|
Orosur Mining Inc Announces First Blasting at Arenal
Deeps following Grant of Permits to Commence Development
MONTEVIDEO, Uruguay 21 March, 2011. Orosur Mining
Inc. (�OMI� or �the Company�) (TSX-V: OMI) (AIM: OMI), a South
American-focused gold producer and explorer, announces that the environmental
and mining permits have been granted for the development of the Arenal Deeps
project as well as for the second tailings storage facility and that the
first blast was successfully completed on Friday March 18th.
Highlights
- Environmental and Mining
Permits granted allowing development work to commence on the Arenal
Deeps Project.
- Development contractor
(Redpath) already on site and started work on the mine portal.
- Mining equipment, including
the first jumbo and scoop, necessary to commence development work is on
site and has been commissioned.
- Permits also granted to
commence construction of the second tailings storage facility at OMI�s
San Gregorio operation.
- First Blast took place on
March 18th and development has commenced.
David Fowler, CEO of the Company commented: "We
are making good progress in Arenal Deeps with the contractor mobilized, the
main equipment necessary to commence development commissioned, permits
granted and the first blast completed. The permit to commence construction of
the second tailings storage facility, which is critical to extending
operations at San Gregorio, has also been received. Last week we announced
that a line of credit of $US 5.5 million had been obtained from HSBC Bank.
Overall, the Company has financially and operationally positioned itself well
to make a success of Arenal Deeps�.
�The Arenal Deeps project is an important step for
the Company in our objective to extend the San Gregorio operation�s mine life
at annual production levels of approximately 55,000 to 60,000 ounces of gold
and achieve lower cash costs in two to three years. The development of Arenal
Deeps as our first underground operation is expected to open up other
underground mining opportunities at San Gregorio. We plan to conduct further
infill and extension drilling at Argentinita and San Gregorio and complete
pre feasibility studies in the coming year to target the definition of
additional underground reserves�.
Background
The Company submitted a request for an environmental
permit for the Arenal Deeps project on April 30, 2010. DINAMA (Uruguayan
Environmental Department) and DINAMIGE (Uruguayan Mines Department) have
given the approvals to commence development at the project. An additional
permit will be required from DINAMIGE to commence ore mining from stopes.
This is expected to be received in due course to allow production to commence
as scheduled.
The development work at Arenal Deeps consists of
executing approximately 2 km of decline, 8 km of lateral development and
stope preparation and is expected to be completed in approximately 30 months.
Ore mining will be performed by Orosur and expected to be commenced
concurrently with development starting during the 4th calendar quarter of
2011.
A permit was also granted to allow the Company to
commence construction of its second tailings storage facility, which is
adjacent to and an extension of the existing facility and will have a total
nominal capacity of approximately 8 Million tonnes of tailings. This approval
followed a rigid permitting process, which involved a public hearing
conducted in the local community. Final permits will be required before the
end of 2011 to allow the new facility to operate. With the appropriate
permit, the Company has already successfully commenced the phased closure of
the existing facility.
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.
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, please contact:
Orosur Mining Inc
David Fowler, CEO + 598 2601 6354
Ignacio Salazar, CFO + 598 2601 6354; info@orosur.ca
Matrix Corporate Capital LLP (Nominated Adviser
& Broker)
Louis Castro, +44 (0) 203 206 7209
Tim Graham, +44 (0) 203 206 7206
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
|