TIDMOMI
RNS Number : 8663X
Orosur Mining Inc
03 September 2020
Orosur Mining Inc - Colombia update
-- Newmont to continue at Anzá gold project
-- US$500,000 option payment received
London, September 3(rd) , 2020 . Orosur Mining Inc. ("Orosur" or
the "Company") (TSX/AIM:OMI), announces that it has been informed
by Newmont Colombia S.A.S. ("Newmont Colombia") a subsidiary of
Newmont Corporation (NYSE:NEM), that it intends to continue to
exercise its rights and obligations with regard to the Anzá gold
project in Colombia (the "Anza Project") under the terms of the
Exploration Agreement with Venture Option (the "Agreement") signed
and announced in September 2018.
Newmont Colombia has now paid the fourth and final cash payment
of US$500,000 required under the Phase I earn-in arrangement to
retain its option and to continue into the 3(rd) year of Phase 1 of
the Agreement during which year it is required to spend a further
US$4 million in qualifying expenditure on the Anza Project.
In addition, should qualifying expenditure incurred on the Anzá
Project for the year ending 7(th) September 2020, fall short of the
required US$1m under the Agreement, Newmont Colombia will be
required to meet such shortfall by making a payment equal to the
shortfall to the Company no later than 6(th) November 2020. The
amount of such payment would be determined once the total of
qualifying expenditure for the year ending 7(th) September 2020 has
been accounted for.
In the 3(rd) and 4(th) years of Phase 1 of the Agreement,
Newmont Colombia will be required to spend a total of US$8 million
in qualifying expenditure on the Anzá Project to acquire a 51%
ownership interest. No further cash payments are due to the Company
in the remaining two years of Phase 1 of the Agreement.
To view the full PDF version of this announcement, including
Figures 1-3 referred to below, please click here:
http://www.rns-pdf.londonstockexchange.com/rns/8663X_1-2020-9-2.pdf
About the Anzá Project
Anzá is a gold exploration project, comprising three exploration
licences, four exploration licence applications, and several small
exploitation permits, totalling 207.5km2 in the prolific Mid-Cauca
belt of Colombia.
The Anzá Project is currently wholly owned by Orosur via its
subsidiary, Minera Anzá S.A.
The project is located 50km west of Medellin and is easily
accessible by all-weather roads and boasts excellent infrastructure
including water, power, communications and large exploration
camp.
Anzá lies some 60km south along strike from the giant Buriticá
deposit, recently acquired by Zijin Mining for CAN$1.4 billion.
Figure 1. Anzá Location Map
The Anzá Project was acquired by Orosur in 2014, via the
acquisition by Orosur of Canadian company Waymar Resources (Waymar)
(TSXV:WYM).
Orosur and Waymar explored the project using a variety of
techniques including over 24,000m of drilling. Most drilling
focussed on the APTA prospect, with a small drilling program
identifying mineralisation 1.5km west at the Charrascala
prospect.
Geochemistry and other work identified several other targets
(Jesuitas, Guaimarala and La Cejita) which have not been drill
tested (Figure 2)
Drilling at APTA has defined multiple zones of high-grade gold
mineralisation covering a strike of approximately 1.5km, to a depth
extent of over 275m, with mineralisation remaining open in all
directions. (Figure 3) (Appendix I)
In September 2018, the Anzá project was optioned to Newmont
Colombia.
Figure 2. Surface Geochemistry and Target Zones
Figure 3. APTA Drill Plan and Section
Exploration Agreement with Venture Option
The Agreement is described on SEDAR and in previous
announcements made by the Company. The key points, which were
announced on 10 September 2018, are as follows:
The Agreement provides for a three-phase earn-in structure
allowing Newmont Colombia to earn up to a 75% ownership interest in
the Anza Project by spending a minimum of US$30.0 million in
qualifying expenditures over twelve years to 2030, completing an NI
43-101 compliant feasibility study and making total cash payments
to Orosur of US$4.0 million over Phases 1 and 2.
In Phase 1, Newmont may earn a 51% ownership interest by
spending US$10.0 million in qualifying project expenditures over
four years to September 2022 and making total cash payments to
Orosur of US$2.0 million during the first two years of the Phase 1
earn-in period. Upon Newmont Colombia's completion of Phase 1, it
may elect, in its sole discretion, to exercise its option to form a
joint venture with Minera Anz á S.A.
In Phase 2 commencing October 2022, Newmont may elect to earn an
additional 14% ownership interest in the Anza Project by
sole-funding US$20.0 million in qualifying expenditures within four
years, completing an NI 43-101 compliant pre-feasibility study and
making total cash payments to Orosur of US$2.0 million.
In Phase 3 commencing 2026, Newmont may elect to earn an
additional 10% ownership interest in the Anza Project by completing
an NI 43-101 compliant feasibility study within four years.
