin 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 and Chile. The Company is quoted in Canada (TSX-Venture Exchange: OMI) and London (AIM: OMI).
| For further information: |
|
Orosur Mining Inc |
| David Fowler, CEO |
| Ignacio Salazar, CFO, + 598 2 6016354 |
| or |
|
Matrix Corporate Capital LLP (Nominated Adviser & Broker) |
| Louis Castro, +44 (0) 203 206 7209 |
| Tim Graham, +44 (0) 203 206 7206 |
| or |
|
In North America |
| Forbes West, 416-203-2200 |
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