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Orsu Metals Corporation (TSX-V: OSU) (“Orsu” or the “Company”) is pleased to report assay results of the reverse circulation (“RC”) drilling program as part of its ongoing preparation for pilot mining. The most significant intercepts at each of the main mineralized domains at Sergeevskoe project assayed:

  1. Kozie - drillhole RCS02 intercepted 2.53 grams per ton gold (“g/t Au”) Au over 9 meters (“m”), including 4.85 g/t Au over 4 m;
  1. Klyuchi West - drillhole RCS04 intercepted 1.49 g/t Au over 85 m, including 2.96 g/t Au over 24 m;
  1. Central domain of Zone 23 - drillhole RCS10 intercepted 1.7 g/t Au over 21 m, including 2.81 g/t Au over 10 m, and drillhole RCS09 intercepted 5.22 g/t Au over 6 m, including 9.47 g/t Au over 3 m;
  1. Adit 5 - drillhole RCS14 intercepted 4.22 g/t Au over 11 m, including 8.09 g/t Au over 5 m and 1.69 g/t Au over 10 m, including 2.28 g/t Au over 6 m; and
  1. Peak Klyuchi - drillhole RCS01 intercepted 4.28 g/t Au over 3 m.

Alexander Yakubchuk, the Company’s Director of Exploration, commented: “All RC holes were drilled in between the previous drill fences or in between the diamond drill holes within the previous drill fences. The overall average grade of the mineralized intercepts appears to be remarkably similar with the resource model, further confirming its validity.”

Dr. Sergey V Kurzin, the Executive Chairman commented: “The RC drilling program was conducted by the pilot mining contractor and independently confirmed the geological model of the Sergeevskoe property. The RC drilling was an essential part of the preparation to commence pilot mining in the second half of this summer. Now we and our pilot mining contractor are conducting a grade control drilling program specifically delineating mineralization to be bulk mined within two planned initial open pits at the property. Orsu Metals will be reporting the results of the grade control drilling when available. Our knowledge and confidence of the deposit grows daily.”

The Company completed 1721 meters in an RC drilling program of 18 drill holes. At least one hole was drilled into each mineralized domain of Sergeevskoe (see Figure 1). The depth of drilling varied from 23 to 115 m, with holes drilled in different directions at 60 degrees dip. All holes should be considered as infill drillholes as they were drilled in between the existing holes. The main purpose of the RC drilling was to test the continuity of gold grade in the updated resource model as part of the preparation for the pilot mining program (see press release May 27, 2020).

Figure 1. Position of RC drill holes in the mineralized domains at Sergeevskoe on the slightly tilted three-dimensional view of the mineralized bodies as per updated NI 43-101 Inferred Mineral Resource (see press release January 20, 2020). Gray lines are traces of trenches and drillholes drilled by Orsu in 2017-1019.

Although individual intercepts varied both in greater and smaller mineralized width and gold grade in comparison with the expected width and grade of the resource model, there was not a single case of an unconfirmed mineralized interval. Moreover, several new mineralized bodies were identified in the RC holes drilled within the fences. They could not be previously modelled due to less than 2 m width identified in 2017 to 2019 in the diamond core drill holes. The new RC holes showed that such small intercepts of the mineralized bodies appear to significantly change their width upwards, sometimes exceeding 10 m (Table 1).

Table 1 below shows all mineralized intercepts that exceed 2 m in downhole width grading more than 0.5 g/t Au.

Klyuchi West - drillhole RCS04 (see Table 1) intercepted 1.49 g/t Au over 85 m from 15 m depth to the end of the hole. This wide intercept includes four mineralized intervals grading:

  • 1.19 g/t Au over 22 m from 15 m depth (compared to 0.8 g/t Au over 22 m in the resource model);
  • 0.92 g/t Au over 11 m from 38 m depth (compared to 0.8 g/t Au over 6 m in the resource model);
  • 0.85 g/t Au over 11 m from 54 m depth (compared to 0.8 g/t Au over 23 m in the resource model); and
  • 2.96 g/t Au over 24 m from 76 m depth (compared to 1.0 g/t Au over 10 m in the resource model).

