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Marcous15

re your question “Does anyone know the current reserves for Orosur?”, whilst it is true there is no NI-101 compliant estimate currently available for the APTA [Aragon-Pastorera Trend] prospect, there are several 'inferred estimates' for the drilling so far completed.

MDA (Mine Development Associates) of Reno, Nevada produced an estimate of a potential resource of between 165,000oz and 274,000oz Au, with demonstrated metallurgical recoveries of around 96% based on core data from the 53 holes completed at APTA before Jan 2017. They calculated 1.6M – 2.3M tonnes averaging between 3.2 – 3.7g/t Au.

I updated these calculations in a post dated 12.10.2018,to include all subsequent cores [holes MAP 54 to MAP 71] to produce an inferred resource estimation of around 500,000oz Au [minimum 375,000oz Au]. The calculations, which are complex, are detailed in the 12.10.2018 post, in a Q & A on 13.10.2018 and in an update on 21.10.2018 [Click on AGEOS and scroll back to page 9]

The same inferred resource for APTA of c500,000oz Au has been quoted by colleagues at Miranda Gold [now Outcrop Gold] with reference to their interests in Pantagora [N of ANZA] and Oribella [S of APTA].

Further infill and step-out drilling will hopefully improve on these estimates.

Best of luck with your investment.
AGEOS

Meriman, I should keep quite about your geology degree, otherwise you will get the same abuse I'm subjected to when posting here. Click on my name and read post history if you want geotech data. Best of luck.

MudPump, since you suggest I “return to geology” I assume you judge my efforts in that realm to be worthy of further endeavour. Such a pity that your generosity in that respect fails to extend to allow me any right to expression regarding investment in ZEN, a right you liberally enjoy yourself.

As to the matter you dismiss as “ridiculous”, I would not be so foolish as to post as I did without valid reason. That reason remains confidential.

If all goes to plan I expect this to 'gap-up' significantly on return from suspension. From my experience no accountants ever complete a statutory audit in less than a week and the Tilapia license would have to be signed-off before they even begin the process; so maybe news on that front sooner than expected.
I also anticipate there may be legal retribution in store for some of those who have been working against ZEN's interests, so there could be some entertainment to follow.

continuation:

Those attempting to estimate an Au Resource for the APTA prospect might wish to refer to my post of 12.10.2018 [click on AGEOS and scroll back to page 9] as this details the methodology for calculation and provides an estimation which is still valid as there has been no further drilling. It is also an estimation independently supported by colleagues at Miranda Gold [now Outcrop Gold] who rounded it up to 0.5m oz Au. [ref 18.12.2018].
AGEOS

For those interested in the regional context of the ANZA project, the latest drilling results from the area are those released by Royal Road Minerals [RRM] last Thursday from the GNM Mines situated c15km NW of OMI's APTA prospect and adjacent to OMI's 6219 hectare ICQ-080035X Pending Concession Application, La Cejita target area. These results can be accessed online at www.royalroadminerals.com ; click on 'latest' and then on 'Sept 29, 2020 News' re 'drilling results & exploration update for guintar-niverengo project' .

The GNM Mines [see posts dated 28.05.2020 & 30.12.2018 for details] are subject to an exploration agreement between RRM and Mineros S A{prospective 50% holding in joint company], and not as implied elsewhere on this forum, with Agnico Eagle Mines [which has an 18.4% share holding in RRM].

The significance of the drill results lies not so much in the Au Eq assays quoted but far more so in the stated “multi-element geochemical vector studies” which will have incorporated data from the drill-cores into a regional model attempting to identify deeper primary gold sources. Since the GNM mineralisation is considered to be a Miocene-age hydrothermal event [a skarn-type system hosted in Penderisco Formation carbonates], the primary sources will also be of that age and possibly porphyry-related, vein or breccia intrusives at kilometre-plus depth. The RRM model appears to favour potential targets west of the Guintar area. However, until the Margaritas Pending Concession Application is resolved further-drilling is on hold.

