Orsu Announces Mineral Resources Update on Talas Joint Venture Project in Kyrgyzstan
September 27 2010 - 2:30AM
UK Regulatory
TIDMOSU
Orsu Announces Mineral Resources Update on Talas Joint Venture Project in Kyrgyzstan
FOR: ORSU METALS CORPORATION
TSX, AIM SYMBOL: OSU
September 27, 2010
Orsu Announces Mineral Resources Update on Talas Joint Venture Project in Kyrgyzstan
LONDON, UNITED KINGDOM--(Marketwire - Sept. 27, 2010) - Orsu Metals Corporation ("Orsu", or the "Company")
(TSX:OSU)(AIM:OSU), the London-based precious and base metals exploration and development company, is pleased
to announce a mineral resource constrained by a pit shell at the Taldybulak deposit ("Taldybulak") at its Talas
joint venture project in Kyrgyz Republic.
Following a 22,013 metre drilling programme in 2008 and 2009 Gold Fields Limited ("Gold Fields") has reported
an updated mineral resource estimate for Taldybulak effective June 30, 2010 in its 2010 Annual Report (the
"Taldybulak Mineral Resource") according to the 2007 South African Code for the Reporting of Mineral Resources
and Mineral Reserves (the "SAMREC Code"). The following information regarding the Taldybulak Mineral Resource
is derived from Gold Fields' 2010 Annual Report.
Gold Fields, through its subsidiary Gold Fields Orogen Holding BVI Limited, has a 60% interest in and is the
operator of the Talas joint venture company (the indirect owner of the Taldybulak, Barkol, Kentash and
Korgontash properties in the Talas region of the Kyrgyz Republic) whilst Orsu has a 40% interest. Taldybulak is
a major deposit and has been the primary focus of exploration and mineral resource development within the Talas
Project licence area.
The Taldybulak Mineral Resource (Table 1) consists of an indicated resource of 127 Mt, comprising 2.6 Moz gold
at 0.64 g/t, 477 Mlb copper at 0.17%, and 29.4 Mlb molybdenum at 0.01%, and an inferred resource of 296 Mt,
comprised of 3.71 Moz gold at 0.4 g/t, 1,098 Mlb copper at 0.17%, and 69.2 Mlb molybdenum at 0.01%. Orsu's
attributable resource based on this constrained calculation is 1.04 Moz gold at 0.64 g/t, 191 Mlb copper at
0.17%, and 11.8 Mlb molybdenum at 0.01% in the indicated category and 1.48 Moz gold at 0.4 g/t, 439 Mlb copper
at 0.17%, and 27.7 Mlb molybdenum at 0.01% in the inferred category.
Table 1. Taldybulak Mineral Resource according to SAMREC Code
/T/
=--------------------------------------------------------------------------
Equivalent Equivalent Gold Gold Copper Copper
Confidence Quantity grade metal grade metal grade metal
classification (Mt) (AuEq g/t) (AuEq Moz) (g/t) (Moz) (%) (Mlb)
=--------------------------------------------------------------------------
Mineral Resource total for deposit (100%)
Indicated 127 1.04 4.23 0.64 2.60 0.17 477
Inferred 296 0.79 7.48 0.40 3.71 0.17 1,098
=--------------------------------------------------------------------------
Mineral Resource attributable to Gold Fields (60%)
Indicated 76 1.04 2.54 0.64 1.56 0.17 286
Inferred 178 0.79 4.49 0.40 2.23 0.17 659
=--------------------------------------------------------------------------
Mineral Resource attributable to Orsu (40%)
Indicated 51 1.04 1.69 0.64 1.04 0.17 191
Inferred 118 0.79 2.99 0.40 1.48 0.17 439
=--------------------------------------------------------------------------
=---------------------------------------------------
Confidence Molybdenum Molybdenum
classification grade (%) metal (Mlb)
=---------------------------------------------------
Mineral Resource total for deposit (100%)
Indicated 0.01 29.4
Inferred 0.01 69.2
=---------------------------------------------------
Mineral Resource attributable to Gold Fields (60%)
Indicated 0.01 17.6
Inferred 0.01 41.5
=---------------------------------------------------
Mineral Resource attributable to Orsu (40%)
Indicated 0.01 11.8
Inferred 0.01 27.7
=---------------------------------------------------
=--------------------------------------------------------------------------
Table notes:
The Taldybulak Mineral Resource is constrained within an optimised open pit
shell parameters including mining, processing and administration cost
estimates; mining parameters; and process recoveries for gold, copper and
molybdenum.
The Taldybulak Mineral Resource estimate is reported without dilution, ore
loss or process recovery factors, assuming 100% metallurgical recoveries
for all metals. Commodity prices used in the Taldybulak Mineral Resource
are US$1,150/oz gold, US$3.00/lb copper and US$15/lb molybdenum. Gold
equivalent is calculated using commodity price weightings for gold, copper
and molybdenum. AuEq Moz = Au Moz+(US3.00/lb x Cu Mlb+US$15 x Mo
Mlb)/US$1,150.
