Orosur Mining Inc - Argentina
Update
·
Field work
completed prior to winter recess.
·
Mapping and
sampling identified large, district scale low-sulphidation
epithermal system.
·
Environmental
studies for drilling permits submitted, allowing for drilling by
year-end.
·
Technical teams
shift focus to Anzá project in Colombia during the Argentine winter
recess.
London, May 30th 2024.
Orosur Mining
Inc. ("Orosur" or the "Company") (TSXV/AIM:OMI),
is pleased to provide announce an update on the progress of
exploration activities at its El Pantano gold and silver project
("Project" or "El Pantano") in Argentina.
El
Pantano - Argentina
The Project is an early-stage
gold/silver exploration project in Santa Cruz province, southern
Argentina.
The Project comprises approximately
600km2 of contiguous licences in the prolific Deseado Massif
region, roughly 45km from Anglo Gold's Cerro Vanguardia mining
camp.
The Project is subject to an
Exploration & Joint Venture ("JV") agreement ("Agreement") with
private Argentinean company DESEADO DORADO S.A.S and its
shareholders ("Deseado"), the details of which were announced on
February 15th 2022.
At the time the JV commenced, the
Project was an almost untouched grass roots gold/silver exploration
project. Some historical sampling and geophysics had been
done in the southeast of the Project, but 80% of the Project area
had never been explored and no drilling has ever been undertaken
anywhere within the Project area.
The Company entered the JV on the
basis of regional geological data that indicated the potential for
a major, previously unknown district-scale low-sulphidation
epithermal system. In addition to the highly prospective
geology, the Project also offered a large contiguous land package,
zero entry cost, and a low-cost pathway to 100%
ownership.
Post signing the Agreement, the
Company immediately began the process of geological mapping and
geochemical sampling across the licence package. This process
is now largely complete, and data collected have supported the
Company's initial view of the Project's prospectivity. It is
now planned to move to the next phase of direct targeting.
Environmental permits have been submitted which would allow for
drilling by the year end.
Figure 1. Project
location
Geological Model
The Deseado Massif plays host to a
number of world class gold and silver deposits, the largest of
which is the giant Cerro Negro deposit being exploited by Newmont
Mining (Fig 2).
Fig. 2.
Geological map of
the Deseado Massif with epithermal Au-Ag deposits and paleo hot
spring occurrences.
(Moreira and
Fernandez)
The Deseado Massif is a geological
province in Southern Argentina, covering roughly 60,000km2 and
consisting largely of felsic volcanics related to widespread mid to
late Jurassic volcanism.
Fig 3. Rift related,
low-sulphidation model schematic section (Exploration
Alliance)
Mineralisation in the region is
related to the Jurassic break up of Gondwana and opening of the
Atlantic Ocean. There are a variety of mineralisation styles, but
the most significant are of the rift related, low-sulphidation
style.
Extension associated with this
volcanism created regional scale SE-NW striking rifts that acted as
conduits for metal bearing fluids that were the source of most
significant mineral deposits. These rifts can be tens of km
long and several km wide and in cross section can be presented as
"flower" structures as the rifts widen out toward the surface and
the binding pressure of surrounding rocks decreases (Fig 3).
Importantly this same reduction of pressure allows the metal
bearing fluids to boil, and it is this boiling that is the primary
mechanism for gold deposition. Above this boiling zone, the
fluids continue upward, but may be now devoid of gold, being
reflected as barren quartz veins, hot spring systems and other
forms of pervasive surface silicification.
As a result, gold surface
geochemistry is often not an effective indicator of underlying
potential. Attention must instead be focused on geochemical
sampling of more mobile pathfinder elements (such as arsenic
("As"), mercury ("Hg") and base metals) and mapping of silica
textures that give guidance as to the vertical level within the
epithermal system.
Results
Since early 2022, the Company's
geological teams have been slowly working across the large licence
holding carrying out reconnaissance exploration activities
including ground magnetics, geological mapping and surface
geochemistry.
The last phase of work was completed
at the end of April 2024, with results now compiled and
assessed.
Examination of these data have
supported the Company's original thesis as to the prospectivity of
El Pantano. A regional scale SE-NW trending rift system
has been clearly mapped at El Pantano, approximately 20km in strike
length and 6km in width; the same style and scale of structural
architecture that is known to control the emplacement of major
gold/silver deposits elsewhere in the massif.
Widespread areas of pervasive
silicification and hot spring occurrences were identified, with
textures indicative of being above the boiling zone, which is
important for the preservation of any mineralisation that may have
formed.
Swarms of quartz veins have been
mapped over wide areas providing evidence of a highly active
epithermal system.