Upon Newmont completing the Phase 3 earn-in, Orosur may elect
for Newmont to solely fund all expenditures until the commencement
of commercial production at the Anza Project. If the Company elects
for Newmont to do so:
-- Newmont's ownership interest shall increase by 5% to 80% in the Anza Project;
-- Upon the commencement of commercial production, Orosur shall
commence contributing funds for adopted programs and budgets in
proportion to its ownership interest or suffer dilution of its
ownership interest; and
-- Newmont shall receive 90% of Orosur's distribution of
earnings or dividends until such time as the amounts received equal
the aggregate amount of expenditures incurred by Newmont on behalf
of Orosur plus nominal interest.
Brad George, CEO of Orosur, commented:
"We have long valued Newmont as both partner and major
shareholder, and we are delighted with their decision to continue
to work with us on the Anzá Project"
Appendix I
Table 1 Previously announced notable drill results from the APTA
Prospect
Interval
Hole Number From (m) To (m) (m) Au (g/t) Ag (g/t) Zn (%)
------------- --------- ------- --------- --------- --------- -------
MAP_011 213.00 219.00 6.00 18.26 1.96 0.35
including 217.50 219.00 1.50 72.30 6.90 0.93
------------- --------- ------- --------- --------- --------- -------
MAP_020 145.00 186.00 41.00 3.85 1.39 1.25
including 171.30 177.00 5.70 19.84 3.94 1.66
------------- --------- ------- --------- --------- --------- -------
MAP_021 224.00 242.00 18.00 14.14 2.05 2.83
including 225.00 229.40 4.40 45.62 5.47 10.59
252.00 253.00 1.00 10.85 1.80 0.67
------------- --------- ------- --------- --------- --------- -------
MAP_029 183.00 194.90 11.90 10.57 2.40 1.61
including 185.00 187.00 2.00 40.25 4.85 4.64
------------- --------- ------- --------- --------- --------- -------
MAP_033 157.10 179.50 22.40 10.42 1.87 1.56
including 165.00 170.80 5.80 29.49 3.37 2.81
MAP_036 198.60 227.50 28.90 3.88 1.68 0.43
including 205.50 217.50 12.00 8.83 2.65 0.59
------------- --------- ------- --------- --------- --------- -------
MAP_038 123.40 124.50 1.10 15.40 3.60 1.94
172.00 212.50 40.50 14.09 3.82 1.95
including 179.50 186.00 6.50 70.99 6.34 0.12
including 184.60 186.00 1.40 176.00 15.20 0.39
including 202.00 205.40 3.40 20.89 9.71 4.75
------------- --------- ------- --------- --------- --------- -------
MAP_043 65.50 68.60 3.10 7.66 73.04 0.68
167.50 231.50 64.00 1.88 1.88 0.70
including 209.00 214.00 5.00 9.07 3.40 0.70
------------- --------- ------- --------- --------- --------- -------
MAP_047 105.00 118.30 13.30 2.24 316.25 1.00
including 106.00 110.50 4.50 4.69 768.89 2.34
MAP_048 181.00 195.70 14.70 40.37 9.00 3.41
including 185.50 195.70 10.20 58.03 13.16 4.85
including 187.60 189.50 1.90 219.00 29.50 6.55
------------- --------- ------- --------- --------- --------- -------
MAP-054 41.40 59.30 17.90 2.96 26.97 0.32
including 41.40 43.20 1.80 10.25 76.90 1.22
including 44.70 52.00 7.30 3.39 33.77 0.37
97.10 110.90 13.80 4.36 1.19 0.77
including 97.10 101.73 4.63 5.47 1.59 1.44
including 107.60 110.90 3.30 10.35 0.83 0.14
144.50 149.82 5.32 17.76 1.55 4.74
including 144.50 145.70 1.20 8.71 0.90 0.80
including 145.70 146.70 1.00 37.96 1.30 0.70
including 146.70 148.00 1.30 19.76 1.40 0.25
including 148.00 148.87 0.87 17.63 1.50 7.56
including 148.87 149.82 0.95 5.31 2.90 17.54
149.82 159.10 9.28 1.84 0.94 2.26
including 153.00 155.00 2.00 3.43 0.97 1.14
309.20 313.20 4.00 2.96 5.70 0.41
------------- --------- ------- --------- --------- --------- -------
MAP_055 177.00 190.90 13.90 4.89 4.86 1.35
including 177.00 181.00 4.00 6.26 3.35 0.57
including 185.00 190.90 5.90 7.24 8.73 2.78
------------- --------- ------- --------- --------- --------- -------
MAP_056 223.00 235.00 12.00 1.33 0.90 0.05
including 231.00 233.00 2.00 2.62 1.00 0.02
------------- --------- ------- --------- --------- --------- -------
MAP_058 246.00 250.00 4.00 1.10 3.45 0.15
including 274.50 276.50 2.00 4.55 6.50 0.13