Some figures may not sum exactly due to rounding.
=--------------------------------------------------------------------------
/T/
The Taldybulak Mineral Resource is based on exploration activities and geological and mineral resource
modelling completed on the Taldybulak deposit. The indicated and inferred mineral resource estimate according
to the SAMREC Code for Taldybulak is based on the same methods as described in the NI 43-101 technical report
entitled "Updated Technical Report on the Taldybulak Property Held by Orsu Metals Corporation, Kyrgyzstan"
dated March 22, 2010 (the "March 2010 Report"). The Taldybulak Mineral Resource according to the SAMREC Code is
also based on reasonable prospects for eventual economic extraction of the mineral resource supported by a life-
of-mine pit-shell based on mining and mineral processing assumptions.
Reconciliation between Taldybulak Mineral Resource estimates according to the SAMREC Code and NI 43-101
The dataset used in the Taldybulak Mineral Resource is identical to the database used in the mineral resource
estimate contained in the March 2010 Report. The Taldybulak Mineral Resource according to the SAMREC Code is
reported using an optimised pit shell while the mineral resource estimated in the March 2010 Report is reported
at a 0.3 g/t gold cut-off grade without any pit shell constraint. As a result, the mineral resource estimate in
the March 2010 Report does not include substantial mineral resources with low gold grade (less than 0.3 g/t
gold) but having elevated copper grade. Table 2 is included for comparison purposes and shows the effect of
including the mineralised material outside the 0.3 g/t gold cut-off grade shell to produce the open pit
constrained SAMREC Code mineral resource.
Table 2. Comparison of SAMREC Code and NI43-101 mineral resources for Taldybulak
/T/
=--------------------------------------------------------------------------
Gold Gold Copper Copper
Mineral Confidence Quantity grade metal grade metal
Code classification (Mt) (g/t) (Moz) (%) (Mlb)
=--------------------------------------------------------------------------
NI43-101 Indicated 141 0.66 2.99 0.17 527
Inferred 153 0.66 3.24 0.15 506
=--------------------------------------------------------------------------
SAMREC Indicated 127 0.64 2.6 0.17 477
Code Inferred 296 0.4 3.71 0.17 1,098
=--------------------------------------------------------------------------
=--------------------------------------
Mineral Molybdenum Molybdenum
Code grade (%) metal (Mlb)
=--------------------------------------
NI43-101 0.01 30
0.01 40
=--------------------------------------
SAMREC 0.01 29.4
Code 0.01 69.2
=--------------------------------------
=--------------------------------------------------------------------------
Table notes:
NI43-101 mineral resource figures are from the Company's March 22, 2010
press release, reported within the 0.3 g/t gold shell. Molybdenum grades
have been converted to percentage units from parts per million.
The SAMREC Code figures are reported inclusive both inside and outside the
0.3 g/t gold shell, constrained by 0.1% Cu and open pit shells.
=--------------------------------------------------------------------------
/T/
Aside from minor technical differences in the approach to estimation and confidence classification the major
difference between the NI43-101 and SAMREC Code mineral resource disclosure is the inclusion of substantial
copper mineral resources outside of a 0.3 g/t gold shell.
The Talas joint venture is proceeding with metallurgical optimisation studies to investigate the possibility of
increasing recoveries and extracting metals from the oxidised ores. The joint venture is currently conducting a
ground magnetic survey at Taldybulak using western magnetometer equipment.
Alexander Yakubchuk, Director of Exploration and COO, commented: "We are very pleased with the growth of
Taldybulak. The results indicate the presence of a potentially large open-pitable gold-copper-molybdenum
resource at the Taldybulak porphyry deposit. The joint venture will further focus on the improvement of metal
grade as well as the processing and economic parameters of Taldybulak."
Notes to editor:
1. Alexander Yakubchuk, PhD, Director of Exploration and Chief Operating Officer for Orsu and a "qualified
person" as such term is defined in National Instrument 43-101 and for the purposes of the AIM Guidance Note for
Mining, Oil & Gas Companies, has reviewed the contents of this press release. Dr Yakubchuk has verified the
data disclosed in this release, including sampling, analytical and test data underlying the information.
FORWARD-LOOKING INFORMATION
This press release contains forward-looking information which is not comprised of historical facts. Forward-
looking information involves risks, uncertainties and other factors that could cause actual events, results,
performance and opportunities to differ materially from those expressed or implied by such forward-looking
information. Forward-looking information contained in this press release includes, but may not be limited to,
the Company's expectations and beliefs relating to: the continuation of work at the Talas Project, including
the Company's expectation that the joint venture will further focus on improving the Taldybulak deposit; the
potential for gold, copper and molybdenum recovery and related estimates set out above.
