Following the work conducted by Davy McKee, Pegasus became an active partner in the property and immediately began a two year pre-feasibility study with a well-defined metallurgical testwork program to confirm and potentially improve upon a total heap leaching approach. While earlier testing was performed on both drill hole cuttings and core samples, samples for Pegasus' test work program was focused on:
-- Drill core from previous drilling to confirm claimed oxide heap leach results by rock type;-- Bulk samples taken by back hoe pits to represent low grade oxide mineralization for testing of run-of-mine heap leach kinetics, and;-- Drill core taken in a program specifically designed to represent sulfide mineralization in the various rock types throughout the ore body.
Column testwork indicated that a crush size of minus 1/2 inch was determined to be the optimum size for the four basic rock types that represented the deposit for heap leaching. The expected gold recoveries by rock type are as follows:
-- Tuff - 77%-- Rhyolite - 74%-- Quartz Butte Rhyolite - 88%-- Basalt - 62%
Cyanide consumption was projected to average 0.75 lbs/ton ore while lime and cement consumption combined to average 15 lbs/ton ore.
Tests on sulphide mineralization prior to Pegasus' involvement included cyanide leaching at various particle sizes and preparative floatation testing. Gold recoveries ranged from 15% for heap leach sized material up to 70% for selected finely ground rock types. Flotation gold recoveries averaged 60-70% with concentrate grades of 1-2 oz/t gold.
After a detailed review of previous metallurgical testwork, Pegasus directed their efforts to:
1. Bacterial vat leaching of flotation concentrate coupled with cyanide leaching of flotation tails, and2. Bacterial assisted heap leaching.
A core drilling program was completed to obtain representative sulfide samples of all rock types from all areas of the ore body. Bench scale results of flotation followed by agitated cyanide leaching recovered 57% of the gold while bacterial oxidation of the flotation concentrate followed by agitated cyanide leaching recovered 75% of the gold. Ultimately Pegasus projected a gold recovery of 70% for bacterially oxidized heap leach sulfides.
Follow up testwork
Additional drilling and testwork has been recommended to support both the heap leaching of oxide mineralization and processing of sulphide mineralization. Phase one would focus on the oxide mineralization. In support of that testwork, Orsa has relogged and assayed 5,000 metres of drill core from a 2004 drill program (see news release dated January 16, 2013) and is permitting a drill program for the spring of 2013 for confirmation drilling and metallurgical samples. Follow on bottle roll and column testing will be conducted at various crush sizes on oxide mineralization.
It is the opinion of Orsa's consultant's that sulphide mineralization may be economically recovered by milling and cyanidation. Testwork to refine a process would include testing for crush and grind size, mineralogy, flotation, leaching, and settling and filtration.
Matt Bender, QP, P.E., Director of Metallurgy for JDS Energy and Mining Inc., has reviewed the contents of this news release and is a Qualified Person as defined by National Instrument 43-101.
Orsa Ventures Corp. is a junior company focused on the exploration for, and development of, gold-silver-copper properties in the western United States. In addition to its Quartz Mountain Property, Orsa recently announced the discovery of significant sediment-hosted gold system at its Coal Canyon Property in the Oreana Mining Trend, Nevada, where over 10 million ounces has been discovered since 2009. The Company also has the right to earn a 51% interest Ashby Property, a former gold producer and porphyry copper-gold target, located in the Walker Lane Mining Trend, host to several large copper and gold deposits in Nevada.
On behalf of the Board of Directors,
Linda Thorstad, President and Chief Executive Officer
FORWARD LOOKING STATEMENTS
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, and include, without limitation, statements regarding the Company's plans with respect to the closing of the Financing and the use of proceeds thereof. 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. 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 guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
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Orsa Ventures Corp.
President and Chief Executive Officer