Osino Provides Update on H1 2023 Exploration Work Program at the Twin Hills Gold Project, Namibia

Highlights

  • 2023 work program has commenced, focused on resource definition, growth and new discovery.
  • 20,000m, 5-rig drill program for H1 2023 progressing well and includes:
    • 12,000m drilling at Twin Hills West (“THW”), Central and Clouds and Clouds West deposits
    • 5,000m feasibility studies and project development drilling including hydrological, geotechnical and condemnation programs
    • 2,000m brownfields exploration to test high-priority targets within a 13km radius of THC
    • 1,000m scout drilling to test highly prospective regional exploration targets
  • Seven highly prospective brownfields targets, within trucking distance from the Twin Hills plant, scheduled for follow-up work including drilling.
  • Regional exploration to progress six priority targets through proprietary exploration techniques, including drill testing.
  • Work towards the definitive feasibility study (“DFS”) progressing well: updated met testwork and trade-off analyses completed, capex estimate underway, updated mineral resource estimate to be completed during April 2023 and the DFS results to be released around mid-2023.

VANCOUVER, British Columbia, Feb. 21, 2023 (GLOBE NEWSWIRE) — Osino Resources Corp. (TSXV:OSI) (FSE:RSR1) (OTCQX:OSIIF) (“Osino” or “the Company”) is pleased to provide an update on its H1 2023 exploration budget for its wholly owned Twin Hills Gold Project (“Twin Hills” or “the Project”) in Namibia. The program is designed to grow the resources and reserves through infill and step-out drilling, to support resource definition, to carry out limited brownfields exploration drilling and to generate new gold targets and discoveries further afield, within Osino’s substantial regional license portfolio of >8,000km2.

A total of 212,184m of diamond (“DD”) and reverse circulation (“RC”) drilling was incorporated into the August 2022 mineral resource estimate and an additional 13,000m of RC and DD resource drilling has been completed to date. Twin Hills is a grassroots gold discovery covered by thick calcrete and Kalahari sand, which was made by Osino in August 2019.

David Underwood, Osino’s VP Exploration commented:With this round of drilling Osino aims to further grow the Twin Hills mineral resource by chasing previously identified mineralised shoots and stepping out along strike and at depth. We also aim to increase the reserve by converting inferred ounces to indicated, which will allow them to be included in the DFS and produce a more even gold production profile. In addition, we are now refocusing on near-pit exploration by testing some of our excellent targets and surface anomalies. We are particularly excited about the district targets at OJW and Rheinsheim (see Figure 2) which have large surface geochemical expressions, good rock chip and channel results on surface, and have never been drill-tested before. Any ounces discovered at these targets or at Twin Hills East will be within easy trucking distance of the plant and will add immediate value at low cost and low risk.”

Resource Definition and Growth

The Twin Hills Gold Project is comprised of the THW, Bulge, THC and Clouds and Clouds West mineral deposits. THW is further compartmentalised into 3 distinct zones, namely Eland, Kudu and Oryx (see Figure 1) which contain gold mineralization associated with sulphides and silicification, within a meta-greywacke, generally dipping between 60° and 80° towards the northwest and ranging from a few meters to 200m in thickness. Mineralization at all six deposits is open ended down dip and plunge, with some (Oryx, Kudu and Clouds West) having additional strike potential.

During 2022, Osino completed a total of 59,890m of mainly resource definition and growth (infill and step-out) drilling focused on the Oryx, Kudu, Bulge, THC, Clouds West and Clouds deposits. Resource drilling is completed at a staggered 50m x 50m pad spacing to achieve an inter-hole distance of 32 to 35m, required to satisfy the indicated resource confidence level. Holes were drilled at -600 inclination to a depth of 250 to 550m.

Image 1

Figure 1: Geology map (sub-crop map) interpreted from geophysical data and drill logs of Twin Hills Gold Project (the Oryx, Kudu, Bulge, THC, Clouds West and Clouds mineral deposits) and prospective brownfields targets (Eland and Twin Hills East)

Resource drilling in 2023 will focus on growth and increasing resource confidence level with 12,000 drill meters planned. Key areas for growth or step-out drilling (see planned holes on Figure 1), are along strike and down dip at Clouds West and Oryx; and the down plunge extend of high-grade mineralization at THC and Clouds. The drill program was kick started in early January 2023 with 9,000m drilled to-date.