------------- --------- ------- --------- --------- --------- -------
MAP_059 163.50 195.00 31.50 1.86 2.39 0.49
including 181.00 188.00 7.00 4.66 2.17 0.27
including 192.00 194.00 2.00 3.40 3.55 0.56
230.50 242.50 12.00 1.96 2.73 0.50
including 230.50 236.50 6.00 3.15 1.75 0.63
------------- --------- ------- --------- --------- --------- -------
MAP-060 70.00 75.50 5.50 3.34 3.55 0.56
165.00 192.00 27.00 1.81 0.87 0.33
including 180.00 186.00 6.00 2.92 0.67 0.20
including 189.00 192.00 3.00 4.60 2.90 1.52
222.00 247.00 25.00 4.86 3.23 1.73
including 222.00 226.00 4.00 7.92 4.13 1.94
including 235.00 238.00 3.00 9.54 5.37 0.33
including 245.00 246.00 1.00 14.43 3.40 0.95
------------- --------- ------- --------- --------- --------- -------
MAP_062 60.00 65.30 5.30 5.09 12.06 0.37
including 62.20 64.20 2.00 7.61 16.90 0.80
167.50 176.50 9.00 1.69 0.62
217.00 240.00 23.00 5.00 3.37 0.40
including 220.00 221.00 1.00 16.02 9.40 0.81
including 229.70 232.20 2.50 8.59 2.98 0.66
including 237.70 240.00 2.30 14.94 7.88 0.13
------------- --------- ------- --------- --------- --------- -------
MAP_064 116.00 122.00 6.00 1.57 19.98 1.73
147.00 151.00 4.00 0.84 0.60 0.04
190.00 197.00 7.00 3.45 1.00 3.79
including 193.00 197.00 4.00 5.43 1.50 6.41
265.00 273.70 8.70 1.67 3.13 5.35
283.70 285.30 1.60 3.18 1.94 3.03
292.00 294.00 2.00 2.04 1.75 5.90
297.00 299.00 2.00 1.03 1.05 2.18
------------- --------- ------- --------- --------- --------- -------
MAP_065 140.00 144.10 4.10 2.22 1.37 0.04
283.30 288.45 5.15 1.24 5.75 0.11
including 284.30 286.10 1.80 2.70 10.30 0.09
312.00 313.50 1.50 1.05 0.60 0.54
------------- --------- ------- --------- --------- --------- -------
MAP_067 161.70 168.10 6.40 1.74 2.52 0.34
including 162.80 165.00 2.20 4.14 30.50 0.79
176.40 192.20 15.80 1.07 2.04 0.06
including 179.00 184.00 5.00 2.24 3.28 0.13
235.00 243.20 8.20 1.36 0.78 0.38
including 237.00 241.20 4.20 2.09 0.87 0.49
------------- --------- ------- --------- --------- --------- -------
MAP_070 168.00 192.00 24.00 1.84 1.64 1.09
including 168.00 173.00 5.00 1.66 3.52 4.81
including 183.00 184.00 1.00 23.66 3.60 0.04
including 186.00 192.00 6.00 1.16 0.72 0.02
208.00 212.00 4.00 1.13 1.72 0.61
221.00 233.00 12.00 5.28 2.48 1.10
including 222.00 226.00 4.00 6.38 3.10 2.28
including 228.00 233.00 5.00 6.99 2.78 0.65
246.00 248.00 2.00 6.28 6.30 1.41
including 256.00 267.00 11.00 6.35 2.74 1.55
284.00 298.00 14.00 5.02 2.23 1.10
including 286.00 292.00 6.00 9.62 2.90 1.75
302.00 307.00 5.00 1.57 3.94 1.67
------------- --------- ------- --------- --------- --------- -------
Notes:
1. Significant intervals are chosen based on continuity of
mineralization and gold grade.
2. All intervals are reported as drilled thicknesses; true
thicknesses are estimated to be 65-85% of drilled thicknesses.
3. Gold grades have been calculated based on weighted
averages
F or further information, please 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
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation ("MAR"). Upon the publication of this
announcement via Regulatory Information Service, 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 precious metals
developer and explorer focused on identifying and advancing gold
projects in South America. The Company operates in Colombia and
Uruguay.
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 from Newmont of those
plans, Newmont's decision to continue with the Exploration and
Option agreement, the ability for Loryser to continue and finalize
with the remediation in Uruguay, the ability to implement the
Creditors' Agreement successfully as well as continuation of the
business of the Company as a going concern 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, those as described in
Section "Risks Factors" of the MDA and the Annual Information Form.
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.
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