Orsu Metals Corporation

Orsu Metals Corporation

February 23, 2010 02:30 ET

Orsu Announces Completion of Earning Period for Talas Joint Venture

LONDON, UNITED KINGDOM--(Marketwire - Feb. 23, 2010) - Orsu Metals Corporation ("Orsu" or the "Company") (TSX:OSU)(AIM:OSU), the London-based precious and base metals exploration and development company, announces that Gold Fields Limited, through its subsidiary Gold Fields Orogen Holding BVI Limited ("Gold Fields"), has notified the Company that it will not exercise the Second Phase Option to increase its interest in the Talas joint venture company (the indirect owner of the Taldybulak, Barkol, Kentash and Korgontash properties in the Talas region of the Kyrgyz Republic (the "Talas Project")) to 70% through funding additional exploration expenditure and the earning period has therefore been completed. Gold Fields intends to continue developing the Talas Project with its 60% ownership while Orsu will retain a 40% interest.

As previously announced on 4 February 2010, Gold Fields earned a 60% interest in the Talas joint venture company by way of funding exploration expenditure of C$10million and exercising its earn-in option. Gold Fields will continue to be the project operator of exploration activities pursuant to the joint venture agreement between the Company and Gold Fields dated 3 December 2008 ("the JV Agreement") and Gold Fields has advised the Company that it intends to continue developing the Talas Project in accordance with the JV Agreement. Under the terms of the JV Agreement both parties are required to fund on a pro-rata basis further project expenditures, required to continue exploration activities, complete a feasibility study and complete the project development in accordance with approved programmes and budgets to be set by Gold Fields. Dilution provisions apply under the terms of the JV agreement if either party decides not to contribute to expenditure in accordance with its pro-rata share.

Gold Fields is currently undertaking an internal resource and scoping study and believes that the Talas Project is a significant opportunity. Gold Fields will continue work to confirm the mineral resources by way of value engineering and additional drilling. An internal scoping study by Gold Fields is expected to be completed by the middle of 2010.

Orsu is currently undertaking resource verification and has engaged Wardell Armstrong International to prepare an updated mineral resource estimate for Taldybulak Cu-Au porphyry, which is expected to be completed by the end of March 2010.

Dr Sergey V Kurzin, Executive Chairman of Orsu, commented, "We are pleased with the progress and potential resource growth in our Talas Project in Kyrgyzstan. Now that the earning period has ended, the 60:40 ownership of the Talas Project between Gold Fields and the Company will provide Orsu with a greater than expected resource ownership interest in this potentially large project."

Notes to Editors:

  1. For avoidance of confusion:
    • The Taldybulak copper-gold porphyry prospect within the Taldybulak exploration licence area is a separate asset from the Taldybulak Levoberezhny gold deposit previously owned by Central Asia Gold Limited; and
    • The Talas Copper Gold Limited Liability Company, holder of the Taldybulak licence, is a separate company from Talas Gold Mining Company, which was the owner of the Jerooy Gold Project.
  2. In May 2008, a NI 43-101 (as defined below) mineral resource estimate was calculated and audited by Wardell Armstrong International at various gold cut-off grades for the Talas project. At a 0.30g/t gold cut-off, the Indicated resource is 79Mt @ 0.63g/t Au and 0.17% Cu with the Inferred resources totalling 163Mt @ 0.58g/t Au and 0.14% Cu.
  3. Further information on the Talas Project can be viewed on www.sedar.com (report entitled "Technical Report on the Exploration Licences held by Lero Gold Corporation in Kyrgyzstan & Kazakhstan, Central Asia" and dated May 2008.)
  4. Matthew Boyes, BSc, Mineral Resources Manager for Orsu and a qualified person as such term is defined in National Instrument 43-101("NI 43-101"), has reviewed the contents of this press release.


This press release contains forward-looking information which is not comprised of historical facts. Forward-looking information involves risks, uncertainties and other factors that could cause actual events, results, performance and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this press release includes, but may not be limited to the continued development of and work on the Talas Project by Gold Fields and the methods to be employed in respect of same, the timing and completion of a scoping study by Gold Fields on the Talas Project, the timing and completion of the Company's updated mineral resource estimate for the Talas Project, Gold Fields' belief that the Talas Project represents a significant opportunity, the potential of the Talas Project, and mineral resource estimates and statements regarding potential mineral resources. Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to, adverse general market conditions, adverse changes in commodity prices, failure to establish estimated mineral resources (the mineral resource figures referred to in this press release are estimates and no assurances can be given that the indicated levels of minerals will be produced) and those other risks set out in the Company's public documents filed on SEDAR. In connection with the forward-looking information contained in this press release, the Company has made certain assumptions about the Company's business, including the continued exploration and development of the Talas Project by the Company and Gold Fields in accordance with the JV Agreement. Although the Company believes that the assumptions and factors used in preparing the forward-looking information are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this press release, and no assurance can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law.

Any mineral resource figures referred to in this press release are estimates and no assurances can be given that the indicated levels of minerals will be produced. Such estimates are expressions of judgment based on knowledge, mining experience, analysis of drilling results and industry practices. Valid estimates made at a given time may significantly change when new information becomes available. While the Company believes that the mineral resource estimates in respect of its properties are well established, by their nature mineral resource estimates are imprecise and depend, to a certain extent, upon statistical inferences which may ultimately prove unreliable. If such mineral resource estimates are inaccurate or are reduced in the future, this could have a material adverse impact on the Company. Due to the uncertainty that may be attached to inferred mineral resources, it cannot be assumed that all or any part of an inferred mineral resource will be upgraded to an indicated or measured mineral resource as a result of continued exploration.

Additional information about the risks and uncertainties of the Company's business is provided in its disclosure materials, including its Annual Information Form dated 24 April 2009 which is available under the Company's profile on SEDAR at www.sedar.com.

Contact Information

  • Orsu Metals Corporation
    Alexander Yakubchuk
    +44 (0) 20 7518 3999
    Canaccord Adams Limited
    Ryan Gaffney
    +44 (0) 20 7050 6500
    Vanguard Shareholder Solutions
    Keith Schaefer
    +1 604 608 0824