Last checked at 5 Nov 2014 07:00
Orosur Mining Inc. (“Orosur” or the “Company”) (TSX:OMI) (AIM:OMI), a South American-focused gold producer, developer and explorer is pleased to announce the execution of a no cost extension of its farm-in contract at its Anillo Project in Chile (“Anillo” or the “Project”) with Corporación Nacional del Cobre de Chile (“Codelco”), the world’s biggest copper producer, until January 2020 with a further option to extend for an additional two years to 2022. The initial farm-in term was scheduled to expire in September 2015.
Amendment of the Farm-In Contract
Anillo was originally optioned from Codelco to Fortune Valley Resources Inc. (“FV”) in September 2009. Orosur acquired the project as part of the acquisition of FV in January 2010. The original contract with Codelco required Orosur spend in excess of US$3 million (which has subsequently been completed) and complete a Feasibility Study (“FS”) prior to September 2015 in order to acquire a 65% interest in the Project.
The September 2015 deadline for completion of the FS has now been extended until January 2020. This new deadline may also be extended by Codelco a further two years to January 2022 if Orosur has a discovery and has defined a mineral resource by 2020.
Ignacio Salazar, CEO of Orosur, said:
“We appreciate the rationale and open approach Codelco has taken by extending our farm-in contract at Anillo by almost five years to 2020, with the further potential to extend into 2022. For a major player in the sector, like Codelco, to recognize the technical work completed to date and agree to such an extension is a great vote of confidence for our technical team. We have to date generated several mineral intercepts for follow-up exploration at Anillo, with the prime objective being a discovery. The extension of the farm-in contract allows Orosur to now plan the financing and exploration of the Project in a more measured and results driven fashion.
While Orosur’s primary focus in the current markets continues to be on its producing San Gregorio Mine in Uruguay, we endeavour to keep adding value and progress to our assets in Chile and Colombia.”
Exploration programs on Anillo
The Anillo prospect is located 150 kilometres southeast of Antofagasta, Region II in Chile, at an average altitude of 1,900m above sea level, between Yamana´s El Peñon gold-silver mine (which produces approximately 440,000 gold equivalent ounces per year) and the Pampa Augusta Victoria gold-silver discovery, where development has already commenced and an open pit mining operation is expected to supplement production from underground areas.
For more information on Anillo, please visit: http://www.orosur.ca/exploration/chile/anillo/.
Orosur’s activities at Anillo commenced in 2010 and involved approximately 300 km2 of prospective land. Primary activities included geological mapping and sampling, geophysics and a total of 10,173m of drilling. Historic drilling recorded several sections of 1 to 4m of 0.1 to 0.55 g/t Au, two sections of 1m of 1.1 and 4 g/t Au, 2m of 100 g/t Ag and 1m of 490 g/t Ag. These results are indicative of a fertile latent epithermal Au-Ag system and coincide with initial targets for follow-up exploration work aimed at delineating an ore body in the Project area. The silver values, specifically, correlate well with low sulphidation type veins like those seen in El Peñón.
The total capital spent to date is US$ 4.3 million, fulfilling the first part of the farm-in commitment with Codelco. The new deadline of January 2020, with the option to extend to 2022, is expected to be adequate to undertake sufficient exploration and development work for the preparation of a FS.
The Company’s exploration efforts are currently focused on the discovery of high grade, vein type mineralization, being the natural target a low sulphidation epithermal (El Peñon-type) gold-silver deposit, although high sulphidation epithermal type mineralization has not been discarded. Recent work completed in FY 2014 has allowed Orosur to gain better insight into the areas of greatest potential and generate higher geophysical and geochemical data density to support a targeted exploration drilling program. This included a detailed structural study focused on the El Peñon – Veta Victoria corridor as well as other structural patterns to the east. CSAMT (Controlled Source Audio-Frequency Magneto Tellurics) has proved to be a valuable geophysical tool for this type of mineralization in the area, showing good correlation (demonstrated by historical drilling values) between specific resistive patterns and potentially mineralized structures and will also be used in planning future drilling efforts.
For more information please visit www.orosur.ca or contact:
Orosur Mining Inc.Ignacio Salazar, Chief Executive Officerinfo@orosur.caTel: + 562 2924 6800orCantor Fitzgerald EuropeStewart Dickson / Jeremy StephensonTel: +44 (0) 20 7894 7000orFTI ConsultingBen Brewerton / Oliver Winters / Sara PowellTel: +44 (0) 20 3727 1000
Qualified Person's Statement
The information presented in this press release has been reviewed by Mario Orrego, a qualified person, and is considered to be in compliance with N.I. 43-101 reporting guidelines and the AIM Rules for Companies. Mr. Orrego is a graduate in Geology of the Universidad Católica del Norte (Chile), MBA and a member of the Chilean Comisión Calificadora de Competencias en Recursos y Reservas Mineras, and has 25 years of experience in the field of mineral exploration. Mr Orrego approved the scientific and/or technical content of this news release.
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 Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Exchange) accepts responsibility for the adequacy or accuracy of this release.
About Orosur Mining Inc.
Orosur Mining Inc. is a fully integrated gold producer, developer and exploration company focused on identifying and advancing gold projects in South 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, Chile and Colombia. The Company is quoted in Canada (TSX: OMI) and London (AIM: OMI).
Copyright Business Wire 2014