Multi-element vector studies of the type employed by RRM have been developed during the past decade and in this variant use the composition of epidote, chlorite, alunite and other hydrothermal minerals to predict the likely direction and distance to centres of mineralisation. However, if you access Figure 1 on the RRM webpage, remember that this is a probabilistic predictive map, not a map of economically mineable gold. It is however indicative of the type of investigation we may see for those parts of ANZA where drilling may soon be permitted ie Charrascala, and Guaimarala. Vector analysis would not be appropriate for APTA, if proven to be primarily a VMS type deposit, as the mineralisation would have emanated from submarine hydrothermal vents not traceable to a localised source, and is also hosted in Middle Cretaceous-age, Barrosa Formation, volcano-clastic rocks. The metallogenesis at APTA, as detailed in my post of 16.01.2019, is complex and problematic, so it will be interesting to see what further drilling is scheduled at this stage.

To be continued.

Zenith is Canadian registered and as such is subject to CSA [Canadian Securities Administrators] regulations which include a statutory obligation to file all public disclosures and documentation on SEDAR [System for Electronic Document Analysis and Retrieval]
Filing on SEDAR is synchronised with filing on the Oslo Bors and LSE hence the delay in RNS today.

Whilst I have no wish to participate in the current disagreeable forum exchanges regarding Tilapia, it should be noted that Congo potential is not confined to that field alone. As I detailed in a post on 10.07.2020, if the second acquisition, as announced in an RNS part reproduced below, is part of the MKB fields, bear in mind that Orion Oil paid $150m for a 20% interest in 2013 based on certified reserves of 1.3billion barrels of oil. The onshore acquisition may have Mengo and Vandji potential at least equivalent to the Tilapia Djeno.

RNS July 7th 2020 re: “Joint Venture Agreement for acquisition of second oil production asset in the Republic of the Congo”
“The primary objective of the Agreement is the potential acquisition of an onshore oil production licence (the "Potential Acquisition"), last producing at a rate of approximately 300 barrels of oil per day from the regionally proven Mengo formation as recently as 2019. Production has currently been suspended pending the assignation of a new licence. The Potential Acquisition is located in the Kouilou region of the Republic of the Congo in proximity of Pointe-Noire

Further, in accordance with the Agreement, it is stipulated that Zenith shall have the role of joint operator and majority partner in the event that a new licence is successfully obtained in relation to the Potential Acquisition.  Following preliminary technical analysis of the Potential Acquisition, as part of the due diligence activities conducted prior to entering into the Agreement, Zenith is confident that profitable oil production operations can be achieved following the reactivation of the Potential Acquisition and the performance of targeted, low-intensity workover activities.”
AGEOS.

If I have incorrectly implied an intention to mislead on your part, I apologise. If I have enlightened those, who like myself 'lack basic calendar literacy' then that is to the good.

The post at 10.57 today, implying an imminent 'start of exploration activities' at ANZA is misleading. The RNS quoted and dated July 19th is in fact an RNS dated July 8th 2019, reproduced below with clarification of two aspects, integral to the RNS, and which are also subject to misinterpretation by those unfamiliar with the matters to which they relate.

RNS dated July 08. 2019
“Start of Exploration Activities in Colombia
Exploration activities at the Anzá project have been initiated within the scope of the Exploration Agreement with Venture Option with Newmont Colombia SAS, a subsidiary of Newmont Goldcorp (“Newmont”). The Company has already relogged 2,400 metres of the drill core from an area north of APTA. This is the area where a new broad zone of gold mineralization covering a continuous strike of 450m was discovered by Orosur during the 2018 drilling campaign. Geophysical and geochemical reinterpretation is now planned at the Anzá project. The objective of this initial activity, which requires no field work, is to update the geological model, in conjunction with Newmont.”

The reference to relogging of “2400m of the drill-core from an area north of APTA” is misleading since it implies a northerly extension to the area of APTA as defined by the map on page 7 of the June 2020 Corporate Presentation highlighted on the company website. There is no evidence of any drilling at APTA north of the MAP-26 borehole. An assessment of the core-logs from all 71 boreholes at APTA is incorporated into my post dated 12.10.2018 and there has been no further drilling since that date and no public notification of any application for additional drilling permits as of today.

The reference to “geophysical and geochemical reinterpretation....planned at the Anza project” relates to “reinterpretation” of the air-borne and possible ground-based IP and resistivity surveys conducted prior to late 2018 and which I detailed in a post dated 18.10.2018.
AGEOS.

