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Orsu Metals Corporation (TSX-V: OSU) (“Orsu” or the “Company”) is pleased to announce additional encouraging results from Phase 2 exploration program at its Sergeevskoe Gold Project in Russia.

Highlights:

  • Two prospects – Zone 23 and Adit 5 – were trenched and drilled at the Sergeevskoe Gold Project, with a total of 1200 metres (“m”) in 8 trenches and 638.8 m in four widely-spaced drill holes.
  • At Zone 23, hole SDH17-1, drilled near the historical hole C-222, intercepted:
    • 1.61 g/t Au over 32.1 m (including 2.45 g/t Au over 14.0 m) and
    • 1.18 g/t Au over 8.9 m and
    • 0.61 g/t Au over 14.2 m
  • At Adit 5, the 389 m long trench S23TR17-5 intercepted multiple mineralized intervals:
    • 2.94 g/t Au over 3.8 m and
    • 0.71 g/t Au over 21.0 m and
    • 0.84 g/t Au over 2.8 m and
    • 0.51 g/t Au over 3.2 m and
    • 0.88 g/t Au over 2.0 m and
    • 1.56 g/t Au over 4.0 m and
    • 1.37 g/t Au over 13.0 m and
    • 1.24 g/t Au over 10.0 m (including 3.14 g/t Au over 2.0 m) and
    • 2.24 g/t Au over 14.0 m (including 3.55 g/t Au over 8.3 m) and
    • 1.57 g/t Au over 24.0 m (including 5.81 g/t Au over 2.0 m) and
    • 2.01 g/t Au over 16.0 m (including 11.1 g/t Au over 1.5 m) and
    • 4.75 g/t Au over 4.4 m (including 20.8 g/t Au over 0.8 m) and
    • 0.58 g/t Au over 2.0 m and
    • 1.05 g/t Au over 6.0 m
  • At Adit 5, results from 175 m long drillhole SDH17-4 include:
    • 2.4 g/t Au over 14.9 m and
    • 1.52 g/t Au over 0.75 m and
    • 0.59 g/t Au over 1.0 m and
    • 1.15 g/t Au over 3.65 m and
    • 1.44 g/t Au over 15.4 m and
    • 0.53 g/t Au over 3.6 m and
    • 1.48 g/t Au over 6.7 m and
    • 0.66 g/t Au over 3.0 m and
    • 1.04 g/t Au over 1.85 m

__________________________________________________________________

Dr. Alexander Yakubchuk, Director of Exploration of Orsu commented: “At Zone 23 and Adit 5, based on just 638.8 m ofdrilling and 1200 m oftrenching and guided by pole-dipole induced polarization survey data, Orsu was able to delineate another significant 1 km long gold mineral cluster at the Sergeevskoe Gold Project, structurally representing an offset from the Klyuchevskoe gold deposit. At Zone 23, the 530x120 m west-east trending gold mineralization forms several seemingly discrete zones, which merge at just 45 m depth into coherent wide intervals (SDH17-1), broadly confirming historical drilling results. At 430x250 m Adit 5 prospect, Orsu revealed multiple intercepts over broadly north-south trending vein swarms, confirmed by drilling to a depth of 180 m. Orsu continues its exploration works at Sergeevskoe property during Q4 2017 with additional drilling.”

__________________________________________________________________

The license of the Sergeevskoe Gold Project occurs immediately east from the Alexandrovskaya gold plant owned by Zapadnaya Gold Mining Ltd and to the west from the Klyuchevskoe gold license owned by Sun Gold Mining (Figure 1). Klyuchevskoe (Klyuchi) gold deposit represents a +6 Moz gold endowment (see Orsu press-release dated September 21, 2016). Orsu currently owns a 30% interest in the Sergeevskoe Gold Project and the Company has agreed to acquire a further 60% interest for a total interest of 90% (see November 6, 2017 news release).

Figure 1. An outline of the 7.6 sq km Sergeevskoe license area with location of principal gold prospects and adjacent licenses.

