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 Ferlesol SA, which is a 100% subsidiary of Union Mineral Group Corp. (“UMG”). This Agreement provides UMG the right to earn up to 80% interest on the Company’s Old Texas, Arroyo Polanco, Casupá-Madre, Mal Abrigo-Cerros Negros and María Albina projects in Uruguay (the “Assets”).
UMG is committed to spend US$ 300,000 in exploration work within a period of twenty four months to earn 20% interest in the Assets. Subsequently, UMG will have the right to earn a further 31%, reaching a total of 51%, by incurring in a further US$ 750,000 in exploration expenditure within the following year.
Subsequently, UMG will have the right to earn an additional 29%, therefore reaching 80% interest by completing a bankable feasibility study for the Assets, no later than 4 years after having reached the 51% interest.
The Casupá and Mal Abrigo projects are located in the Piedra Alta Terrane in south-central Uruguay along the northern limit of the La Florida greenstone belt of southern Uruguay. Mineralization is found hosted in rocks of lower Proterozoic age.
Casupa is approximately 25 kilometers due south of OMI’s Crucera Au Project. Gold mineralization is hosted in granitoids as inter-granitic quartz/gold veins and local shear zone-hosted lode gold. At the Mal Abrigo-Cerros Negros project further to the west, Ni and PGE mineralization is hosted in gabbros, granitoids and metamorphosed volcanic rocks.
The María Albina, Old Texas and Arroyo Polanco projects are all located in the Nico Perez Terrane in central eastern Uruguay within the constraints of the Don Feliciano Mobile Belt. Mineralization is found hosted in rocks of middle to upper Proterozoic age.
Marina Albina is approximately 25 kilometers due north of OMI’s Presidente Terra project. The project lies just west of the Sierra Ballena Fault Zone within the eastern margin of the mobile belt. Disseminated base metal mineralization is hosted in metamorphic rocks.
The Old Texas and Arroyo Polanco projects lie within two splays of Sierra Ballena Fault Zone, along the eastern and western margins of the mobile belt respectively. Lead, zinc, and copper mineralization as well as local quartz/gold veining are hosted in strongly deformed meta-volcanic and meta-sedimentary rocks. Local post deformation intrusions are also present.
Mr David Fowler, CEO of the Company commented “We are pleased to have entered into this agreement with UMG. The Company will not be required to invest in the projects until feasibility studies have been completed. This is in line with our strategy to concentrate on our core assets and extract maximum value from the rest. We look forward to results from this work over the coming years.”
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 2 601 6354 |
| or |
|
Matrix Corporate Capital LLP (Nominated Adviser & Broker) |
| Tim Graham, +44 (0) 203 206 7206 |
| Robin Henshall, +44 (0) 203 206 7172 |
| or |
|
Blythe Weigh Communications (Public Relations and Investor Relations) |
| Tim Blythe, +44 (0) 7816 924626 |
| Ana Ribeiro, +44 (0) 7980 321505 |
| Matthew Neal, +44 (0) 7917 800011 |
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