Oro Mining Announces Update on Taunus Project Development and El Compas 2011 Drilling Results
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 04/12/12 -- Oro Mining Ltd. ("Oro" or the "Company") (TSX VENTURE: OGR) is pleased to announce that the engineering work associated with its Taunus deposit in Sinaloa, Mexico is proceeding as planned.
METCON Research of Tucson, Arizona, has completed various metallurgical testwork including cyanide leach column tests and will finalize a report by April 13, 2012. METCON has also finalized a complete mineralogical study of the various minerals that make up the mineralized mass. Interestingly, the study identified that the majority of the fine material is fine silica and not clay as previously thought. Golder Associates International Corp. has finalized the design for the heap leach pad and ponds, and various quotes have been received and are being reviewed for crushing screening and ore stacking. Similarly, Carbon adsorption, strip and refinery processing facility quotes are being evaluated. These data will be reviewed by SRK Inc. of Denver Colorado and compiled in conjunction with a detailed mine plan being prepared by them into a preliminary economic assessment (PEA) that is expected to be completed by the end of April. Further, during April the Company will submit its Environmental Impact Assessment / Manifestacion de Impacto Ambiental (MIA) for the Taunus project to the Secretaria de Medio Ambiente y Recursos Naturales of Mexico (SEMARNAT) for approval. The MIA is the principal document in the application process for a mine operating permit and the official review period is 60 business days during which request for additional information may be made by SEMARNAT.
El Compas Project
During 2011, a total of 2952.38 metres were drilled in 20 holes in three separate areas of the El Compas property located in Zacatecas, Mexico. The objective of the drill program was to determine the limits of previously identified mineralization through a combination of infill and exploration drilling at the property's El Compas, El Orito and EC2 veins.
At the El Orito vein, which runs parallel to the El Compas vein, eleven holes were drilled. Shallow drilling confirmed the continuity of near surface mineralization. Intermediate depth drilling returned mostly low to intermediate grade results and reinforces the idea that grade decreases significantly below the 2,300 metre elevation (100 metre below surface).
At the El Compas vein, five drill holes were drilled. Drilling was mostly focused on expanding the resource potential of narrow high grade structures at intermediate depth at the south end of the resource area foot wall to the Escuadra fault. The results of these holes returned mostly low grade results and are unlikely to add to the El Compas resource base in future resource estimates.
At EC2 vein, four drill holes were drilled. This is the first drilling completed in the area by Oro. Of the four holes drilled, one hole (11COM089) intersected mineralization with an average grade of 3.48 g/t (gold equivalent(1)) over a width of 4.5 metres.
(1) Gold equivalent calculated at Gold:Silver = 55:1
A summary table of the drilling results is shown below.
Length From To Int. Au Ag Aueq(1)
Hole (m) Area (m) (m) (m) (g/t) (g/t) (g/t)
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11COM073 178.61 Orito 123.95 124.45 0.50 0.01 26.5 0.49
11COM073 141.15 143.55 2.40 0.52 22.5 0.92
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11COM074 138.99 Orito 51.55 51.85 0.30 0.37 9.0 0.53
11COM074 101.94 107.50 5.56 3.47 47.2 4.33
includes 101.94 103.15 1.21 11.11 136.5 13.59
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11COM075 83.78 Orito 37.75 40.70 2.95 3.43 32.6 4.03
includes 38.75 39.70 0.95 9.29 74.5 10.64
11COM075 55.65 64.00 8.35 0.95 27.7 1.45
includes 55.65 59.30 3.65 1.41 36.1 2.07
includes 62.15 64.00 1.85 1.43 49.5 2.33
11COM075 76.95 77.20 0.25 1.88 221.3 5.90
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11COM076 69.49 Orito 49.50 58.35 8.85 9.99 80.4 11.45
includes 49.50 53.60 4.10 20.26 157.5 23.12
includes 58.05 58.35 0.30 12.28 121.4 14.49
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11COM077 193.85 Orito 121.80 122.55 0.75 4.50 184.3 7.85
11COM077 159.60 161.38 1.78 0.66 5.2 0.75
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11COM078 63.09 Compas 45.50 46.27 0.77 5.34 100.0 7.16
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11COM079 166.73 Compas 65.48 66.20 0.72 0.91 15.0 1.18
11COM079 127.10 131.00 3.90 0.34 9.7 0.52
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11COM080 180.01 Compas 132.4 133.75 1.35 0.45 33.8 1.06
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11COM081 169.77 Compas 142.05 159.65 17.60 0.35 11.8 0.57
