Last checked at 30 Aug 2011 07:00
Orosur Mining Inc. ("OMI" or "the Company") (TSX-V: OMI) (AIM: OMI), a South American-focused gold producer and explorer, announces that is has signed the Definitive Acquisition Agreement for 100 percent interest in the Talca gold property ("Talca") in Chile's Region IV.
On June 9, 2011, the Company announced it had entered into an Agreement to acquire 100 percent interest in Talca conditional to at least 66.66 per cent of the Vendors accepting the offer. The Company has now obtained the unanimous acceptance of the Vendors, and the Definitive Acquisition Agreement to acquire 100 percent interest of Talca has been signed on August 26, 2011.
Highlights
Property recently under operation - enhancing production potential High grade artisanal production of approximately 300,000oz of gold in the last 40 years Surface exploration has commenced. An initial drilling program of approximately 7,500m is planned to commence in early September with an initial 43-101 targeted to be completed in calendar Q2 2012 Fast-track scoping study commencing calendar Q2 2012 Acquisition payments of US$3.84 million over approximately 20 months for a 25 per cent interest in Talca with an option to acquire the remaining 75 per cent for US$3.78 million over a five year period 1 per cent net smelter royalty on productionDavid Fowler, CEO of Orosur said: "We are delighted to announce the closing of the acquisition of Talca and the start of its exploration programme. The Company´s plans are a first pass drilling campaign in calendar Q4 2011 and aims to publish its maiden N.I. 43-101 compliant resources during calendar Q2 2012."
Talca Exploration Program
OMI is starting an accelerated exploration program including the completion of underground mine topography and sampling, and surface geologic mapping and sampling as a priority. A 480km linear ground magnetic survey, surface mapping and geochemical sampling has commenced. The Company is already accelerating its original plan to advance the initial exploration with a first pass exploration drill campaign which will consist of approximately 7,500 metres starting by early September 2011.
OMI intends to fast track production from the mine. Following an aggressive exploration program to commence in 2011, the Company aims to publish its maiden N.I. 43-101 compliant resources during calendar Q2 2012.
As core drill samples are obtained, OMI will commence a metallurgical test work program in parallel with the exploration campaign, so that data is generated to support the forthcoming engineering studies on the project in a timely manner.
The Company anticipates that a scoping study will commence during calendar Q2 2012. Environmental base line data collection is also scheduled to be initiated in 2011 to support the permitting process. The property is fully licensed from the existing operations and it may be possible to submit an upgrade of the current environmental license, rather than a full application, which OMI expects will take less than a year following submission to relevant authorities.
Talca Overview and History
Talca has been owned and operated by the Tellos family for approximately 40 years, having produced at an estimated overall average grade of approximately 13g/t gold, from a system of 7 outcropping high grade veins. Talca is located 375km North of Santiago in Region IV of northern Chile. The 1,680 hectare properties are located 15km to the west of Ruta 5 along the Chilean Pacific coast line in the Coastal Cordillera. Talca has a historical artisanal mining history dating back 60 years.
The property hosts two gold mines that have been exploited by artisanal non-mechanized mining during 2011. Historic gold production is approximately 300,000oz of gold. Gold veins on the property are hosted in Paleozoic rocks such as meta-arenite, phyllite, chert and meta-basalts of Devonian-Carboniferous age and interfingering marine and continental sediments of Upper Carboniferous to Permian age. Intrusions of granodiorite to mozodiorite composition and gabbros are locally intruded into these meta-sediments and sediments and have been dated as Triassic-Jurassic age (180-212Ma).
The principal structural control on the property is NNW (320° - 350°) trending shear zones and faults structures between 2 - 4m wide and can be traced from 4 to 8km along strike. Secondary structural control is ± E/W (260° - 285°) striking quartz veins ranging between 0.3 - 4m wide. Gold has been historically mined on both of these structural trends up to depths of over 250m. Grades between 10 - 20g/t gold have been reported and visible gold is common. Other historical and currently operating mines in the district have been mined to depths of up to 600m.
Although significant artisan mining has been undertaken over the years at Talca, the project has not been explored with modern technology and practices.
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. Forward-looking statements include completion of the Talca acquisition, completion of the private placement, use of proceeds, success of exploration programs and development on the Talca property, expected resource estimate on Talca, commencement of, and results of, a scoping study on Talca, environmental permitting being granted for Talca, and first production at Talca. There can be no assurance that such statements will prove to be accurate; such statements are subject to significant risks and uncertainties and other factors, and actual results and future events could differ materially from those anticipated in such statements. These factors include entering into definitive documentation with the vendor of the Talca property, approval of the vendor's shareholders, the actual results of current exploration and development activities, project delays, funding needs, future price of metals, conclusions of economic evaluations and other inherent risks involved in the exploration and development of mineral properties described in the Company's most recent annual information form under the heading "Risk Factors" which has been filed electronically by means of the Canadian Securities Administrators' website located at www.sedar.com. The Company disclaims any obligation to update or revise any forward-looking statements if circumstances or management's estimates or opinions should change unless where required by law.
ENDS
Neither TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) 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 IncDavid Fowler, CEOIgnacio Salazar, CFO + 598 2601 6354; info@orosur.caorCanaccord Genuity Limited (Nominated Adviser & Broker)+44 (0) 20 7050 6500Bhavesh PatelRyan CohenorBlythe Weigh Communications (Public Relations and Investor Relations)Tim Blythe: +44 (0) 207 138 3205Ana Ribeiro: +44 (0) 207 138 3206Matthew Neal: +44 (0) 207 138 3224
Copyright Business Wire 2011