TIDMOMI
Orosur Mining Inc. ("Orosur" or "the Company") (TSX/AIM: OMI),
the South America-focused gold producer, developer and explorer is
pleased to provide an exploration and development progress update
for its Uruguayan operations.
HIGHLIGHTS
-- Underground reserve increase in and around the San Gregorio West
underground mine area ("SGW UG")
From November 31, 2016 to May 31, 2017, total production from
SGW
UG totaled 12,600 oz
Current remaining San Gregorio underground ("SG UG")
probable
reserves (SGW UG plus Central and East) are 34,633 oz
(664,861
tonnes @ 1.62 g/t Au)
Further extensions to the east and at depth have returned
encouraging exploration results
-- Veta A, an exciting new underground project, is advancing swiftly
A higher grade, previously mined open pit which previously
produced 29,000 oz @ 3.1 g/t between September 2006 and March
2008
Current probable reserves are 9,440 oz (122,328 tonnes @ 2.40
g/t
Au)
Targeting a significant increase in reserves following
positive
drilling and mineralization conducted over 140 metres away
from
the current defined reserves
A recent geotechnical study by SRK supports the feasibility
of
this strategy
-- A district scale geological model has been completed based on
structural settings and is being used to search for
additional
significant discoveries in the 100 km long greenstone belt
around San
Gregorio ("SG"):
This model has proved successful in explaining the historic
deposits and has delivered some initial success at a new open
pit
deposit
This model will be key to the strategic greenfield exploration
of
this belt which is designed to grow minelife and expand
production
using available spare capacity of the SG Carbon in Leach
("CIL")
plant.
-- In September, the Company purchased a Sandvic DE710 diamond drilling
rig to accelerate exploration.
Ignacio Salazar, CEO of Orosur, said:
"Following our successful US$3.2 million fundraising in
mid-August, we are pleased to be providing a robust exploration and
development update for Uruguay.
"During FY17, we not only transitioned successfully from the
Arenal underground operation to the new SGW UG mine but we also
ramped up development and exploration activities with the objective
of increasing scale and efficiency at San Gregorio.We are also
pleased to announce positive geotechnical and drilling results in
Veta A, as we seek to further advance this project as our next
underground operation.
"Finally, we have now completed a district scale geological
model which is already providing encouraging results. In support,
we are deploying the necessary resources, including the purchase of
a new diamond core drilling rig, to give our team the best chance
of making a strategic discovery in Uruguay, which would allow us to
increase production and minelife.
"The Company is currently on track to meet its FY18 production
guidance and we expect to report back shortly on the start of
drilling at Anza in Colombia."
Uruguay Exploration and Development:FY17 Overview and Plan for
FY18
Following a challenging gold price environment in FY16, the
Company's priority during its fiscal 2017 was the successful
construction and opening of the SGW UG mine, entirely financed from
cash from operations.
In addition, almost 15,000 metres of exploration drilling (both
reverse circulation ("RC") and diamond drilling ("DD")) were
completed in Uruguay during FY17. The emphasis of this drilling was
multifaceted and included recommencing the following exploration
activities:
1. Adding short term underground reserves around SGW (8,750
metres drilled in the year);2. Adding reserves and resources to
near mine open pit projects (6,060 metres); and3. A limited budget
was allocated to more greenfield type exploration within the Isla
Cristalina greenstone belt, looking for more significant strategic
discoveries.
These three exploration activities are planned to be further
developed in FY18. The plan for FY18 is to increase the amount of
drilling next to the existing CIL plant and within the 100 km long
greenstone belt which the Company controls in Uruguay, with the aim
of increasing mine life and/or increasing production by utilising
the spare capacity in the San Gregorio CIL plant.
In addition, at the Company's underground projects, the Company
plans to drill out projects in FY18 beyond SG (ie. Veta A or
others).
FY17: Exploration and Development of the San Gregorio West
Underground Mine (SGW UG Mine)
SGW UG is a continuation at depth of the San Gregorio open pit
deposit which produced approximately 536,000 oz at an average grade
of 2.12 g/t Au. At the end of FY17, total underground development
work amounted to 2,800 metres of 3,900 metres for the total planned
development of the SGW sector.
During FY17, 8,750 metres of DD were drilled in these areas
around the SGW mine and returned good results. Reserves in San
Gregorio Central, between SG West and SG East, were defined with
sufficient detail and continuity to commence work associated with
development and inclusion in the Company's mining plan.
As of May 31, 2017, the SGW UG mine had already produced 12,600
oz of gold. Probable Mineral Reserve in SG UG (SGW plus additions
into Central and East) are 34,633 oz. The eastern extension of the
SG East mine and the deeper extension of SGW UG were tested by
several drill holes; with results indicating the mineralized body
is still open.
Additionally, the Company is currently working with SRK Perú on
a study to add additional reserves in SG, for example from an
existing crown pillar between the open pit and the UG designs.
Along with this activity around SG, the Company also plans to
advance its mining plans for the Veta A and Argentinita deposits.
These activities provide scope to add projects similar in size to
SG.
