London-based Orsu Metals (OSU-T, OSU-L) is taking an additional 24.73% stake in the Karchiga volcanogenic massive sulphide deposit in Kazakhstan, bringing its total stake in the project to 94.75%.
The precious and base metals exploration and development company said it expects to close the US$6.18 million all-cash acquisition during the third quarter of this year.
Sergey Kurzin, Orsu's executive chairman, said the purchase reflects the company's confidence in the recently completed resource calculation and said management plans to fast-track Karchiga and complete a feasibility study by early next year.
In March, an updated mineral resource for Karchiga demonstrated indicated resources, at a cut-off grade of 0.5% copper, of 8.49 million tonnes grading 1.95% copper and an inferred resource of 1.79 million tonnes grading 1.62% copper.
Karchiga is in northeastern Kazakhstan within the mid-Palaeozoic Rudny Altai terrain, which hosts numerous world class volcanogenic massive sulphide deposits, including the Leninogorsk (also known as Ridder-Sokolnoye), Zyryanovsk, and Maleevskoye deposits.
The deposit is in the Kurchumskiy Raion district, 250 km southeast of the regional administrative centre of Ust-Kamenogorsk and 120 km southeast of the town of Kurchum.
At presstime Orsu was trading at a 52-week low of 20¢ a share. It reached a peak of $1.15 per share on June 5, 2009. The junior has 157.7 million shares outstanding.
© 1915 - 2013 The Northern Miner. All Rights Reserved.