Analyst Comment30 May 2024 10:35
Orosur Mining* (OMI LN) 4.5p, Mkt Cap £8.8m – Encouraging exploration results show gold and silver prospectivity in Argentina
• Orosur provide an update on their El Pantano gold and silver project in Argentina.
• The Project lies 40km from Anglo Gold’s Cerro Vanguardia camp and covers 600km2 of contiguous licences.
• 80% of the licence is unexplored, with no drilling taking place across the entire package.
• Orosur has been conducting geological mapping and geochemical sampling, with follow up targeting now the next stage.
• The geology of the asset revolves around the Deseado Massif region, which consists of felsic volcanics and hosts substantial precious metal deposits, including Newmont’s Cerro Negro deposit.
• Work to date has identified a SE-NW trending rift system over a 20km x 6km strike, bearing similarities to nearby gold and silver deposits.
• Supportive geochemical anomalies, including As, Hg, Pb and Cu were recorded over the rift structure, raising the potential for low-sulphidation epithermal fluids associated with gold mineralisation.
• Going forward, Orosur has submitted applications for drilling permit approval and will work to identify targets.
• The Company will focus on the Anzá gold project in Colombia whilst the Argentine winter runs its course.
Conclusion: Argentina remains a highly prospective country for exploration and Orosur has worked to identify a promising rift structure prospective for precious metal mineralisation. The similarities El Pantano is showing geologically to Cerro Negro, which expects to produce 290koz this year at an AISC of $1,110/oz, is exciting and warrants further exploration work drilling when ready. We look forward to updates from both Argentina and Anzá as Orosur works to secure 100% of the asset from their Newmont/Agnico JV.
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