Orsu Metals Corporation
TSX : OSU
AIM : OSU

Orsu Metals Corporation

December 18, 2014 11:44 ET

Orsu Metals Corporation: Assay Results for Kogodai Licence Area

LONDON, UNITED KINGDOM--(Marketwired - Dec. 18, 2014) - Orsu Metals Corporation (TSX:OSU)(AIM:OSU)

Highlights

Orsu reports all assay results for its initial 457 m scout drilling programme at the Kogodai license area in Kazakhstan, demonstrating encouraging results with high grade copper sulphide mineralisation.

The individual intercepts are as follows (0.3% Cu cut off):

Hole KDDD14-1 intercepted 8 mineralised intervals
2.0m @ 0.47% Cu, 1.65 g/t Ag
1.5m @ 0.30% Cu, 0.79 g/t Ag
4.7m @ 1.46% Cu, 5.70 g/t Ag (including 0.9m @ 3.52% Cu, 12.8 g/t Ag)
1.0m @ 0.32% Cu, 4.30 g/t Ag
6.5m @ 0.88% Cu, 4.23 g/t Ag (including 1.7m @ 2.31% Cu, 11.64 g/t Ag)
1.7m @ 0.56% Cu, 1.22 g/t Ag
0.6m @ 0.47% Cu, 2.44 g/t Ag
1.0m @ 0.45% Cu, 1.10 g/t Ag
Hole KDDD14-2 intercepted one mineralised interval
6.5m @ 0.63% Cu (including 2.9m @ 1.02% Cu)
Hole KDDD14-4 intercepted three mineralised intervals
2.1m @ 0.29% Cu, 6.29 g/t Ag
1.8m @ 0.67% Cu, 0.49 g/t Ag
0.8m @ 0.31% Cu, 0.70 g/t Ag
Hole KDDD14-5 intercepted 5 mineralised intervals
2m @ 0.40% Cu, 1.60 g/t Ag
11m @ 0.58%Cu, 1.25 g/t Ag (including 1m @ 1.2%Cu, 2.4 g/t Ag and 1m @ 1.38%Cu, 0.8 g/t Ag)
3m @ 0.79% Cu, 2.20 g/t Ag (including 1m @ 1.62%Cu, 3.1 g/t Ag)
5.5m @ 1.05% Cu, 3.19 g/t Ag (including 2.5m @ 1.55% Cu, 4.50 g/t Ag)
4.3m @ 1.08% Cu, 2.34 g/t Ag (including 1.1m @ 2.11% Cu, 4.50 g/t Ag)

Orsu Metals Corporation ("Orsu" or the "Company") (TSX:OSU)(AIM:OSU), the London-based base and precious metals exploration and development company, is pleased to announce that the Company has received all final assay results for the 2014 scout drilling programme at its Kogodai volcanogenic massive sulphide copper prospect in northeast Kazakhstan (the "Kogodai Prospect"). The Kogodai Prospect is effectively 51% owned by Orsu and is not currently considered to be a material property.

The Kogodai Prospect is located approximately 70 km north west of the Company's Karchiga Project in Kazakhstan. It shares similar geological characteristics with Karchiga, including similar metamorphic stratigraphy, consisting of sandwiched amphibolite and gneiss.

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/Figure_1-984831.pdf.

In October to early November 2014, Orsu drilled five scout diamond drillholes totalling 457 m. The main objective of this drilling programme was to assess the style and quality of mineralisation. The metamorphosed volcanogenic disseminated to semi-massive sulphide mineralisation at the Kogodai Prospect is controlled by the lithological contacts between gneiss and amphibolite layers at several stratigraphic levels within the metamorphic sequence. Near surface, sulphides are oxidised to a depth of approximately 30 m.

The mineralised zone was traced during Soviet times in the >0.1% Cu geochemical anomaly for 2000 m and remains open to the east and west (Figure 2). No work has been conducted by Orsu to confirm this geochemical anomaly.

To view Figure 2, please visit the following link: http://media3.marketwire.com/docs/Figure_2-984831.pdf.

The Soviet drillholes C-89 and C-75 traced the sulphide mineralisation for 500 m downdip at a variable angle of 45 to 70 degrees. The best mineralisation intercepted by the Soviet drilling was contained in drill hole C-91, with two mineralised intervals within a package of 27 meters from 39.5 to 66.5 meters: 7 meters grading 0.86% Cu (from 39.5 to 46.5 meters), and 11 meters grading 0.77% Cu (from 54.5 to 65.5 meters), including 4 meters grading 1.1% Cu (from 61.5 to 65.5 meters) (see the Company's press release dated 5 August 2014). Orsu drilled Hole KDDD14-1 approximately 50 m east and along strike from Hole C-91 and intercepted eight mineralised intervals (Table 1), varying in drilled width from 0.6 to 6.5 m (0.3% Cu cutoff) within a wider mineralised envelope of sulphides. From Hole KDDD14-2 in the west to Hole KDDD14-5 in the east there is a documented increase in grade, thickness and number of mineralised intervals. The Company has interpreted that mineralisation was confirmed by Soviet and Company's drilling over a strike length of 700 m from drill holes C-75 and C-89 in the west to drill hole KDDD14-5 in the east. It is further interpreted that all drilling to date was performed on the western flank of the mineralised system, which remains open to the east and downdip. The drillcore logged by Orsu revealed that sulphide mineralisation consists primarily of chalcopyrite and pyrite, with malachite, chrysocolla and sometimes native copper identified within the oxide mineralisation. The mineralisation appears to dip at 60 to 70 degrees to the north. Although in Orsu holes it was intercepted at shallow depth, in Soviet drill hole C-75, 2.8 m of mineralisation grading 0.64% Cu from 287.7 to 290.5 meters, confirmed a downdip continuation of mineralisation for approximately 500 meters.

