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A fellow-geologist who is familiar with the APTA prospect and has contact with some of the in-country crew, is of the opinion that sufficient is known of the resource potential at APTA for Orosur to favour a continuation of drilling toward achieving NI 43-101 status [Canadian National Instrument regarding Disclosure for Mineral Projects]. The consensus is apparently that this would cost in the region of $20m over 3 years.
However, because Newmont/Agnico want a single mine capable of producing c5M+ oz au over at least 10 years and are in charge via MMA, further drilling at APTA is on hold until the other targets at ANZA have been assessed.
In the meantime Orosur cannot disclose publicly its own internal resource assessment of APTA in advance of further drilling results as this would contravene NI 43-101 criteria.
The above is an expression of his personal informed assessment and should not be interpreted as in any way a disclosure from, or on behalf of, the company.
AGEOS
Karl, I have been an investor in Orosur since 2018, adjusting my holding up and down according to both market sentiment and my own assessment, as a geologist, of company prospects. As posted on 24th Jan, I “topped up”, I have not “ become an investor”,
With regard to the indicated resource at APTA of 2.3M oz au posted earlier today it is not an expression of being “distinctly bullish” it is an estimation using a modified form of RockWorks software and many years experience of geomodeling bore-hole data. During a presentation on July 7th 2021, Brad gave a clear indication of the increase in resource indicated by the then recent drilling when he said “APTA makes a good start to achieving a multi-million oz gold resource; 60m at 10g/t if over 200m provides a basis for doing the sums.” If you do the sums from that statement you get 672,897 oz au from just two 100m3 blocks.
My concerns first posted on 17.10.2019, relating to the proposed TDF [Tropical Dry Forest] protection orders were wholly justified since they would have impacted 80% of the licence area which included the Jesuitas target, 50% of the area which included La Cejita and 100% of the area between that and the Cauca river. It is not “bearish” to raise such issues. Having monitored the progress of the TDF orders through Corantioquia, the government environmental agency, I am now reassured that the loss of licence area which the company itself now acknowledges, will not impact access to the targets unduly. If you access page 10 of the June 2022 Presentation entitled Bosque Seco Tropicale -BST, the left-hand map shows the 2018 proposals for forest protection zones thus confirming most of my original concerns, whilst the map on the right shows the 2021 and current proposals. Note, there is a long corridor of protected forest extending well into the APTA prospect area but that others are now unaffected. The Dec 2022 Presentation states that “The total land holding may start to reduce as part of the conversion and consolidation process” [ref page 7] and the map on page 8 confirms the boundary of the TDF west of the Cauca river as now proposed.
I trust this answers your queries and clarifies apparent issues.
AGEOS
Those familiar with the background to the APTA prospect will know that the baseline for estimation of the gold resource is that produced by MDA [Mine Development Associates] of Reno, Nevada who calculated a resource of 1.6M – 2.3M tonnes averaging between 3.2 – 3.7g/t au, based on the data from 53 holes. This indicated a potential resource of between 165,000oz and 274,000oz au.
I used the parameters inherent in MDA's calculations as the basis for an update on the potential resource, as posted in detail on 13.10.2018, and calculated an indicated resource of between 308,000 and 357,000oz au based on the then total of 71 holes drilled.
With the resumption of drilling in late 2020 I posted on 08.02.2021 that I had constructed a 100m3 block-model to quantify the results from hole 072 and 9 legacy holes within a 925-825m asl [above sea level] 100m3 block, resulting in an indicated resource of 114,907oz au, based on 1,234,530t @ 2.895g/t au. This being an illustration of the high yield from a single 100m3 block subject to high-grade mineralization.
Since then I have extended the 100m3 block model to encompass all the data relevant to APTA and can confirm that the indicated resource based on my estimations now totals 2,342,717oz [troy] au, from 25.07M tonnes @ 2.61g/cm3 [sp.g. of assay samples] a total for which a 20% + or – error margin would be appropriate. In addition there is an estimated 8.613M tonnes of siliceous breccia ore, within the zones designated as 'high-grade' in the various cross-sections, for which there is no assay-data indicative of grade values. The data-points and calculations on which this is based are far too numerous to detail here. However, a total of 29, 100m3 blocks contributed to the total au resource, and 6 blocks to the additional ore-tonnage total.
