Orsu Metals Corporation
AIM : OSU
TSX : OSU

Orsu Metals Corporation

February 10, 2011 10:52 ET

As Part of Ongoing Definitive Feasibility Study, Orsu Has Received All Assay Results for Its 2010 Infill Drilling Programme in the North East Lode at Its Karchiga Deposit in Kazakhstan

The drill results demonstrate that the copper sulphide mineralisation in the North East constitutes a single lode. The best intercepts include:

- 8.6m grading 4.99% Cu, 0.39 g/t Au (Hole KGDD10-143);

- 4.05m grading 5.43% Cu, 0.91 g/t Au and

- 6.5m grading 1.05% Cu, 0.27 g/t Au (Hole KGDD10-139);

- 8.5m grading 3.28% Cu, 0.22 g/t Au (Hole KGDD10-123);

- 15.7m grading 2.55% Cu, 0.61 g/t Au (Hole KGDD10-126);

- 5.3m grading 2.55% Cu, 0.24 g/t Au and

- 3.5m grading 2.34% Cu, 0.22 g/t Au (Hole KGDD10-129);

- 5.55m grading 2.45% Cu, 0.21 g/t Au (Hole KGDD10-130);

- 13.2m grading 2.10% Cu, 0.60 g/t Au (Hole KGDD10-127).

LONDON, UNITED KINGDOM--(Marketwire - Feb. 10, 2011) - Orsu Metals Corporation ("Orsu" or the "Company") (TSX:OSU)(AIM:OSU), the London-based precious and base metals exploration and development company, is pleased to announce that the Company has received all final assay results for the 2010 infill drilling programme in the North East lode at its Karchiga volcanogenic massive sulphide copper deposit in northeast Kazakhstan (the "Karchiga Deposit").

The Karchiga Deposit consists of the Central and North East lodes. The most recent NI 43-101 compliant mineral resource estimates for the Karchiga Deposit were announced by the Company on March 22, 2010, contained in the technical report entitled "Updated Report on the Karchiga Property held by Orsu Metals Corporation, Kazakhstan", dated March 22, 2010 (Table 1).

Table 1. Mineral resource statement for the mineral zones in the Central and North East lodes of the Karchiga deposit, March 22, 2010 (at 0.3% Cu cutoff).

Lode   Ore Type   Zone   Category   Tonnage
(t)
  Cu
Grade
(%)
  Cu
Metal
(t)
  Cu
Metal
(Mlb)
Central   Oxide   101-104   Indicated   1,085,806   1.25   13,545   29.89
Central   Sulphide   201-206   Indicated   5,275,977   1.89   100,064   220.84
North East   Sulphide   303   Indicated   2,770,403   1.98   54,894   121.15
North East   Sulphide   402   Inferred   1,506,902   1.26   18,918   41.75
North East   Sulphide   404   Inferred   319,623   3.24   10,342   22.82
*All Inferred resources are quoted completely exclusive of the Indicated resources. 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

The Central lode, which had been drilled out prior to 2010, has a total mineral resource which is classified as indicated. Prior to the Company's 2010 infill drilling programme, the North East lode showed an absence of oxide material and was interpreted as consisting of three separate ore zones; one of these zones had been classified as indicated and the other two as inferred. 

The Scoping Study for the Karchiga project released in May 2010 is based upon both indicated and inferred mineral resources for pit optimisation. However, as the project progressed, and with the preparation of the Definitive Feasibility Study, it was necessary to carry out additional infill drilling for the purposes of updating the inferred mineral resources in the North East lode to indicated mineral resources for the purposes of full open pit design. The 2010 infill drilling program, which consisted of 40 diamond drill holes (3,876 m), was therefore focussed on up-grading the inferred mineral resources of the North East lode to the indicated category.

The 2010 mineral resource estimate showed that the mineralisation in the North East lode was located within three shallow-dipping zones of massive and disseminated sulphide bodies (Fig. 1). The latest 2010 drilling, however, demonstrates that there is continuity between these lenses and in fact they form a single lode with a strike length of approximately 1.0km. Resource modeling incorporating the new data is currently in progress and it is anticipated that, apart from updating and improving the mineral resource category of the inferred mineral resources in the North East lode to the indicated category, there is a possibility that the overall mineral resource tonnage will also be increased.

Figure 1. Location of the 2010 infill drillholes relative to the mineral zones in the Central and North East lodes at the Karchiga deposit. The projection of the Central and North East lodes to surface is shown according to the March 22, 2010 mineral resource statement (Table 1).

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/KarchigaUpdateFeb1011l.pdf

Table 2 shows average copper and gold grades for significant intercepts in the North East lode from the 2010 drilling programme.