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11COM082 242.93 Compas 218.92 220.00 1.08 0.65 6.2 0.76
11COM082 234.56 235.25 0.69 1.07 26.3 1.55
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11COM083 93.88 Orito 42.87 47.50 4.63 4.11 78.3 5.53
includes 42.87 43.49 0.62 27.30 518.4 36.73
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11COM084 130.15 Orito 101.85 115.95 14.10 0.55 18.9 0.89
includes 106.15 109.90 3.75 0.51 31.8 1.09
includes 114.38 115.95 1.57 2.29 48.8 3.18
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11COM085 17.68 Orito Abandoned-
drilling
difficult-
ies
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11COM086 179.67 Orito 67.13 67.72 0.59 1.95 83.1 3.46
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11COM087 90.22 Orito 8.90 10.97 2.07 1.68 14.8 1.95
11COM087 19.70 22.45 2.75 1.73 14.0 1.99
11COM087 31.25 31.50 0.25 5.07 100.0 6.89
11COM087 36.05 36.30 0.25 1.59 15.5 1.88
11COM087 65.94 66.20 0.26 0.84 39.0 1.55
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11COM088 87.17 Orito no sig
results
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11COM089 203.00 EC2 175.00 179.50 4.50 3.10 20.9 3.48
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11COM090 139.29 EC2 no sig
results
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11COM091 151.18 EC2 no sig
results
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11COM092 367.89 EC2 351.40 359.60 8.20 0.22 19.3 0.57
includes EC2 357.80 358.20 0.40 0.93 29.5 1.47
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(1) Aueq calculated at Ag:Au = 55:1
These results are consistent with our expectations at El Compas and El Orito. EC2 requires further exploration since meaningful mineralization was identified in only one hole.
Other Matters
The Company also reports that on February 27, 2012 Oro terminated the option agreement dated June 25, 2010 pursuant to which Oro was granted an option to acquire the 19.43 hectare La Lupita concession located in Michoacan, Mexico, by reasons of the vendor's failure to properly record ownership of the concession under the Mexican authorities. The termination notice was accepted by the vendor and thus, the option is no longer in effect. Further, due to unfavourable contract conditions the option agreement dated June 25, 2010 related to the adjacent 25.5 hectare Nuevo Luz de Borda concession was also terminated with a payment of $45,000 in exchange of a full release by the vendor which was obtained today. As a result, the Company has written down approximately $175,000 in property acquisition costs.
Quality Control
Oro Mining maintains a strict quality control program. All samples generated by the Company are submitted to Inspectorate, an ISO 9001-2008-certified assay laboratory, for preparation in Durango, Mexico, and fire assay analysis in Reno, Nevada. Analysis was conducted on one-assay-tonne samples for gold, with a standard, blank and duplicate inserted in each analytical batch. Analysis of gold was by fire assay with AAS finish, and with gravimetric finish on samples exceeding five g/t gold.
Y. (Gary) Wong, P.Eng., is a qualified person as defined by National Instrument 43-101 and has reviewed the content of this press release.
About Oro Mining
Oro Mining is a publicly-listed company on the TSX Venture Exchange with properties located in Sinaloa and Zacatecas, Mexico. Oro Mining's priority is to advance properties toward production. The Trinidad property that hosts the Taunus gold deposit continues to be the priority focus of the Company's development activities. A complete NI 43-101 compliant resource estimate for the Taunus deposit can be found at www.sedar.com or at www.oromining.com.
John Brownlie, Chief Executive Officer
Certain disclosure contained in this news release, including the payments and earn-in upon the successful completion of certain milestones, may constitute forward-looking information or forward-looking statements, within the meaning of Canadian securities laws. These statements may relate to this news release and other matters identified in the Company's public filings. In making the forward-looking statements the Company has applied certain factors and assumptions that are based on the Company's current beliefs as well as assumptions made by and information currently available to the Company. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as the term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Oro Mining Ltd.
John Brownlie, CEO & COO
(604) 646-1580
(604) 642-2411 (FAX)
jbrownlie@oromining.com
www.oromining.com
Investor Relations and Media:
Victor Webb
Marston Webb International
(212) 684-6601
marwebint@cs.com