Orosur Mining Inc. – Argentina Update
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 1 5th, 2022. Orosur Mining Inc. (“Orosur” or the “ Company”)
(TSX-V/AIM:OMI), is pleased to announce that it has signed a n 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”)
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 resu lt 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
El Pantano
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
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
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 Stat es 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 uncertainti es 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 b e
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.