MONTEVIDEO, Uruguay–(Business Wire)–
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
Ingeniería y Construcción 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 Ingeniería y Construcción 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 5,638 meters.
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).
Orosur Mining Inc
David Fowler, CEO
Ignacio Salazar, CFO + 598 2601 6354; info@orosur.ca
or
Matrix Corporate Capital LLP (Nominated Adviser & Broker)
Louis Castro, +44 (0) 203 206 7209
Tim Graham, +44 (0) 203 206 7206
or
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
Copyright Business Wire 2010
