TSX VENTURE: OSU
VANCOUVER, BC / ACCESSWIRE / January 20, 2020 / Orsu Metals Corporation (TSXV:OSU) (“Orsu” or the “Company”) is pleased to announce the results of an updated Mineral Resource estimate for its Sergeevskoe Gold Project in Zabaikalsky Krai, Russia. The Mineral Resource estimate was independently prepared by Wardell Armstrong International Ltd. (“WAI”) in accordance with the guidelines of the JORC Code (2012)/CIM Definitions Standards and NI 43-101 requirements. A Technical Report covering the Mineral Resource estimate will be filed on SEDAR within 45 days of this news release.
- An Inferred Mineral Resource of 30.42 million tonnes, grading 1.45 g/t gold and containing 1.417 Moz gold at a 0.5 g/t gold cut-off grade and US$1450 per Troy ounce of gold, was optimized into an open pit constrained by the license boundaries at Sergeevskoe.
Dr. Alexander Yakubchuk, Director of Exploration of Orsu commented: “As a result of the 2019 exploration programme, Orsu was able not only to double the mineralized footprint to 2×1 km at Sergeevskoe, the Company also succeeded in increasing by 19.3% its previously announced maiden Mineral Resource. We have no doubt that it is possible to further grow this resource as, due to the size of the limited drilling programme, obvious gaps were left along the strike of mineral wireframes. In addition, the system remains widely open to the west and north.”
An Inferred Mineral Resource was estimated for a large stockwork, containing 179 segments of sheeted subparallel quartz-tourmaline-sulfide veins in nine domains over a strike length of 2×1 km. The individual vein segments are separated by faults along the strike or unmineralized intervals across the strike. The mineralized envelope is divided by the Shirotnyi Fault (Figure 1) into two areas with largely northwest-trending stockworks in the Peak Klyuchi, Kozie West, and Klyuchi West domains (to the north of the fault) and west- to southwest-trending stockworks in Zone 23 West, Zone 23 Middle, Zone 23 East, and Adit 5 West and East domains (to the south). Based on 2019 exploration results, the veins in all domains were reshaped to greater or smaller extent (Figure 1). Exploration works at Peak Klyuchi yielded a swarm of new veins. After additional trenching, veins in Zone 23 West domain were reinterpreted to strike southwest. New veins were discovered at Kozie West. All veins between the Northeast Fault and Shirotnyi Fault are now interpreted to belong to a single domain of Klyuchi West. In Zone 23 East domain, previously constrained veins were discovered to continue downdip to a depth of 400 m. Several veins were discovered in the western part of Adit 5 West.
Figure 1. Plan view of maiden (left) and updated (right) Mineral Resource domains in the unconstrained model at Sergeevskoe. (To view the full-size image, please click here)
From these domains, an Inferred Mineral Resource of 30.42 million tonnes, grading 1.45 g/t gold and containing 1.417 Moz gold at a 0.5 g/t gold cut-off grade and using a gold price of US$1450 per Troy ounce was optimized into a pit constrained by the license boundaries to the east and southwest. The result was a 19.3% increase to the maiden Mineral resource estimate (see press release 17 April 2019).
Table 1 shows a sensitivity analysis of tonnage and grade for the Sergeevskoe project within a pit constrained at different cut-off grades (“COG”).
Table 1. Open pit Mineral Resource estimate for the Sergeevskoe Gold Project with base case at 0.5 g/t cut off grade and using the US$1450 per Troy ounce of gold prices for base case scenario, with sensitivity analysis of tonnage and grade at different cut-off grades as at January 9, 2020.
Grade (g/t Au)
Contained Metal (Au ‘000 oz)
|*- All Mineralisation within Wireframe Model|
Notes: (1) CIM Definition Standards were followed for Mineral Resources; (2) Mineral Resources reported for the Sergeevskoe Gold Project are classified as Inferred by Phil Newall, an independent Qualified Person as defined by CIM Definition Standards; (3) Mineral resources are limited to an optimised open pit shell based on appropriate economic and reasonable mining parameters as provided by Orsu Metals Corporation; (4) Mineral Resources are not reserves until they have demonstrated economic viability based on a Feasibility Study or Pre-Feasibility Study; (5) All figures are rounded to reflect the relative accuracy of the estimate, and apparent errors may occur due to rounding; (6) Contained metal refers to estimated contained metal in the ground not adjusted for metallurgical recovery; (7) The mineral resources reported represent the sub-celled model with no account of potential mining dilution of the mineralisation.
Table 2 shows sensitivity of the open-pit constrained resources to different gold prices.
