Orsu Metals Corporation (TSX-V: OSU) (“Orsu” or the “Company”) is pleased to update on its ongoing operational activities:
- The Company is moving forward with its plans to conduct a bulk test pilot mining program beginning with a reverse circulation (“RC”) and grade control drilling program at its Sergeevskoe project in the Zabaikalye area of the Russian Federation;
- Subject to receipt of permits the Company expects to be able to begin pilot mining in August 2020;
- The Company intends to do a bulk test by mining and milling 50,000 tons of mineralized material to establish the achievable recoveries of gold and optimize such recoveries within the constraints of the existing flow-sheet of the neighbor’s gold mill located approximately 8 kilometers away that will process the extracted mineralization on a toll milling arrangement;
- The owner of the neighboring mill is funding and conducting the RC program leading up to a toll-milling contract;
- The results of the bulk test will determine whether the Company proceeds with pilot mining. Orsu has applied for and expects to be issued a permit in July 2020 to mine and process up to 1,050,000 tonnes of mineralized material within a 36 month period;
- The grade is approximately 1.6 g/t gold; and
- To prepare the project for the bulk test the Company:
- has cleared the vegetation over the areas of the two planned open pits and a waste dump pad to a total of 8 hectares;
- both pits, one in the North and one in the South (Fig. 1), will be down to 35 meters in depth;
- the mining and processing contractor completed 1721 meters of third-party verification RC drilling in 18 drill holes. The results of the RC confirmation drilling will be announced when analyzed; and
- as of 19 May 2020, 2539 meters in 244 holes of grade control drilling spacing 10 x 2.5 meters have been completed. The grade control drilling is designed to outline the mining blocks for blasting and excavation within the planned pilot pits at 10-meter depth intervals.
Figure 1. A plan view of the North and South open pits against the Sergeevskoe mineralization wireframes as per updated NI 43-101 Inferred Mineral Resource (see press release January 20, 2020).
Dr. Sergey V Kurzin, the Executive Chairman commented: “The results of the 2019 trenching and drilling results doubled the footprint of the mineralized deposit to 2x1 kilometers and increased the Inferred Resource by 19.3%. The deposit remains open to the west and north. If the pilot mining program is successful, then cash flow generated will fund a major exploration effort in the second half of 2020 without further shareholder dilution. This is the strategy.”
Alexander Yakubchuk, the Company’s Director of Exploration, commented: “As outlined in the Company’s press-release dated 25 November 2019, the bulk test and subsequent pilot mining aim to:
- improve our understanding of the project; and
- establish or confirm on a bulk-minable scale the key parameters of the project such as the strip ratio, dilution, extent of oxide, gold grades in minable material, metallurgy and, most importantly, recoveries at the mill.”
In March 2020, the World Health Organization declared COVID-19 a global pandemic. This contagious disease outbreak, which has continued to spread, has adversely affected workforces, economies, and financial markets globally. It is not possible for the Company to predict the duration or magnitude of the adverse impacts of the outbreak and its effects on the Company’s business or ability to raise funds. The COVID-19 pandemic has not affected the progress of the ongoing exploration campaign on the Sergeevskoe Project as the Company is able to conduct its ongoing exploration in this remote area of Russia.
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 tonnes, 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.
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 exploration information disclosures contained in this press release.
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 of Orsu Metals Corporation
Doris Meyer, Corporate Secretary, Orsu Metals Corporation
E: [email protected]