Orsu Increases its Share in Karchiga Project to 94.75 per cent and Receives Governmental Permission to Proceed with Copper Miner
April 12 2011 - 10:41AM
UK Regulatory
TIDMOSU
Orsu Increases its Share in Karchiga Project to 94.75 per cent and Receives Governmental Permission to Proceed with Copper Mineral Extraction
FOR: ORSU METALS CORPORATION
TSX, AIM SYMBOL: OSU
April 12, 2011
Orsu Increases its Share in Karchiga Project to 94.75 per cent and Receives Governmental Permission to Proceed
with Copper Mineral Extraction
LONDON, UNITED KINGDOM--(Marketwire - April 12, 2011) - Orsu Metals Corporation (the "Company" or "Orsu")
(TSX:OSU)(AIM:OSU), the London-based precious and base metals exploration and development company, is pleased
to announce that it has completed the acquisition of the remaining 26.1 per cent interest in Eildon Enterprises
Limited ("Eildon"), a company registered in the British Virgin Islands which owns 94.75 per cent of GRK MLD LLC
("MLD"), pursuant to a sale and purchase agreement entered into on May 20, 2010. MLD is the holder of the
exploration and production contract relating to the Karchiga volcanogenic massive sulphide deposit in
Kazakhstan (the "Karchiga Project") granted by the Ministry of Energy and Mineral Resources (Competent
Authority) of the Republic of Kazakhstan on February 28, 2007 and valid until February 28, 2024. The purchase
price for the acquisition was US$6,187,500, satisfied entirely in cash.
Orsu is also pleased to announce that it has received permission from the Ministry of Industry and New
Technologies of the Republic of Kazakhstan to commence mineral extraction for copper at the Karchiga Project.
The Karchiga Project is located in the northeast of Kazakhstan within the mid-Palaeozoic Rudny Altai terrain
which hosts numerous world class volcanogenic massive sulphide deposits, including the Leninogorsk (also known
as Ridder-Sokolnoye), Zyryanovsk, and Maleevskoye deposits. A National Instrument 43-101 technical report on
the Karchiga deposit dated March 22, 2010 (the "Karchiga Report"), was prepared by Wardell Armstrong
International Limited. In May 2010, Micon International Co Limited completed a preliminary assessment or
scoping study for the Karchiga Project on behalf of Orsu (the "Karchiga Scoping Study"). The base case scenario
showed a discounted cash flow, over a mine life greater than 10 years, with a Net Present Value of
approximately $138 million, after applying a discount rate of 10% per annum and assuming an initial capital
cost of approximately US$100 million, and an Internal Rate of Return of 40.5% based on a flat copper price of
$3.00/lb. In September 2010, the Company initiated a Definitive Feasibility Study for the Karchiga Project,
which is progressing well and which the Company anticipates will be completed in Q3 2011.
ENDS
Notes to editor:
1. The technical report related to the Karchiga Scoping Study is entitled
"Preliminary Assessment of The Karchiga Copper Project, East Kazakhstan
Region, Kazakhstan", is dated May 25, 2010 (the "Karchiga Scoping Study
Report") and was prepared by L S Carroll, MIMMM CGeol FGS, G Harris,
MAusIMM, M L Owen, CGeol EurGeol FGS, J Steedman, MAusIMM and D T Wells,
MIMMM CEng of Micon International Co. Limited (each of whom is
independent of Orsu). A copy of the Karchiga Scoping Study Report is
available under the Company's profile on SEDAR (www.sedar.com). The
Karchiga Scoping Study Report is preliminary in nature and includes
inferred mineral resources that are considered too speculative
geologically to have the economic considerations applied to them that
would enable them to be categorized as mineral reserves. Accordingly,
there is no certainty that the conclusions of the Karchiga Scoping Study
Report will be realized.
2. The Karchiga Report is entitled "Updated Report on the Karchiga Property
held by Orsu Metals Corporation, Kazakhstan", is dated March 22, 2010
and was prepared by M L Owen and L S Carroll of Wardell Armstrong
International Limited. A copy of the Karchiga Report is available under
the Company's profile on SEDAR (www.sedar.com).
3. 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 and has verified the data disclosed in this press release.
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 Karchiga Project's expected life of mine, estimated net present value and rate of return,
forecasts relating to capital costs and the future price of copper, the Company's expectations relating to the
completion of a Definitive Feasibility Study for the Karchiga Project and the timing related thereto as well as
the Company's potential extraction of copper at the Karchiga Project.
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 drilling and metallurgical test work,
uncertainties relating to the estimates and assumptions used, and risks in the methodologies employed, in the
Karchiga Scoping Study Report and that the completion of additional work on the Karchiga Project could result
in changes to the estimates contained in the Karchiga Scoping Study Report, uncertainty of capital and
operating costs, production and economic returns, the possibility that future exploration, development or
mining results will not be consistent with expectations, uncertainty of mineral resources estimates, delays in
the completion of the Definitive Feasibility Study for the Karchiga Project, adverse changes in commodity
prices, the Company's inability to obtain, maintain, renew and/or extend required licences, permits,
authorizations and/or approvals from the appropriate regulatory authorities, 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 22, 2011, 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 parameters and assumptions
employed in the Karchiga Scoping Study Report, including future capital costs and cost parameters, cash flow
discounts, anticipated mining and processing rates, 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, 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 the Karchiga Report and the Karchiga Scoping Study Report are
estimates only 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 referenced in the Karchiga Report and
the Karchiga Scoping Study Report 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. Mineral resources that are not mineral reserves
do not have demonstrated economic viability.
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
Dr Sergey V Kurzin
Executive Chairman
+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
Andrew Chubb / Ryan Cohen
+44 (0) 20 7050 6500
OR
Vanguard Shareholder Solutions
+1 604 608 0824
Orsu Metals Corporation
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