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Orsu Metals Corporation (TSX-V: OSU) (“Orsu” or the “Company”) is delighted to announce drilling results from 15 drill holes and 3 trenches at Adit 5, as part of the extended 12,500 meters (‘m’) drilling program at its Sergeevskoe Gold Project in Russia. The program is designed to deliver an estimation of a maiden resource in Q4 2018.

Highlights:

  • Fifteen drill holes and three trenches within a 450x250 m area at Adit 5 revealed 15 northwest- to northeast-striking gold-mineralized veins
  • The gold grade of mineralized intervals in drill holes at Adit 5 varies from 0.52 g/t Au to 3.07 g/t Au over a variable drill width of 2 to 21.8 m in primary quartz-sulfide veins, with higher grade mineralization, grading up to 6.49 g/t Au over 11.5 m, intercepted in oxidized material in trenches

Dr. Alexander Yakubchuk, Director of Exploration of Orsu commented: “Instead of finding the historically anticipated presence of 4 to 5 northwest-trending gold-quartz-sulfide veins at Adit 5, Orsu identified gold in 15 closely-spaced fan-shaped northwest to northeast-striking mineralized zones within a 450x250 m area. The vein swarms in the west and east of Adit 5 are grading on average between 0.52 g/t Au and 3.07 g/t Au over a variable drill width of to 21.8 m to a depth of 100-200 m. The combined drill width of some closely spaced gold-mineralized veins, intercepted in individual drill holes varies from 4 to 61 m. In the north, mineralization at Adit 5 almost orthogonally joins the eastern part of Zone 23, therefore occurring on the southeastern flank of Zone 23. Orsu believes that gold mineralization at Adit 5 significantly expands the resource potential for the forthcoming NI43-101 estimate”.

Dr Sergey V Kurzin, Executive Chairman of Orsu, commented: “Results from the Adit 5 zone nicely complement the adjacent Zone 23 area, the backbone of the Sergeevskoe project, and will likely add to Orsu’s maiden mineral resource estimate. Our drilling contractors completed the work last week and are demobilizing now. Our geological team expects to receive all pending assays shortly and, supported by Orsu’s competent person, Wardell Armstrong International will immediately get down to work of estimating the maiden NI43-101 resource.”


The license of the Sergeevskoe Gold Project occurs immediately east from the Alexandrovskoe open pit and gold plant owned by Zapadnaya Gold Mining Ltd and to the west from the +6 Moz Klyuchevskoe gold deposit licensed to Sun Gold Mining (Figure 1)1. Orsu owns a 90% interest in the Sergeevskoe Gold Project (see Orsu press-release December 1, 2017).

2018-10-15-nrm1sm-osu-6g64fa.jpg

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

_________________________________
1Business Standard, a leading Indian daily newspaper, reported on 21 September 2018 that “Chinese company China National Gold will invest about $420 million in the development of the Klyuchevskoye gold deposit in Russia, while another $65 million will be invested by India’s SUN Gold. The annual production volume is expected at about 6.5 metric tons of gold per year, the Russian Industry and Trade Ministry reported.”

Orsu has now received assay results for all 2018 drill holes and trenches at Adit 5. The quartz-tourmaline-sulfide veins are hosted primarily in the pre-mineral Permian granite intrusion, often controlled by the contacts of Jurassic diorite porphyry and granodiorite porphyry dykes.

The Northwestern Fault divides the Adit 5 area into western and eastern domains with dextral strike-slip sense of movement between them, interpreted based on truncation and offset of the dykes (Figure 2). Using the dykes as markers, the minimum displacement can be estimated in 100 m at least.

The orientation of the quartz-tourmaline-sulfide veins in the Adit 5 West domain is northwestern to northern, whereas in the Adit 5 East domain their strike is predominantly northeastern. Orsu identified 15 mineralized veins in each domain. Some of them may represent offset continuation of the same veins in the two domains.

Although the mineralization becomes narrow southward, it remains open in that direction and downdip. The gold-mineralized veins are widening to the north towards the eastern part of Zone 23, where veins in both Zone 23 and Adit 5 are truncated by the Shirotnyi Fault. In addition, north of the Shirotnyi fault are the gold-mineralized veins of the southern part of Klyuchi West, already reported for the drill holes SDH18-25, 26, 27, 28 (see Orsu press release July 16, 2018). Orsu drilled additional holes to test the downdip extent of mineralization, with results pending.