Table 2. Sensitivity analysis of updated pit- and license-constrained mineral resources at different gold prices using the NPV Scheduler.
|Gold Price||Mineralized Material (Mt)||Waste (Mt)||Au (g/t)||Gold, Moz|
Figure 2 shows distribution of gold grade in mineralized veins. In the area to the north of Shirotnyi Fault, one can recognize a 1000×100 m northwest-trending High-Grade Zone (“HGZ”), grading in excess of 2 g/t Au, roughly along the apparent axis of the stockwork. To the northeast and southwest, it is accompanied by narrow high- and medium-grade veins, striking in parallel to the HGZ. The stockwork is split into three domains by the two northeast-striking faults. It is obvious that the updated resource model has gaps along the strike, which remained undrilled by Orsu. Similarly, the short veins in the northeast were discovered in trenches in the end of the 2019 field season and remained untested downdip and along strike. These areas indicate further potential for immediate growth.
Figure 2. Gold grade distribution in stockworks to the north and south of the Shirotnyi Fault in the $1450/oz Au open pit at the Sergeevskoe gold project. Gaps along the strike of the stockwork were not yet drilled or trenched by Orsu, representing future opportunities within the pit shell. HGZ=High-grade zone. (To view the full-size image, please click here)
To the south of the Shirotnyi Fault, within three domains of Zone 23, the stockwork tends to change its strike from the east-west to the southwest. At Adit 5 East, the veins strike to the southwest and then to the south. In the Adit 5 West domain, the stockwork maintains a northwest orientation. The axial parts of these domains also host higher-grade veins.
Similarly to the maiden Mineral Resource, some portions of the veins near the eastern and southwestern license boundaries could not be optimized into the open pit, although they possess viable gold grades (Figure 3).
Figure 3. The north-looking long vertical projection showing grade distribution with updated Mineral Resource pit outlines at $1350/oz Au, $1450/oz Au, and $1550/oz Au, constrained by Sergeevskoe license boundary. (To view the full-size image, please click here)
Orsu once again confirmed that the full potential of the Sergeevskoe gold system remains unconstrained. Together with the adjacent Klyuchevskoe gold deposit to the east, the Company is dealing with part of the world-class gold system, collectively containing in excess of 8 Moz gold. As it was shown above, the mineralization envelope can be further grown. The mineralization remains open both along the strike to the northwest and in subparallel veins to the north. It also remains open downdip in all domains.
In addition, there are numerous occurrences of gold mineralization and geochemical/geophysical anomalies not yet tested by Orsu beyond the area of detailed works within the Company’s 7.6 square km license area of the Sergeevskoe project (see press release dated September 21, 2016).
DETAILS OF MINERAL RESOURCE ESTIMATE DATED 9 JANUARY 2020
Details of Mineral Resource estimate dated 9 January 2020
The Mineral Resource estimate was prepared by WAI under the direction of Phil Newall and Andrey Tsoy. Dr Phil Newall is a Qualified Person as defined by National Instrument 43-101 (“NI 43-101”). Mineral Resources for the Sergeevskoe Gold Project have been prepared in accordance with the guidelines of the JORC Code (2012) and the 2014 CIM Definition Standards by Phil Newall, an independent Qualified Person as defined by the 2014 CIM Definition Standards. WAI has approved this written disclosure of the Mineral Resource estimate.
Section 1 Sampling Techniques and Data
|Criteria||JORC Code explanation||Commentary|
Drilling Campaign 2017-2019
|Drill sample recovery|
|Sub-sampling techniques and sample preparation|
|Quality of assay data and laboratory tests|
|Verification of sampling and assaying|
|Location of data points|
|Data spacing and distribution|
|Orientation of data in relation to geological structure|
|Audits or reviews|
Section 2 Reporting of Exploration Results
|Criteria||JORC Code explanation||Commentary|
|Mineral tenement and land tenure status|
|Exploration done by other parties|
|Drill hole Information|
|Data aggregation methods|
|Relationship between mineralisation widths and intercept lengths|
|Other substantive exploration data|
Section 3 Estimation and Reporting of Mineral Resources
|Criteria||JORC Code explanation||Commentary|
|Estimation and modelling techniques|
|Mining factors or assumptions|
|Metallurgical factors or assumptions|
|Environmental factors or assumptions|
Density = – 0.00072 x (Au g/t)2 + 0.1363 x (Au g/t) +2.6687
|Audits or reviews|
|Discussion of relative accuracy/ confidence|
Alexander Yakubchuk, the Company’s Director of Exploration, Ph.D., MIMMM, a Qualified Person as defined by NI 43-101, has reviewed and approved the exploration information disclosures contained in this press release.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking statements that are based on the Company’s current expectations and estimates. Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “suggest”, “indicate” and other similar words or statements that certain events or conditions “may” or “will” occur. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
For further information, please contact:
Alexander Yakubchuk, Director of Exploration, Orsu Metals Corporation
Doris Meyer, Corporate Secretary, Orsu Metals Corporation
Tel: +1-604-536-2711 ext 6