Orsu Metals Corporation
AIM : OSU
TSX : OSU

Orsu Metals Corporation

September 22, 2010 10:19 ET

Orsu Intercepts 14.2m Grading 5.32 g/t Au and 59.51 g/t Ag at its Akdjol Property in Kyrgyzstan

LONDON, UNITED KINGDOM--(Marketwire - Sept. 22, 2010) - Orsu Metals Corporation ("Orsu", or the "Company") (TSX:OSU)(AIM:OSU) is pleased to provide an update on its ongoing exploration work at the Company's Akdjol and Tokhtazan licence areas in Kyrgyzstan (the 'Akdjol-Tokhtazan Project'). During Orsu's 2009 and 2010 scout exploration activity on the Akdjol Prospect included grab samples, 14 trenches, and five diamond drill holes at the Akdjol Prospect. The Akdjol Prospect has been identified by Orsu as the first ever Kyrgyz gold-silver epithermal prospect and has yielded very encouraging assay results including:

  • a vertical intercept of 14.2m @ 5.32 g/t Au and 59.51 g/t Ag, including 6.7m @ 8.69 g/t Au and 86.96 g/t Ag from diamond drilling (average grades of 3.84 g/t Au and 49.4 g/t Ag from the four reported drill holes);
  • 784m of trenching revealing up to 36m of mineralised intercepts above 0.5g/t cutoff, and confirming a strike length of at least 700m (14 trenches); and
  • Grab sample assays ranging between 1g/t and 119g/t Au and 7.7 g/t and 500g/t Ag.

2009-2010 Akdjol-Tokhtazan Exploration Programme

The field assessment of the Akdjol Prospect by Orsu in 2009 indicated that its mineralisation consists of mineralised banded quartz veins. Grab samples collected by Orsu in 2009 returned assays ranging between 1g/t and 119 g/t Au, with high silver grades (ranging between 7.7 g/t and 500 g/t Ag). The Company proceeded to review the existing geological model of the entire Akdjol-Tokhtazan Project that interpreted the previously mapped Early Permian granite porphyry bodies intruded into both the Silurian metamorphic basement and the overlying Carboniferous clastic sequence to host, and to be a source of, intrusion-related gold mineralization. The revision showed that the intrusives constitute numerous sills with classic porphyry textures and may be interpreted as subvolcanic bodies of the deeply eroded Early Permian volcanic edifice. This recognition as well as occurrence of the mineralised veins in the Carboniferous sedimentary rocks, with some typical morphological and mineralogical characteristics of the veins, suggests the reinterpretation of the Akdjol Prospect as an epithermal gold-silver system rather than an intrusion-related gold system, as proposed in the historical reports (see "Historic Resource" below).

In 2009 the Company completed 784m of trenching in 14 trenches at the Akdjol Prospect (see Figure 1). Trenching indicated that the quartz veins at the Akdjol Prospect extend for 700m in a north-northwest direction at a width varying from 1m to 9.3m. The veins are 6m to 10m thick, but they are enveloped by an alteration halo with disseminated pyrite mineralisation, pinching and swelling depending on the hosting lithologies. Both the veins and the envelope are mineralised, revealing up to 36m of mineralised intercepts above 0.5 g/t Au cutoff. The dipole-dipole induced polarisation survey ("DD-IP") conducted by Orsu identified a chargeability anomaly encompassing the entire 700m length of the exposed veins. The geophysical anomaly extends for an additional 1000m south, where it is mostly covered by overburden alluvial material over its entire length, but historical Soviet trenches revealed mineralised intercepts some 1000m south of Akdjol. The mapping of the exposed part in trenches recognised (Table 1) the higher grade Main Stockwork zone, which is accompanied by a lower grade stratabound Conglomerate zone, located some 40m to 50m in the hanging wall of the Main Stockwork zone to the west, and several veins joining these two main zones (the Diagonal zone).

Dr Alexander Yakubchuk, Director of Exploration and COO of the Company, commented: "We are very excited to recognise Akdjol Prospect as the first ever gold-silver epithermal prospect in Kyrgyzstan. It may represent the easternmost continuation of the prolific late Palaeozoic Chatkal-Kurama Au-Cu-Ag porphyry-epithermal belt in adjacent Uzbekistan and Tadjikistan, where several operating gold-silver epithermal deposits with significant mineral resources are known at Kyzylalmasai (4 Moz Au) and other deposits in the Angren district, some 200 km west of the Akdjol Prospect. The initial drilling results at the Akdjol Prospect reveal robust gold and silver grades, typical of gold-silver epithermal systems, and encourage Orsu to continue further drill-testing of the upside potential in the Akdjol-Tokhtazan licence area, focussing on strike extension of the system under cover."

