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Shares in Orosur Mining (LSE:OMI / TSX:OMI) are up over 60% this morning on the back of a release on exploration ongoing in Colombia at its Anza project. Some pretty significant results have been released from assay on gold and silver with some zinc as well.

High points on the gold assay include 9.61 g/t Au at 59.55m and 9.91 g/t at 6.05m. On the silver front the miner has reported 17.27 g/t at 3.90m and 6.23 g/t at 59.5m among other results. A total of nine drill hole results were published this morning.

These nine holes have been successful in providing greater guidance as to the shape and nature of gold mineralisation at APTA (Aragon-Pastorera Trend Area), specifically identifying a number of thick, high-grade, plunging shoots, surrounded by a lower grade halo. The Anzá geological team is working to develop 3D models of the mineralisation that will assist in future targeting, Orosur said.

Orosur Mining share price is still way off its 52 week high

Orosur Mining shares are still well off the peak they achieved in the London market in February of this year, and it should be noted that volumes are now there either.  Shares have got as high as 45p in the last year, but were trading at 20.55p at time of writing. They have been trending down since early March. The assay results are a much needed shot in the arm for management. The stock is also listed in Canada which had yet to open at time of writing. The last price was 24 cents.

“While a long time coming, these drill results are spectacular and give us great comfort that Anzá has the potential to be a major gold system,” said Brad George, CEO of Orosur Mining. “Further assays are expected in due course. We are now directing our teams to identifying the next drill targets – work that has so far shown great promise.”

Economically, such shoots could be highly significant as they would likely be of extreme importance for any operation at APTA, and therefore represent the primary target for ongoing drilling.


Strike length extends over 800 metres

The mineralisation thus far extends over a strike length in excess of 800m and remains open in several directions according to the most recent interpretation of the mineralisation.

Orosur Mining is now nearing the end of its planned 9,500m drilling program that commenced in November 2020. At times up to five rigs were on site, however as the final hole of this program is currently underway, only one rig is now operating.

Once the final hole of this early program is complete, that remaining rig will remain on site and continue to drill at APTA to gradually expand this zone of mineralisation. The primary objective of Orosur Mining’s exploration program is to determine the potential of the Anzá land package to host a large gold mineralisation system.

The first phase of drilling has successfully defined significant high grade gold mineralisation at APTA, and this will be gradually expanded with one rig. The next major phase of drilling will be targeted at identifying additional centres of mineralisation along the 20km strike of the Aragon Fault, and other anomalous zones.

In September 2018, Orosur entered into a non-brokered private placement with Newmont Goldcorp for US$2.0m, and entered into an exploration agreement with venture option.

The Exploration and Option Agreement includes a three-phase earn-in structure allowing Newmont to earn up to a 75% ownership interest in the Anzá Project by spending a minimum of US$30m in qualifying expenditures over 12 years, completing a feasibility study and making cash payments to Orosur equaling a total of US$4m over Phases 1 and 2.

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Please note this article does not constitute investment advice. Investors are encouraged to do their own research beforehand or consult a professional advisor.

Stuart Fieldhouse

Stuart Fieldhouse

Stuart Fieldhouse has spent 25 years in journalism and marketing, including as a wealth management editor for the Financial Times group, covering capital markets and international private banking, and as an investment banking correspondent for Euromoney in Hong Kong. He was the founder editor of The Hedge Fund Journal.

Stuart has worked at CMC Markets, supporting the re-launch of its global financial spread betting and CFD trading platforms. He is also the author of two books on trading, published by Financial Times Pearson. Based in The Armchair Trader’s London office, Stuart continues to advise fund managers, private banks, family offices and other financial institutions.

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