MAJWandCo,

Thanks for responding to my post of 01.09.2020 regarding the ANZA ICQ-080035X Pending Concession Application. Any response, other than the usual derogatory comment I have come to expect here, is so rare on this forum, that one which also included translation of the original source, is especially welcome. I will however have to correct you on a number of points, primarily because of the potential legal implications which could arise from misunderstandings and misinterpretations.

Firstly and most importantly my 01.09.2020 post did not state or imply the existence of a “failed concession application” to quote from the first sentence of your 05.54 post today. If that was your conclusion then you are incorrect and should reread the post. I detailed a clear three-phase sequence of events. March 6th, instruction by Secretary of Mines to select a portion of the ICQ area within 30 days or risk rejection of application; March 29th challenge by OMI legal council to legality of the instruction; April 8th Court rejection of that challenge leaving OMI with no option other than to comply with the Secretary of Mines' instruction. I state precisely that “Orosur are required to select only a portion of the ICQ area, based on the AnnA Mineria grid system, the remaining part or parts being designated 'free' and available for other interested applicants” I also suggest that “Orosur might be eligible to apply for these 'free' areas also, as a separate Concession or Concessions.” {Orosur appear to have done precisely that, as I indicate in paragraph 4 of my 04.09.2020 post, having RNS'd a reference to “four exploration licence applications” instead of the previous three.]

Secondly your conclusion that “it [ie the April 8th court ruling] reads as though they indeed lost the rights to concession ICQ-089935X” is a misinterpretation of the Spanish legalese, as I have clarified above.

Although this might appear to be an excessively wordy response, it is necessary to ensure clarity of meaning from a legal perspective. I mentioned in my 01.09.2020 post that the March 29th company legal challenge, the reference to which I with-held, carried a warning of legal sanction against replication of content, so it is vital that any interpretation of the subsequent April 8th ruling is correct.
AGEOS.

Expect an RNS soon, confirming submission of a technical and commercial bid as part of the Nigerian 2020 Marginal Field Bid Round which has now closed . This will have been submitted in partnership with an as yet undisclosed Nigerian registered energy company, as confirmed in the 16.06.2020 RNS.
AGEOS

Olderandwiser:
Re: Forest protection order. Click on AGEOS to access historic posts; scroll down to bottom of page one. Click on page 3 and scroll down to 26 May 2020 13.48 for details of the TDF order as at that date, including the official published sources. Related permitting issues are detailed in other posts, as are assessments of the Au potential of APTA and ANZA on page 8.
I leave you to draw your own conclusions.

The recent RNS regarding acquisition of the 22.5% CNPC interest in the Sidi El Kilani Field and North Kairouan permit, provides in addition to the enhanced production of c300 bopd, a potential which will not be apparent to most investors.

On completion of both this and the KUFPEC SPA, Zenith Netherlands will be joint operator with a 45% interest, in partnership with ETAP, the state oil company, an exact parallel to the Panoro Energy ASA/ETAP management of the comparable Guebiba Field, the subject of my 14.06.2020 post. In that post I referred to the structural and stratigraphic similarities of the two Fields, and of a recent ETAP reappraisal of the geotechnical data relating to the Guebiba Field leading to a drilling campaign aimed at a considerable enhancement in production..

ETAP geologists have been very active recently [latest data release July 2020] in evaluating the further production potential of the Abiod limestone [main reservoir at Sidi El Kilani], Douleb and Bireno Formations, throughout the Kairouan Basin. Hence, I anticipate ETAP will be keen to initiate further development both at Sidi El Kilani, which is triple the area of Guebiba, and perhaps elsewhere in the N Kairouan permit area. With operational interest soon to be limited to ZEN and ETAP and both parties similarly aligned in their objective of increased production, the prospect of near to mid-term developments towards that end appear highly likely. The bilateral association with ETAP should also facilitate access to a state owned CTF 06, 2000hp onshore drilling rig.
AGEOS

Takeyour bets, Zen has been in receipt of 22.5% revenue from Sidi El Kilani since 22nd April [ref 11.06.2020 RNS] which has been paying off the balance of $250,000 due to KUFPEC. That payment should be completed Sept/Oct so revenue from the c150 boed will then contribute to cash-flow.
Kelsbells is correct regarding the confirmation of transfer of seller's rights etc but that is a separate legal entity with no relevance to the financial aspects of the SPA.
MG sums up the revenue potential of the two deals, KUFPEC and CNPC, admirably.
AGEOS

Yes ajb that is correct, I used to post as 'intheno', as is clear to anyone who wishes to click on AGEOS and scroll back to column 9 where most posts bear both avatars. The 28.08.2018 post explains that I adopted a new name and account, to eliminate bogus posts, which appeared to have been introduced by someone hacking into my account to discredit me. The police declined to pursue the matter as there was no financial or reputational loss of substance.

