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Press Release: Orosur Mining Inc. - Q3 2017 -2-

3 Apr 2017 6:00 am

The cash balance at the end of the Quarter was $2.4M compared with $4.3M at May 31, 2016. The decrease in cash was mainly due to increased investment in the development of the SGW UG (total investment in SGW UG during the period ended February 28, 2017 with total capitalised expenditure at period end of $5.2M compared to $1.0M as at May 31, 2016). The YTD total capex amounts to $9.0M as the Company is made higher than anticipated investments following the exploration successes in SG UG East and Central as Orosur plans to develop a larger UG mine in and around SGW UG. The Company remains committed to develop SG UG without any external funding, as planned, and the debt balance at the end of the Quarter remained $0.2M compared to $0.4M at May 31, 2016. The current debt outstanding is related to equipment leases.

Orosur has a $1.5M committed and undrawn line of credit with Banco Santander available as at February 28, 2017, and as of the date hereof.

FY17 Outlook & Guidance

The Company's forecast production guidance for FY17 remains between 35,000 to 40,000 oz of gold at operating cash costs of between $800 - $900/oz.

As in the past, variations in production and unit costs have been expected to occur, quarter on quarter, as the mine plan draws ore from multiple sources at varying grades, stages of development and stripping factors. As previously announced, the Company incurred higher unit costs during the transition and start of operations in SGW UG which are expected to decrease further in Q4 2017 given successful progress in the SGW UG development.

Uruguay Underground Exploration Projects - Potential for Significant Expansion of the SGW UG Mine

SGW UG is a continuation, at depth, of the historic San Gregorio open pit deposit which has produced approximately 536,000 oz at an average grade of 2.12 g/t. During FY17, the Company intends to add reserves and expand prospective SGW UG operations within three neighboring underground projects. These projects are the SGE Underground, SGW UG Deep Extension and the SG Central UG areas. The last two projects relate to areas which were not previously considered in the SGW UG mining plans and represent new opportunities with a strong potential for near term resource and reserve delineation.

A comprehensive and extensive drilling campaign is currently being carried out at San Gregorio. During FY 17, a total of 9,000m of drilling are planned in order to confirm and increase reserves and extend the SGW UG mine.

At the end of the Quarter, 6,000m, of the planned 9,000m have been drilled:

a) SGE UG: After finalizing a drilling program of 19 drill holes (totalling 3,803m) in this area, a geological and a block model has been built and the Company is currently working on reserves estimation. Drilling information indicates that this zone is still open in the East.

b) SGC UG: Four new holes have been drilled in the area, for a total of 16 holes (totaling 3,315m), with 2 holes (610m) remaining to be drilled in SGC UG for the remainder of FY 17.

The results of the new holes indicate:
 
 
Hole ID         From (m)  To (m)      Intercept 
------------    --------  ------  ----------------- 
SGDD16-84B       310.25   313.40  3.15 m @ 4.20 g/t 
--------------  --------  ------  ================= 
SGDD16-081       243.70   249.30  5.60 m @ 1.14 g/t 
--------------  --------  ------  ================= 
SGDD17-080       272.00   282.55  10.55m @ 1.11 g/t 
--------------  --------  ------  ----------------- 
SGDD17-082B      244.20   246.70  2.50m @ 1.13 g/t 
--------------  --------  ------  ----------------- 
SGDD17-083       268.40   271.85  3.45m @ 0.63 g/t 
--------------  --------  ------  ----------------- 
 
 

Current results indicate the potential existence of additional reserves in the immediate area. There also appear to be strong indications that mineralization extends to the western part towards the SGW UG mine. Further drilling, planned in the current proposed drill program, is required to validate this.

To see a full PDF of the release with images, click here.

Uruguay Open Pit Exploration Projects

Veta Rey

An RC drilling campaign has been finalized at Veta Rey. A total of 19 holes totaling 983m were completed. Five of these holes were categorized as infill drilling; with the rest aimed to testing the continuity of central and south orebodies. Infill drilling has successfully validated the remaining reserves; however, exploratory drilling has failed, at this point, to prove the continuity of the mineralization between the two ore zones.

Sobresaliente Domain

To date, four holes, from a program of six, have been drilled at the Mantos Verdes project in the Sobresaliente domain with the following results:
 
 
                                    Total 
              From  To   Intercept  length  grade 
 Hole ID      (m)   (m)     (m)     (m)     (g/t)  including 
----------    ----  ---  ---------  ------  -----  --------- 
 MVRC17-01     5     7       2        31    0.32 
------------  ----  ---  ---------  ------  -----  --------- 
                                                     1 m @ 
 MVRC17-02     14   18       4        43    0.80   2.22 g/t 
------------  ----  ---  ---------  ------  -----  --------- 
                                                   1 m @ 2.2 
 MVRC17-03     19   22       3        32    0.96      g/t 
------------  ----  ---  ---------  ------  -----  --------- 
                                                   1 m @ 9.1 
 MVRC17-04     21   24       3        35    3.26      g/t 
------------  ----  ---  ---------  ------  -----  --------- 
 
 

This drilling has identified a mineralized zone which currently is being economically reviewed.

Colombia

The Company continues to advance its high grade Anzá gold project. During Q3 2017, the Company finalized a geological model. Based on this geological interpretation, an exploration target was formulated with the assistance of MDA and the results announced on January 19(th) , 2017.

During 2017, the Company plans to commence a 15,000m - 30,000m drilling campaign, culminating in the preparation and publishing of a maiden N.I. 43- 101 compliant resource report for the APTA project. Currently the Company is in the planning and tender process for the above mentioned drilling program.

The Anzá project includes a gypsum mine, which has environmental and mining permits granted by the Colombian authorities. Historically, the gypsum mine was operated by a third-party contractor. As previously announced, Orosur recently took over operatorship of the mine. The Anza gypsum mine is back into operation after Orosur finalized remediation work and improved operational standards during Q3 2017. Current mining activities are focussed on operational development work required to re-start gypsum extraction. The gypsum permits can be readily expanded, providing the ability for Orosur to fast-track permitting for future gold mining operations. The Company anticipates that by operating a mine at Anzá in parallel with the gold exploration drilling campaign should, allow Orosur to advance the gold project more swiftly and accurately towards feasibility.

Qualified Person's Statement

The technical information related to the current assets of Orosur in this presentation has been reviewed by Miguel Fuentealba, a Mining Engineer who is considered to be a Qualified Person under NI 43-101 reporting guidelines. Mr. Fuentealba is a graduate in Mining Engineering from the University of Santiago de Chile and is an AusIMM Member and Qualified Person of Chilean Mining Commission. Mr. Fuentealba has 20 years of professional experience in the field of mining engineering, mine development and management.

Forward Looking Statements

All statements, other than statements of historical fact, contained or incorporated by reference in this news release, including any information as to the future financial or operating performance of the Company, constitute "forward-looking statements" within the meaning of certain securities laws, including the "safe harbour" provisions of the Securities Act (Ontario) and 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. There can be no assurance that such statements will prove to be accurate. Such statements are subject to significant risks and uncertainties, and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements include, without limitation success of exploration activities; permitting time lines; the failure of plant; equipment or processes to operate as anticipated; accidents; labour disputes; requirements for additional capital title disputes or claims and limitations on insurance coverage. 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.

For more information, please visit www.orosur.ca

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'). 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.

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