Historic Resource

Gold at the Akdjol and Tokhtazan prospects was originally discovered during the exploration programme by the USSR Ministry of Geology in the late 1970's. At the Akdjol Prospect, trenching was performed and a 453.7m long exploration adit with crosscuts was driven approximately 100m vertically below the outcropping mineralisation. This work identified a north-northwest-trending Au-Ag vein system, dipping to the west at 60 degrees. Despite these generally positive results, the Akdjol Prospect was never drilled. In the 1990's, Cameco Corporation ("Cameco") conducted exploration work at the nearby Tokhtazan prospect, resulting in a non-JORC and non-NI43-101 compliant resource of 21.2 Mt @ 1.56 g/t Au, containing 1.07 Moz Au (at a 0.5 g/t Au cutoff). Cameco exploration work at the Akdjol Prospect was limited to the reassessment of Soviet exploration data, with an estimate of its non-JORC and non-NI43-101 compliant resource of 1.481Mt @ 8.1g/t Au, containing 0.385 Moz Au within 100 vertical metres between the adit and the surface trenches.

Further information on historical results and historical resource estimates for the Akdjol-Tokhtazan Project can be seen in the 'Technical Report of The Gold Assets Held by Oriel Resources Plc In Kyrgyzstan' prepared by Wardell Armstrong International Ltd, available on Orsu's website and was filed on SEDAR (www.sedar.com) on June 28, 2006, under a company profile of Lero Gold Corp., now a wholly-owned subsidiary of Orsu.

2009-2010 Assay Results by Orsu

Figure 1. Position of quartz veins (yellow), trenches (black), drillholes and DD-IP anomalies (red) at the Akdjol Prospect.

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/osu922Fig1.pdf

Table 1: Significant Mineral Intersections from Akdjol Prospect Trenching Works (0.5 g/t Au cutoff) (see Fig. 1 for location)

Trench ID Orezone From (m) To (m) Intercept (m) Au g/t Ag g/t
AKTR09-01 Diagonal 8 10 2 14.03 66.1
  Main Stockwork 31 55 24 1.7 14.2
Incl Main Stockwork 46 53 7 4.09 33.4
AKTR09-02 Diagonal 25 34 9 1.44 12.6
  Diagonal 58 61 3 1.51 23.6
  Main Stockwork 67 68 1 5.37 82.5
  Main Stockwork 78 80 2 1.12 14.9
AKTR09-03 Conglomerate 12 19 7 1.52 51.6
  Diagonal 53 55 2 1.02 15.9
  Main Stockwork 60 96 36 2.1 23.9
Incl Main Stockwork 63 73 10 3.58 29.7
AKTR09-07 Main Stockwork 7 10 3 5.09 71.0
  Main Stockwork 15 15.5 0.5 0.87 30.8
  Main Stockwork 17 20 3 4.68 36.2
  Main Stockwork 23 28 5 1.63 72.7
AKTR09-04 Conglomerate 41 42 1 1.1 19.9
  Main Stockwork 81 86 5 1.21 13.3
  Main Stockwork 104 107 3 3.32 52.4
AKTR09-08 Conglomerate 46 51 5 0.54 13.3
  Main Stockwork 68 71.5 3.5 7.55 42.97
  Main Stockwork 78 79 1 1.93 10.7
AKTR09-09 Main Stockwork 3 5 2 2.85 32.0
AKTR09-05 Conglomerate 22 23.5 1.5 0.92 3.4
  Main Stockwork 26.7 36 9.3 6.33 58.3
AKTR09-06 Main Stockwork 6 12 6 2.8 23.75
AKTR09-14 Main Stockwork 0 6 6 0.95 7.9
AKTR09-12 Main Stockwork 1 5 4 6.15 25.75
  Main Stockwork 41 48 7 3.15 23.8

The trenched sample widths are considered to be a combination of horizontal and oblique width of the outcropping mineralisation, representing 75% to 100% of the true width.