No, I have not been posting “since the SP was 8x what it is today.” My initial posts coincided with my first share purchase, which was around 8p, so 17x the current price. However, I took note of my posted advice, that “no one should be under any illusion as to the technical challenges of remediation in soviet era oilfields in Azerbaijan” and invested accordingly. My current very low SP breakeven number reflects that caution.

What I post here is based on the professional standards of the geoscience community to which I belong and any inference that I post with biased intent is wholly refuted.
AGEOS

Having also now listened to the 20.08.2020 conference call, I agree entirely with MarketG's excellent summary of the content.

Just to pick up on a few additional points and beginning where MG left off, ie the probable transfer of rigs from Azerbaijan to the Congo, AC seemed quite specific about this and included the “Zena Drilling technicians” of which there appears to be five or six currently in post. In view of the time required for rig shipment, I assume the initial side-track at TLP-103C will most likely be subcontracted to a Congo based outfit, the Zena rigs being destined for the Tilapia II development drilling programme for which up to six additional wells may be required. If ZEN are also successful in acquiring a second Congo field, already alluded to, and for which I have suggested part of MKB as a highly desirable possibility, there will be years of work for Zena Drilling lined up.

Reference to the Zena rigs being transferred to Africa also suggests a possible renegotiation with SOCAR regarding the “Exploration” component of the REDPSA as this includes a commitment to drill a 5000m [or 50m into the Cretaceous basement] well, within the Contract Exploration Area before October 2021. Alternatively, maybe the BQ500 rig lease/purchase agreement with Olieum will come into play. AC also confirmed during the Q & A that $400,000+ was still due from SOCAR re Azer oil production.

Although the Tilapia deal is, as AC stated “foremost in investor perception”, bear in mind that he also implied that the impending West African acquisitions are comparable with Tilapia. Sidi El Kilani plus a second acquisition in Tunisia would also offer similar production potential, as I have outlined in reference to the Bireno carbonate reservoir target [14.06.2020 post]. So cumulatively a lot of significant developments in prospect.
AGEOS

PS I see that further posts of interest to the Financial Conduct Authority have appeared today.

For those who have been following OMI's progress since October 2018 and earlier, the latest update provides little not previously known and nothing unexpected.

Confirmation of the final and last cash payment from Newmont was as anticipated since the alternative would have meant cessation of the 2018 “Exploration Agreement”. Newmont's withdrawal appeared possible following the August cancellation of the similar agreement with Outcrop Gold for the Lyra/Pantagora project, which occupies all of the region from ANZA northwards to Buritica, so confirmation of the payment to Orosur was no doubt a relief to some.

The drill results listed in the RNS & PDF include a selection of the 9 best from the 53 [pre-2017] legacy bore-hole locations, plus holes 54-70 from the Feb-April 2018 drill programme at APTA. It was from this 70-hole drill-core data that I was able to calculate an APTA Au-resource of c357,000oz [+/- 25% deviation] ref 12.10.2018 LSE post, a calculation which was subsequently rounded up to c500,000oz Au by Miranda Gold (=Outcrop Gold). APTA is the only part of the ANZA region to provide drill-core evidence of a possible Au resource, the Charrascala cores being merely indicative at this stage.

What is note-worthy in the RNS is the reference to “four exploration licence applications” in the first paragraph under the title “About the Anza Project”. The 2018 Agreement details three. Since there is no explanation of this change and no loss of an existing licence for which they must now reapply, I suspect the additional licence application is a result of the legal dispute between Orosur and the National Mining Agency [ANM] which I detailed on 01.09.2020. The ICQ-080035X Pending Concession Application is probably now two separate applications.