On 21.10.2018, I suggested that extensions of the high-grade zones could have been displaced at depth west of the N-S aligned El Cuno Fault, a possibility now supported by results from holes 92 and 95, and which if confirmed by future deep drilling could significantly increase the resource potential in that direction. That, plus the potential for further down-dip and infill drilling, and not forgetting the polymetallic aspects of the prospect, supports the possibility that APTA may well be developed to economic viability irrespective of what is discovered elsewhere in the ANZA region. It is perhaps significant that in a recent interview Brad compared APTA to the deposit at the working El Roche Mine 30km to the SW, the economics of which I referred to in a 16.01.2019 post as being indicative of APTA being a potential 'legacy' asset for Orosur, bearing in mind the more ambitious objectives MMA is pursuing in the ANZA region.
AGEOS.
Jackbal re your query regarding progress on the Brazil JV, a Canadian registered holding company has been incorporated and the incorporation of a Brazilian operating company is in progress. Reference to this was published on SEDAR September 28th, 2022 as copied below:
Brazil
“The JV will require the establishment of a new corporate structure to hold and manage the assets. Post period end,[ie after May 31st 2022] the required Canadian holding company was incorporated. This will be followed by the incorporation of the necessary local Brazilian operating company.”
Source: SEDAR Filing September 28, 2022 Orosur Mining Inc. Management’s Discussion & Analysis PDF for Year Ended May 31, 2022. Page 5
AGEOS
Rob, there are no assay samples remaining at the labs; unfortunately just another of the misconceptions generated on this site. Yes, duplicate samples were sent for retesting as Brad said, as this is a prerequisite to ensure the validity of most high-grade results, but the processing time was as normal.
Drilling at Pepas was suspended, as I understand, in order to undertake further field-work and no doubt to better assess core lithologies, in order to maximise effectiveness of the next drilling phase. Only then can drill pads be localised and the necessary access roads constructed in what is often very difficult terrain.
The Phase 2 $20m drilling expenditure is the minimum necessary to comply with the terms of the Agreement. There is no maximum limit. They will spend whatever is necessary to ensure that all possibilities of finding a 5M + oz au mineable resource have been investigated.
Hope that allays some of your concerns.
Rob, thanks for your response and generous comments. I have no doubt that both the field staff and management of Monte Minera Aguila[MMM], the Colombian company which represents the 50/50 JV interests of Newmont and Agnico, have only one objective, that being to locate and quantify the maximum mineable resource at ANZA. Fears that they or anyone else further up the management hierarchy want to somehow acquire the asset “for peanuts” or are contriving “to restrict information flow to investors”, which I know has been a subject of discussion on this site, are I am sure entirely unfounded. The industry simply doesn't work that way as the reputational damage to the perpetrator would be terminal. Yes, during the 4-year Phase 3 period of the Agreement, MMM will acquire a 75% interest in ANZA, but only after producing a 43-101 feasibility report at which stage Orosur's 25% interest, in what would have to be a 5M+ oz au resource for the JV partners to be interested, would be valued in hundreds of millions of dollars. In the meantime, and in the absence of any preventive clause in the Agreement, Orosur could sell its 25% interest, but why do so when there is such a massive potential at Phase 3, and even if Phase 2 fails to produce the 5M oz au target and the Agreement is terminated, the company will retain 100% of APTA [1M oz au minimum] and whatever other assets have been identified, at zero cost.
Hedgehog,
Highlander47 was a highly contentious poster here during 2020 and claimed to be Alex MacDonald the former CEO of AAOG who was involved, with other personnel of AAOG, in a legal dispute with Zenith. It led to an intervention by Teresa Goma the then Director General of Hydrocarbons, hence her aversion to Zenith assuming the Tilapia licence. I have copies of all the relevant exchanges.
It is a subject best left to history.