High level geochemical anomalism was
recorded in all key pathfinder elements (As, Hg, Pb, Zn, Cu) along
the rift structure, especially at the eastern and western ends of
the structure that were not covered by later cretaceous
sediments. Of these anomalous elements, arsenic was the most
diagnostic (Fig 4) as gold bearing low-sulphidation epithermal
fluids are generally also enriched in arsenic but which is not
precipitated by fluid boiling and so is evident at the
surface.
Fig 4. Arsenic
geochemistry and geological mapping
Next Phase
The Company is optimistic that it
has identified a major, hitherto unknown low-sulphidation
epithermal system, potentially similar in scale to that which
produced the giant precious metal deposits at Cerro Negro, Cerro
Vanguardia and others.
The objective of the next phase of
work will be to focus down to areas within this rift system that
may be the most attractive structural conduits for fluid flow and
mineral deposition. Work programs may include more detailed
geochemistry, electrical geophysics (resistivity and IP) and
reconnaissance drilling. Data will be assessed further, and options
developed over the winter recess.
In the meantime, the Company has
completed and submitted all the necessary environmental studies
that are required as part of the Santa Cruz Province drilling
permit process. Consideration of these reports and drilling
approval is expected to take several months and it is thus
anticipated the Company will have drilling permits later in the
year.
Shift focus to Colombia
Field work at El Pantano has now
wound down for the winter and technical teams will shift focus to
the Company's Anzá gold project in Colombia.
As has been announced, the Company
is in the process of reassuming 100% ownership of the Anzá project
from its joint venture partners. While this complex
commercial process continues, Orosur geologists are currently in
Colombia carrying out the necessary planning and permitting
required to allow commencement of drilling activities as soon as
possible after completion of the transaction.
Orosur CEO Brad George commented:
"El Pantano was taken on as a
completely grass roots project, but one with positive regional
geological indicators. It is pleasing that our work thus far
has supported our view of the potential of the region and that at
very low cost, the Company has generated a highly prospective array
of gold targets in a buoyant gold market."
For further information, visit
www.orosur.ca , follow on twitter @orosurm or contact:
Orosur Mining Inc.
Louis Castro, Chairman,
Brad George, CEO
info@orosur.ca
Tel: +1
(778) 373-0100
SP
Angel Corporate Finance LLP - Nomad & Joint
Broker
Jeff Keating / Caroline
Rowe
Tel: +44 (0) 20 3 470
0470
Turner Pope Investments (TPI) Ltd - Joint
Broker
Andy Thacker/James Pope
Tel: +44 (0)20 3657 0050
Flagstaff Communications and Investor
Communications
Tim Thompson
Mark Edwards
Fergus Mellon
orosur@flagstaffcomms.com
Tel: +44 (0)207 129 1474
The information contained within this
announcement is deemed by the Company to
constitute inside information as stipulated under the
Market Abuse Regulations (EU) No. 596/2014 ('MAR')
which has been incorporated into UK law by the European Union
(Withdrawal) Act 2018. Upon the publication of this
announcement via Regulatory Information Service ('RIS'), this
inside information is now considered to be in the public
domain.
About Orosur Mining Inc.
Orosur Mining Inc. (TSX: OMI; AIM:
OMI) is a minerals explorer and developer focused on identifying
and advancing projects in South America. The Company operates in
Colombia, Argentina and Nigeria. It has discontinued operations in
Uruguay.
Qualified Persons Statement
The information in this news release
was compiled, reviewed and verified by Mr. Brad George, BSc Hons
(Geology and Geophysics), MBA, Member of the Australian Institute
of Geoscientists (MAIG), CEO of Orosur Mining Inc. and a qualified
person as defined by National Instrument 43-101.
Forward Looking Statements
All statements, other than statements
of historical fact, contained in this news release constitute
"forward looking statements" within the meaning of applicable
securities laws, including but not limited to the "safe harbour"
provisions of the United States Private Securities Litigation
Reform Act of 1995 and are based on expectations estimates and
projections as of the date of this news release.
Forward-looking statements include,
without limitation, the exploration plans in Colombia and the
funding of those plans, completion of the proposed transaction to
re-assume 100% of the Anza Project, and other events or conditions
that may occur in the future. The Company's continuance as a going
concern is dependent upon its ability to obtain adequate financing,
to reach profitable levels of operations and to reach a
satisfactory implementation of the Creditor´s Agreement in Uruguay.
These material uncertainties may cast significant doubt upon the
Company's ability to realize its assets and discharge its
liabilities in the normal course of business and accordingly the
appropriateness of the use of accounting principles applicable to a
going concern. There can be no assurance that such statements will
prove to be accurate. Actual results and future events could differ
materially from those anticipated in such forward-looking
statements. Such statements are subject to significant risks and
uncertainties including, but not limited to, those as described in
Section "Risks Factors" of the Company's MD&A for the year
ended May 31, 2023. The Company disclaims any intention or
obligation to update or revise any forward-looking statements
whether as a result of new information, future events and such
forward-looking statements, except to the extent required by
applicable law.