At Zone 23 and Adit 5 (formerly eastern part of Zone 23), Phase 2 works included a 1200 m trenching program in 8 trenches and 638.8 m in four widely-spaced drillholes. Prior to trenching and drilling, Orsu completed a pole-dipole induced polarization survey (“PD-IP”) down to a depth of 500 m and 7.6 sq km gradient array chargeability and resistivity surveys, conducted by OOO Tien Shan Limited, a Kyrgyzstan-based contractor, which is independent from Orsu.

The mineralization at Zone 23 and Adit 5 is limited in the north along the Shirotnyi fault (Figure 2), extending from the Klyuchevskoe open pit. This fault is interpreted as a strike-slip fault with dextral offset relative to the mineralization in the Klyuchevskoe open pit for some 1 km. The mineralization at Zone 23 and Adit 5 consists of quartz-tourmaline-sulfide veinlets, forming stockwork zones emplaced exclusively into granite and along the contacts of the complexly-shaped diorite porphyry dykes. The stockwork zones are variable in strike, with trenches intercepting it in perpendicular to oblique directions. The style of mineralization can be best classified as intrusion-hosted gold.

Figure 2. Gold mineralization at Zone 23 and Adit 5, Sergeevskoe Gold Project constrained by new trench data.

Selection of mineralized intervals, presented below, is based on a 0.5 g/t Au cut-off for compositing, with maximum 2 m length of 0.3-0.5 g/t Au mineralization included into mineralized interval. Composited intervals in drillholes and bulldozer trenches are presented uncapped.

Zone 23

At Zone 23, the Phase 2 program consisted of one drillhole (SDH17-1) aiming to duplicate the historical drillholes C-222 (see press release of September 21, 2016) and one bulldozer trench (S23TR17-6) at transition to Adit 5 area (Table 1).

Table 1. Mineralized intercepts at Zone 23 (above 0.5 g/t Au cut-off).

Trench/Drillhole
Number
From
(m)
To
(m)
Interval
(m)
True Width
(m)
Gold
(g/t)
SDH17-1
(114.1 m)
36.838.151.351.00.65
48.5580.6532.121.01.61
60.164.114.09.02.45
83.592.48.96.01.18
96.2110.414.210.00.61
S23TR17-6
(150 m)
0.01.01.00.70.57
41.042.01.00.70.52
66.378.011.77.50.79
81.086.05.03.50.64
84.086.02.01.41.06
95.998.02.11.41.4
106.0109.03.02.20.98
137.5138.51.00.70.57

SDH17-1 was drilled to a depth of 114.1 m southward at 65 degrees as close as possible to historical hole C-222. SDH17-1 intercepted several mineralized intervals (Table 1) in quartz-tourmaline veins and hydrothermal breccia, with main intercepts of 1.61 g/t Au over 32.1 m (including 2.45 g/t Au over 14.0 m) from 48.55 m,1.18 g/t Au over 8.9 m from 83.5 m,and0.61 g/t Au over 14.2 m from 96.2 m. The hole was stopped for technical reasons and therefore there is a possibility for presence of additional mineralization at depth based on historical drilling data.The new intercepts appear to be somewhat better than in nearby historical hole C-222 (see Orsu press release dated September 21, 2016), demonstrating a general reliability of historical drill data (Figure 3).

Figure 3. Gold mineralization in SDH17-1 and historical holes (C222 and C222a) and trenches (K-1036).

Trench S23TR17-6 was driven over 150 m in northeastern direction, some 120 m east from SDH17-1. It intercepted a west-east trending linear oxidized quartz stockwork in granite in almost perpendicular direction (from the southwest to the northeast) 0.79 g/t Au over 11.7 m from 66.3 m, 0.64 g/t Au over 5.0 m (including1.06 g/t Au over 2.0 m) from 81.0 m, 1.4 g/t Au over 2.1 m from 95.9 m, and 0.98 g/t Au over 3.0 m from 106.0 m. In the northeast, the trench intercepted a poorly mineralized granodiorite porphyry intrusion whose southern contact is interpreted as a fault. These results demonstrate that mineralization at Zone 23 extends from trench 17-996 for at least 200 m. Our inspection of historical trenches to the west of 17-996 revealed presence of mineralized material, which indicates a potential strike of Zone 23 for 500 m.