Thanks Chicken. The El Pantano, Argentina, geochemical results are highly indicative of a substantial epithermal system so I am anticipating very positive results from the field program which has been underway since last September. Early days but with a commitment of $1m to earn 51% during the 3-year Phase 1 period and $2m to earn 100% over a subsequent 2-years for Phase 2, well within the anticipated cash reserves, this could rapidly become a valuable adjunct to the ANZA asset. Will post further on this and Brazil in due course.
continuation:
As I understand it, the Newmont/Outcrop survey of the Lyra Project area showed a concentration of positive Au/t anomalies in the south, immediately north of the La Virgencita prospect and within the same structural block bounded by the N-S Tonusco [E] and Mistratos or Sepultura [W] Faults both thought to have provided the fluid pathways for mineralized vein systems. It is of special significance that the Guintar-Niverengo concessions, immediately west of, and abutting La Virgencita, target an area including over 50 historical adits which mined an E-W oriented au-rich vein swarm immediately west of the Sepultura Fault. Recent drilling has intercepted porphyry style mineralization with gold, silver and copper bearing stockwork and quartz veins. Deep drilling to intercept possible high-tonnage vein systems or breccia ore-bodies nearer to the tonalite/diorite source is under consideration by Royal Road.
Royal Road is also operator of the La Margarita concession which is surrounded on all sides by Orosur's main central concession of APTA West, APTA etc, by the Aster prospect to the south and by the unnamed western concession of licence 7248B [HDH-08101X in the 2019 Technical Report]. Royal Road reports a very different geology at Margarita to that at Guintar-Niverengo with field sampling of hydrothermal breccias showing gold at up to 1 g/t and silver up to 100 g/t prompting consideration of possible deep drilling to test the breccias nearer to the presumed tonalite/diorite mineralized fluid source. There is a substantial breccia pipe in the vicinity of the APTA West prospect adjacent to the shared boundary between it and the Margarita concession.
In all there is a substantial list of potential targets for the Phase 2 drill program, plus considerable scope to determine the full extent of the APTA resource.
AGEOS.
Whilst continuation of drilling at the Pepas prospect will presumably be the first and immediate initiative as part of the four year Phase 2 drilling program, a successful conclusion to the current mapping and sampling field-work in the south, and of the applications for the four outstanding exploration licences, will no doubt result in additional prospects being fast-tracked into the drilling program.
Of the options available I conclude that the southerly Roble prospect will be high on the list of targets for near-term drilling as this appears to incorporate both the Charrascala and Guaimarala prospects as previously defined. Scout drilling at Charrascala in 2018 intersected gold up to 3.43 g/t in polymetallic zones of 0.9 – 3.8m thickness in host rocks of the Barroso Formation [same host rocks as Buritica] along an 800m N-S structural trend. Trace element geochemistry identified a significant correlation between gold and ****nic, an anomaly which extends to the adjacent Guaimarala prospect. The proximity of proven mineralization to the Charrascala tonalite/diorite, a possible plutonic source, is of further significance regarding the metallogenesis. All this points to Roble being a prime target for near-term drilling.
The Cedro prospect at the southern end of the T13635011 licence block, appears from the sampling data to be on a continuation of the Roble N-S trend and only 2km from the northern limit of the Oribella gold-copper prospect currently licenced by Outcrop Silver & Gold Corp. Outcrop and Newmont were partners in exploration of the Lyra Project covering most of the area between Buritica and ANZA, as posted during 2019-20. As Newmont will presumably have had access to the geotechnical data relating to Oribella that may also have a bearing on the priority given to the Cedro prospect. There is reference in the December Presentation that “several new applications on the southern margin may be added” which may relate to the Cedro/Oribella interface.
Of the four licence applications in progress, the most significant is ICQ-080035X which includes the La Virgencita prospect, formerly known as La Cejita, which is anticipated later this year now that presumably the legal complications, which I covered in detail during 2020, have been resolved. Due to its prominence in the initial ground sampling survey it has been assumed to have the greatest potential of all the ANZA prospects and despite the recent shift in exploration focus to the more southerly ANZA prospects, I anticipate scout drilling will commence once licence approval is granted. Detailed mapping indicates a much more complex geological substructure than initially envisaged, providing a variety of potential host-rock contexts for CBM(Au) systems like Buritica, including a hornfels-grade metamorphic aureole in meta-tuffs and meta-sedimentary rocks. Other characteristics indicate a possible porphyry style deposit.
