Orsu Metals Corporation (TSX-V: OSU) (“Orsu” or the “Company”) signed a bulk test and pilot mining agreement to process the Sergeevskoe gold-mineralized material at the Alexandrovskoye mine and gold plant.
The Alexandrovskoye mine and gold-processing plant are owned by Zapadnaya Gold Mining Limited, operating three gold mines in the Russian Federation with total annual production of 106.5 thousand ounces per annum (in 2018; http://www.zapadnaya.com/). The Alexandrovskoye gold-processing plant is located immediately to the west from the Sergeevskoe license border (see Figure 1). The terms of the agreement envisage that the parties will process the first trial batch of gold-mineralized material and will then finalize the commercial aspects of pilot mining and processing activities.
Figure 1. A west-looking view of the Sergeevskoe license area in the middle and Alexandrovskoe gold-processing plant in the rear. The 2017-2019 exploration workings by Orsu can be seen within Sergeevskoe license, with non-operating Klyuchevskoe open pit in front.
The Company did not complete pre-feasibility or feasibility studies to international standards. However, Orsu completed a Russian technical study that received an approval from the Russian mining authorities for extraction of 1,050,000 tons of mineralized material during three years (“pilot mining”) from the North and South open pits to a depth of 30 to 35 m(see Figure 2 and press release June 11, 2020).
Figure 2. Outlines of North and South open pits approved by Russian authorities for pilot mining on the basis of the Sergeevskoe technical study.
As part of preparation for a bulk test and subsequent pilot mining, the Company and Alexandrovskoe mine:
- cleared the vegetation over an area of 15 hectares, covering the two planned open pits and related infrastructure;
- built haul roads connecting the sites of the planned pilot open pits with the waste dump and mineralized stockpile sites;
- carefully removed and stockpiled the top soil;
- received or in the process of receiving final ancillary permits such as safety certification, a blasting permit and an approval of mining plan with expectation that all required ancillary permits will be received shortly;
- received a permit from State Fund of Precious Metals and Precious Stones of the Russian Federation (Gokhran of Russia; http://www.gokhran.ru/en/) to produce and sell up to 700 kg of gold per annum;
- the Company continues a grade control drilling program (see press-releases June 09,2020 and July 13, 2020).
Orsu Metals expects that pilot mining will begin in late July to August 2020.
Alexander Yakubchuk, the Company’s Director of Exploration, Ph.D., MIMMM, a Qualified Person as defined by NI 43-101, has reviewed, verified and approved the technical disclosures contained in this press release.
About Orsu Metals Corporation
Orsu Metals Corporation is a mineral exploration and development company. The 90% owned Sergeevskoe gold project located in the Mogocha District of the Zabaikal’skiy Region of the Russian Federation is the focus of Orsu’s activities. Orsu has filed a technical report titled: “NI43-101 Technical Report on the Updated Mineral Resource Estimate for the Sergeevskoe Property, Zabaikalskiy Krai, Russian Federation” dated effective January 9, 2020 (the “Sergeevskoe Report”) to support the Inferred Mineral Resource of 30.42 million tons, grading 1.45 g/t gold and containing 1.417 Moz gold at a 0.5 g/t gold cut-off grade and US$1,450 per troy ounce of gold, optimized into an open pit constrained by the license boundaries at Sergeevskoe.
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 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 the latter half of 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 a guarantee 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, Orsu Metals Corporation
Doris Meyer, Corporate Secretary, Orsu Metals Corporation
E: [email protected]