VANCOUVER, BRITISH COLUMBIA, Dec 20, 2011 (MARKETWIRE via COMTEX) — Oro Mining Ltd. (“Oro” or the “Company”) is pleased to report on the activities at its Taunus deposit located in Sinaloa, Mexico.
Background
The Taunus deposit was previously owned and operated by Eldorado Gold from 1995 until 1998 when it was closed due to solution management matters and a low gold price. At the time it was known as the La Trinidad mine. Oro acquired the deposit in 2005 and by drilling the deposit to a depth of approximately 200 meters below surface, identified previously unknown gold mineralisation. Due to the brecciated nature of the rocktypes in the deposit area, including the mineralized material, a drilling technique known as sonic drilling was initiated in late 2010, and continued through September 2011. This drilling style was used in order to achieve maximum core recovery. This process is slow and costly but achieves the desired effect with depth limitations.
During 2011, Oro completed a successful 3703 metre, 32-hole sonic drill program designed to confirm certain gold mineralization connecting the near surface Eldorado zone and the lower HS zone and to infill drill the deposit to improve understanding of the mineralization controls and continuity of the deposit and also to improve resource classification. Utilizing the updated data, SRK Vancouver, an independent engineering company, remodelled the mineral resource estimate from that reported in January of this year and reconfirmed its results. Metallurgical testwork continues at Metcon’s laboratory in Tucson. Results to date from bottle roll and column testwork show that agglomeration of ore crushed to minus 3/8″ with the addition of 2 kg/t of cement per tonne of ore should be adequate to achieve at least 70% gold recovery. It is important to note that gold grades within the deposit increase at depth; however due to sonic drilling depth limitations, additional mineralization at depth was not explored and could be targeted in future drill programs.
The Taunus development plan is spearheaded by seasoned mining professionals who have recently demonstrated their ability to manage contractors and bring mines to production effectively on time and within budget. As previously mentioned, La Trinidad was an operating mine, and by reviewing historical data and by utilizing the latest processing techniques, we expect to capture the newly identified mineralization and the known mineralization left behind by the previous owners.
Reporting on other matters regarding the project, Oro has entered into discussions with mining contractors and received quotations for the larger process plant items and a detailed estimate is being prepared for the construction of the leach pads and solution ponds. We intend to utilize the infrastructure currently available at the property, including, explosive magazines, offices, electrical and water installations. In addition, Oro has concluded a surface rights agreement over the property and is advancing its environmental permitting program. Outstanding matters include a geotechnical and hydrological study in areas surrounding the open pit and leach pad.
Regarding project financing, Oro is in discussions with institutions and we expect these to be positive in the near term. Subject to timely financing, the total all inclusive project timeline to gold production shows completion during the second half of 2013 assuming funding during the first quarter 2012.(1)
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.
ON BEHALF OF THE BOARD OF DIRECTORS
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.
(1) A feasibility study has not been completed and there is no certainty the proposed operation will be economically viable.
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)
[email protected]www.oromining.com
Marston Webb International
Victor Webb
Investor Relations and Media
(212) 684-6601
[email protected]
