Orsu Metals Corporation’s newly-formed subsidiary, Kogodai Joint Venture LLP, an entity registered in Kazakhstan, has been granted an exploration licence to jointly explore the Kogodai project, which is about 70km northwest of Orsu’s Karchiga project in northeast Kazakhstan.

Historical exploration work at Kogodai previously identified the volcanogenic massive sulphide copper mineralization within the Kuchum-Kalzhir metamorphic terrain, the same tectonic unit that hosts the deposit of Karchiga.

The exploration licence for Kogodai has been transferred from SPK Ertis JSC, a Kazakh State-owned special enterprise company, to Kogodai Joint Venture in which Orsu’s 63.75%-owned subsidiary, Orsu Metals Kazakhstan, has a majority 80% interest and SPK Ertis JSC has a 20% minority interest. This gives Orsu an effective 51% interest in Kogodai Joint Venture.

The historical exploration work undertaken during the Soviet era was limited to seven drill holes with mineralization confirmed in three of these holes. Best mineralization was intersected in one hole with two mineralized intervals within a package of 27 metres from 39.5 metres: 7 metres @ 0.86% copper from 39.5 metres, and 11 metres @ 0.77% copper from 54.5 metres, including 4 metres @ 1.1% copper from 61.5 metres.

The exploration licence at Kogodai is for five years ending in 2019, which can be further extended. Orsu will be required to make an initial investment, via Orsu Kazakhstan, for a total value of US$192,000 which includes US$42,000 in relation to a subscription bonus that has already been paid to the relevant Kazakh authorities.

The minimum funding obligation for exploration work at Kogodai is US$525,100 for the first year commencing with the grant of the licence, $803,900 for the second year and $1,258,100 for the third year.

Orsu’s executive chairman Sergey V Kurzin says, “The directors believe that the Kogodai project licence area hosts a massive sulphide mineralization which will compliment, in principal, a similar mineralization profile at the Karchiga project. Although immature from an exploration point of view, historical exploration work carried out at the Kogodai project identified promising mineralized intervals with good development potential which warrants further exploration.” www.orsumetals.com

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