Orsu Metals Corp (ORSUF)

[downthehatch]

1,230 oz of gold in first results from bulk test!!

Excellent results from the bulk test:

Since September 7, 2020 and as of September 24, 2020 the Company and its primary contractor the Alexandrovskoe gold mine ("Contractor") extracted 102 583 tons of mineralized material, or approximately 5 700 tons of mineralized material per day. Of that tonnage 58 384 tons represent mineralized material that has been processed or stockpiled for processing. The remaining 44 199 of lower-grade mineralized material was stockpiled on site for later processing. The Company notes that it mined only 37 000 tons of barren material producing an excellent low strip ratio of 0.35 of overburden to one ton of mineralized material.

Processing:

As of September 24, 2020, the Contractor has processed 41 561 tons of mineralized material at a daily run-rate of approximately 2 300 tons at its gold-extracting plant.

Grade and Recoveries:

The average grade of the feed mineralized material over this period has been 1.45 g/t gold, consistent with the geological model of the deposit and subsequent grade control drilling (see press release August 25, 2020).

The gold plant of the Alexandrovskoe mine uses gravity-flotation-cyanidation with carbon-in-leach to recover gold, which was not originally designed to treat the Sergeevskoe mineralization. As of September 25, 2020, gold recoveries averaged 71%. The recoveries into gravity concentrate exceeded our expectations while we continue to work to improve recoveries into flotation concentrate to better overall recoveries going forward.

Gold produced:

As of September 25, 2020, the total gold extracted into Dore bars and delivered to the refinery was 38.2 kilograms of gold or 1 230 ounces of gold. The Company and the Contractor will share in the proceeds of this sale.

Dr. Sergey V Kurzin, the Executive Chairman commented: "We are pleased with the results of the bulk test program. The mining contractor has been able to ramp-up to a daily production of 2 300 tons per day within several days after we commenced the bulk test. We expect that the mining and processing rates will stabilize in the immediate future at a planned 2 400 tons per day. Given that the plant was not designed and built to process the mineralization from Sergeevskoe and that we are in early stages of processing, we are equally pleased with achieving a recovery of 71% of gold and are working hard to bring recovery higher into 75%-80% range. We now move to negotiate and execute the pilot mining agreement with Alexandrovskoe mine, the Company's mining and processing contractor. The pilot mining will further de-risk the project and, it is expected, will generate cash to begin a robust exploration program later this year at the Sergeevskoe property. We clearly see massive exploration upside and internally generated cash will work towards unlocking the value of the property at no dilution to the Company's shareholders."