Orosur Mining starts exploration at Anzá project in Colombia

9 July 2019 (Last Updated July 9th, 2019 13:29)

South American-focused gold development and exploration company Orosur Mining and Newmont have started exploration activities at the Anzá project in Colombia.

South American-focused gold development and exploration company Orosur Mining has started exploration activities at the Anzá project in Colombia.

Exploration activities at the project site were initiated as part of an agreement with venture option with Newmont Goldcorp’s subsidiary Newmont Colombia.

The Anzá project comprises exploitation and exploration concessions and concession applications, covering more than a 20km segment of the prospective Tonusco Fault.

According to the company, it has already re-logged 2,400m of the drill core from an area north of Orosur’s geological model APTA, where a new broad zone of gold mineralisation at a strike length of 450m was discovered by Orosur during the drilling campaign last year.

Geophysical and geochemical reinterpretation is set to take place at the Anzá project to update the geological model in conjunction with Newmont. It does not require any field work.

Last September, Newmont Mining acquired 19.9% of the issued and outstanding common shares of Orosur through a private placement. Under the placement, Newmont bought 29,213,186 common shares of the company at C$0.091 ($0.069) a share for $2m.

During the same period, Orosur also signed an exploration and option agreement with Newmont Colombia over the Anzá project.

As part of the agreement, Newmont can earn up to a 75% ownership stake in the Anzá project in three phases by incurring an aggregate expenditure of at least $30m over 12 years.

Last August, Orosur announced its decision to suspend operations at its San Gregorio West gold mine in Uruguay due to lower grades at the project and a difficult financial position.