Table 2. Summary of significant intercepts of the sulphide ore in the North East lode, showing average copper and gold grades per intercept at 0.3% Cu cutoff.

Hole ID From To Drilled
width, m
Cu, % Au, g/t
KGDD10-118 70.8 71.7 0.9 5.95 0.42
  and 74.0 76.0 2.8 0.38 0.10
  and 81.0 84.0 3.0 0.76 0.09
  and 89.2 89.6 0.4 8.48 0.96
KGDD10-119 48.0 56.3 7.6 1.40 0.16
KGDD10-120 89.7 95.6 5.9 2.06 0.14
KGDD10-121 11.5 33.2 15.4 0.35 0.03
KGDD10-122 104.80 106.4 1.6 3.79 0.61
KGDD10-123 79.1 90.9 8.5 3.28 0.22
  and 96.8 97.9 1.1 6.83 0.57
KGDD10-124 61.0 64.2 3.2 0.93 0.09
  and 66.8 67.8 1.0 0.67 0.06
KGDD10-125 102.2 103.0 0.8 0.82 0.06
  and 107.0 109.2 2.2 1.46 0.07
KGDD10-126 5.3 21.2 15.7 2.55 0.61
KGDD10-127 5.6 18.8 13.2 2.10 0.60
KGDD10-129 84.2 88.8 5.3 2.55 0.24
  and 94.5 98.0 3.5 2.34 0.22
KGDD10-130 94.45 100.0 5.55 2.45 0.21
KGDD10-131 31.0 32.0 1.0 0.39 0.1
  and 34.62 38.7 4.08 0.35 0.14
KGDD10-132 81.0 82.0 1.0 0.98 0.43
  and 87.0 89.0 2.0 0.74 0.07
  and 98.0 100.0 2.0 0.46 0.10
KGDD10-133 115.9 116.9 1.0 2.66 0.35
  and 119.0 120.05 1.05 3.78 0.43
  and 124.2 124.7 0.5 6.18 0.96
KGDD10-135 70.1 72.1 2.0 0.47 0.09
  and 74.7 77.7 3.0 2.42 0.24
KGDD10-136 61.9 66.8 4.9 2.34 0.25
  and 83.9 84.8 0.9 1.59 0.27
KGDD10-137 84.25 88.25 4.0 2.35 0.18
KGDD10-138 76.25 79.15 2.9 0.79 0.08
KGDD10-139 44.85 48.9 4.05 5.43 0.91
  and 61.13 67.63 6.5 1.05 0.27
KGDD10-140 80.8 86.46 5.66 1.80 0.18
  and 89.4 91.3 1.9 3.8 0.74
KGDD10-143 75.46 76.64 1.18 7.59 0.46
  and 80.9 89.5 8.6 4.99 0.39
KGDD10-144 107.82 109.5 1.68 4.19 0.18
KGDD10-145 90.6 93.7 3.1 1.44 0.18
  and 99.7 101.4 1.7 1.67 0.29
KGDD10-147 59.3 61.5 2.2 0.60 1.24
KGDD10-150 88.9 94.7 5.8 0.99 0.14
  and 97.6 98.1 0.5 6.41 1.2
KGDD10-151 102.0 103.9 1.9 3.43 0.14
SRK-GT10-8 8.3 14.8 6.5 2.44 0.18
# Estimated true widths vary from 70% to 100% of drilled width

Eight hundred and twenty samples, including 68 standards and 34 duplicates, were prepared from the intervals hosting massive and disseminated sulphide mineralisation. All samples were submitted and assayed in the VNIITsvetMet laboratory in Ust-Kamenogorsk, Kazakhstan. The laboratory is part of VNIITsvetMet, a Kazakh Institute, which specialises in metallurgical studies for base metals and is independent of Orsu. 

All sampling procedures and drill core logging were reviewed by a competent person from Orsu (under guidelines set out in NI43-101) ensuring samples are taken and results from the laboratory are checked in line with NI43-101 guidelines. A stringent QA/QC programme has been put in place to satisfy NI43-101 and JORC requirements. Core samples have been collected continuously from the visually identifiable intervals mineralised with massive and/or disseminated sulphides, including at least 5 m of host rock above and below such intervals. Blank samples have been inserted every 9th to 19th sample depending of the sampled width, but before standards. Standards have been inserted, on average, every 10th and 11th or 19th and 20th sample within the sample number sequence for the drill core. Assay duplicate samples were selected from quarter core on a random basis from both mineralised and unmineralised intervals, and usually inserted after the standards.