Kozie – a comparison of RC and previous diamond drilling results indicates some grade and width increase to the west. Hole RCS02 (see Table 1), drilled in the west of the domain, intercepted:

  • 0.51 g/t Au over 4 m from 3 m depth (compared to 0.6 g/t Au over 5 m in the resource model);
  • 2.53 g/t Au over 9 m from 46 m depth, including 4.85 g/t Au over 4 m (compared to 3.2 g/t Au over 3 m in the resource model);
  • 1.1 g/t Au over 5 m from 61 m depth (new body); and
  • 1.76 g/t Au over 5 m from 68 m depth (compared to 2.7 g/t Au over 15 m in the resource model).

Peak Klyuchi - which was previously drill tested only to a limited extent, RCS01 intercepted (see Table 1) 4.28 g/t Au over 3 m and 0.72 g/t Au over 2 m.

Adit 5 - four drillholes confirmed the continuity of gold mineralization intercepting four to six mineralized intervals, some of which were new bodies (see Table 1). Drillhole RCS14 intercepted:

  • 4.22 g/t Au over 11 m, including 8.09 g/t Au over 5 m, from 23 m depth (compared to 1.8 g/t Au over 11 m in the resource model);
  • 1.69 g/t Au over 10 m, including 2.28 g/t Au over 6 m, from 36 m depth (compared to 1.4 g/t Au over 10 m in the resource model);
  • 0.88 g/t Au over 6 m from 61 m depth (compared to1.3 g/t Au over 6 m in the resource model); and
  • 0.58 g/t Au over 2 m from 96 m depth (compared to 4.1 g/t Au over 2 m in the resource model).

Similarly, all mineralized intervals were confirmed by RC drilling in Zone 23 West, Central and East domains.

Central domain - drillhole RCS10 intercepted:

  • 1.0 g/t Au over 9 m 46 m depth (compared to 1.3 g/t Au over 9 m in the resource model);
  • 0.62 g/t Au over 3 m from 58 m depth (New body);
  • 1.7 g/t Au over 21 m, including 2.81 g/t Au over 10 m, from 63 m depth (compared to 1.0 g/t Au over 5 m in the resource model); and
  • 0.83 g/t Au over 6 m from 90 m depth (compared to 1.3 g/t Au over 3 m in the resource model).

Similarly, drillhole RCS09 (see Table 1), among other intervals, intercepted 5.22 g/t Au over 6 m, including 9.47 g/t Au over 3 m, from 90 m depth (compared to 1.1 g/t Au over 10 m in the resource model).

The individual holes in each domain revealed much wider or more narrow intercepts than predicted from the resource model. The overall results clearly indicate an upside potential of the Sergeevskoe mineralization when the Company performs more infill drilling in the future.

The overall weighted average grade of the new intercepts is 1.45 g/t Au, which correlates to the average grade of 1.45 g/t Au in the resource model. This generally confirms the robustness of the resource model.

The reported intercepts correspond to the downhole width. True thickness is estimated to constitute from 65 to 80% of the reported intervals.

Table 1. Mineralized intercepts of the 2020 RC drilling program and their comparison to the resource model

>

Area

Hole ID

From

To

Interval,
m

Au, g/t

Expected
intervals
as per
the
resource
block
model,
m

Expected
grade as
per the
resource
block
model,
g/t Au

Peak
Klyuchi

RCS01
(EOH 100 m;
Azimuth 22NE,
Dip 60)

1.00

4.00

3

4.28

3.00

1.90

including

1

10.6

62.00

63.00

2

0.72

5.00

6.20

Kozie

RCS02

3.00

7.00

4

0.51

5.00

0.60

(EOH 90 m;
Azimuth
21.6NE, Dip 60)

46.00

55.00

9

2.53

3.00

3.20

including

4

4.85

61.00

66.00

5

1.10

New body

68.00

73.00

5

1.76

15.00

2.70

Kozie

RCS03

0.00

3.00

3

0.85

8.00

0.90

(EOH 85 m;
Azimuth
21.6NE, Dip 60)

38.00

44.00

6

1.27

6.00

1.60

including

2

2.49

47.00

51.00

4

0.87

61.00

62.00

2

1.15

6.00

2.30

80.00

85.00

5

0.70

5.00

2.30

Klyuchi
West

RCS04

2.00

5.00

3

1.06

New body

(EOH 100 m;
Azimuth
39.5NE, Dip 60)

