Orsu Metals Corporation
AIM : OSU
TSX : OSU

Orsu Metals Corporation

March 22, 2010 21:02 ET

Orsu Announces Update of Karchiga Mineral Resources: Indicated Mineral Resources of 8.49Mt @ 1.95% Cu and Inferred Mineral Resources of 1.79Mt @ 1.62% Cu

LONDON, UNITED KINGDOM--(Marketwire - March 22, 2010) - Orsu Metals Corporation ("Orsu" or the "Company") (TSX:OSU)(AIM:OSU), the London-based precious and base metals exploration company, announces an updated National Instrument 43-101 mineral resource estimate for its Karchiga VMS project, northeast Kazakhstan.

At a copper cut-off grade of 0.50% Cu, Karchiga contains Indicated Mineral Resources of 8.49Mt @ 1.95% Cu and at a 0.50% copper cut-off contains Inferred Mineral Resources of 1.79Mt @ 1.62% Cu.

Table 1: Karchiga Copper Project, Mineral Resource Estimate. Effective date March 22, 2010
 
Indicated Mineral Resources for Karchiga Cu VMS Project
Cut-off Cu (%) Area Type Tonnes (Mt) Grade Cu (%) Metal Cu (t) Metal Cu (Mlb)
0.3 Central + North East Sulphide 8.05 1.93 154,958 342
0.5 Central + North East Sulphide 7.56 2.02 153,000 337
0.3 Central Oxide 1.09 1.25 13,545 30
0.5 Central Oxide 0.93 1.39 12,868 28
             
Inferred Mineral Resources for Karchiga Cu VMS Project
Cut-off Cu (%) Area Type Tonnes (Mt) Grade Cu (%) Metal Cu (t) Metal Cu (Mlb)
0.3 North East Sulphide 1.83 1.60 29,260 65
0.5 North East Sulphide 1.79 1.62 29,120 64
             
*All Inferred resources are quoted completely exclusive of the Indicated resources. Mineral resources are shown at a 0.3 % Cu cut-off and 0.5% Cu cut-off as these are considered to be possible economic cut-off grades for this deposit; although, economic and mining studies are required to determine the actual cut-off grade. Mineral resources are reported without mining constraints other than the cut-off grade. No pit shell, mine design, or minimum mining width has been used to restrict the reported mineral resources

A new National Instrument 43-101 technical report on the Karchiga project, which includes the updated mineral resource estimates referred to in this press release, will be available under the Company's profile on SEDAR (www.sedar.com). This report, which was prepared by Wardell Armstrong International ("WAI"), is entitled "Updated Report on the Karchiga Property held by Orsu Metals Corporation, Kazakhstan" and dated March 22, 2010. The "qualified persons" (as such term is defined in National Instrument 43-101), responsible for this report are Mr Mark L Owen and Ms. Liv S Carroll, who are both employees of WAI. The updated mineral resources were estimated by the Company and reviewed and audited by WAI, from which WAI completed its own mineral resource estimate.

The updated mineral resource estimates use all data available at the end December 2009. Indicated and inferred resources were categorized based upon a block model utilising 5m by 10m by 5m blocks respectively. Grades were estimated utilising the Inverse Distance cubed algorithm with interpolation parameters based upon the results of Geostatistical modelling completed for the relevant oxide and sulphide data sets. WAI carried out database verification and a review of the orebody modelling and domaining for each individual mineralised zone. WAI was provided with solid models (wireframes), surface topography, drillhole databases including Lithology, assay and density data, location plans and all internal and external quality control data collected since the commencement of the project.

The estimation was completed using 2m downhole composite drillhole samples selected within a hard boundary Cu grade wireframe. All wireframe models were constructed from sectional interpretation of geological and grade boundaries with each of the 12 individual wireframe models utilised to domain the blocks within the grade estimation model. Material types and samples data were subsequently extracted and subset within these discrete domains and grade interpolation was constrained to each individual domain separately. Specific gravity measurements were carried out for the different material types collected from Karchiga diamond drill core and an in-situ bulk density value assigned to the block model based upon observed grade to bulk density relationship.

