Orsu Metals Corporation (TSX-V: OSU) (“Orsu” or the “Company”) provides an update on its activities at the Sergeevskoe project.
As previously reported (see press release February 3, 2021), the Company received 75 million Russian rubles from Alexandrovskoe gold mine, its primary contractor (“Contractor”), for the sale of 155.7 kg (approximately 5,000 ounces) of gold extracted into Dore bars during the First Phase of pilot mining. From February to early April 2021, the Company received an additional 43.3 million Russian rubles bringing total proceeds received to-date to 118.3 million Russian rubles (approximately US$1.56 million). The Company expects to receive the remaining amount of 79.5 million Russian rubles (equivalent of approximately US$1.05 million at most recent exchange rate) during April to late May 2021. These amounts are net of deductions for extraction and processing costs paid to the Contractor. The Company has paid approximately 69 million Russian rubles (approximately US$0.91 million) in mineral extraction tax and may have to pay income taxes on this revenue stream.
The Company is planning further metallurgy tests of primary mineralized material at the Sergeevskoe license area. In mid-March 2021, Orsu collected four samples from 2017-2019 drill core for further metallurgy testing at the Klyuchi West, Kozie and Peak Klyuchi domains of the Sergeevskoe mineralized envelope. These samples were delivered to IRGIREDMET (http://www.irgiredmet.ru/en/), an Irkutsk-based organization, specialised in mineral processing, engineering and development of Russian mining projects. The tests aim to better understand the distribution of primary mineralized material amenable to direct cyanidation for both plant and heap leach treatment. The tests are expected to be completed in June or July 2021.
Orsu is planning to undertake a geochemical sampling survey covering approximately 5.5 square kilometres outside the area with NI 43-101 resource in the southeast of the Sergeevskoe licence area. Historical trenches and drill holes intercepted gold some 1.5 to 2 km west from the mineralized envelope. The mineralized envelope is also open to the north, with potentially permissive ground open for some 500 m across the strike. This provides an opportunity for significant expansion of the mineralized envelope. It is expected that the geochemical survey will generate new targets and help to better focus new drilling. The geochemical survey work is planned to start in June 2021.
Finally, Orsu earlier announced (see press release October 29, 2020) that it has entered into a non-binding letter agreement to acquire a portfolio of core assets (the “Transaction”), including the Alexandrovskoye open pit gold mining project and mining processing plant. After completing the review of the assets, Orsu decided not to proceed with the Transaction.
Dr. Sergey V Kurzin, the Executive Chairman, commented: “After suspension of pilot mining in November 2020, the Company is currently not planning to restart the pilot mining and processing activity at the facilities of the Contractor’s Alexandrovskoe gold mine.
Using the funds received, Orsu has initiated new metallurgy tests to better understand the metallurgy and distribution of the primary mineralization amenable to cyanidation at the plant and heap leach facilities as an alternative and potentially more efficient flow-sheet to extract gold.”
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.
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 results the 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 terms of the toll-milling contract being acceptable, the cash flow from the pilot mining operation being sufficient to fund a significant 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]