Orsu Metals Corporation (CVE:OSU) is forging ahead at its flagship Sergeevskoe gold project in Russia and eyeing an upgraded 43-101 resource next month (December), followed by an application for a bulk-test pilot mining program.
Orsu is required to produce a resource and classified reserve statement to Russian standards by December 2019, it said as it updated investors on strategy.
"The acceptance of the statement by the Russian authorities will then allow the company to apply for a permit to conduct a bulk-test pilot mining program on a portion of its high-grade mineralization in Q2 2020.
"Infill drilling will be conducted and based on the assays and metallurgy, the areas for the bulk test will be chosen. If the pilot bulk test is economic the goal is to generate cash flow from a small-scale mining program to fund further exploration on the greater Sergeevskoe project," said the firm.
This year, Orsu has completed an exploration program consisting of 3,555 meters (m) of diamond drilling and 2,795 m of trenching, which has increased the footprint of known mineralization two-fold to 2x1 km east-to-west and south-to-north.
"With even this limited program, we've managed to double the footprint of the mineralization and we know exactly where to drill next year to grow the mineralized envelope," said Sergei Stefanovich, Orsu's managing director.
"The 2019 drill and trench program will allow us to update the resource estimate later this year. Management remains convinced in the merits of the project as evidenced by insiders absorbing most of the $1.44 million equity raise completed on November 8, 2019."
"The pilot mining project will not reduce the potential economics of the Sergeevskoe deposit and will provide the early cash flow needed to fund a significant expansion drilling and trenching program in Q3 2020 all without further dilution to shareholders," added Orsu.
Contact the author at [email protected]