The assays for the intervals shown in Table 2 reveal consistent presence of high copper grade in the North East lode. The March 22, 2010 resource model (Table 1), which was based on the 2007 and 2008 drilling results by Orsu as well as historical results, estimated 1.98% Cu (0.3% Cu cutoff) as the average grade for the indicated category in the North East lode, whereas the average grade of 1.26% Cu (Zone 402) and 3.24% Cu (Zone 404) were estimated in the two inferred category zones in the North East lode (Table 1). The new assays also demonstrate consistent presence of elevated gold grades in all mineralised copper intervals. However, the Company has no evidence at this time whether gold can be economically recovered from the North East lode.

COO and Director of Exploration of ORSU, Dr Alexander Yakubchuk commented:

"We are pleased to receive such excellent results from our 2010 infill drilling programme. Modelling of the data received is currently underway and we expect to have an updated and upgraded NI 43-101 compliant mineral resource estimate completed in Q1 2011. We also expect to receive the results of the ongoing comprehensive metallurgical study in Q1 2011. These studies will firm a solid basis for the ongoing work program to deliver the Definitive Feasibility Study for Karchiga by Q4 2011".

Notes to editor:

  1. The technical report related to the Scoping Study referred to in this press release entitled "Preliminary Assessment of The Karchiga Copper Project, East Kazakhstan Region, Kazakhstan", dated May 25, 2010 and prepared by L S Carroll, MIMMM CGeol FGS, G Harris, MAusIMM, Ì L Owen, CGeol EurGeol FGS, J Steedman, MAusIMM and D Ò Wells, MIMMM CEng of Micon International Co. Limited is available under the Company's profile on SEDAR (www.sedar.com).

  2. The indicated and inferred mineral resource estimates (March 22, 2010) referred to in this press release are contained in the technical report entitled "Updated Report on the Karchiga Property held by Orsu Metals Corporation, Kazakhstan", dated March 22, 2010 and prepared by Ì L Owen and L S Carroll of Wardell Armstrong International Limited, which is available under the Company's profile on SEDAR (www.sedar.com).

  3. Alexander Yakubchuk, PhD, Director of Exploration and Chief Operating Officer 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 prepared and reviewed the contents of this press release and has verified the data disclosed in this press release (including sampling, analytical and test data underlying the information), other than with respect to the mineral resource estimates noted 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 contained (or referred to) in this press release includes, but may not be limited to: statements relating to mineral resource estimates; the Company's expectations with respect to updating and upgrading current mineral resource estimates and the possible increase in tonnage; the timing for the completion of an updated NI 43-101 compliant resource estimate; and the timing of the Company's receipt of results from the ongoing comprehensive metallurgical study.

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, uncertainties in the interpretation of drill and test results, the possibility that future exploration, development and/or mining results will not be consistent with expectations (including the possibility that gold may not be able to be economically recoverable from the North East lode), uncertainty of mineral resources estimates, 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, adverse changes in the political environment in Kazakhstan and the laws governing the Company, its subsidiaries and their respective business activities, adverse changes in commodities prices, as well as certain other risks set out in the Company's public documents, including its annual information form dated March 24, 2010, filed under the Company's profile on SEDAR at www.sedar.com.

The forward-looking information in this press release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. In connection with the forward-looking information contained in this press release, the Company has made assumptions about: the Company's business, the economy and the mineral exploration industry in general; the Company's ability to raise any required additional financing, as needed; the regulatory framework in Kazakhstan with respect to, among other things, the Company's ability to obtain, maintain, renew and/or extend required permits, licences, authorizations and/or approvals from the appropriate regulatory authorities; the political environment in Kazakhstan; and 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. The Company has also assumed that no unusual geological or technical problems occur, plant and equipment work as anticipated and no significant events occur outside of the Company's normal course of business. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.

The mineral resource figures contained and/or referred to in this press release are estimates only 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 and referenced 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. Inferred mineral resources are estimated on limited information not sufficient to verify geological and grade continuity or to allow technical and economic parameters to be applied. Inferred mineral resources are too speculative geologically to have economic considerations applied to them to enable them to be categorized as mineral reserves. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that mineral resources can be upgraded to mineral reserves through continued exploration.

Any forward-looking information 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 information, whether as a result of new information, future events or results or otherwise.

Contact Information

  • Orsu Metals Corporation
    Alexander Yakubchuk
    COO
    +44 (0) 20 7518 3999
    www.orsumetals.com
    or
    Canaccord Genuity Limited
    Ryan Gaffney / Andrew Chubb
    +44 (0) 20 7050 6500
    or
    Vanguard Shareholder Solutions
    +1 604 608 0824