Southern Uruguay Project Farm Out
MONTEVIDEO, Uruguay 24 May, 2011. Orosur Mining Inc. (�OMI� or the �Company�) (TSX VENTURE:
OMI) (LSE: OMI) today announces that the Company has entered into an Option
Agreement with Ferlesol SA, which is a 100%
subsidiary of Union Mineral Group Corp. (�UMG�). This Agreement provides UMG
the right to earn up to 80% interest on the Company�s Old Texas, Arroyo Polanco, Casup�-Madre, Mal Abrigo-Cerros Negros and Mar�a Albina projects in Uruguay (the �Assets�).
UMG is committed to spend US$ 300,000 in exploration
work within a period of twenty four months to earn 20% interest in the
Assets. Subsequently, UMG will have the right to earn a further 31%, reaching
a total of 51%, by incurring in a further US$ 750,000 in exploration
expenditure within the following year.
Subsequently, UMG will have the right to earn an
additional 29%, therefore reaching 80% interest by completing a bankable
feasibility study for the Assets, no later than 4 years after having reached
the 51% interest.
The Casup� and Mal Abrigo projects are located in the Piedra
Alta Terrane in south-central Uruguay along the
northern limit of the La Florida greenstone belt of southern Uruguay.
Mineralization is found hosted in rocks of lower Proterozoic age.
Casupa is approximately 25 kilometers due south of OMI�s Crucera Au Project. Gold mineralization is hosted in granitoids as inter-granitic quartz/gold veins and local
shear zone-hosted lode gold. At the Mal Abrigo-Cerros
Negros project further to the west, Ni and PGE mineralization is hosted in gabbros, granitoids and
metamorphosed volcanic rocks.
The Mar�a Albina, Old Texas and Arroyo Polanco
projects are all located in the Nico Perez Terrane in central eastern Uruguay within the constraints
of the Don Feliciano Mobile Belt. Mineralization is found hosted in rocks of
middle to upper Proterozoic age.
Marina Albina is
approximately 25 kilometers due north of OMI�s Presidente
Terra project. The project lies just west of the Sierra Ballena
Fault Zone within the eastern margin of the mobile belt. Disseminated base
metal mineralization is hosted in metamorphic rocks.
The Old Texas and Arroyo Polanco
projects lie within two splays of Sierra Ballena
Fault Zone, along the eastern and western margins of the mobile belt
respectively. Lead, zinc, and copper mineralization as well as local
quartz/gold veining are hosted in strongly deformed meta-volcanic and
meta-sedimentary rocks. Local post deformation intrusions are also present.
Mr David Fowler, CEO of the Company commented �We are
pleased to have entered into this agreement with UMG. The Company will not be
required to invest in the projects until feasibility studies have been
completed. This is in line with our strategy to concentrate on our core
assets and extract maximum value from the rest. We look forward to results
from this work over the coming years.�
ENDS
Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of this
release.
About Orosur Mining
Inc.
Orosur Mining Inc. is a fully integrated gold producer and
exploration company focused on identifying and developing gold projects in
Latin America. The Company operates the only producing gold mine in Uruguay
(San Gregorio), and has assembled an exploration portfolio of high quality
assets in Uruguay and Chile. The Company is quoted in Canada (TSX-Venture
Exchange: OMI) and London (AIM: OMI).
For further information, please contact:
Orosur Mining Inc
David Fowler, CEO
Ignacio Salazar, CFO + 598 2 601 6354; info@orosur.ca
Matrix Corporate Capital LLP (Nominated Adviser
& Broker)
Tim Graham, +44 (0) 203 206 7206.
Robin Henshall +44 (0) 203 206 7172
Blythe Weigh Communications (Public Relations and
Investor Relations)
Tim Blythe: +44 (0) 7816 924626
Ana Ribeiro: +44 (0) 7980 321505
Matthew Neal: +44 (0) 7917 800011
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