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Orsu Metals reports maiden mineral resource for Sergeevskoe gold project

The inferred resource was put at 1.19 Moz (million ounces) contained gold at a 0.5 g/t gold cut-off
Bullion and dollars
Orsu also reckons there is strong potential to now grow the resource

Orsu Metals Corporation (CVE:OSU) has made an "excellent" exploration start in Russia, unveiling a maiden resource estimate for its Sergeevskoe gold project in the Zabaikalsky region.

Moreover, Orsu reckons there is strong potential to now grow the mineralization envelope at the property beyond that identified in this maiden estimate, with mineralization open both along the westward strike and downdip.

WATCH: Orsu Metals looks to PEA and further drilling at its Sergeevskoe gold project

The inferred resource was put at 25.09 million tonnes, at a grade of 1.47 g/t (grams per ton) gold and containing 1.19 Moz (million ounces) gold at a 0.5 g/t gold cut-off.

Using a 0.8 g/t cut-off, the estimate was put at 18.64 million tonnes at a grade of 1.75 g/t gold, containing 1.05 million ounces gold.

This is based on an open pit, which is constrained by the license boundary at Sergeevskoe.

Dr Alexander Yakubchuk, director of exploration at Orsu, pointed out that this maiden resource had been identified by the company from scratch during just two years of work within around 900x600-meter area.

"Orsu now has a robust understanding of the gold grade distribution at Sergeevskoe and will specifically target higher grade areas in order to improve the geostatistical parameters in the higher grade shoots and therefore the average gold grade of the system," he said.  "While the gold-mineralized system is constrained by the license boundary in the east, it remains widely open westward and to the north. Furthermore, the constructed block model clearly indicates a grade increase with depth in excess of 3 g/t gold."

Executive chairman Dr. Sergey V Kurzin added: "Given that only less than one square kilometer of Orsu's 7.6 square kilometer property has been drilled so far, a maiden pit and license constrained resource makes an excellent start. Our recent work has generated an abundance of additional targets to be tested in 2019."

New mineralization 

In particular, the firm said there was a strong possibility to identify new mineralization at the western continuation of Klyuchi West and Intermediate domains, and only partly drill-tested mineralization in between these domains and the Kozie domain.

The western extension of Zone 23 remains open, with some gold mineralization recognized in historical holes and by Orsu during scout sampling at the Sergeeva prospect some 500 m west. Peak Klyuchi also requires additional attention, said Orsu.

In addition, there are numerous occurrences of gold mineralization and anomalies not yet tested by Orsu beyond the area of detailed works within the  7.6 sq km license area of the Sergeevskoe project.

Shares added over 8% to stand at $0.26 each.

--Updates with share price move--

Contact Giles at [email protected]

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