Adit 5

At Adit 5, seven bulldozer trenches have been driven in different directions over an area of 430x250 m. In contrast to historical interpretation of northwest strike, the mineralization appears to extend with variations in strike generally from the north to the south for some 250 m (Figure 2). The individual mineralized zones vary in grade from 0.5-1.0 g/t Au to more than 4 g/t Au. The +1 g/t Au zones form three vein swarms separated by the mineralized zones grading 0.5 to 1.0 g/t Au. The zones with highest grade occur in the east of Adit 5 area. In each case, higher grade vein zones developed along the contacts complexly-shaped diorite porphyry dykes. Drilling by Orsu indicated that even in those cases when dykes are absent at surface near higher grade veins, they were intercepted in drillholes.

Trench S23TR17-5 was driven from the west to the east over 389 m. The direction of this trench was chosen due to significant variations in strike of quartz-tourmaline veins recognized in 2017 winter trenches. S23TR17-5 intercepted 18 individual mineralized intervals (Table 2), with better intervals as follows (from the west to the east):2.94 g/t Au over 3.8 m from 43.0 m,0.71 g/t Au over 21.0 m from 77.0 m,0.84 g/t Au over 2.8 m from 126.7 m,0.51 g/t Au over 3.2 m from 132.5 m,0.88 g/t Au over 2.0 m from 154.0 m,1.56 g/t Au over 4.0 m from 180.0 m,1.37 g/t Au over 13.0 m from 206 m,1.24 g/t Au over 10.0 m (including3.14 g/t Au over 2.0 m) from 231.0 m,2.24 g/t Au over 14.0 m (including3.55 g/t Au over 8.3 m) from 247.0 m,1.57 g/t Au over 24.0 m (including5.81 g/t Au over 2.0 m) from 285.0 m,2.01 g/t Au over 16.0 m (including11.1 g/t Au over 1.5 m) from 312.0 m,4.75 g/t Au over 4.4 m (including20.8 g/t Au over 0.8 m) from 340.6 m,0.58 g/t Au over 2.0 m from 367.0 m, and 1.05 g/t Au over 6.0 m from 382.0 m.

The best intercepts in the central and eastern parts of S23TR17-5 were drill tested in holes SDH17-4 and SDH17-5.

SDH17-4 was drilled to a depth of 175.05 m northeastward at 62 degrees. SDH17-4 intercepted several mineralized intervals (Table 2), with better intercepts of 2.4 g/t Au over 14.9 m (including 5.23 g/t Au over 4.0 m) from 4.2 m, 1.52 g/t Au over 0.75 m from22.0 m, 0.59 g/t Au over 1.0 m from25.7 m,1.15 g/t Au over 3.65 m from29.5 m, 1.44 g/t Au over 15.4 m from40.0 m,0.53 g/t Au over 3.6 m from72.9 m, 0.66 g/t Au over 3.0 m from133.2 m, and 1.04 g/t Au over 1.85 m from 147.4 m. The first intercept from surface went through the very oxidized and sometimes very loose material. We had loss of drilling liquid and were not able to recover the core at two intervals (Table 2). Visual inspection revealed presence of oxidized material to 32 m. Orsu will re-drill the intercepts in oxide before the end of 2017.