15.00

37.00

22

1.19

22.00

0.80

including

11

1.66

38.00

49.00

11

0.92

6.00

0.80

54.00

73.00

19

0.85

23.00

0.80

76.00

100.00

24

2.96

10.00

1.00

including

3

11.96

and including

3

4.65

Klyuchi
West

RCS05

13.00

15.00

2

1.60

2.00

1.20

(EOH 100 m;
Azimuth
39.5NE, Dip 60)

23.00

29.00

6

2.12

8.00

1.10

including

3

3.54

48.00

49.00

1

1.00

8.00

1.50

70.00

75.00

5

2.61

8.00

0.76

including

3

3.96

91.00

92.00

1

3.05

New body

Zone 23
West

RCS06

6.00

7.00

2

1.41

2.00

0.70

(EOH 115 m;
Azimuth 179SE,
Dip 60)

19.00

20.00

1

0.94

2.00

1.50

38.00

39.00

1

1.16

2.00

5.00

48.00

53.00

5

0.97

3.00

2.20

89.00

91.00

2

1.21

2.00

4.50

105.00

110.00

5

2.45

2.00

4.50

including

2

4.92

Zone 23
West

RCS07

1.00

4.00

5

0.73

(EOH 115 m;
Azimuth 179SE,
Dip 60)

70.00

72.00

2

0.55

2.00

1.30

75.00

88.00

13

1.16

6.00

2.60

91.00

96.00

5

0.63

New body

100.00

102.00

2

0.8

New body

104.00

110.00

6

0.68

2.00

1.00

including

2

0.93

Zone 23
West

RCS08

10.00

15.00

5

0.93

5.00

0.80

(EOH 100 m;
Azimuth 179SE
, Dip 60)

22.00

25.00

3

0.66

2.00

1.20

33.00

35.00

2

0.71

New body

46.00

48.00

2

1.09

4.00

1.20

50.00

57.00

7

0.6

4.00

4.8

59.00

61.00

2

0.83

73.00

76.00

3

1.28

97.00

100.00

3

1.97

2.00

1.80

Zone 23
West

RCS09

36

43

7

0.74

6.00

2

(EOH 100 m;
Azimuth 179SE,
Dip 60)

53

55

2

0.66

2.00

1.5

Zone 23
Central

76

79

3

1.12

New body

84

88

4

3.19

including

2

5.6

90

96

6

5.22

10.00

1.1

including

3

9.47

Zone 23
Central

RCS10

46

55

9

1

9.00

1.3

(EOH 100 m;
Azimuth 179SE,
Dip 60)

58

61

3

0.62

New body

63

84

21

1.7

5.00

1

including

10

2.81

90

96

6

0.83

3.00

1.3

Zone 23
Central

RCS11

27

29

2

0.77

2.00

0.6

(EOH 53 m;
Azimuth 179SE,
Dip 60)

40

42

2

0.91

New body

Zone 23
East

RCS12
(EOH 23 m;
Azimuth 179SE,
Dip 60)

19.00

23.00

4

0.57

8.00

1.20

Zone 23
East

RCS12A

2.00

6.00

4

0.72

New body

(EOH 105 m;
Azimuth 179SE,
Dip 60)

13.00

15.00

2

0.98

2.00

1.10

20.00

23.00

3

0.8

New body

28.00

30.00

2

0.76

2.00

1.60

43.00

45.00

2

0.95

2.00

2.00

61.00

64.00

3

1.1

New body

71.00

78.00

7

1.41

New body

including

2

3.29

95.00

97.00

2

0.99

New body

101.00

104.00

3

0.62

3.00

0.70

Adit 5
East

RCS13

0.00

4.00

4

1.42

3.00

0.70

(EOH 115 m;
Azimuth 113SE,
Dip 60)

14.00

18.00

4

0.76

23.00

33.00

10

1.09

New body

including

4

1.42

38.00

42.00

4

0.69

New body

45.00

50.00

5

1.32

5.00

0.80

52.00

55.00

3

0.59

New body

74.00

77.00

3

0.77

New body

82.00

84.00

2

3.01

7.00

0.75

including

1

5.17

Adit 5
East

RCS14

23.00

34.00

11

4.22

11.00

1.80

(EOH 115 m;
Azimuth 113SE,
Dip 60)

including

5

8.09

36.00

46.00

10

1.69

10.00

1.40

including

6

2.28

61.00

67.00

6

0.88

6.00

1.30

96.00

98.00

2

0.58

2.00

4.10

Adit 5
East

RCS15

7.00

12.00

5

1.03

15.00

1.00

(EOH 115 m;
Azimuth 113SE,
Dip 60)

