OROSUR MINING INC. (Alliance News) - Orosur Mining Inc on Friday provided a disappointing update on the assay results for four additional diamond holes at the Pepas and Pupino prospects, adding focus will now be shifted from drilling to groundwork.
The South America-focused diamond minerals mining company provided an update on the two prospects at its flagship Anza project in Colombia, a joint venture with Colombian company Minera Monte Aguila.
The assay results indicated the best grade of gold and silver was found at Pepas hole number 009. It found 3.49 grams per tonne of gold at an intersection between 492.35 metres and 494.00 metres below ground, while 8.36g/t of silver was found at an intersection between 516.30 metres and 517.40 metres below ground.
The results at Pepas 009 had lower levels of gold mineralisation than intersected in previous drilling, while subsequent analysis and interpretation across all project holes suggest three distinct phases of structurally controlled veining.
No significant results were found at the Pupino prospect.
Shares in Orosur Mining tumbled 32% to 8.61 pence in London on Friday morning.
The results at the four diamond holes are in addition to an initial six holes were drilled at Pepas. Drilling activities commenced at Pepas in April and at Pupino shortly afterward.
The Anza project is subject to exploration agreement between Orosur and MMA, which itself is a 50:50 joint venture between Newmont Corp and Agnico Eagle Mines Ltd.
As MMA is the project operator after exercising its right to assume control in the second half of 2021, Orosur was informed that MMA opted to temporarily suspend drilling activities at Anza to focus on field mapping, sampling and trenching activities. This will help define further drilling targets, including additional surface works in the Pepas prospect.
MMA also notified Orosur of its intention to move to phase two of their shared exploration agreement, covering a maximum period of five years, during which MMA is required to invest around USD20 million.
"While these drill results are not as exciting as hoped, this is not surprising. Epithermal gold systems by their nature are complex and several phases of drilling are often required to properly define the geometry before more substantial drilling can then be undertaken," said Orosur Chief Executive Officer Brad George.
"In the meantime, we continue the work necessary to create the corporate structure for the MMA-Orosur joint venture and hope to have this in place in the next few months," George added.
By Greg Rosenvinge; gregrosenvinge@alliancenews.com
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