To be continued.
Yes Chickenlegs, very much so and even more with the geochem at Roble, the former Charrascala and Guaimarala which I anticipate will be a priority in the drilling program in Phase 2. I've topped up big-time, everyone of over 20 buys in recent days showing as sells.
continuation:
The probability of the ore-body exceeding that volume calculation is extremely high as indicated by the following factors:
Firstly, the disclosure in the 02.12.22 RNS of evidence of “three distinct phases of structurally controlled veining, with the youngest phase being the polymetallic sheeted veining that produced the thick intersections of high-grade gold intersected at Pepas in earlier holes [meaning PEP-001 especially]. It is also likely that these various vein systems have different orientations, with the most important potentially dipping away from hole PEP-008. As a result, hole PEP-008, being drilled from the west, may have drilled under this important later structure [ie the late phase polymetallic veining].” From this, and the outcrop evidence of vein systems depicted on the page 15 geological map of the Sept 8th presentation, I infer that the late phase polymetallic vein system is that which has an approximate E-W strike, an orientation for which any holes with near-parallel azimuth would have had low probability of interception. Of the 9 holes drilled, 5 have such an orientation and intercepted zero or minimal mineralization ie veining, whilst 4, drilled from the same pad and at an angle to the E-W orientation, all produced intercepts of high-grade. If, as the evidence so far indicates, the high-grade mineralization is primarily concentrated in a swarm of parallel veins, and possibly less so in disseminated stockwork, the direction of drilling is critical if maximum interception of those veins is to be achieved.
Secondly, the page 9 geological map in the December 6th presentation shows surface outcrop of mylonite, a distinctive rock type, displaced by a NE-SW fault, to the NW of the PEP-001 drill pad indicating a possible extension of the ore-body in that direction. Hole PEP-003 drilled at azimuth 95 and at 49.6 dip through that region produced 5 intercepts from ground to 261m depth totalling 55.4m and with au g/t ranging from 0.54 to 1.3, whilst PEP-009 drilled at azimuth 80 and 50 degree dip, intercepted 14.05m at 0.38 au g/t, 300m below PEP-003, Since both drill holes were oriented W-E there is a high probability that if the late phase polymetallic high-grade vein system extends northwards into this area and maintains the same orientation as that to the south, these holes would have intercepted only a small proportion of those veins. Vein systems tend to maintain a consistent orientation over large areas as they are the product of regional tectonic forces.
Finally, results to date indicate that Pepas is a Miocene age epithermal deposit with possibly three phases of mineralization of which the last was polymetallic and of highest grade. As such it has affinities to the occurrence at Buritica. APTA in contrast is a high-grade VMS type deposit of Cretaceous age supplemented by a low-grade Miocene epithermal overprint. Further drilling could significantly enhance the economic potential of both.
AGEOS.
Since my last post, on 06.09.2022, in response to the RNS of that date detailing assay results for the first three Pepas drill holes, the results from a further six holes have been released, which together with some initial geological interpretations included in company presentations, provide the basis for an update on the au-resource potential of the Pepas prospect. It seems timely to provide this assessment, especially in view of the imminent transition to Phase 2 and the anticipated acceleration of the drilling program both at Pepas and elsewhere at ANZA. I may also compile an update on the potential au-resource at APTA to bring the resource estimation sequence of that prospect, posted from 13.10.2018 – 08.02.2021, based on 100m block-modelling, up to date.
What follows is based on the assay results and the Investor Presentations of Dec 6th 2022 [ page 9 geological map and cross-section] and Sept 8th [ page 15 map and 16 cross-section].