Factors that could cause actual results to differ materially from those described in such forward-looking
information include, but are not limited to, risks normally incidental to exploration and development of
mineral properties, uncertainties in the interpretation of results from metallurgical testing and drilling, the
possibility that future exploration, or development results will not be consistent with expectations,
uncertainty of mineral resource estimates, the Company's inability to obtain, maintain, renew and/or extend
required licences and related rights, permits, authorizations and/or approvals from the appropriate regulatory
authorities and other risks relating to the political, environmental and regulatory and/or legal framework in
Kyrgyzstan, adverse general market conditions, adverse changes in commodity prices or the Talas joint venture,
as well as certain other risks set out in the Company's public documents, including its annual information form
dated March 24, 2010, filed under the Company's profile on SEDAR at www.sedar.com.
The forward-looking information in this press release reflects the current expectations, assumptions and/or
beliefs of the Company based on information currently available to the Company. In connection with the forward-
looking information contained in this press release, the Company has made certain assumptions about the
Company's business, the economy and the mineral exploration industry in general, the Company's continued
exploration at the Talas project, certain mining and processing assumptions, the regulatory framework in
Kyrgyzstan with respect to, among other things, the Company's ability to obtain, maintain, renew and/or extend
required permits and related rights, licences, authorizations and/or approvals from the appropriate regulatory
authorities, the political environment in Kyrgyzstan, assumptions regarding certain commodity prices and that
no material adverse change in such commodity prices occurs, the Company's ability to generate sufficient funds
from capital markets, as and when required, to meet its future obligations and planned activities, the
Company's ability to continue to obtain qualified staff and equipment in a timely and cost-efficient manner to
meet the Company's demand, and has also assumed that no unusual geological or technical problems occur, plant
and equipment work as anticipated and no significant events occur outside of the Company's normal course of
business. Although the Company believes that the assumptions inherent in the forward-looking information are
reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance
should not be put on such information due to the inherent uncertainty therein.
The mineral resource figures referred to in this press release are estimates and no assurances can be given
that the indicated levels of minerals will be produced. Such estimates are expressions of judgment based on
knowledge, mining experience, analysis of drilling results and industry practices. Valid estimates made at a
given time may significantly change when new information becomes available. While the Company believes that the
mineral resource estimates in respect of its properties are well established, by their nature mineral resource
estimates are imprecise and depend, to a certain extent, upon statistical inferences which may ultimately prove
unreliable. If such mineral resource estimates are inaccurate or are reduced in the future, this could have a
material adverse impact on the Company. Due to the uncertainty that may be attached to inferred mineral
resources, it cannot be assumed that all or any part of an inferred mineral resource will be upgraded to an
indicated or measured mineral resource as a result of continued exploration.
Any forward-looking information 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
information, whether as a result of new information, future events or results or otherwise.
Glossary of Technical Terms required by the AIM Guidance Note for Mining, Oil and Gas Companies
/T/
Au Gold
AuEq Gold equivalent, derived by converting the quantity of another
commodity to the economic equivalent value of a commodity per
ounce of gold
Cu Copper
indicated That part of a Mineral Resource for which tonnage, densities,
shape, physical characteristics, grade and mineral content can
be estimated with a reasonable level of confidence. It is
based on exploration, sampling and testing information
gathered through appropriate techniques from locations such as
outcrops, trenches, pits, workings and drill holes. The
locations are too widely or inappropriately spaced to confirm
geological and/or grade continuity but are spaced closely
enough for continuity to be assumed
inferred That part of a Mineral Resource for which tonnage, grade and
mineral content can be estimated with a low level of
confidence. It is inferred from geological evidence and
assumed but not verified geological and/or grade continuity.
It is based on information gathered through appropriate
techniques from locations such as outcrops, trenches, pits,
workings and drill holes which may be limited or of uncertain
quality and reliability
lb pound
M Million
magnetometer a scientific instrument used to measure the strength and/or
direction of the magnetic field caused by the differing nature
of rocks; used for subsurface geological modelling to
determine the geometry and placement of mineral deposits in
the subsurface of the earth.
Mo Molybdenum
oz troy ounce
resource A concentration or occurrence of material of intrinsic
economic interest in or on the Earth's crust in such form,
quality and quantity that there are reasonable prospects for
eventual economic extraction. The location, quantity, grade,
geological characteristics and continuity of a Mineral
Resource are known, estimated or interpreted from specific
geological evidence and knowledge. Mineral Resources are sub-
divided, in order of increasing geological confidence, into
Inferred, Indicated and Measured categories
t metric tonne
/T/
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Orsu Metals Corporation
Alexander Yakubchuk
COO
+44 (0) 20 7518 3999
www.orsumetals.com
OR
Canaccord Genuity Limited
Ryan Gaffney
+44 (0) 20 7050 6500
OR
Vanguard Shareholder Solutions
+ 1 604 608 0824
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