SDH17-5 was drilled to a depth of 216.85 m eastward at 60 degrees. In its deeper part it intercepted the same zones as in top of SDH17-4. The intercepted mineralized intervals (Table 2) are:1.48 g/t Au over 8.65 m from 0.85 m,0.73 g/t Au over 2.8 m from22.7 m, 0.61 g/t Au over 7.3 m from30.8 m, 1.08 g/t Au over 2.3 m from68.0 m, 1.6 g/t Au over 9.5 m from124.65 m,0.7 g/t Au over 1.85 m from140.3 m, 7.65 g/t Au over 0.8 m from156.45 m, and0.66 g/t Au over 3.2 m from 181.1 m. Similarly to the previous hole, the first intercept from surface went through the very oxidized material. No loss of core was recorded. Visual inspection revealed presence of oxidized material to 30 m.

These results were additionally constrained by PD-IP data. In contrast to Klyuchi West and Kozie prospects, the best mineralization corresponds to high-resistivity anomalies (Figure 4), which apparently map areas of silicification along the contacts of diorite porphyry dykes.

Figure 4. A north-looking section across the Adit 5 area plotted against the PD-IP resistivity section. Note diorite porphyry dykes corresponding to high-resistivity anomalies and higher-grade intercepts. Inset shows interpretation of mineralized envelopes around diorite porphyry dykes.

Drillholes SDH17-4 and SDH17-5 revealed substantial auriferous oxide. The extent of this material requires further investigation. Meanwhile, Orsu collected two samples for metallurgical testing of the oxide material. The results are expected in end of December 2017 to early 2018.

The other trenches were excavated in different directions aiming to intercept potential mineralization in as perpendicular direction as possible (Table 2). They allowed to recognize the strike of mineralization and to trace it for some 250 m from the north to the south. The mineralized zones were displaced along the northwest trending faults, documented in the trenches and constrained by magnetic data.

In the north, some better mineralization was intercepted near the Shirotnyi fault, especially in S23TR17-18 (0-130 m) in the northeast of Adit 5 area (Table 2). For instance, the latter intercepted 2.75 g/t Au over 27.1 m from 87.0 m, including 6.09 g/t Au over 7.1 m. Some mineralization in this area is currently constrained only based historical data.

In the south, all mineralized intervals remain unconstrained and require further testing. Hole SDH17-6 was drilled in the southeast of Adit 5 area to test its eastern part. SDH17-6 intercepted only short intervals with gold mineralization near and in the diorite porphyry dyke (Table 2):1.55 g/t Au over 0.85 m from 46.85 m and 0.57 g/t Au over 10.35 m from 52.1 m. SDH17-6 was drilled to the east at 65 degrees and stopped at a depth of 132.8 m due to drilling through the diorite porphyry dykes and granite with visually very poor mineralization. We interpret this to have happened due to very oblique (almost downdip) drilling relative to the dip of the dykes. It is also possible that the southern part of Area 5 is deeper eroded than its northern part, possibly indicating a significant tilting of the system. Orsu intends to drill additional holes in this area to test some higher-grade trench intercepts in the east of S23TR17-4 and near the southwest of S23TR17-3 (Table 2), where they extend to from 2017 winter trench 17-679.

Table 2. Mineralized intercepts in trenches and drillholes at Adit 5 (above 0.5 g/t Au cut-off).

