Progress Update on the Karchiga Project Feasibility Study in Kazakhstan and Appointment of Mr. David Rhodes as Non-Executive Dir
December 07 2010 - 8:09AM
UK Regulatory
TIDMOSU
Progress Update on the Karchiga Project Feasibility Study in Kazakhstan and Appointment of Mr. David Rhodes as Non-Executive Director
FOR: ORSU METALS CORPORATION
TSX, AIM SYMBOL: OSU
December 7, 2010
Orsu Metals Corporation: Progress Update on the Karchiga Project Feasibility Study in Kazakhstan and
Appointment of Mr. David Rhodes as Non-Executive Director
LONDON, UNITED KINGDOM--(Marketwire - Dec. 7, 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 that it has made excellent progress in advancing the definitive feasibility study (the "Feasibility
Study") for its Karchiga volcanogenic massive sulphide copper project in northeast Kazakhstan (the "Karchiga
Project"), with a view to being ready to commence construction at the Karchiga Project before the end of 2011.
All drilling (Table 1) was completed on the 30th November 2010, four weeks ahead of schedule. The core has been
transported to Ust-Kamenogorsk and the drilling contractors are currently in the process of de-mobilisation.
Table 1. Completed 2010 Drilling Program
/T/
=---------------------------------------------------------------------------
Activity ## of Holes Metres
=---------------------------------------------------------------------------
Infill Resource Drilling (for resource up-date) 40 3,876
=---------------------------------------------------------------------------
Geotechnical core drilling (for open pit design) 8 1,310
=---------------------------------------------------------------------------
Hydrological Drilling (for open pit slope angle
design) 6 476
=---------------------------------------------------------------------------
Monitoring Hydrological Drilling (for water
sampling, Environmental and Social Impact
Assessment Study ("ESIA")) 6 467
=---------------------------------------------------------------------------
Metallurgical Drilling (for additional
metallurgical testwork) 12 823
=---------------------------------------------------------------------------
Total 72 6,952
=---------------------------------------------------------------------------
/T/
The infill resource drill core is being prepared for assaying which is expected to be completed in January
2011. SRK Consulting (UK) Ltd ("SRK") will then update the Karchiga Project geological model upon receiving all
assays to commence the open pit and plant design.
The core from the geotechnical drilling is currently being logged and tested at a local laboratory in Ust-
Kamenogorsk under the supervision of SRK. The work is expected to be completed ahead of schedule by January
2011 in order for the results to be modelled into the open pit design.
The Company expects to complete hydrological field tests, which it commenced in November 2010, by the end of
December 2010, the results from which will be used to determine open pit slope angles.
Hydrological holes, drilled at various locations around the site, are being monitored and used to test water
quality and ground water flow modelling. The first round of ground water sampling for the ESIA will be carried
out in December 2010.
Metallurgical sample drilling has been completed and the core has been sampled in preparation for the
commencement of metallurgical testwork in December 2010.
In addition, in preliminary preparation for the future work in selecting an off-taker for the Karchiga Project
copper concentrate, Orsu submitted a representative sample of the typical ore from the Karchiga Project to
KazZinc (Ust-Kamenogorsk). KazZinc, a Kazakh subsidiary of Glencore International AG, is testing the
compatibility of the Karchiga Project ore for processing at their new copper smelter facility in Ust-
Kamenogorsk, which is due to be fully operational in 2012. The testwork included an evaluation of the
beneficiation qualities of the ore using a centrifugal Nelson concentrator and a series of flotation tests at
different grind sizes and using different floatation agents. The preliminary test results show that the ore is
very compatible with the smelter requirements and recoveries of up to 93% were achieved.
Appointment of Director
The Company is pleased to announce the appointment of Mr. David John Rhodes as Non-Executive director of the
Company with immediate effect.