2018-10-15-nrm2sm-osu-6g64fa.jpg

Figure 2. Surface expression of multiple west-east-trending gold mineralization in Main, Southern and New stockworks at Zone 23 and northwest- to northeast-trending gold mineralization at Adit 5 and southern part of Klyuchi West, Sergeevskoe Gold Project.

In Adit 5 West domain, the veins are steeply-dipping, with the westernmost veins dipping to the southwest (Figure 3). They reveal a propeller-like shape along the strike. There is increase in grade downdip even in comparison with the trenches, although in oxide is the widening of mineralized intervals, which also reveal supergene enrichment and higher gold grade.

2018-10-15-nrm3sm-osu-6g64fa.jpg

Figure 3. Example cross-sections of gold-mineralized veins in Adit 5 West domain (looking northwest). The view is +/-20 m. See Table 1 below for assay results in individual drillholes and trenches.

In Adit 5 East domain, the veins are also steep (Figure 4), broadly northwest- to north-dipping. There is widening of mineralization in oxide zone, which developed down to 25-30 m from surface. In hypogene mineralization, the drilling demonstrated that the width of veins doubles at deeper levels. The mineralization remains open downdip.

2018-10-15-nrm4sm-osu-6g64fa.jpg

Figure 4. Example cross-section of gold-mineralized veins in Adit 5 East domain (looking northeast). The view is +/-20 m. See Table 1 below for assay results in individual drillholes and trenches.

The above interpretations are based on selection of the previously and newly-reported mineralized intervals, 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 a mineralized interval. Composited intervals in drill holes are presented uncapped (Table 1).

Table 1. Mineralized intercepts in drill holes and trenches at Adit 5 (above 0.5 g/t Au cut-off).

NumberFrom
(m)
To
(m)
Interval
(m)
True Width
(m)
Gold
(g/t)
Stockwork
Drillhole
SDH18-24a (18.65 m)
Redrilled top of SDH18-24
Azimuth 0, Dip 59

