Orestone Mining Acquires Assets, Strengthens Board and Has Drill Ready Targets - Company Update
TSX VENTURE: ORS
Vancouver, British Columbia--(Newsfile Corp. - October 26, 2018) - Orestone Mining Corp. (TSXV: ORS) (WKN: A2DWW7) (the "Company") Orestone Mining is pleased to provide a progress report of the Company's restructuring; management, capital structure, assets and exploration plans.
Over the last year the Company's Board of Directors, capital structure and asset mix have been optimized to create shareowner wealth going forward. We have worked diligently to add depth and strength to the Board: Julia Aspillaga and Patrick Daniels bring large project exploration and development experience in Chile. We have completed a share consolidation of 5 old for 1 new and completed initial funding: resulting in a tight share structure with strong management and insider holdings. We have diversified and strengthened the asset base with the acquisition of the Resguardo (copper/gold) project in Chile. The Company now controls two large, well defined and drill ready porphyry targets, one in British Columbia, Canada (gold/copper) and one in Region III, Chile (copper/gold).
Resguardo Copper-Gold Porphyry Project
The Resguardo project is located 90 kilometres NE of the City of Copiapo in Region III, Chile, covers 2,905 hectares of mining concessions and can be explored year around. The project geology is of the same Middle Tertiary porphyry copper belt as CODELCO's El Salvador and Potrerillos mines 80 kilometres to the north. The project is located along the north/south Domeyko Fault System which hosts some of the largest copper deposits in the world and the confluence of regional fault systems coming out of the Maricunga Gold Belt which host numerous multi-million ounce gold and gold-copper deposits containing up to 25 million ounces gold.
Copper and gold mineralization (oxides and sulphides) have been discovered along two parallel 1000 metre structures featuring fracture-controlled chimney, manto and skarn style deposition. The structures are approximately 80 metres apart, up to 50 metres wide with grades from 0.40 to 7% copper and up to 0.60 g/t gold. Near-surface oxide copper grading 1% to 7% was mined intermittently from pits and tunnels and sold to ENAMI in Copiapo for processing.
The surface mineralization at Resguardo is surrounded by a large hydrothermally altered zone of clay and silica covering over one square kilometre and is underlain by a large IP (induced polarization) chargeability anomaly measuring 450m x 1000m. The IP anomaly indicates the probable source of surface copper mineralization and a large undiscovered sulphide copper porphyry may lie at depth.
Previous exploration conducted to outline the porphyry target consisted of structural mapping, alteration mapping, geochemical sampling, geophysical surveys (ground magnetometer, IP and Resistivity) and 514 metres of reverse circulation drilling.
Future exploration will consist of a moderate program of geophysics followed by RC drilling.
The Captain Project
The Captain Project hosts several porphyry targets with the most advanced being the Admiral target. The last hole drilled on the Admiral target in 2013, Hole C13-03, intersected three metres of highly potassic-sericite altered monzonite porphyry which assays 0.226% copper and 1.90 g/t gold within an otherwise unaltered and un-mineralized post mineral alkali gabbro dyke (PMD).
The three-metre xenolith or rafted block is believed to have been transported from immediately adjacent rocks, it contains abundant sulphides and has a "strong Induced Polarization (IP) signature" associated with it while the unaltered and un-mineralized post mineral dyke has few sulphides or a "weak IP signature".
Detailed geophysics consisting of ground magnetometer, IP and resistivity have outlined the Admiral target and the PMD can also be spatially located within it. The Admiral target is an intense IP anomaly measuring up to 25 mV/V covering an area of 1000 metres x 2000 metres open in all directions.
The gold to copper ratio observed from mineralized intervals observed on the property to date indicate a gold rich alkaline porphyry system which may be similar to the Cadia-Ridgeway Porphyry system of Newcrest Gold in New South Wales, Australia and indicate a potential porphyry system where copper grades of 0.2-0.3% and gold grades from 2-6 g/t are possible - a highly favorable and economic drill target.
Future exploration will consist of diamond drilling.
In summary, the Company has been optimized to create shareowner wealth going forward: a tight share structure; highly geared asset base; a strong Board and a management team focused on success.
We are currently in the process of financing and once complete we will announce further exploration detail.
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Mr. Gary Nordin PGeo, BC has reviewed the technical information on the project and visited the project.
Orestone Mining Corp. is a Canadian based company that owns a 100% percent interest in the Captain gold - copper project located approximately 30 kilometres south of the Mt. Milligan Mine in British Columbia and has an option to purchase a 100% interest in the Resguardo copper project in Chile. For more information please visit: www.orestone.ca
ON BEHALF OF ORESTONE MINING CORP.
President and CEO
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