Orosur Mining Inc Announces Results of the Feasibility Study
For Arenal Deeps in Uruguay
MONTEVIDEO, Uruguay 07 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 Arenal Deeps Feasibility
Study (�FS�). The study was completed by AMEC E&C Services
Inc. (�AMEC�)
Highlights of
the Report
Summary of
Financial Results
|
LOM
|
Gold payable
|
oz 000
|
135
|
Total cash costs
|
US$/oz
|
545
|
Cumulative net cash flow
|
US$ 000
|
26,283
|
Internal rate of return
|
%
|
32.3%
|
Net present value @ 7.0%
|
US$ 000
|
16,372
|
Total life-of-mine (LOM)
capital
|
US$ 000
|
24,690
|
Total LOM operating costs
|
US$ 000
|
73,382
|
The financial results
indicated a six-year mine life, with an IRR of 32.3%. The gold price
assumption for the FS was a constant gold price of US$1,000/oz. No
other metals were considered payable.
The FS envisages two
underground mining methods, inclined room-and-pillar (IRP) and transverse
stoping (TS), based on probable mineral reserves, (effective date 1 June
2010), as follows:
Method
|
Tonnes
(kt)
|
Grade
(g/t Au)
|
Contained Ounces
(koz)
|
IRP
|
276
|
2.53
|
22
|
TS
|
830
|
3.25
|
87
|
Total Probable Mineral
Reserves in Stopes
|
1,106
|
3.06
|
109
|
Development
|
462
|
2.38
|
35
|
Total Probable Mineral
Reserves
|
1,568
|
2.87
|
145
|
Notes to accompany
Mineral Reserve Table:
1.
Underground
Mineral Reserves are confined to designed stopes;
2.
A
cut-off grade of 1.3 g/t Au is used for the TS, and 1.5 g/t Au for the IRP;
3.
Mineral
Reserves are reported using a gold price of USD850/oz;
4.
Tonnages
and ounces are rounded to the nearest 1,000 tonnes, grades are rounded to two
decimal places;
5.
Tonnage
and grade measurements are in metric units, ounces are troy ounces
David Fowler, CEO of the
Company commented: "This feasibility study for Arenal Deeps is an
important step for the Company in our objective to extend the San Gregorio
mine life in Uruguay while maintaining production levels at approximately
50-60,000 ounces of gold per annum. The initial investment in capital and
skills will also allow additional underground reserves to be targeted at San
Gregorio to further extend mine life. Tenders for contract mining and
equipment purchases are being progressed with Board approval to be considered
in coming months. Funding for the project is expected to be generated from
operating cash flow, which has been enhanced in this current gold price
environment, and debt.�
Background
Arenal Deeps is the down plunge continuation of the Arenal deposit that waste
mined as an open pit between October 2004 and April 2009 and produced 388,000
ounces of gold at an average grade of 2.16 g/t Au using a 0.5 g/t Au cut off
grade.
The mineral resource at
Arenal Deeps was modeled and estimated by Mine Development Associates (�MDA�)
with a result, which was announced in March 2010, of a mineral resource
estimate of 2.05 Mt at 3.68 g/t Au (using a 1.5 g/t cut-off) as a base case.
MDA also prepared a range of alternative estimates, using various gold
cut-off grades. AMEC reviewed and accepted the mineral resource estimate, and
restated it at 1 g/t Au cut-off, effective 15 March 2010, for the purposes of
the base case mineral resources for the FS, as follows:
Category
|
Tonnes
(kt)
|
Grade
(g/t Au)
|
Contained Ounces
(koz)
|
Measured
|
1,416
|
2.59
|
118
|
Indicated
|
2,587
|
2.44
|
203
|
Total Measured and
Indicated
|
4,003
|
2.49
|
321
|
Inferred
|
99
|
2.84
|
9
|
Notes to Accompany
Mineral Resources Table:
1. Mineral Resources that are not Mineral Reserves do
not have demonstrated economic viability.
2. Mineral Resources are inclusive of Mineral
Reserves.
3. Mineral Resources are reported at a cut-off grade
of 1 g/t Au.
4. Mineral Resources are reported as undiluted.
5. Mineral Resources are reported within a conceptual
pit shell.
6. Mineral Resources are reported using a long-term
gold price of USD890/oz.
Next steps
The company expects to have
a 43-101 compliant mineral resource/mineral reserve for silver contained
within the gold estimates completed in October 2010. Infill drilling planned
in the FS is also expected to identify additional mineralization that could
support conversion to mineral resources, and eventually to mineral reserves.
The Company submitted a
request for environmental approval for the Arenal Deeps project on April 30,
2010 and is in the process of obtaining the environmental approvals for the
project from DINAMA, the relevant authority in Uruguay. Funding for the
project is expected to come from cash from operations, enhanced in this
current gold price environment, and debt. The Board will consider the
approval of the Arenal Deeps project in the coming months.
Qualified
Person's Statement
The information
presented in this press release has been reviewed by Mr. Randall Corbett,
General Manager, San Gregorio, and is considered to be in compliance with NI
43-101 reporting guidelines. Mr. Corbett has a Bachelor of Engineering
(Mining) Degree from Technical University of Nova Scotia (T.U.N.S.), is a
Professional Engineer (P. Eng.) registered in the Province of Ontario and has
more than 25 years operational, engineering and development experience.
The Qualified Person
(QP) for the mineral resource estimate is Mr Mark Hertel, P.Geo. Mr
John Barber, P.E. is the Qualified Person for the mineral reserve
estimates. Mr Hertel and Mr Barber are AMEC employees, and are
independent of the Company as within the meaning of NI 43-101.
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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