Orosur Mining ups gold resource grade for Arenal Deeps, sees feasibility study completed Q3 2010

Orosur Mining (AIM: OMI) has upped the resource grade estimate of its Arenal Deeps gold deposit at the San Gregorio project in Uruguay after Mine Development Associates carried out a NI43-101 compliant estimate.

The measured and indicated grade of the resource increased to 3.61 g/t (grammes per tonne) of gold from the previous estimate of 2.21 g/t at a 1.5 g/t cut-off, which the company said was the current anticipated economic cut-off.

The measured and indicated resource at a 1.5 g/t cut-off amounted to 2.14 Mt (million tonnes) at 3.61 g/t gold for 249,000 ounces (oz), including a measured resource of 0.85 Mt grading 3.52 g/t of gold for 96,000 oz of gold. The inferred resource stood at 63,000 tonnes at 3.77 g/t gold for 8,000 oz. The resource at a cut-off grade of 1 g/t amounted to 4 Mt grading 2.49 g/t in the measured and indicated category for 321,000 oz of gold including 1.4 Mt grading 2.59 g/t gold for 118,000 oz in measured resource.

“While tonnes are lower than the previous resource estimate overall ounces have increased and the increase in grade will improve project economics. The OMI technical team at San Gregorio did a great job on delivering the model on time and the results are better than expected,” said Chief Executive of Orosur Mining David Fowler.

The resource definition drilling programmes included 108 RC (reverse circulation) and diamond drill holes for 34,454 metres during 2008 and 2009.

The feasibility study for the project is expected to be completed by AMEC (LSE: AMEC) in Q3 2010.

Arenal Deeps is the down plunge continuation of the Arenal deposit that was mined as an open pit between October 2004 and April 2009 and produced 388,000 ounces of gold at an average grade of 2.16 g/t of gold using a 0.5g/t cut off grade.

The company, formerly called Uruguay Minerals, has also initiated 7,500m resource definition diamond drill program at its Pantanillo gold property in Chile to infill and confirm historic drill results, focusing on the upper oxidized and transition zones down to an average depth of 200m.

http://www.proactiveinvestors.co.uk/companies/news/13912/orosur-mining-ups-gold-resource-grade-for-arenal-deeps-sees-feasibility-study-completed-q3-2010-13912.html