At Karchiga the drill holes spacing has now been infilled to approximately a 60m by 40m pattern within the Indicated classified material of the Central and Northeast zones and to approximately an 80m by 120m pattern within the Inferred classified zones. The mineralisation is located within a series of stacked shallow-dipping massive and disseminated sulphide bodies primarily consisting of chalcopyrite-pyrrhotite and pyrite mineralisation. The style of the mineralisation is characterised as Volcanogenic Massive Sulphide (VMS) and hosted within a series of shallow dipping alternating Amphibolite and Quartz Mica Schist units. The zones have a strike of in excess of 1km and are intersected down to depths of 200m.

Budgets are currently being finalised for the 2010 field season. Orsu intends to direct funding towards the completion of a full environmental and social impact study including baseline environmental sampling programmes, further metallurgical and grinding testwork plus additional drilling into the areas of currently classified Inferred resources.

COO of Orsu, Dr Alexander Yakubchuk commented: "With the completion of this mineral resource update we have increased the Indicated resource base at Karchiga by over 30% contained metal as compared to the previously disclosed mineral resource. We are looking forward to continuing the development of the asset and will be recommencing work on the ground in Q2 2010."

Notes to Editors:

  1. Mr Matthew Boyes, BSc, Mineral Resources Manager for Orsu and a qualified person as such term is defined in National Instrument 43-101 and for the purposes of the AIM Guidance Note for Mining, Oil & Gas Companies, has reviewed the contents of this press release.
  2. Mr Mark L Owen, BSc, MSc (MCSM), CGeol, FGS, EurGeol, Technical Director with WAI, and Ms Liv S Carroll, ARSM, BSc, MSc, DIC, MIMMM, CGeol, FGS, Senior Geologist with WAI, both qualified persons as such term is defined in National Instrument 43-101, have reviewed the contents of this press release and are the persons responsible for the new technical report on Karchiga referred to above.

FORWARD-LOOKING INFORMATION

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, mineral resource estimates, the Company's expectations with respect to the finalization of its budget for the 2010 field season and that funding will be directed to the completion of a full environmental and social impact study including baseline environmental sampling programmes, further metallurgical and grinding testwork and additional drilling, and the continued development of the Karchiga project and the recommencement and timing of work thereon.

Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to, risks normally incidental to exploration and development of mineral properties, the Company's inability to register with the relevant Kazakh authorities an amended Karchiga Exploration and Mining Contract, uncertainties in the interpretation of drill results, the possibility that future exploration, development or mining results will not be consistent with expectations, uncertainty of mineral resources estimates, the inability of the Company to obtain additional financing when and as needed, the future price of copper, the Company's inability to obtain, maintain, renew and/or extend required licences, permits, authorizations and/or approvals from the appropriate regulatory authorities and other risks relating to the regulatory framework in Kazakhstan as well as certain other risks set out in the Company's public documents filed under the Company's profile on SEDAR at www.sedar.com.

In connection with the forward-looking information contained in this press release, the Company has made certain assumptions about the Company's business, the economy and the mineral exploration industry in general, the regulatory framework in Kazakhstan with respect to, among other things, royalties, taxes, environmental matters and the Company's ability to obtain, maintain, renew and/or extend required permits, licences, authorisations and/or approvals from the appropriate regulatory authorities, including that the Company will be able to register with the relevant Kazakh authorities an amended Karchiga Exploration and Mining Contract, the Company's ability to raise sufficient funding to satisfy its future obligations, the Company's ability to continue to obtain qualified staff and equipment in a timely and cost-efficient manner to meet the Company's demand, and has also assumed that no unusual geological or technical problems occur, plant and equipment work as anticipated, no material adverse change in the price of copper occurs and no significant events occur outside of the Company's normal course of business. 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.

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. 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 contained herein 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.

Contact Information

  • Orsu Metals Corporation
    Alexander Yakubchuk
    COO
    +44 (0) 20 7518 3999
    info@orsumetals.com
    www.orsumetals.com
    or
    Canaccord Adams Limited
    Ryan Gaffney
    +44 (0) 20 7050 6500
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    Vanguard Shareholder Solutions
    Keith Schaefer
    +1 604 608 0824