Turner Pope15 Feb 2022 09:56
The area is remote but it is a major gold province. Turner Pope does not see a need for a further placing and confirm that drilling results should be released
"Having already seen drilling demonstrate a significant underlying resource at APTA, with subsequent regional mapping suggesting
possibility for multiple repetitions along strike, it would now be something of a surprise if development is not moved into a much
higher gear. Given that Orosur will no longer be overseeing the onsite work investors understand they will receive less regular
drilling updates going forward. But given that that the Group still controls 100% of the licences, data from completed holes
submitted for 43-101 resource assessment will nevertheless be available for publication, as well as any formal decision to accelerate
the development phases. September 6th is the anniversary date for the current Year 4 of the project (highlighted in yellow below)
with qualifying expenditure of US$4m. Given Agnico’s apparent wish to accelerate development, the triggering of Phase 2 in the
coming months is a possibility which would result in Orosur receiving a further US$2m payment from Newmont/Agnico before
this date. This, together with a presently strong cash position and the fact that the two newly acquired early-stage projects incurred
very low entry costs with only limited burn anticipated for the first two or three years of operation, suggests management remains
comfortable with the Group’s balance sheet at this time.
Argentina:
1. Deseado Massif - Hosts high-grade, tier-1 gold & silver deposits
The Deseado Massif is a large area (>60,000km2) of mid to late Jurassic volcanic rocks
in southern Argentina. The region has in recent decades been shown to host numerous
high-grade tier-1 gold and silver deposits, the two largest being Anglo Gold’s Cerro
Vanguardia mine (mineral resource of 3.3M oz Au with all-in sustaining costs (‘AISC’)
of US$931/oz) and Newmont Mining’s Cerro Negro deposit (AISC substantial projects in the region include Yamana Gold’s Cerro Moro (proven &
probably mineral reserves of 341,000 oz Au & 23.9M oz Ag) and Pan American Silver’s
Manantial Espejo deposit (12.7m oz Ag with AISC of US$15.68/oz).
2. Given that Orosur’s geological team and Directors have already
made several visits to the Project, desk top targeting work has already begun in support
of the rapid commencement of exploration work once the deal structure has been
finalised. Although short days will limit the extent of work carried out during the midwinter months (June to August), management expects completed ground magnetics/sampling etc. during this time to open
opportunity for drilling to commence in September of this year
3. The El Pantano Project - Comprising nine contiguous exploration licences
Significantly, preliminary field inspections undertaken by Orosur’s geological team, have noted large erosional windows within
this cover that expose