To test the true thickness and the style of mineralisation down dip, the Company completed 640m of drilling with 5 diamond drillholes in 2010 (see Table 2). Hole AKDD10-04, drilled in the central part of the mineralised system, returned a vertical intercept of 14.2m @ 5.32 g/t Au and 59.51 g/t Ag from 150.6 to 164.8m, including 6.7m @ 8.69 g/t Au and 86.96 g/t Ag from 151.7m to 158.4 m. Taking into account the surface intercept of 9.3m in the trench AKTR09-05 as well as the intercepts in drill hole AKDD10-02 and Soviet adit, occurring in the same cross-section, this drill result confirmed the downdip continuation of the Main Stockwork veins at the Akdjol Prospect for 220m (previously 110m). Table 2 shows assay results for mineralised drill intercepts in the central part of the Akdjol Prospect (see Figure 1 for drill hole locations).

Table 2: Significant Mineral Intersections (0.5g/t Au cutoff) within the Akdjol Prospect
ID Total depth (m) Comment Orezone From (m) To (m) Length (m) Au g/t Ag g/t
AKDD10-04 205 Vertical hole Main Stockwork 145.5 147 1.5 0.53 25.3
      Main Stockwork 150.6 164.8 14.2 5.32 59.51
incl     Main Stockwork 151.7 158.4 6.7 8.69 86.96
AKDD10-02 82 Angled hole – 55 degrees; Hole stopped in the Soviet adit Main Stockwork 79.1 82 2.9 4.07 110.39
AKDD10-03 189 Vertical hole Main Stockwork 158.0 168.2 11.2 2.40 30.56
incl     Main Stockwork 165.0 168.2 3.2 5.44 40.87
AKDD10-05 120 Angled hole – 60 degrees Main Stockwork 101.0 103.4 2.4 3.5 26.58
and   Angled hole – 60 degrees Main Stockwork 108.1 110.2 2.1 1.61 23.32

Estimated true widths vary from 65% to 100% of drilled width in vertical and angled holes, respectively.

ENDS

Notes to Editors:

  1. All assays are performed in the Stewart Assayers Laboratory in Bishkek, Kyrgyzstan.
  2. Orsu Metals Corporation operates a stringent QA/QC policy that includes external certified standard samples and blanks in each individual batch sent for analysis.
  3. No upper cut grade has been applied to assay data during calculation of average interval grades.
  4. 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 reviewed the contents of this press release. Dr Yakubchuk has verified the data disclosed in this release, including sampling, analytical and test data underlying the information.

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 in this press release includes, but may not be limited to, the Company's expectations and beliefs relating to: the continuation of work at the Akdjol-Tokhtazan Project; potential mineral resources; and the potential for the Akdjol Prospect representing the easternmost continuation of the late Palaeozoic Chatkal-Kurama Au-Cu-Ag porphyry-epithermal belt in adjacent Uzbekistan and Tadjikistan.

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 results from metallurgical testing and drilling, the possibility that future exploration, development or mining results will not be consistent with expectations, uncertainty of mineral resources estimates, the Company's inability to obtain, maintain, renew and/or extend required licences and related rights, permits, authorisations and/or approvals from the appropriate regulatory authorities and other risks relating to the political environment and regulatory and/or legal framework in Kyrgyzstan, adverse changes in commodity prices and adverse general market conditions, 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 certain assumptions about the Company's business, the economy and the mineral exploration industry in general, with respect to the Company's interpretation of the intrusives of the Akdjol Prospect and the reinterpretation of the Akdjol Prospect as an epithermal gold-silver system, the Company's continued exploration at the Akdjol-Tokhtazan Project, the Company's ability to generate sufficient funds from capital markets, as and when required, to meet its future obligations and planned activities, the regulatory framework in Kyrgyzstan with respect to, among other things, the Company's ability to obtain, maintain, renew and/or extend required permits and related rights, licences, authorisations and/or approvals from the appropriate regulatory authorities, the political environment in Kyrgyzstan, no material adverse change in the price of gold or silver occurs, 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 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.

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
    Chief Operating Officer
    +44 (0) 20 7518 3999
    www.orsumetals.com
    or
    Canaccord Genuity Limited
    Ryan Gaffney/Ryan Cohen
    +44 (0) 20 7050 6500
    or
    Vanguard Shareholder Solutions
    + 1 604 608 0824