Trench/Drillhole
Number
From
(m)
To
(m)
Interval
(m)
True Width
(m)
Gold
(g/t)
S23TR17-5
(389 m)
43.046.803.83.82.94
77.098.021.021.00.71
126.7129.52.82.80.84
132.5135.73.23.20.51
154.0156.02.03.00.88
180.0184.04.04.01.56
206.0219.013.013.01.37
231.0241.010.010.01.24
239.0241.02.02.03.14
247.0261.014.014.02.24
251.0259.38.38.03.55
285.0309.824.824.81.57
294.0296.02.02.05.81
312.0328.016.016.02.01
316.5318.01.51.511.1
340.6345.04.44.44.75
341.3342.10.80.820.8
367.0369.02.02.00.58
382.0388.06.06.01.05
SDH17-4
(175.05 m)
4.219.114.99.52.4
6.310.34.02.85.23
19.122.02.92.0Loss of core
22.022.750.750.451.52
22.7525.72.952.0Loss of core
25.726.71.00.650.59
29.533.153.652.51.15
40.055.415.410.01.44
72.976.53.62.70.53
133.2136.23.02.10.66
147.4149.251.851.21.04
SDH17-5
(216.85 m)
0.859.58.656.01.48
12.3513.351.00.70.78
22.723.52.82.10.73
30.838.17.35.10.61
68.070.32.31.61.08
75.0576.71.651.00.78
124.65134.159.56.21.6
140.3142.151.851.20.7
156.45157.250.80.557.65
181.1184.33.22.50.66
S23TR17-18
(0-130 m)
38.039.01.00.71.17
45.047.02.01.40.59
72.073.01.00.71.4
87.098.721.715.02.75
90.097.17.15.06.09
111.7114.02.31.70.61
117.5121.84.33.10.53
SDH17-6
(132.8 m)
46.8547.70.850.51.55
52.162.4510.356.00.57
52.155.052.952.01.01
SKZTR17-3
(88 m)
5.76.71.00.80.6
29.030.01.00.80.63
32.033.01.00.80.55
39.042.03.02.40.46
58.769.811.18.50.92
75.878.02.21.70.72
82.083.01.00.80.52
SKZTR17-4
(180.5 m)
8.012.04.03.01.18
15.019.04.03.04.47
16.018.02.01.68.31
35.337.52.21.655.47
49.852.02.21.650.56
54.055.01.00.71.88
58.760.51.81.20.57
71.573.52.01.61.08
80.081.01.00.80.99
84.087.63.63.00.47
99.0101.02.01.611.75
104.9109.84.94.92.9
134.5142.07.57.04.07
134.5139.04.54.26.4
155.5156.61.11.10.67
176.5180.54.04.01.1
SKZTR17-9
(52 m)
0.04.74.72.32.42
11.015.04.02.00.49
18.020.02.01.00.56
28.030.02.01.01.54
42.043.01.01.00.6
49.051.02.02.01.69
SKZTR17-17
(124 m)
52.054.02.02.00.81
57.058.01.01.01.11
87.089.02.02.00.61
92.093.01.01.00.57
98.0101.03.03.01.44
117.0130.0013.013.00.77
136.0141.05.05.00.59
SKZTR17-21
(86 m)
4.05.21.21.20.5
82.083.01.01.01.18

Quality Assurance - Quality Control (“QA/QC”)

Thorough QA/QC protocols are followed on the project including insertion of duplicate, blank and standard samples in all trenches. Duplicate samples were inserted after every 20 samples. All standard samples were inserted once per 20 samples. Blanks were also inserted once per 20 samples and consisted of the previously assayed barren granitoid rocks.

Channel samples were submitted directly to the SGS Vostok Limited laboratories in Chita, Russia, which are independent from Orsu, for sample preparation and analysis. Drillcore samples were submitted directly to the ALS Limited laboratories in Chita, Russia, which are independent from Orsu, for sample preparation and analysis. Analysis for Au is performed using fire assay method with atomic absorption (AA) finish and with a gravimetric finish for samples exceeding 10 g/t Au. Results published are from the gravimetric finish if above 10 g/t Au and from the AA finish if lower than 10 g/t Au.

Qualified Person

This release and the technical data reported has been reviewed and approved by Alexander Yakubchuk, Director of Exploration of the Company, also a Qualified Person as defined in NI 43-101.

Neither the 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.

Cautionary Statement:
This news release contains forward-looking statements that are based on the Company’s current expectations and estimates. Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “suggest”, “indicate” and other similar words or statements that certain events or conditions “may” or “will” occur. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.

ENDS

——————————————————

For further information, please contact:

Doris Meyer, Corporate Secretary, Orsu Metals Corporation
Tel: +1-604-536-2711 ext 6
www.orsumetals.com

© 2017 Orsu Metals Corp.
All rights reserved.
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