Potential for New UG Mine: Veta A Underground
Veta A represents an exciting potential project for a new
underground mine. Historically, Veta A was a relatively small high
grade open pit, located next to the now reclaimed San Gregorio
tailings dam, which was in operation from September 2006 until
March 2008. The Veta A open pit produced approximately 29,000 oz at
average gold grades of 3.10 g/t.
To view the full release, please click here.
As open pit mining progressed, the mineralized body appeared to
run underneath the tailings dam. When operations approached this
physical barrier, mining was halted and the pit was backfilled with
waste and then reclaimed. Current probable reserves in the zone are
9,440 oz.
A re-evaluation of the Veta A mineralized body below the
tailings dam is currently underway to assess: a) its feasibility
from a geotechnical perspective and b) its geological
potential.
An updated preliminary geotechnical study of the Veta A deposit
was performed by SRK consulting during this quarter: Results of
this study indicate that, providing required preventive measures
are undertaken, there are no subsidence, liquefaction or any other
negative interactions between the closed tailings dam and potential
future underground mining operations.
In parallel, a 697 metre drilling campaign, has provided
encouraging preliminary results.
Drilling interceptions to date indicate:
HOLE From (m) To (m) Meters Au g/t
VADD17-006 161.9 168.6 6.7 5.0
VADD17-007 165.2 167.1 2.0 3.3
VADD17-008 125.0 131.1 6.1 2.6
VADD17-009 170.5 175.3 4.9 1.8
Of the four holes drilled at Veta A, each intersected
mineralization, confirming the extension of the mineralized body
for a minimum of 140 metres downhole. This indicates the strong
potential for an increase in the volume of the mineralized
structure, which may materially increase current reserves. Further
drilling continues in order to confirm and expand its reserve
base.
Uruguay Open Pit Brownfield Projects
During FY17, 6,060 metres were drilled in near mine open pit
projects. Some small reserve additions were achieved during the
year, including:
-- Veta Rey: Since its discovery in 2014, actual production has
been in excess of 25,000 oz from an initial and very modest
reserve of
2,500 oz. Reserve increases through this period of time have led
to a
successful brownfield exploration story. Current brownfield
exploration in the area is focused on the potential southern
extension
of the deposit.
-- El Muro: Although small, the first successful discovery based
on the newly developed structural interpretation of the broader
San
Gregorio area. This target is a horsetail structure containing
some
3,000 oz of gold in maiden reserves, and remains open to
expansion.
Based on geological and exploration data, it is expected that a
number
of additional subparallel mineralized structures may occur in
the
area. An exploratory drilling campaign designed to test this
model has
already intercepted seven metres grading 1.38 g/t Au in Hole
EMRC
17-020, with further work ongoing.
Uruguay Strategic Discovery Projects
Given the data available and underexplored nature of the Isla
Cristalina Granite Greenstone Belt, the Company believes there is
scope to make material discoveries in excess of 100,000 oz of
reserves. The San Gregorio trend by itself, which represents a
small fraction of the overarching belt, has produced in excess of
1.4 Moz of gold.
Substantial infrastructure, a proven team, a functional
laboratory and existing plant capacity at the San Gregorio area
allow new discoveries to be fast tracked.
Review of historical and generated geological data has led to
the development of a model focusing on structural settings.
Currently, the model has proved successful in explaining the
location and size of the existing deposits with recent field
exploration, such as El Muro.
Qualified Person's Statement
The technical information related to the current assets of
Orosur Mining in this announcement has been reviewed by Miguel
Fuentealba, a Mining Engineer who is considered to be a Qualified
Person under NI 43-101 reporting guidelines. Mr. Fuentealba is a
graduate in Mining Engineering from the University of Santiago de
Chile and is an AusIMM Member and Qualified Person of Chilean
Mining Commission. Mr. Fuentealba has 20 years of professional
experience in the field of mining engineering, mine development and
management. All reserve and resource figures stated in this
announcement are fully compliant with NI 43-101 requirements and
CIM definitions. A full table of Orosur's reserves and resources as
at May 31, 2017 is included in the Company's Annual Information
Form, dated August 29, 2017. To view this document in full, please
click here.
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.
About Orosur Mining Inc.
Orosur Mining Inc. is a fully integrated gold producer,
developer and explorer 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 listed in Canada (TSX: OMI) and London
(AIM: OMI).
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation ("MAR"). Upon the publication of this
announcement via Regulatory Information Service, this inside
information is now considered to be in the public domain. If you
have any queries on this, then please contact Ignacio Salazar,
Chief Executive Officer of the Company (responsible for arranging
release of this announcement) on: +1 (778) 373-0100.
Orosur Mining IncIgnacio Salazar, Chief Executive
Officerinfo@orosur.caTel: +1 (778) 373-0100orCantor Fitzgerald
Europe - Nomad & Joint BrokerDavid Porter/Keith DowsingTel: +44
(0) 20 7894 7000orNumis Securities Limited - Joint BrokerJohn Prior
/ James Black / Paul GillamTel: +44 (0) 20 7260 1000orFTI
ConsultingBen Brewerton / Sara Powell / Emerson ClarkeTel: +44 (0)
20 3727 1000
View source version on businesswire.com:
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(END) Dow Jones Newswires
September 21, 2017 02:00 ET (06:00 GMT)
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