With reference to the cross-section illustrated on page 9 of the Dec Presentation, the ore-body as currently defined, can be calculated as approximately 150m x 50m x 50m, ie 375,000 cu m in volume, which at 2.61 g/cm3 [specific gravity of the hydrothermal breccia ore assayed from APTA] yields 978,750 tonnes of ore. At an average 3g/t au [ for the PEP-001, 005 & 007 intercepts] that produces 2,936,250g au, ie 103,754 oz au.
The above volume calculation is based on the estimation of a vertical NNW-SSE oriented plane [coinciding with the 150 azimuth of the PEP-001 hole] of approximately 7500sq m [150 x 50m]. The only hole at 90 degrees to that plane is PEP-008 but that passed below the mineralized zone. However, PEP-005, at azimuth 95 and therefore 55 degrees northeast of PEP-001 intercepted 36.85m at 2.13 g/t au, and PEP-007 at 170 azimuth and therefore 20 degrees southwest of PEP-001 intercepted 80.55m at 3.05 g/t au, on which basis it is reasonable to assume an approximate 50m minimum dimension to the ore body in the WSW-ENE direction, hence the 150x50x50m approximate volume calculation.
To be continued
Apologies for the Ministere de l'Industrie, list of concessions web link failing, despite having tested it successfully before posting. Many subsequent attempts to get it to work have also failed so you will have to take what I have posted at face-value. It is buried somewhere on the site linked below.
www.energiemines.gov.tn/fr/accueil/
Hedgehog
Didon, Douleb, Semmama, Tamessmida, Cercina Sud, Isis and Utique are just some of the fields for which ETAP has sole 'Participation' or 'Operatorship'. See link below and click on Production/List of Concessions.
www.etap.com.tn
As a source of reference, the Ministere de l'Industrie des Mines et de l'Energie lists the “Concessions d’exploitation d’hydrocarbures en Tunisie “, for which the link below will provide access.
liste de Concessions d'exploitation 2021 - version finale - liste_des_Concessions_d_exploitation_2021_-_version_finale.pdf
Note that this has not been updated since at least September 2021, the last JORT entry being 31.08.2021. It does however confirm Ezzaouia [item 21] as being apportioned to ETAP and Ecumed as title holders [Titulaire] and as “waiting Convention's law approval” for the 20 year extension to 31.12.2039 [Date d'expiration] The term “Convention” refers to the current Hydrocarbons Code and Amendments and “approval” is granted by “a decree published in the Official Gazette of the Republic”.
That “decree” is what, it appears, was published in the Gazette on 29th November, 2022.
AGEOS
Thanks for the responses.
A Candax Ecumed Presentation in 2015 states “Ezzaouia Concession, Candax 45%, ETAP 55%, MARETAP Operator [50/50- JV between ETAP and Ecumed] end of Concession 31.12.2019; extension/renewal requested and expected.”
ZEN, via its subsidiary [ZEAL Zenith Africa Energy Ltd] completed the acquisition of EPZ [Ecumed Petroleum Zarzis Ltd] on the assumption that the “extension/renewal [in the form of the New Concession] would be granted, as implied by the statement on the current company website as follows:
“On April 19, 2019, the Tunisian State represented by the Ministry of Industry and Small & Medium Enterprises informed ETAP and EPZ that the Comité Consultatif des Hydrocarbures (“CCH”) had provided a favourable opinion to the application submitted by ETAP and EPZ for a new 20-year concession to be called “Ezzaouia” (the “New Concession”).”
“A Convention for the New Concession (the agreed work programme between ETAP and EPZ) has been signed by both parties.”
The website concludes with the following:
“The New Concession is currently awaiting parliamentary approval.”
That 'parliamentary approval' is presumably what is referred to in the Ministry of Industry decree published in the Gazette on the 29th November 2022. If so, and in favour of ZEN, why no RNS confirming the award and an update to the website.
AGEOS
On the 8th January I reposted the link below, which had originally been posted by 123tor on the 24th December, and suggested that this appeared to confirm final government approval of the 20 year 'New Concession' for the Ezzaouia Field, in which ZEN had acquired a 45% interest by way of its 100% acquisition of EPZ [Ecumed Petroleum Zarzis Ltd] from Candax in March 2021 [see ZEN website for details].
https://en.africanmanager.com/tunisia-ministry-of-industry-grants-etap-hydrocarbon-exploitation-concession/
I concluded that post by stating “Presumably this will be confirmed by RNS and followed by activation of the 'production optimization and drilling program at Ezzaouia' which is inherent in the terms of the 'New Concession' and has previously been mentioned by AC.”