30.00

38.00

8

0.98

10.00

1.70

including

3

1.40

60.00

63.00

3

2.43

including

1

5.91

68.00

79.00

11

0.95

New body

including

4

1.66

82.00

97.00

15

1.41

15.00

1.10

including

2

3.90

100.00

104.00

4

1.16

4.00

1.20

Adit 5
East

RCS16

9.00

13.00

4

0.94

8.00

1.10

(EOH 115 m;
Azimuth 113SE,
Dip 60)

19.00

23.00

4

2.49

New body

including

1

7.12

31.00

34.00

3

1.61

3.00

4.10

including

1

3.28

69.00

73.00

4

1.3

9.00

1.60

92.00

93.00

1

2.25

96.00

104.00

8

2.67

8.00

1.30

including

5

3.81

Adit 5
West

RCS17

5

7

2

0.73

3.00

1.4

(EOH 90 m;
Azimuth 52NE,
Dip 60)

14

17

3

1.52

New body

28

30

2

0.95

New body

32

34

2

0.91

New body

47

64

17

1.26

17.00

1.4

85

90

5

0.9

4.00

1.2

*EOH= end of hole

All reported RC drilling was performed by an independent contractor under supervision of Orsu. Irrespective of lithologies, exact 1 m intervals were sampled consistently in all drillholes. There are no unsampled intervals.

Fire assay analysis was performed at the certified analytical laboratory of the Alexandrovskoe gold mine, located 6 km to the west from the mineralized domains of the Sergeevskoe project. The laboratory is owned by Zapadnaya Gold Mining Company (http://www.zapadnaya.com/qa/alexandrovka.html), which is independent from Orsu. The detection limit of the laboratory is 0.1 g/t Au, with assay precision to 0.01 g/t Au. The laboratory included blank samples in the batches of 30 to 40 samples. The laboratory run random duplicate analytical tests of assayed material, averaging 20 samples.

In March 2020, the World Health Organization declared COVID-19 a global pandemic. This contagious disease outbreak, which has continued to spread, has adversely affected workforces, economies, and financial markets globally. It is not possible for the Company to predict the duration or magnitude of the adverse impacts of the outbreak and its effects on the Company’s business or ability to raise funds. The COVID-19 pandemic has not affected the progress of the ongoing exploration campaign on the Sergeevskoe Project as the Company is able to conduct its ongoing exploration in this remote area of Russia.

About Orsu Metals Corporation

Orsu Metals Corporation is a mineral exploration and development company. The 90% owned Sergeevskoe gold project located in the Mogocha District of the Zabaikal’skiy Region of the Russian Federation is the focus of Orsu’s activities. Orsu has filed a technical report titled: “NI43-101 Technical Report on the Updated Mineral Resource Estimate for the Sergeevskoe Property, Zabaikalskiy Krai, Russian Federation” dated effective January 9, 2020 (the “Sergeevskoe Report”) to support the Inferred Mineral Resource of 30.42 million tons, grading 1.45 g/t gold and containing 1.417 Moz gold at a 0.5 g/t gold cut-off grade and US$1,450 per troy ounce of gold, optimized into an open pit constrained by the license boundaries at Sergeevskoe.

Qualified Person

Alexander Yakubchuk, the Company’s Director of Exploration, Ph.D., MIMMM, a Qualified Person as defined by NI 43-101, has reviewed, verified and approved the exploration information disclosures contained in this press release.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Statement:

This news release contains forward-looking statements that are based on the Company’s current expectations and estimates. Forward-looking statements are frequently characterized by words such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “suggest”, “indicate” and other similar words or statements that certain events or conditions “may” or “will” occur. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Such information or statements may include, but are not limited to, statements with respect to the timing of, and the issuance of, a permit to conduct a bulk-test pilot mining program, the economics of the bulk-test pilot mining program, the mineralized material being amenable to being processed at the gold plant, the cash flow from the pilot mining operation being sufficient to fund a major exploration effort in the latter half of 2020. There may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not a guarantee of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.


For further information, please contact:
Alexander Yakubchuk, Director of Exploration, Orsu Metals Corporation
Doris Meyer, Corporate Secretary, Orsu Metals Corporation
E: [email protected]

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