REG - Orosur Mining Inc - Argentina Update

Orosur MiningAnnouncement

30/05/2024 07:00

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RNS Number : 3574Q  Orosur Mining Inc  30 May 2024

 

 

 

Orosur Mining Inc - Argentina Update

 

·    Field work completed prior to winter recess.

·    Mapping and sampling identified large, district scale
low-sulphidation epithermal system.

·    Environmental studies for drilling permits submitted, allowing for
drilling by year-end.

·    Technical teams shift focus to Anzá project in Colombia during the
Argentine winter recess.

 

London, May 30th 2024. Orosur Mining Inc. ("Orosur" or the "Company")
(TSXV/AIM:OMI), is pleased to provide announce an update on the progress of
exploration activities at its El Pantano gold and silver project ("Project" or
"El Pantano") in Argentina.

 

El Pantano - Argentina

The Project is an early-stage gold/silver exploration project in Santa Cruz
province, southern Argentina.

 

The Project comprises approximately 600km2 of contiguous licences in the
prolific Deseado Massif region, roughly 45km from Anglo Gold's Cerro
Vanguardia mining camp.

 

The Project is subject to an Exploration & Joint Venture ("JV") agreement
("Agreement") with private Argentinean company DESEADO DORADO S.A.S and its
shareholders ("Deseado"), the details of which were announced on February
15(th) 2022.

 

At the time the JV commenced, the Project was an almost untouched grass roots
gold/silver exploration project.  Some historical sampling and geophysics had
been done in the southeast of the Project, but 80% of the Project area had
never been explored and no drilling has ever been undertaken anywhere within
the Project area.

 

The Company entered the JV on the basis of regional geological data that
indicated the potential for a major, previously unknown district-scale
low-sulphidation epithermal system.  In addition to the highly prospective
geology, the Project also offered a large contiguous land package, zero entry
cost, and a low-cost pathway to 100% ownership.

 

Post signing the Agreement, the Company immediately began the process of
geological mapping and geochemical sampling across the licence package.  This
process is now largely complete, and data collected have supported the
Company's initial view of the Project's prospectivity.  It is now planned to
move to the next phase of direct targeting. Environmental permits have been
submitted which would allow for  drilling by the year end.

 

Figure 1. Project location

 

Geological Model

The Deseado Massif plays host to a number of world class gold and silver
deposits, the largest of which is the giant Cerro Negro deposit being
exploited by Newmont Mining (Fig 2).

 

Fig. 2. Geological map of the Deseado Massif with epithermal Au-Ag deposits
and paleo hot spring occurrences.

(Moreira and Fernandez)

 

The Deseado Massif is a geological province in Southern Argentina, covering
roughly 60,000km2 and consisting largely of felsic volcanics related to
widespread mid to late Jurassic volcanism.

 

Fig 3.  Rift related, low-sulphidation model schematic section (Exploration
Alliance)

 

 

Mineralisation in the region is related to the Jurassic break up of Gondwana
and opening of the Atlantic Ocean. There are a variety of mineralisation
styles, but the most significant are of the rift related, low-sulphidation
style.

 

Extension associated with this volcanism created regional scale SE-NW striking
rifts that acted as conduits for metal bearing fluids that were the source of
most significant mineral deposits.  These rifts can be tens of km long and
several km wide and in cross section can be presented as "flower" structures
as the rifts widen out toward the surface and the binding pressure of
surrounding rocks decreases (Fig 3). Importantly this same reduction of
pressure allows the metal bearing fluids to boil, and it is this boiling that
is the primary mechanism for gold deposition.  Above this boiling zone, the
fluids continue upward, but may be now devoid of gold, being reflected as
barren quartz veins, hot spring systems and other forms of pervasive surface
silicification.

 

As a result, gold surface geochemistry is often not an effective indicator of
underlying potential. Attention must instead be focused on geochemical
sampling of more mobile pathfinder elements (such as arsenic ("As"), mercury
("Hg") and base metals) and mapping of silica textures that give guidance as
to the vertical level within the epithermal system.

 

Results

Since early 2022, the Company's geological teams have been slowly working
across the large licence holding carrying out reconnaissance exploration
activities including ground magnetics, geological mapping and surface
geochemistry.

 

The last phase of work was completed at the end of April 2024, with results
now compiled and assessed.

 

Examination of these data have supported the Company's original thesis as to
the prospectivity of El Pantano.   A regional scale SE-NW trending rift
system has been clearly mapped at El Pantano, approximately 20km in strike
length and 6km in width; the same style and scale of structural architecture
that is known to control the emplacement of major gold/silver deposits
elsewhere in the massif.

 

Widespread areas of pervasive silicification and hot spring occurrences were
identified, with textures indicative of being above the boiling zone, which is
important for the preservation of any mineralisation that may have formed.

 

Swarms of quartz veins have been mapped over wide areas providing evidence of
a highly active epithermal system.

 

High level geochemical anomalism was recorded in all key pathfinder elements
(As, Hg, Pb, Zn, Cu) along the rift structure, especially at the eastern and
western ends of the structure that were not covered by later cretaceous
sediments.  Of these anomalous elements, arsenic was the most diagnostic (Fig
4) as gold bearing low-sulphidation epithermal fluids are generally also
enriched in arsenic but which is not precipitated by fluid boiling and so is
evident at the surface.

 

Fig 4.  Arsenic geochemistry and geological mapping

 

 

 

Next Phase

The Company is optimistic that it has identified a major, hitherto unknown
low-sulphidation epithermal system, potentially similar in scale to that which
produced the giant precious metal deposits at Cerro Negro, Cerro Vanguardia
and others.

 

The objective of the next phase of work will be to focus down to areas within
this rift system that may be the most attractive structural conduits for fluid
flow and mineral deposition. Work programs may include more detailed
geochemistry, electrical geophysics (resistivity and IP) and reconnaissance
drilling. Data will be assessed further, and options developed over the winter
recess.

 

In the meantime, the Company has completed and submitted all the necessary
environmental studies that are required as part of the Santa Cruz Province
drilling permit process.  Consideration of these reports and drilling
approval is expected to take several months and it is thus anticipated the
Company will have drilling permits later in the year.

 

Shift focus to Colombia

Field work at El Pantano has now wound down for the winter and technical teams
will shift focus to the Company's Anzá gold project in Colombia.

 

As has been announced, the Company is in the process of reassuming 100%
ownership of the Anzá project from its joint venture partners.  While this
complex commercial process continues, Orosur geologists are currently in
Colombia carrying out the necessary planning and permitting required to allow
commencement of drilling activities as soon as possible after completion of
the transaction.

 

Orosur CEO Brad George commented:

 

"El Pantano was taken on as a completely grass roots project, but one with
positive regional geological indicators.  It is pleasing that our work thus
far has supported our view of the potential of the region and that at very low
cost, the Company has generated a highly prospective array of gold targets in
a buoyant gold market."

 

 

For further information, visit www.orosur.ca (http://www.orosur.ca) , follow
on twitter @orosurm or 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 Communications and Investor Communications

Tim Thompson

Mark Edwards

Fergus Mellon

orosur@flagstaffcomms.com

Tel: +44 (0)207 129 1474

 

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: OMI; AIM: OMI) is a minerals explorer and developer
focused on identifying and advancing projects in South America. The Company
operates in Colombia, Argentina and Nigeria. It has discontinued operations in
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 Inc. 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 of those plans, completion of the proposed
transaction to re-assume 100% of the Anza Project, 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 to, those as
described in Section "Risks Factors" of the Company's MD&A for the year
ended May 31, 2023. 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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