At the time of writing that post I was conscious of having adopted a positive interpretation of this new announcement as the reference to ETAP having been awarded the concession “with a rate of 100%” implies that ZEN is excluded. In the absence of an RNS from ZEN clarifying the situation, the possibility exists that this loss of a significant proportion of ZEN's oil production is indeed inherent in this award which is back-dated to 01.01.2020, and therefore not only impacts the c225 barrels per day of current production due to ZEN but may also place an embargo on selling the Ezzaouia portion of the 52,000+ barrels in stock, The El Bibane and Robbana portions would not be so affected.
Although the text of the above link refers to the award as an “exploitation concession” and in the second paragraph as an “operating concession”, and is reported elsewhere as an “exploration concession”, it is clearly one and the same “20 year concession awarded 100% to ETAP”. The simultaneous award of the “Oued Zar” concession 50% to ETAP and 50% to ENI, reinforces the conclusion that ZEN [via EPZ or any other subsidiary] is excluded from this new 20 year Ezzaouia concession as it should have stated “ ETAP 55% and EPZ 45%” if the status quo was to be maintained..
It is unfortunate that the 'Official Gazette of the Tunisian Republic (JORT)' has limited online access as it is always advisable to check original sources especially for disclosures as significant as this. Second hand reports from news agencies cannot always be relied upon for accuracy in translation, in this case from the legalistic arabic and French of the JORT. However, at some stage and hopefully soon, ZEN will have to issue an RNS to clarify the issue.
I note that recent adverse trading here and in Oslo may imply that others have similar concerns regarding the situation in Tunisia and not just regarding Ezzaouia. I hope such concerns will prove to be unfounded,
AGEOS
The value of the Tilapia Field has increased with the November 2022 news that a “new pre-salt play” has been confirmed in the previously identified Vandji sandstone potential reservoir, by Perenco's Tchinem 1-01 well in the shallow water PNGF [Pointe Noire Grand Fond] Sud Licence 50km SSW of Tilapia. The well intercepted the Vandji formation from 3420 to 3625m depth and initially produced 2000bopd on natural flow from two intervals totalling 62m. If pressure testing confirms connected volumes the production rate could be increased substantially.
Seismic profiles indicate that the Vandji extends at depth inland beyond Tilapia, as it is encountered in boreholes in the easterly MKB Block [Kunji, Bindi, M'Boundi and Kouakouala fields] resting on continental basement rocks.. At Tilapia the seismic data indicates substantial vertical displacement of the Vandji across a N-S oriented normal fault such that it would be intercepted at shallower depth in the landward direction in contrast to the seaward direction, thus far employed to intercept the Mengo and Djeno [2397-2411m in TLP-103 well] reservoirs. NewAge, which holds a 75% interest in the Marine III shallow sea block between the PNGF Licence and Tilapia has identified three target structures adjacent to the Tilapia boundary so it is possible that the Perenco discovery may induce exploratory drilling of one or more of those areas, which would be a further enhancement of the Tilapia interest.
AGEOS
In a post dated 29th August last year, I detailed advanced tendering by CTF [Compagnie Tunisienne de Forage] the most likely contender for supply of a MidCo rig to ECUMED for drilling of the ROB-3 well, .based on the details of the tenders which conformed with the time schedules and the material requirements to drill a 2,500m well. ZEN had previously announced November 2022 for commencement of drilling.
It is disappointing that ZEN have not updated the market on the reasons for failure to meet this time schedule even though, as I suspect, it is due to the bureaucratic gridlock associated with the current political crisis in the country. However, it appears that CTF have now set revised deadlines during this January for the tenders to provide all the ancillary equipment and materials detailed in their original specifications, so hopefully there will be some progress with ROB-3 during Q1 2023.
AGEOS