Drillhole
SDH18-24 (154 m)
Azimuth 0, Dip 59
6.517.2510.75Drilled downdip1.06Adit 5 East
18.427.28.8Drilled downdip1.13Adit 5 East
40.0555.215.15Drilled downdip0.61Adit 5 East
77.2584.357.1Drilled downdip0.52Adit 5 East
116.55121.254.7Drilled downdip1.13Adit 5 East
Drillhole
SDH18-32 (244 m)
Azimuth 200, Dip 60
37.141.03.9Oblique to strike1.68Adit 5 East
38.741.02.32.47Adit 5 East
51.266.4515.25Oblique to strike0.99Adit 5 East
85.587.52.0Oblique to strike1.82Adit 5 East
91.8594.953.1Oblique to strike1.1Adit 5 East
124.0126.252.25Oblique to strike0.56Adit 5 West
132.1134.01.91.00.95Adit 5 West
141.5152.410.96.21.43Adit 5 West
159.05160.151.10.64.34Adit 5 West
Drillhole
SDH18-33 (277.4 m)
Azimuth 185, Dip 50
33.335.01.71.50.78Klyuchi West
77.681.43.83.41.28Klyuchi West
118.8121.12.32.12.05Klyuchi West
133.0135.952.952.60.63Klyuchi West
147.15153.66.455.81.43Adit 5 East
147.15147.90.758.2
206.6209.12.52.251.12Adit 5 East
227.1234.457.356.650.95Adit 5 East
Drillhole
SDH18-36 (139.1 m)
Azimuth 230, Dip 60
10.3514.13.751.90.81Adit 5 East
115.95119.553.61.80.93Adit 5 East
123.5129.355.852.90.63Adit 5 East
Drillhole
SDH18-47 (132.1 m)
Azimuth 180, Dip 50
9.114.55.44.92.65Adit 5 East
22.323.20.90.82.3Adit 5 East
27.639.211.610.50.78Adit 5 East
61.864.83.33.01.0Adit 5 East
122.85128.355.55.00.8Adit 5 East
Drillhole
SDH18-48 (244.3 m)
Azimuth 230, Dip 50
5.422.616.813.41.02Adit 5 West
29.240.4511.259.01.12Adit 5 West
63.567.23.72.32.36Adit 5 West
97.0598.151.10.83.55Adit 5 West
119.4122.32.92.31.54Adit 5 West
136.25138.52.251.81.11Adit 5 West
169.7171.051.351.18.5Adit 5 West
Drillhole
SDH18-49 (200.7 m)
Azimuth 231, Dip 50
17.736.018.314.71.34Adit 5 West
46.749.73.02.43.07Adit 5 West
47.648.61.07.95
53.074.821.817.40.91Adit 5 West
87.190.73.62.90.87Adit 5 West
96.5107.1510.658.40.95Adit 5 West
100.35103.353.01.95
113.85117.53.652.90.67Adit 5 West
199.6200.71.10.82.96Adit 5 West
Drillhole
SDH18-50 (213.5 m)
Azimuth 230, Dip 50
118.5122.554.052.91.07Adit 5 West
125.45140.7515.311.80.93Adit 5 West
144.75151.87.055.50.67Adit 5 West
170.0188.618.613.20.74Adit 5 West
Drillhole
SDH18-51 (153.65 m)
Azimuth 90, Dip 60
6.8511.755.94.70.54Adit 5 West
26.241.2515.0512.00.62Adit 5 West
80.8582.952.11.650.79Adit 5 West
115.65118.352.72.160.62Adit 5 West
124.5126.01.51.28.53Adit 5 West
Drillhole
SDH18-52 (150.4 m)
Azimuth 40, Dip 50
11.913.92.01.60.78Adit 5 West
32.6542.059.47.51.19Adit 5 West
45.652.456.855.52.0Adit 5 West
57.5560.953.42.70.76Adit 5 West
Drillhole
SDH18-53 (138.25 m)
Azimuth 120, Dip 50
2.6520.517.8513.60.9Adit 5 East
33.935.61.71.31.15Adit 5 East
39.3543.854.53.21.16Adit 5 East
55.2558.353.12.350.85Adit 5 East
63.664.751.150.83.44Adit 5 East
130.65131.450.80.551.54Adit 5 East
Drillhole
SDH18-54 (199.65 m)
Azimuth 120, Dip 50
41.548.056.555.20.74Adit 5 East
51.6558.056.45.11.32Adit 5 East
67.8569.61.751.31.12Adit 5 East
74.179.65.54.30.84Adit 5 East
91.094.63.62.71.38Adit 5 East
98.7105.46.75.31.28Adit 5 East
111.05116.55.454.30.83Adit 5 East
131.0137.256.255.00.74Adit 5 East
166.0173.17.15.40.86Adit 5 East
Drillhole
SDH18-60 (200.6 m)
Azimuth 350, Dip 49
57.861.954.152.10.6Adit 5 East
82.195.413.36.51.03Adit 5 East
140.3143.93.61.81.29Adit 5 East
158.65161.62.951.50.55Adit 5 East
172.85174.952.11.11.2Adit 5 East
193.9196.32.41.20.96Klyuchi West
Drillhole
SDH18-61 (100.2 m)
Azimuth 310, Dip 50
5.512.957.454.51.21Adit 5 East
39.2540.351.10.651.37Adit 5 East
61.268.357.154.20.48Adit 5 East
Trench
STR18-23 (127.6 m)
13.326.212.91.32Adit 5 West
31.336.75.41.54Adit 5 West
56.258.22.00.76Adit 5 West
88.090.02.00.68Adit 5 West
94.0117.023.01.6Adit 5 East
121.2126.55.34.01Adit 5 East
Trench
STR18-24 (99 m)
9.521.011.56.49Adit 5 West
24.728.03.31.12Adit 5 West
40.051.011.01.32Adit 5 West
66.080.014.01.42Adit 5 West
91.795.04.30.62Adit 5 West
Trench
STR18-25 (102 m)
025.825.81.42Adit 5 East
43.550.57.00.74Adit 5 East
54.357.53.20.74Adit 5 East
75.077.02.00.72Adit 5 East
81.083.02.00.79Adit 5 East

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.

Drill core samples were submitted directly to the SGS Vostok 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 have 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:
Alexander Yakubchuk, Director of Exploration, Orsu Metals Corporation
Doris Meyer, Corporate Secretary, Orsu Metals Corporation
Tel: +1-604-536-2711 ext 6
www.orsumetals.com


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