TIDMOMI
RNS Number : 6546B
Orosur Mining Inc
15 February 2022
Orosur Mining Inc. - Argentina Update
-- JV signed with Deseado Dorado S.A.S on the El Pantano Gold Project in Argentina.
-- Over 600km2 in key gold province.
-- Option to earn 100% by investing US$3m over 5 years in exploration.
London, February 15(th) , 2022. Orosur Mining Inc. ("Orosur" or
the "Company") (TSX-V/AIM:OMI) , is pleased to announce that it has
signed an Exploration & Joint Venture ("JV") agreement
("Agreement") with private Argentinean company DESEADO DORADO S.A.S
and its shareholders ("Deseado") in relation to the El Pantano Gold
Project in the Province of Santa Cruz, Argentina ("Project").
For the full PDF version of the announcement with Figures 1-4
included, please refer to:
http://www.rns-pdf.londonstockexchange.com/rns/6546B_1-2022-2-14.pdf
Details
The Agreement covers nine licences owned by Deseado, that
combined, total 607km2 in the prolific Deseado Massif region of
Santa Cruz Province in southern Argentina, roughly 45km from Anglo
Gold's Cerro Vanguardia mining camp.
The general terms of the Agreement allow for the Company to earn
100% equity in the Project by investing US$3m over five years in
two phases:
-- Phase 1, earn 51% by investing US$1m over an initial 3-year period.
-- Phase 2, move to 100% ownership by investing an additional
US$2m over a subsequent 2-year period and granting Deseado a
residual 2% net smelter return royalty on the Project.
The Agreement will involve the Company securing its position by
direct ownership in the holding company, Deseado Dorado S.A.S. For
added security of tenure, the Company will commence with 100%
ownership of Deseado.
Formalisation of the Agreement ownership structure is expected
to take several weeks. However, as the Company's geological team
and directors have already made several visits to the Project, desk
top targeting work has already begun, thus allowing exploration
work to commence promptly once the structure is finalised.
Location and Geology
The Project comprises nine contiguous exploration licences that
total 607km2.
Access to the Project is by good, paved road several hours drive
south from the regional city of Comodoro Rivadavia, and then
roughly 50km travel on good quality dirt roads west from the Tres
Cerros Roadhouse.
The region is arid and sparsely populated, largely as a result
of the near complete devastation of the region's agricultural
industry by ashfall from the 1991 eruption of Mt Hudson. Several
large and widely spaced estancias remain and may be used as bases
for field activities.
A major, national-scale power line runs parallel to the main
highway, thus providing plentiful scheme power to the region, and
there is sufficient surface and ground water supplies in the region
to provide process water to mining operations.
Figure 1. Regional Location
The Deseado Massif is a large area (>60,000km2) of mid to
late Jurassic volcanic rocks in southern Argentina. The region has
in recent decades been shown to host numerous high-grade tier-1
gold and silver deposits, the two largest being Anglo Gold's Cerro
Vanguardia mine and Newmont Mining's Cerro Negro deposit. Other
substantial projects include Yamana Gold's Cerro Moro and Pan
American Silver's Manantial Espejo silver deposit.
Figure 2. Simplified geology map, Deseado Massif
Gold and Silver deposits in the Deseado Massif are generally low
to intermediate sulfidation epithermal vein style. The most
substantial deposits are generally constrained to the extensive
areas of Jurassic volcanics and are dominated by major SE-NW
structural corridors.
Prospectivity
The Project is almost completely dominated by Jurassic volcanic
rocks that are known to be the primary host of gold and silver
mineralisation across the Massif. Much of the area, however, is
covered by late basalts, which when coupled with the Project's
remote location has possibly contributed to a lower level of
historical exploration that might otherwise have been expected
given its attractive geology.
Figure 3. Project satellite imagery
Preliminary field inspections undertaken by the Company's
geological team have noted large erosional windows within the
basalt cover that have exposed extensive areas of prospective
volcanics, swarms of gold bearing quartz veins and areas of
pervasive silicification all within a major SE-NW regional
structure that is clearly evident on regional government airborne
magnetic data.
Figure 4. Regional aeromag data showing clear SE-NW structural
corridor
Previous soil and rock sampling programs have identified areas
of gold anomalism, and the flat and easily traversed terrain and
nature of soil development suggest the area to be amenable to very
cost-effective exploration techniques.
Rationale
The Project is early stage but demonstrates lithological and
structural components necessary for the development of gold and
silver mineralisation.
The Project and the terms of the JV agreement are in line with
the Company's strategic plan of gaining access to very large
parcels of highly prospective exploration ground in proven
geological provinces, in safe, mining friendly jurisdictions, near
to existing mines, at low cost.
With no upfront payments, a low commitment for the first phase,
and a low-cost path to 100% ownership, El Pantano provides the
Company a substantial foothold in one of the world's major gold
provinces, with near term exploration plans able to be funded
within the constraints of the Company's existing balance sheet.
Orosur CEO Brad George commented:
"Signing of the El Pantano JV is the end result of a long period
of negotiation and due diligence. A strong balance sheet, abatement
of the Covid pandemic and the freeing up of our highly skilled
South American commercial and geological team after the Anzá
handover has provided Orosur an unique opportunity to examine new
projects in key regions. The addition of El Pantano to Ariquemes,
and our flagship project at Anzá, has transformed Orosur into a
well-balanced, South American mineral explorer with an exciting
future."
For 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
Turner Pope Investments (TPI) Ltd - Joint Broker
Andy Thacker
James Pope
Tel: +44 (0)20 3657 0050
Flagstaff Strategic and Investor Communications
Tim Thompson
Mark Edwards
Fergus Mellon
Tel: +44 (0) 207 129 1474
orosur@flagstaffcomms.com
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-V: OMI; AIM: OMI) is a minerals explorer
and developer focused on identifying and advancing projects in
South America. The Company currently operates in Colombia, Brazil
and 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 Ltd 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 from Monte Águila of
those plans, Monte Águila'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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