Finally,as the only professional geologist here I am thankful to the update for initiating an influx of new posters to this BB, including several familiar from 2018/19 days, as I hope it will bring an improvement in the otherwise dire quality of contributions to this BB.
AGEOS.

continuation:
On April 8th 2020 the ANM published a “Failure of Guardianship” judgement in response to the above. This can be accessed via www.anm.gov.co ; click on press/news and scroll down to “Failure of Guardianship Rad No 2020 00045 dated 04/08/2020 and click for access to a link to the 21 page ruling, in Spanish only. Translation of legal language is especially difficult but it does appear that this ruling upholds the February 28th order of the Secretary of Mines and in consequence Escorpion and therefore Orosur are required to select only a portion of the ICQ-080035X area,based on the AnnA Mineria grid system, the remaining part or parts being designated 'free' and available for other interested applicants. It is possible but unclear from the ruling that Orosur might be eligible to apply for these 'free' areas also as a separate Concession or Concessions. There is also no reference to the effect of the Tropical Dry Forest [TDF] protection order, administered by Corantioquia, which appears to include the eastern third of ICQ-080035X.

Whatever the outcome of this Pending Application Concession, it seems unlikely to conform with the specifications cited in the 2018 Orosur-Newmont contractual Agreement both in terms of geographic area and most certainly in time-scale given the Antioquia Department's powers to refuse ratification of Concessions, as it has persisted in doing for the last five years. Any refusal of ratification would be a policy decision equally applicable to all new Concessions including the other two Orosur Pending Applications. That would either scuttle the Orosur/Newmont deal entirely or would require a reformulation of the deal to focus on the three areas for which Existing Concessions are held.

With the fourth and final $0.5m cash payment due from Newmont on or before September 7th, and the subsequent two years payments due as “Qualifying Expenditure” only [ie no cash] the procedural aspects of the Agreement are at a critical stage. Without successful conclusion to the Pending Application Concessions of which ICQ-080035X is an important part, Newmont cannot employ their DSG technology to the combined ANZA acreage and devise an appropriate drilling programme [ie Qualifying Expenditure] scheduled to begin early 2021 and essential if they are to comply with their part of the Agreement.
AGEOS.

Those who are familiar with the Orosur-Newmont 2018 ANZA Agreement will know that in addition to the three Existing Concessions [total 10614 hectares] held by Orosur, the ANZA area as defined in the Agreement, includes three Pending Application Concessions [total 10137 hectares] for which applications must be successfully concluded before subsequent commitments in the Agreement can be initiated. See 27.05.2020 and related posts for details.

One of the three Pending Application Concessions is designated ICQ-080035X, 6219 hectares in extent and including the extensive La Cejita SGA [Sediment Gold Anomaly] and a prime target for Newmont's DSG [Deep Sensing Geochemistry] technology. The Agreement specifies that a legal entity named Escorpion S.O.M. is the Applicant for this Concession and that upon issuance of the Concession it will be transferred to Minera Anza [Orosur]

On January 15th 2020 the National Mining Agency [ANM] launched 'AnnA Mineria' an online platform for the management of all Colombian mining Concessions and titles, and to which all existing applications were transferred, including presumably the huge Antioquia backlog dating from 2015 of which the three ANZA pending applications are part. The platform unifies all environmental and relevant community data in order to exclude or modify incompatible mining applications at an early stage. Suitable application can, it is claimed, be concluded within three months. The Department of Antioquia of which ANZA is part, we should remember, remains an exception as it has delegated power to withhold ratification of any Concession approved by the ANM within its area of jurisdiction, hence there have been no successful Concession applications since 2015. Orosur's three Existing Concessions pre-date 2015.

On March 6th 2020, subsequent to an order of February 28th, the Secretary of Mines for the Department of Antioquia informed the applicant regarding ICQ-080035X that within 30 days they must select a portion of the area which conformed with the new grid system adopted by 'AnnA Mineria' and indicate the area to be discarded. Failure to do so would result in rejection of the proposed Concession contract.

On March 29th 2020 the legal representative of Escorpion S O M filed an Accion de Tutela [Guardianship Action] effectively challenging the legality of the order. This is in the form of 104 pages of legalistic Spanish, the reference to which I shall withhold as it carries a warning regarding possible legal sanction.
To be continued.