Orosur Mining Inc (LON:OMI ASX: OMI) is to push ahead with a drilling programme at Anzá in Colombia after initial work indicated a significant amount of gold mat=y be present.
A model based on re-working historic drill data from the Aragon-Pastorera Trend Area (APTA) suggested exploration potential of 1.6mln - 2.3mln tonnes averaging between 3.2 - 3.7g/t of gold per tonne.
Orosur believes the mineralized zones in the APTA continue, both at depth and at the surface, to the north and south of the limited area. As such, there is the potential for a much larger resource base to be identified.
The drill campaign will be between 15,000m - 30,000m and will lead to a maiden NI 43-101 report for Anza.
Ignacio Salazar, chief executive, said: “Orosur acquired Anzá in July 2014, through its nil premium all share acquisition of Waymar Resources, at a time when little to no value was being given to exploration projects.
“The company believes that Anzá has significant upside and we expect the project to take a more prominent standing in our suite of South American gold assets in the months to come.”
Broker Cantor added that today’s announcement begins to put some meat on the bone in terms of quantifying the project’s potential while the planned 2017 drilling campaign shows Orosur's commitment to fully assessing Anza’s mineral potential. Furthermore, the project benefits from having existing mine and environmental permits as well as good supporting infrastructure, it said. Cantor said its 32p target price includes just 2.4p for Anza at present, reflecting the price paid by OMI for the project in 2014. Shares rose 1.6% to 16.8p. -- update for broker comment --