Mr. Rhodes, aged 44, is currently a Managing Director at Endeavour Financial Limited ("Endeavour"). His
experience in the natural resource business spans more than twenty five years, having arranged, structured and
advised on over $4.5 billion of resource related projects around the world. Mr. Rhodes' career, prior to
joining Endeavour, was at Standard Bank, Barclays Capital and Royal Bank of Scotland. At Standard and Barclays,
he sourced, structured and syndicated finance for resource projects and companies on a global basis. Having
lived and worked in London and New York, he has international experience in the CIS, North/South American,
European and African markets. Mr. Rhodes is a member of the Institute of Financial Services and has a BSc
(Hons) in Financial Services.
Dr Sergey V Kurzin, Orsu's Executive Chairman, commented: "Orsu is very pleased with the timely and on-schedule
progress of the Karchiga Feasibility Study. Orsu is particularly pleased with the preliminary encouraging
results from the metallurgical testwork at the KazZinc copper smelter, which gives us technical comfort and
will help in the future selection of the off-taker for the Karchiga copper concentrate. We are also very
pleased with David Rhodes joining the Board. His vast and in-depth experience both in mining banking and
project financing world-wide and especially in the countries of the Former Soviet Union will be very beneficial
for the development of Orsu's Karchiga Project and other projects."
The companies of which Mr. Rhodes has been a director in the past five years are, Endeavour Financial Limited,
Mus2all Limited, Green Park Environment LLP, Maia Green LLP, and Apus Sequestration LLP. Mr. Rhodes is
currently interested in 332,400 common shares of Orsu and 152,000 common share purchase warrants.
There is no further information to be disclosed pursuant to schedule 2 paragraph (g) of the AIM Rules.
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 (or referred to) in this press release includes, but may not
be limited to, the Company's expectations regarding the completion of the Feasibility Study, the commencement
of construction of the Karchiga Project and the timing of same, the Company's proposed activities at the
Karchiga Project (including, but not limited to, assaying, updating the Karchiga Project geological model,
designing the open pit and plant, logging and testing, hydrological field testing, monitoring and testing
hydrological holes and metallurgical sample drilling) as well as the results thereof and timing related
thereto, and the anticipated compatibility of the Karchiga Project ore with KazZinc smelter requirements and
the recovery rate relating thereto. 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, adverse changes in commodity prices and adverse general
market conditions, uncertainties in the interpretation of drill or test results, the possibility that future
exploration, development or mining results will not be consistent with expectations, uncertainty of mineral
resources estimates, the failure by the Company and/or the counterparties to the purchase and sale agreement
governing Orsu's proposed acquisition of the additional 24.73 per cent interest in the Karchiga Project (the
"Proposed Acquisition") to satisfy or waive (as applicable) any of the conditions precedent to the completion
of the Proposed Acquisition (which include obtaining all required regulatory approvals), the inability of the
Company to enter into satisfactory arrangements with KazZinc, Company's inability to obtain, maintain, renew
and/or extend required licences, permits, authorizations and/or approvals from the appropriate regulatory
authorities, the relevant governmental authority's waiver of its pre-emptive right relating to the Karchiga
Project and other risks relating to the regulatory and/or legal framework in Kazakhstan 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 regulatory framework in
Kazakhstan with respect to, among other things, the Company's ability to obtain, maintain, renew and/or extend
required permits, licences, authorizations and/or approvals from the appropriate regulatory authorities,
including the receipt of a waiver of the relevant governmental authority's pre-emptive right relating to the
Karchiga Project, the completion of the Proposed Acquisition, the Company's ability to generate sufficient
funds from capital and/or debt markets 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, the Company's ability to engage international and Kazakh companies to carry out additional
studies for the Feasibility Study, that the Company has identified all of the key issues to be investigated in
connection with the Feasibility Study, 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.
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.
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Orsu Metals Corporation
Ray Oates
Technical Director
+44 (0) 20 7518 3999
OR
Orsu Metals Corporation
Tania Tchedaeva
Company Secretary
+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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