Last checked at 9 Nov 2011 07:00
Orosur Mining Inc. (AIM/TSXV: OMI) ("OMI" or "the Company") announces that it has received a water exploration permit from the Chilean Water authority DGA for its Pantanillo Project in Chile. The latest advancement represents a significant development in the overall permitting process for the project.
David Fowler, Chief Executive Officer commented: "We are pleased to announce the granting of a water exploration permit close to the Pantanillo property and the commencement of exploration activities at Pantanillo for 2012. The granting of this water exploration permit represents another vital step towards de-risking the Pantanillo Project."
Pantanillo Water Exploration Permit
In October 2011, OMI signed a contract (the "Contract") with LUMAX S.A. and other two partners to form a consortium (the "Consortium") to explore for water in the Cienaga Redonda basin close to OMI's Pantanillo project. LUMAX S.A. and the partners, companies that are in the lithium mining business had requested water exploration rights over the same area as OMI. According to the Contract, both companies will share water rights equally up to a rate of 120 litres per second. If available water exceeds that number, OMI will retain 60 litres per second. Exploration costs will be split proportional to the amount of water retained by each company. The 60 litres per second flow rate is expected to support a heap leach project of approximately 15 million tonnes per annum.
Following execution of the Contract, the Chilean Government Water Administration granted the Consortium authorization for water exploration on a 4.98 hectare land package in the Cienaga Redonda basin. The authorization is valid for a period of 24 months provided that exploration activities are commenced within the next seven months. Should water exploration yield positive results, the Consortium will have priority to be granted water exploitation rights in the area.
The Consortium has already begun preparing an exploration plan which will be launched in the upcoming months.
Pantanillo 2012 Summer Exploration Campaign
The focus of exploration over the past two years at Pantanillo has been to define a measured and indicated oxide and mixed resource of 45.9 million tonnes of 0.69g/t gold for 1.0 million ounces at Pantanillo Norte.
The primary objective of this summer's exploration campaign commencing in November 2011 will be to test prospective new porphyry target areas aimed at increasing our existing oxide and mixed ore resource. Field work will focus on the Pantanillo Central, Quebrada Pantanillo, Oro 52 and areas surrounding the Pantanillo Norte discovery area. Drilling is expected to commence in January 2012.
Qualified Person's Statement
The information presented in this press release has been reviewed by Mr Luis Tondo, COO and is considered to be in compliance with NI 43-101 reporting guidelines. Mr Tondo holds a Master of Engineering Science Degree (from the University of Queensland, Australia), is a registered fellow of the AusIMM and has over 22 years of international operational, metallurgy and development experience.
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. There can be no assurance that such statements will prove to be accurate, such statements are subject to significant risks and uncertainties, and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements include, without limitation success of exploration activities; permitting time lines; the failure of plant; equipment or processes to operate as anticipated; accidents; labour disputes; requirements for additional capital title disputes or claims and limitations on insurance coverage. The Company disclaims any intention or obligation to update or revise any forward looking statements whether as a result of new information, future events and such forward-looking statements, except to the extent required by applicable law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) 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 Inc+ 56 2 924 6800David Fowler, CEOIgnacio Salazar, CFOEmail: info@orosur.caorCanaccord Genuity Limited (Nominated Adviser & Broker)+44 (0) 20 7050 6500Bhavesh PatelRyan CohenorBlythe Weigh Communications (Investor Relations)Tim Blythe: +44 (0) 7816 924626Ana Ribeiro: +44 (0) 7980 321505Matthew Neal: +44 (0) 7917 800011
Copyright Business Wire 2011