Orsa Ventures Corp.

Orsa Ventures Corp.

June 17, 2008 13:23 ET

Orsa Signs LOI to Acquire an 80% Interest in Highly Prospective Detour Lake Gold Area, Ontario

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 17, 2008) - Orsa Ventures Corp. ("Orsa" or the "Company") (TSX VENTURE:ORN) is pleased to announce that it has entered into a letter of intent option agreement with Candorado Operating Company Limited ("Candorado") to acquire up to an 80% interest in four mineral claims, comprising 704 hectares, located in the Detour Lake area, immediately west of the Ontario-Quebec border. These claims, which constitute the Aurora Extension Gold Project ("Aurora Extension"), are sited in the Porcupine Mining Division, approximately 10 kilometres south of Detour Gold Corporation's Detour Lake Project and adjacent to Conquest Resources Ltd.'s Main Aurora Property. The Detour Lake Project, the Main Aurora Property and the Aurora Extension all lie within the northwestern portion of the Abitibi Greenstone belt where the volcano-sedimentary sequences have proven to be prospective for gold and precious metal-rich polymetallic deposits.

The Detour Lake Project encompasses 242 square kilometres, including the former Detour Lake Mine. Between 1983 and 1999, the former Detour Lake Mine (operated by Placer Dome Inc.) produced 1.8 million ounces of gold from the milling of just over 14.3 million tonnes of ore at an average grade of 3.82 grams per tonne ("g/t") gold. Over the mine's life, the mill processed 5.2 million tonnes of open pit ore grading 2.57 g/t (430,516 ounces) and 9.1 million tonnes of underground ore grading 4.98 g/t (1,464,431 ounces). Average mill recoveries were reported to be 93.2%. Detour Gold Corp. have reported a current estimated measured and indicated gold resource for the Detour Lake Project of 89.9 million tonnes grading 1.67 g/t (4.8 million ounces) and an inferred resource of 63.3 million tonnes grading 1.49 g/t (3.0 million ounces), at a US$575 per ounce gold price (equivalent to a 0.64 g/t cut-off grade).

The Main Aurora Property, (a Joint Venture between Tradewinds Ventures and Conquest Resources Ltd.) adjoins the Aurora Extension claims to the north. Placer Dome discovered high-grade gold mineralization on the Main Aurora Property, reporting drill intercepts of 3.0 metres grading 46.2 g/t and 2.6 metres grading 21.6 g/t gold, the latter hole located 300 metres north of the Aurora Extension claims. Conquest Resources has reported encouraging results as well with one drill hole returning 58.53 g/t gold over 3 meters.

On the Aurora Extension, Candorado completed 3 holes of a planned 10 hole drill program to test for gold mineralization within a zone running parallel to that of the Main Aurora Property. The zone on the Aurora Extension was discovered by Candorado through the use of induced polarization (IP) and magnetometer surveys. These surveys suggest that a geophysically anomalous zone continues in an east-southeasterly direction across the Aurora Extension claims over a distance of 1.5 kilometres.

As consideration for an initial 70% interest in the Aurora Extension, Orsa has committed to make staged cash payments to Candorado of $95,000 over two years and to spend a minimum of $500,000 in exploration expenditures over three years ($100,000 in the first year). Orsa may earn a further 10% interest by completing an industry standard feasibility study. The claims are subject to a 2% net smelter return royalty payable to the original vendor. Orsa may purchase half of the 2% royalty on the claims for $1,000,000 and another quarter of the royalty for an additional $1,000,000.

Following a thorough review of work completed to date on the Aurora Extension, Orsa intends to develop and execute a work program designed to initially test geophysical anomalies already identified within the mineralized zone identified by Candorado.

The Company also announces that it has completed the sale of Overseas Exploration Ltd., a wholly-owned subsidiary holding Orsa's exploration assets in Yunnan Province, the People's Republic of China ("PRC"). This sale marks the Company's withdrawal from exploration in the PRC.


Brian Flower, President

The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company's expectations. Certain risk factors may also affect the actual results achieved by the Company.

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The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of this Release.

Contact Information

  • Orsa Ventures Corp.
    Brian Flower
    (604) 608-6680
    (604) 669-4776 (FAX)
    Website: www.orsaventures.com