London, December 2nd 2022, Orosur Mining Inc. (“Orosur” or the “Company”) (TSXV:OMI,AIM:OMI) , is pleased to announce an update on the progress of exploration activities at the Company’s flagship Anzá Project (“Project”) in Colombia.
· Assays received from four additional diamond holes at Pepas and Pupino.
· Results provide guidance for future targeting.
· Near-term focus will shift from drilling to groundwork to better define local structural controls.
· Finalisation of Phase 2 of JV continuing.
The Project is 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 (“Newmont”) (NYSE:NEM, TSX:NEM) and Agnico Eagle Mines Limited (“Agnico”) (NYSE:AEM,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.
MMA is the operator of the Project after exercising its right to assume operational control in the second half of 2021.
Assay results for four additional diamond drill holes from the Pepas and Pupino prospects have been received.
Both the Pupino and Pepas prospects are located in the northern region of the Anzá Project, roughly 8km and 12km, respectively north-northeast from the central APTA prospect that had seen most drilling at Anzá up until early 2022.
Key intersections are noted below.
Table 1. Drill Intercepts.
Geology and Drilling
Drilling activities commenced at Pepas in April 2022, and at the nearby Pupino prospect soon afterward. Assay results from the first six holes from Pepas were released on September 6th ,2022 and October 21st ,2022, which included thick, high grade gold intersections in holes PEP001 (150.90m @ 3.00g/t Au), PEP005 (36.85m @ 2.85m Au) and PEP007 (80.55m @ 3.05m Au).
All three of these holes were drilled in different orientations from the same drill pad, with gold mineralisation starting from surface. While the intersections were encouraging, the fact that the drill pad was positioned within the mineralised body, with holes drilling outward, was problematic in terms of being able to effectively define the shape and orientation of the body and so provide guidance for later drilling.
Two new drill pads were constructed some 200m southwest and 300m northwest respectively from the original drill pad to drill holes PEP008 and PEP009 (Figure 1). Moving the rigs to the west was based on the assumption that the mineralised body dipped toward the west, and therefore these two holes were targeted at the presumed down-dip extension, vertically below the previous drilling.
Diagram Description automatically generated
PEP006 was the last of a group of earlier holes drilled some distance to the north of the mineralised body intersected at PEP001 and was drilled to a depth of 882m. No significant gold intersections were encountered; however, this was expected as previous drilling in the area (PEP004) had also been negative.
PEP008 and PEP009
PEP008 was drilled from the southwest toward the northeast to test directly below the mineralised intersections identified in holes PEP001. The hole was drilled to a depth of 647m. The step back for this new pad was substantial such that PEP008 passed some 220m vertically below PEP001.
PEP009 was drilled to a depth of 602m well north of the previously identified mineralised body and was intended to test an interpreted faulted offset extension of the Pepas body based upon surface mapping and low-level gold mineralisation that had been previously intersected in hole PEP003 (announced September 6th, 2022). Again, the step back was substantial with PEP009 projected to intersect the targeted structures over 300m below previous drilling.
Both holes intersected mineralised structures, largely as expected, but with lower levels of gold mineralisation than intersected in previous drilling.
Subsequent analysis and interpretation of drill core from these and previous holes has now suggested three distinct phases of structurally controlled veining, with the youngest phase being the polymetallic sheeted veining that produced the thick intersections of high-grade gold intersected at Pepas in earlier holes. It is also likely that these various vein systems have different orientations, with the most important potentially dipping away from hole PEP008. As a result, hole PEP008, being drilled from the west, may have drilled under this important later structure.
PUP002 was drilled to the south at the Pupino prospect to a depth of 301m to test several mapped structures that showed evidence of epithermal alteration. The hole intersected several veins with sulphide mineralisation, but with no substantial gold anomalism.
As noted previously, drilling at Pupino had ceased some time ago due to logistical difficulties and the need to develop new camp facilities.
Temporary Suspension of Drilling
The Company has been informed that MMA has decided to temporarily suspend drilling activities at the Project to focus on field mapping, sampling and trenching activities will continue across the Project to define further drilling targets, including additional surface works specifically in the Pepas prospect area.
Phase 2 of Exploration Agreement.
As previously announced on September 9th, 2022, MMA has provided the Company with a “Phase 1 Earn-In Notice”, thereby effectively notifying the Company of MMA’s intention of moving to Phase 2 of the Exploration Agreement. Phase 2 would cover a period of a maximum of four years, over which time MMA would be required to invest US$20M in the Project
As previously noted, this process entails the formation of a new Mining Company, the governance of which will be based on terms in the existing Exploration Agreement. The process is progressing on schedule and is expected to be completed in the next few months.
Orosur CEO Brad George commented:
“While these drill results are not as exciting as hoped, this is not surprising. Epithermal gold systems by their nature are complex and several phases of drilling are often required to properly define the geometry before more substantial drilling can then be undertaken. In the meantime, we continue the work necessary to create the corporate structure for the MMA-Orosur joint venture and hope to have this in place in the next few months.”
F or further information, visit www.orosur.ca , follow on twitter @orosurm or contact :
Orosur Mining Inc.
Louis Castro, Chairman,
Brad George, CEO
Tel: +1 (778) 373-0100
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