London, April 27th, 2022. Orosur Mining Inc. ("Orosur" or "the Company") (TSXV/AIM: OMI), a South American-focused minerals explorer and developer, is pleased to announce the results for the third quarter ended February 28th, 2023 ("Q3 23" or the "Quarter"). All dollar figures are stated in US$ unless otherwise noted. The unaudited condensed interim financial statements of the Company for the Quarter and the related management's discussion and analysis have been filed and are available for review on the SEDAR website at www.sedar.com. They are also available on the Company's website at www.orosur.ca.
Highlights of the Third Quarter Results for 2022/23
Colombia
· On December 2, 2022, the Company announced assay results from another four holes at Pepas, holes PEP002,006,008 and 009. Holes PEP002 and 006 did not yield significant results. Two new drill pads were constructed to drill holes PEP008 and PEP009. Both holes intersected mineralised structures, largely as expected, but with lower levels of gold mineralisation than intersected in previous drilling. Near term focus will now shift away from drilling to field mapping, sampling and trenching activities will continue across the Project to define further drilling targets, including additional surface works specifically in the Pepas prospect area.
· On January 17, 2023, the Company announced that negotiations to complete the new Mining Company Constituent Documents with Minera Monte Aguila ("MMA") were progressing and that the US$2 million Phase 2 payment would be paid soon. The formation of the new Mining Company, which will take several months, is underway. Once formed, the Mining Company will be owned 49% by Orosur and 51% by MMA who will also be the manager. MMA may earn an additional 14% ownership in the Mining Company if it has spent US$20 million in qualifying exploration expenditures on the Anzá Project ("Project") on or prior to the fourth anniversary of the parties entering into the Mining Company Constituent Documents. If the Phase 2 earn-in is completed, MMA would own 65% of the Mining Company and the Company would own the remaining 35%.
· On March 2, 2023, post the Quarter end, the Company announced that it had received the Phase 2 option payment of US$2 million that was due as part of the process of MMA moving from Phase 1 to Phase 2 of the Project. Following completion of drilling, exploration work at Anzá has been wound back to allow for the required corporate restructuring of the joint venture to be completed, and to advance a variety of licence processes such as integration of smaller licences and conversion of applications to granted status.
Argentina
· On March 2, 2023, the Company announced that results to date continue to be extremely encouraging, with the latest round of mapping and sampling suggestive that El Pantano has potential to host a major, previously unexplored low-sulphidation epithermal system. In the low-sulphidation model, fluid boiling is the key gold depositional mechanism, such that gold mineralisation is constrained to a distinct vertical zone, and there may be limited or no gold anomalism at surface. Instead, pathfinder elements are a more important guide to mineralisation, especially mercury (Hg) and arsenic (As). Recent work is expanding the picture of very large zones of Hg and As anomalism along more than 8km strike of a major NW trending structure.
· Geological mapping, geochemical sampling and ground magnetic surveys are continuing. It is also planned that other geophysical methods such as Induced Polarization (IP) may be employed. Environmental permitting work is also underway that will allow drilling to be undertaken later in the year or early next year.
Brazil
· On March 2, 2023, the Company announced that its large-scale regional sampling program which had been underway for the last several months, taking stream and drainage sediment samples over much of the Ariquemes district, was now complete. Final results are pending. Once received, it is anticipated that this regional dataset will be able to provide vectors to potential mineralisation that will then form the basis for more targeted exploration programs in the near term.
Uruguay
· In the previous accounting year, Loryser agreed and paid for the settlements with all of its former employees, with the proceeds received from the sale of certain of its assets. In the current year to date it has finalised the reclamation and remediation works on the tailings dam and has started a one-year post-closure control phase which is progressing well.
· During this Quarter, Loryser also succeeded in selling all of its remaining assets included in the Creditors Agreement as set out in that agreement and it will now, post Quarter end, be distributing the proceeds, on a pro rata basis, to Loryser's trade creditors in accordance with the Creditors' Agreement, via a court approved paying agent.
Financial and Corporate
· The unaudited consolidated financial statements have been prepared on a going concern basis under the historical cost method except for certain financial assets and liabilities which are accounted for as Assets and Liabilities held for sale (at the lower of book value or fair value) and Profit and Loss from discontinuing operations. This accounting treatment has been applied to the activities in Uruguay and Chile.
· On December 7, 2022, all of the outstanding 10,897,058 warrants expired and so the fully diluted share capital of the Company as at the date of this MD&A is 199,750,299.
· On February 28, 2023, the Company had a cash balance of $4,151k (May 31, 2022 $4,221k). As at the date of this announcement the Company had a cash balance of $3,857k.
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