Orsu Metals Corporation (TSX-V: OSU) (“Orsu” or the “Company”) is pleased to report the main achievements of its 2019 activities:
- 2019 exploration program consisting of 3 555 meters of diamond drilling and 2 795 meters of trenching successfully completed (see news release November 19, 2019);
- The footprint of the known mineralization increased two-fold to 2x1 km east-to-west and south-to-north;
- The exploration results will feed into an upgrade of the 43-101 mineral resource estimate expected in December 2019;
- The Company has a clear understanding of the follow-up exploration plan to further increase the mineralization;
Sergei Stefanovich, the Managing Director, said: “With even this limited program, we’ve managed to double the footprint of the mineralization and we know exactly where to drill next year to grow the mineralized envelope. The 2019 drill and trench program will allow us to update the resource estimate later this year. Management remains convinced in the merits of the project as evidenced by insiders absorbing most of the $1.44 million equity raise completed on November 8, 2019.”
Orsu’ strategy and objectives for 2020:
Pursuant to its exploration license the Company is required to produce a resource and classified reserve statement to Russian standards by December 2019. The acceptance of the statement by the Russian authorities will then allow the Company to apply for a permit to conduct a bulk-test pilot mining program on a portion of its high-grade mineralization in Q2 2020. Infill drilling will be conducted and based on the assays and metallurgy, the areas for the bulk test will be chosen. If the pilot bulk test is economic the goal is to generate cash flow from a small-scale mining program to fund further exploration on the greater Sergeevskoe project.
The pilot mining project will not reduce the potential economics of the Sergeevskoe deposit and will provide the early cash flow needed to fund a significant expansion drilling and trenching program in Q3 2020 all without further dilution to shareholders.
Sergey Kurzin, the Chairman, said: “If pilot mining works, it will provide cash-flows to return to a major exploration effort in the autumn of 2020 aiming to further increase the mineralized deposit. This is our current view of the 2020 strategy.”
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.
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. Such information or statements may include, but are not limited to, statements with respect to the timing of, and the acceptance by, the Russian authorities of the resource and classified reserve statement, the timing of, and the issuance of, a permit to conduct a bulk-test pilot mining program, the economics of the bulk-test pilot mining program, the mineralized material being amenable to being processed at the gold plant, the cash flow from the pilot mining operation being sufficient to fund a major exploration effort in 2020. 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.
For further information, please contact:
Sergei Stefanovich, Managing Director of Orsu Metals Corporation
Doris Meyer, Corporate Secretary, Orsu Metals Corporation
Tel: +1-604-536-2711 ext 6