London, September 6th, 2022 . Orosur Mining Inc. (“Orosur” or the “Company”) (TSXV/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 from first drill three diamond drill holes at Pepas prospect, in the north of the Anzá Project – PEP001, PEP002 and PEP003
· Assay results from PEP001 have returned a substantial, high-grade gold intersection of 150.90m @ 3.00g/t Au (from surface).
· Additional holes are currently underway across Pepas and Pupino prospects.
· The Company’s JV partner, Minera Monte Águila has informed the Company that it has met its expenditure commitment of US$4million for the current JV year.
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 JV between Newmont Corporation (“Newmont”) (NYSE:NEM, TSX:NEM) and Agnico Eagle Mines Limited (“Agnico”) (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
Assay results for the first three diamond drill holes (PEP001, 002, 003) at the new Pepas prospect have been received. The Pepas prospect is the most northern prospect of the Project, approximately 12 kilometres north northeast of the central APTA prospect, where most drilling has been historically focussed to date.
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. Three diamond drill rigs are currently operating at Pepas with one at Pupino.
Nine holes have been completed, attempted or are underway at Pepas, across approximately 1 kilometre of strike of the main structural corridor defined by the Aragon and Tonusco faults, targeting a range of lithologies and geological features. However, three of these holes encountered difficult drilling conditions from broken ground related to major structures and were terminated at shallow depths. These holes are being, or will be redrilled, although with some modifications to orientation on the basis of recent results.
One hole has been completed at Pupino, with a second underway.
Drilling assay results have been delayed due to difficult ground conditions and the need to undertake re-assay of numerous samples to resolve overlimit issues and meet QAQC requirements.
The first hole at Pepas, PEP001, was drilled to a depth of 384m to test highly anomalous rock chip samples that had been identified from previous mapping programs, and publicly announced on March 8th, 2022. The hole intersected a quartz vein stockwork and breccia zone from surface, demonstrating pervasive stockwork veining related to extensive gold mineralisation. The hole was drilled oblique to the zone of vein-development, and with only one hole, the geometry and dimensions of the zone have yet to be fully resolved. However, surface exposures of vein development suggest an east-west strike, with a moderate to steep southerly dip.
Figure 1. Drill section, PEP001
Hole PEP002 was drilled from the same pad as PEP001, but in a westerly direction to better understand the geometry of mineralisation and the controlling structures. This hole intersected only a short interval of the breccia zone, before entering the local host rocks and then being terminated at 74m due to difficult drilling conditions.
Hole PEP003 was collared some 150m northwest of PEP001 and drilled to a depth of 311m in different lithologies, to test the presumed northeast extension of the primary structures identified in PEP001. Some mineralised structures were intersected; however, it is likely that the primary structures trend more northwest and this will be assessed with later holes.
Other early holes at Pepas were drilled some considerable distance from PEP001, to test a wide variety of other geochemical and geophysical anomalies or more conceptual targets. This was an intentional strategy to assess a number of targets in the first drilling pass, and then prioritise future drilling to the most attractive targets once results are received and assessed.
Current drilling is now being focussed on the mineralisation intersected in PEP001, however some modifications were required to drill pad locations to provide better drilling angles.
Joint Venture
MMA has informed the Company that it has exceeded its spending obligation of US$4 million for the year ending Sept 6th, 2022, as per the Exploration Agreement, and as such has completed its Minimum Phase 1 Earn-In Work Requirement.
MMA is thus now entitled to exercise its Phase 1 Earn-In Right by formally providing the Company with a Phase 1 Earn-In Notice.
Upon receipt of the Phase 1 Earn-In Notice, the Company and MMA will begin the process of forming a new mining venture (the “Mining Company”) that will hold title to the Project’s concessions and applications. Once formed, the Company will have a 49% ownership interest in the Mining Company and MMA the remaining 51%, with MMA being the manager.
MMA may elect to enter into Phase 2 of the Exploration Agreement, which would require MMA to invest US$20m in qualifying exploration expenditure in the Project over a maximum of four years. If completed, such expenditure would see MMA earning an additional 14% equity in the Mining Company for a total of 65%. Orosur would accordingly dilute to 35%. Electing to enter Phase 2 would also trigger a payment of US$2m to the Company.
Finalisation of the Mining Company and of its constituent documents – as per key terms provided in the Exploration Agreement – may take several months; however, during this period, exploration work on the Project may continue uninterrupted at the Company’s discretion.
Orosur CEO Brad George commented:
“Results from PEP001 largely speak for themselves. To return such a result for the first hole in the first drill campaign in an untouched area is a spectacular demonstration of the potential of the Anzá Project. With Covid restrictions largely lifted, the increased pace of exploration bodes well for an exciting future ahead.”
For 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
