Last checked at 25 Jul 2013 07:00
Orosur Mining Inc. (the "Company" or “OMI”) (TSX: OMI) (LSE: OMI) a South American focused gold explorer and producer, announced today the results of its initial drilling campaign at Anillo, one of its key Chilean prospects.
Highlight
Finally OMI intersect precious metals adjacent to the world class deposit El Peñon. The first phase of Reverse Circulation (“RC”) drilling at Anillo has identified both gold and silver mineralization in the targeted structures at the Anillo Central area. The Company is evaluating these encouraging results in order to design the next phase of exploration work and drilling in the area.
Background
The Anillo prospect is located 150 kilometers southeast of Antofagasta, Region II in Chile, at an average altitude of 1,900 metres above sea level, between Yamana’s El Peñon gold-silver mine (which in 2012 produced 462,000 gold equivalent ounces) and the Pampa Augusta Victoria gold-silver discovery. OMI is earning up to 65% interest from Chile's state-controlled miner Codelco.
El Peñon is Chile´s largest gold and silver producer, with published reserves of 2.3 million oz of gold and 72.6 million oz of silver in the proven & probable category plus resources of 432,000 oz of gold and 12.0 million oz of silver in the measured & indicated category.
Codelco, is considered the world's largest copper and molybdenum producer.
Exploration activities and Drilling Campaign
OMI´s exploration activities to-date have focused on the discovery of high grade epithermal (El Peñon-type) gold-silver mineralization in the western part of the property, although high sulfidation mineralization at Anillo central is not discarded, based on evidence obtained after recent detailed surface mapping. Surface exploration completed at Anillo during 2013 confirmed anomalous gold and silver values and a Controlled Source Audio-Frequency Magneto Tellurics (“CSAMT”) survey conducted by Zonge revealed several sub-vertical resistivity anomalies, some of them related to surface Au/Ag values. This could indicate silica-bearing structures which may host economic gold-silver mineralization. On that basis, the final definition of the initial drill targets was made through a combination of geological mapping, trenching, surface geochemistry and geophysics.
Subsequently, a 3,000 m RC drill program, comprising 10 holes, was carried out by contractor PerfoChile, beginning on May 23 and ending on June 23, 2013. Samples were sent to the ACME laboratory in Copiapó, the results of which have recently been received by the Company.
Relevant results of the drilling campaign
| Drill Hole No | From (m) | To (m) | Interval (m) | Interval g/t Au | Interval g/t Ag | |||||
| AN-13-10RC | 69 | 70 | 1.0 | 0.27 | ||||||
| 70 | 71 | 1.0 | 0.32 | |||||||
| 71 | 72 | 1.0 | 0.35 | |||||||
| 72 | 73 | 1.0 | 1.1 | 11.4 | ||||||
| 73 | 74 | 1.0 | 0.27 | |||||||
| TOTAL | 5.0 | 0.46 | ||||||||
| Drill Hole No | From (m) | To (m) | Interval (m) | Interval g/t Au | Interval g/t Ag | |||||
| AN-13-03RC | 292 | 293 | 1.0 | 0.34 | ||||||
| AN-13-04RC | 91 | 92 | 1.0 | 490 | ||||||
A map of the drill hole locations is available at: http://www.orosur.ca/anillo_project
Next steps for Anillo
Anillo is expected to require more CSAMT lines and drilling, and further work to extend exploration to the west with detail mapping, sampling and geophysics. A detailed structural study of the area will be useful to analyze the architecture of the El Peñon – Pampa Victoria corridor in order to get a better understanding of the geometry of the mineralized structures. This together with the trace element geochemistry (still to be received) will be a powerful combination and will greatly assist Orosur with designing the Round II drill program. This work program will be reviewed and assessed within OMI´s budget.
Ignacio Salazar, interim Managing Director, said: “The results returned to date are very encouraging. We achieved positive Au and Ag intersections within a highly prospective area, adjacent to a world class Ag-Au deposit. This justifies further work as we will pursue the principal mineralized structures. We plan to advance Anillo in the most effective way to create value for our shareholders”.
END
Qualified Person's Statement
The information presented in this press release has been reviewed by Walter Muehlebach, GM Exploration of OMI and is considered to be in compliance with NI 43-101 reporting guidelines. Mr Muehlebach is a graduate in Geology of the Universidad Católica del Norte (Chile) and a member of the Chilean Comisión Calificadora de Competencias en Recursos y Reservas Mineras, and has 23 years of experience in the field of mineral exploration.
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: OMI) and London (AIM: OMI). For more information please visit www.orosur.ca
For further information, please contact:Orosur Mining IncIgnacio Salazar, Interim Managing Directorisalazar@orosur.caTel: + 562 2924 6800orCantor Fitzgerald EuropeStewart Dickson / Tom Sheldon /Julian Erleigh (Corporate Finance)Jeremy Stephenson (Corporate Broking)Tel: +44 (0) 20 7894 7000
Copyright Business Wire 2013