Wednesday, February 23, 2011

Investors Guru Small Cap Stock Observer

(TSX: OSU) Orsu Metals - Orsu Drill Results Confirm High Grade Single Lode At Karchiga

As part of ongoing Definitive Feasibility Study, Orsu Metals (TSX: OSU) has received all assay results for its 2010 infill drilling programme in the North East lode at its Karchiga deposit in Kazakhstan.

Infill drilling is a double edged sword, as there is always a danger it will reveal that the original assay results were anomalies.

Orsu's infill program indicates the opposite. The deposit is wider and richer than their original scoping study had suggested.

Selected drill results demonstrate that the copper sulphide mineralisation in the North East constitutes a single lode.

Orsu's Karchiga Cu deposit is located within the Vavilon-Karchiga zone of the northwest striking, mid-Palaeozoic, Rudny Altai VMS belt, which is ranked in the top four Volcanogenic Massive Sulfide (VMS) belts of the world.

VMS are relatively rare geological formations that contain rich lodes of Copper, Zinc, Gold and Silver. They typically occur in lens-like or tabular bodies parallel to the volcanic bedding. A single VMS deposit can be worth hundreds of millions of dollars.

Prior to the Company's 2010 infill drilling programme, the North East lode showed an absence of oxide material and was interpreted as consisting of three separate ore zones. One of these zones had been classified as indicated and the other two as inferred.

The 2010 infill drilling program, which consisted of 40 diamond drill holes (3,876 m), was focussed on up-grading the inferred mineral resources of the North East lode to the indicated category.

The 2010 mineral resource estimate showed that the mineralisation in the North East lode was located within three shallow-dipping zones. The latest drilling demonstrates that there is continuity between these lenses and in fact they form a single lode with a strike length of about 1 km.

Resource modeling incorporating the new data is currently in progress as well as upgrading the resource from indicated to inferred, there is a possibility that the overall mineral resource tonnage will also be increased.

The good news for Orsu doesn't end there. According to the World Bank study, Doing Business 2010, Kazakhstan currently has the most improved business regulation in the entire world.

A landlocked country bordered by China and Russia, early indications show that Kazakhstan has the potential for trillions of dollars of metal in the ground.

So far, China has agreed to investments of $13 billion, with South Korea ($5 billion), Russia ($3 billion), and France ($2 billion) also investing heavily.

Sergey Kurzin, Executive Chairman of Orsu Metals, is a Russian-born international mine builder and deal maker. A member of Doug Casey's exclusive "Explorer's League", Kurzin has been operating successfully in Kazakhstan for 20 years.

Kurzin played a key role in establishing UrAsia Energy, a uranium producer with mining operations in Kazakhstan that sold to Uranium One in 2007 for $3.1 billion.

"Kazakhstan has advanced legislation," explained Kurzin in a recent interview, "If you have a contract with the government, and if they change legislation, your document prevails."

Data modelling is currently underway at Orsu. An updated NI 43-101 compliant mineral resource estimate is expected in Q1 2011, along with results of a metallurgical study. These studies will form a solid basis for the ongoing work program to deliver the Definitive Feasibility Study for Karchiga by Q4 2011.

Orsu is currently trading at $0.295, with a market cap of only $46.5 million. With the infill drilling program confirming a rich kilometer-wide vein of gold and copper, the stock is a candidate for an aggressive turnaround. More at .

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