Orosur Mining Inc Announces
Maiden NI 43-101 Mineral Resource of 1.05 Moz Gold at Pantanillo Norte
MONTEVIDEO, Uruguay 1 September, 2010. Orosur Mining Inc. (�OMI� or
�the Company�) (TSX-V: OMI) (AIM: OMI), a South American-focused gold
producer and explorer, announces the results of the first NI 43-101-compliant
resource for the Pantanillo Norte deposit in Chile.
David Fowler, CEO of the Company commented: "This initial
Independent NI 43-101 Mineral resource estimate for our Pantanillo project is
a critical step in our objective to create a second producing asset for the
Company in Chile. The 2010 drill programme at Pantanillo targeted the
oxidized and mixed portion of the deposit and has confirmed total measured
and indicated resources of 47,093,000 tonnes at a grade of .69 g/t gold, for
1,049,071 ounces of gold. Outside of this initial resource, OMI intends
to evaluate the deeper sulphide mineralisation which we believe represents a
significant exploration target. This work will be undertaken as part of the
scoping studies which are ongoing and follow-up drilling�.
Background
The Pantanillo property covers 11,750 hectares and is located
approximately 125 km east of Copiapo in the Maricunga Belt in northern Chile.
The Maricunga Belt hosts approximately 60 million gold-equivalent ounces of
known resources with two projects in production (Maricunga, La Coipa -
formerly known as Refugio) and at least five other projects undergoing
feasibility and advanced exploration work (Caspiche, Cerro Casale, Lobo
Marte, El Morro and La Pepa). The Pantanillo Norte deposit is a gold
porphyry system similar to others in the Maricunga District, and the bulk of
the mineralization within the deposit consists of sheeted quartz/sulphide
/�magnetite vein swarms and minor stockwork veining and intrusive breccias
hosted in andesite porphyry of high-level intrusive origin.
NI 43-101 Mineral
Resource
Some 14,900 meters of
historical drilling on the Pantanillo Norte deposit by Anglo American and
Kinross has been followed by a further 5,600 meters drilled during the 2010
field season by OMI. The combined work has resulted in this first NI 43-101
mineral resource for the Pantanillo Norte deposit. Drilling and development
work on the Pantanillo deposit is being performed in a phased approach. The
first phase, completed during the 2010 drill season, focused on defining the
oxide and mixed zones of the deposit for which higher metallurgical
recoveries are expected using conventional heap leach processing.
Total Measured and
Indicated mineral resources are 47,093,000 tonnes at 0.69 g/t gold, for
1,049,071 ounces of gold, with a further 304,000 tonnes at 0.53 g/t gold, for
5,166 ounces of gold, in the Inferred category. The following table gives a
breakdown by category of the resource estimated by AMEC International
Ingenier�a y Construcci�n Limitada.
|
|
Measured
|
Indicated
|
Measured + Indicated
|
Ore Type
|
Cutoff
|
Au
|
Tons
|
Au Metal
|
Au
|
Tons
|
Au Metal
|
Au
|
Ton3
|
Au Metal
|
Au (g/t)
|
(g/t)
|
(kt)
|
(oz)
|
(g/t)
|
(kt)
|
(oz)
|
(g/t)
|
(kt)
|
(oz)
|
Oxide
|
0.3
|
0.72
|
19,806
|
456,349
|
0.55
|
1,752
|
30,963
|
0.70
|
21,558
|
487,708
|
Mixed
|
0.3
|
0.70
|
16,011
|
361,246
|
0.65
|
8,336
|
173,619
|
0.68
|
24,348
|
534,865
|
Sulphide
|
0.5
|
0.72
|
748
|
17,328
|
0.68
|
440
|
9,566
|
0.70
|
1,187
|
26,894
|
Total1
|
|
0.71
|
36,565
|
834,924
|
0.63
|
10,528
|
214,148
|
0.69
|
47,093
|
1,049,071
|
1 Totals may differ slightly from
sum or weighted sum of numbers due to rounding.
The resource estimate
utilized ordinary kriging for grade interpolation. To ensure reasonable
prospects of economic extraction in open pit operations, mineral resources
are reported within a Lerchs-Grossman (LG)-optimized pit shell using Whittle�
software with the following parameters: gold price of 1,035 US$/oz; mining
cost of 1.65 US$/t; processing cost of 4.0 US$/t; general and administration
cost of 1.0 US$/t, and recoveries of 75% for leached and oxide ore types, 65%
for mixed ore, and 50% for sulphide ore. The resource estimate was completed
by Paula Larrondo, MAusIMM, Principal Geostatistician with AMEC International
Ingenier�a y Construcci�n Limitada. The effective date of the estimation is
July 9th, 2010.
Higher-grade
mineralization distribution is well constrained in space within the deposit
and resulted in the objective definition of volume and grade
The resource estimate is
based on a total of 78 holes and 20,530 meters of drilling, including 27
Anglo American and 21 Kinross historic holes (17 DDH, 30 RC, and 1RC/DDH)
drilled between 1988 and 2008, for a total of 14,892 meters, and 30 holes
drilled by Orosur in 2010, which include 19 DDH and 11RC for a total of
5,638meters.
Next Steps
A second phase of
metallurgical test work and drilling is planned to evaluate the deeper
sulphide mineralization, which is assumed to have lower recoveries and
potentially may require alternative processing methods. Outside of the
resource described above, there is a target for further exploration of
approximately 30 to 40 million tonnes at a grade of between 0.8 to 0.6 g/t Au
of predominantly sulphide mineralization. At this point in time, the
potential tonnes and grade of the exploration target is conceptual in nature,
there has been insufficient exploration to define this target as a mineral
resource, and it is uncertain if further exploration will result in the
target being delineated as a mineral resource.
Only limited drilling
has been conducted below the optimised pit and there remains potential to
expand sulphide mineralisation and ultimately significantly increase
resources. One section has historically been drilled to 700 meters down hole
depth with one hole intersecting 138 meters at 0.75 g/t Au from 562 meters
down hole. Two cross sections illustrating this additional sulphide potential
have been provided on the company�s website at the following link: http://www.orosur.ca/exploration_chile/pantanillo/
Work on the scoping
study for Pantanillo commenced in June 2010. Key aspects to be assessed will
be the metallurgical characteristics, environmental studies and water and
infrastructure requirements. A comprehensive metallurgical test program is
planned for completion early in 2011. Base-line environmental studies
will commence when site access is again available between September and
October 2010, and will be followed by geotechnical and hydrological studies
during the summer months in the Southern hemisphere. Prefeasibility
studies are planned to commence during 2011. The Company�s objective at
Pantanillo is to create a second production asset for the Company in Chile.
Qualified
Person's Statement
The information
presented in this press release has been reviewed by William F. Lindqvist, a
director of OMI. Dr. Lindqvist holds a Ph.D. in Applied Geology from Imperial
College, London, has been a member of the AusIMM for 46 years, and has had 40
years of experience in international minerals exploration and property
evaluation.
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
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
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