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 the company’s Karchiga project in northeast Kazakhstan.
The exploration licence 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 an 80% interest and SPK Ertis has a 20% minority interest, which gives Orsu an effective 51% interest in Kogodai JV.
Historical exploration work at Kogodai previously identified the volcanogenic massive sulphide copper mineralization within the Kuchum-Kalzhir metamorphic terrane, the same tectonic unit that hosts the deposit of the Karchiga project.
This exploration undertaken during the Soviet era was limited to seven drill holes, with mineralization confirmed in three holes. Best mineralization was intercepted in one hole, with two mineralized intervals within a package of 27 metres from 39.5 metres. Best results were 7 metres from 39.5 metres @ 0.86% copper and 11 metres from 54.5 metres @ 0.77%, including 4 metres from 61.5 metres @ 1.1%.
Meanwhile, following a meeting of the Board of Orsu in September, the company has suspended its involvement in joint exploration of the Balkhash project with Asem Tas-N LLC. After extensive assessment of the results of the exploration funded by Orsu, the directors resolved not to exercise the option to purchase an interest in the project on the terms set out in the exclusivity agreement announced on March 11, 2014, which expired in September.
Based on the geological results and the geopolitical situation in the region, the directors were also unwilling to commit further funds towards the next stage of exploration in order to secure a further exclusivity period.
Orsu’s executive chairman Dr Surgey V Kurzin said: “Although the initial results for the Balkhash project were encouraging, resulting in previous extensions of the exclusivity period, the subsequent results targeted at the most promising prospects were insufficient to justify the exercise of the option to acquire the project and committing Orsu to finance the minimum funding requirements.”
In October Orsu announced that it had not received the non-refundable deposit of US$100,000 due under the terms of the conditional exclusivity agreement for the sale of the Akdjol-Tokhtazan project in Kyrgyz Republic with David-Invest LLP, a Kyrgyz registered company, and related company, David Way Ltd, a Hong Kong registered company. Consequently, the agreement has lapsed, and ongoing discussions between Orsu and the potential buyers are continuing on a non-exclusive basis.