Table 1 shows average copper and silver grades for all mineralised intercepts at the Kogodai Prospect from the 2014 drilling programme.

Table 1. Summary of significant intercepts of the sulphide and oxide ore, showing average copper and silver grades per intercept at 0.3% Cu cutoff.

Hole ID From To Drilled width, m Cu, % Ag, g/t Mineralisation
KDDD14-1(total length 91 m) 26.3 28.3 2 0.47 1.65 Sulphide
and 34.0 35.5 1.5 0.30 0.79 Sulphide
and 45.5 50.2 4.7 1.46 5.7 Sulphide
and 53.1 54.1 1 0.32 4.3 Sulphide
and 57.0 63.5 6.5 0.88 4.23 Sulphide
incl 58.90 60.6 1.7 2.31 11.64
and 65.5 67.2 1.7 0.56 1.22 Sulphide
and 70.0 70.6 0.6 0.47 2.4 Sulphide
and 78.0 79.0 1 0.45 1.1 Sulphide
KDDD14-2(total length 80 m) 44.5 51.1 6.5 0.63 traces Sulphide
incl 46.3 49.2 2.9 1.02 traces
KDDD14-3 0 80 None
KDDD14-4(total length 64 m) 0.9 3.0 2.1 0.29 6.29 Oxide
and 24.7 26.5 1.8 0.67 0.49 Sulphide
and 29.5 30.3 0.8 0.31 0.7 Oxide+Sulphide
KDDD14-5(total length 142 m) 14.5 16.5 2 0.40 1.60 Oxide
and 31.0 42.0 11 0.58 1.25 Sulphide
incl 35.0 36.0 1 1.2 1.4
incl 41.0 42.0 1 1.38 0.8
and 47.0 50.0 3 0.79 2.2 Sulphide
incl 48.0 49.0 1 1.62 3.1
and 55.0 60.5 5.5 1.05 3.19 Sulphide
incl 57.0 59.5 2.5 1.55 4.5
and 68.3 72.6 4.3 1.08 2.34 Sulphide
incl 68.3 69.4 1.1 2.11 4.5
# All drillholes were angled at 60 degrees, dipping in the southern direction. Estimated true widths vary from 70% to 90% of drilled width. Gold was assayed at a low level of 0.01 to 0.09 g/t, with four assays exceeding 0.1 g/t Au and one maximum assay of 0.22 g/t Au per 0.9 m in Hole KDDD14-1.

Two hundred and fifty three samples, including 20 standards and 10 duplicates, were prepared from the intervals hosting semimassive and disseminated sulphide mineralisation. All samples were submitted to the ALS Kazakhstan laboratory in Auezov, Zharma district, East-Kazakhstan, and assayed in the ALS laboratory in Chita, Russian Federation. The laboratories are part of ALS Minerals Division, a certified international laboratory, which specialises in assays for base and precious metals and is independent of Orsu. Copper was assayed using the standard ME-ICP technique with a detection limit of 1 ppm. Gold and silver were analysed using the standard atomic absorption technique with detection limit of 0.01 ppm Au and 0.5 ppm Ag.

All sampling procedures and drill core logging were reviewed by Alexander Yakubchuk, a qualified 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 meters 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 results of duplicate assays were confirmatory.

No NI 43-101 compliant report or mineral resource estimates were published for the Kogodai Prospect. No historical resource estimates of any kind have been published in relation to Kogodai or its satellite occurrences. Potential grade is conceptual in nature. There has been insufficient exploration on Kogodai to define a mineral resource and it is uncertain whether further exploration will result in the target being delineated as a mineral resource. No studies of potential problems, such as extremely erratic results or significant metallurgical difficulties, have been conducted by the Company. The exploration activity on the Kogodai Prospect is preliminary in nature and no conclusive evidence of the likelihood of the occurrence of a mineral deposit was obtained.

The Soviet drill hole results, disclosed above, are from a report by A.A. Shatobin, dated 1971 and titled "Geological report on exploration works of the South Altay exploration party, Ministry of Geology of the Kazakh Soviet Socialist Republic".

Dr Alexander Yakubchuk, Chief Operating Officer and Director of Exploration of Orsu, commented:

"We are pleased to receive such encouraging results from our 2014 scout drilling programme. The results principally confirm presence of high grade copper mineralization at the Kogodai Prospect only a few months after the license was transferred to Orsu. The Company will review its plans in relation to the Kogodai Prospect during Q1 2015."

Glossary of key technical terms
Ag - silver
Au - gold
Cu - copper
g/t - grammes per tonne
km - Kilometres
m - meters

Note to Editors:

Alexander Yakubchuk, PhD, Chief Operating Officer and Director of Exploration of 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 was responsible for the design of the 2014 scout drilling programme 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 Soviet drilling 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, the expected exploration activities by the Company related to, and the general development of, the Kogodai Project area, and management's expectations relating to its potential.

Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to, uncertainties in the interpretation of drill and test results, risks normally incidental to exploration and development of mineral properties, the possibility that future exploration, development and/or mining results will not be consistent with expectations, the Company's inability to raise additional finance as and when needed, 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, uncertainties in the assumptions used, and the methodologies employed in, the technical information referred to herein, 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, 2014, 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 resources development and extraction industry in general; the Company's ability to raise required additional financing; the ability to obtain, maintain, renew and/or extend required permits, licenses, authorizations and/or approvals from the appropriate regulatory authorities; and the ability to continue to obtain qualified staff and equipment in a timely and cost-efficient manner to meet demands. The Company has also assumed that 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

    Canaccord Genuity Limited
    Neil Elliot
    +44 (0) 20 7523 8000