The Oryx southern lobe has a fairly consistent grade of about 1 to 1.5 g/t, with widths up to 25m, and is open ended along strike and down dip. Mineralization along the northern lobe is more disseminated likely due to flexural slip and shearing, however high-grade zones exist (OKR497 had 5m at 10.11g/t and 20m at 1.03g/t) with recent assay results indicating that mineralization is not yet closed off along strike to the west (see June 10, 2022 press release for more details).

In 2022 THC and Clouds returned unusually high-grade results at depth. OKD355 was drilled at THC and returned assay results of 69m at 2.06g/t gold, including 34m at 3.65g/t. At Clouds, OKD332B intercepted 45m at 2.30g/t gold including 14m at 3.23g/t. Both these intercepts were drilled through the NE plunging mineralization extension of the respective deposit and are prime targets for resource growth through targeted deep drilling (see February 23, 2022 and May 2, 2022 press releases for more details).

The remaining H1 2023 drill program at Twin Hills supports project development and feasibility studies including geotechnical, hydrological and condemnation drilling comprising 5,000m of RC and DD drilling.

Twin Hills Brownfields Exploration

Twin Hills is a sediment-hosted, structurally controlled, orogenic gold deposit with a mineralization footprint along strike of >20km, which is largely covered by calcrete and windblown sand. Twin Hills was discovered by Osino in 2019 using systematic geophysics and geochemistry to “look through” the 5-30m thick calcrete layer which covers large parts of the Damara belt.

Since the discovery of the main Twin Hills deposits, Bulge and THC, there has been limited capacity for exploration activity outside of the resource drilling to fast-track project development. There is still considerable scope for detailed exploration to discover satellite deposits along the >50km extent of the fertile Karibib fault (see Figure 2).

Image 2

Figure 2: High ranked brownfields targets scheduled for follow-up investigation, including drill testing in 2023

When the exploration team had the opportunity to investigate and drill test brownfields targets, they were successful in the discovery of Clouds (0.34 Moz) in 2020, Oryx and Kudu (0.21 Moz indicated) in 2021 and most recently Clouds West (0.02 Moz indicated and 0.02 Moz inferred). Numerous, equally highly ranked targets further afield along the Karibib fault now warrant in-depth investigation and drill testing. These include Dobbelsberg, Eland, Puffadder, THE, OJW Central, OJW South, and Rheinsheim (see Figure 2).

The brownfields exploration program for 2023 is designed to make new gold discoveries, with the primary focus on near-pit discovery. The three highest ranking targets are scheduled for initial follow-up exploration (see Figure 2): Eland lies directly west of Oryx, while THE is about 2.5km east along strike from Clouds and Puffadder and Dobbelsberg are located 3km southeast and 5km south of the Bulge pit, respectively.

Table 1: Brownfields priority follow-up targets at the Twin Hills Gold Project

Target Name Target Support Work Program Priority
Twin Hills East Magnetic and surface geochemical anomalies, structural complexity, thickening of preferential greywacke, historical drill support (10m @ 1g/t) Drill testing 1a
Eland Magnetic and surface geochemical anomalies, structural complexity, proximity to Oryx Drill testing 1b
OJW South Large concentrated gold-in-soil anomaly, associated with 2nd and 3rd order Karibib fault structures, gold in trenches Structural mapping, trenching, drill testing 2a
Puffadder Geochemical support – Au in soil, high strain hinge zone of regional dome structure Expand soil sampling grid, structural mapping 2b
OJW Central Large geochemical gold-in-soil anomaly along 2nd order Karibib fault structures, gold in trenches Structural mapping, trenching 2c
Dobbelsberg Geochemical support – Au in soil, parasitic fold zone of regional dome structure, historic drilling Structural mapping, drill testing 3a
Rheinsheim Geochemical gold-in-soil anomaly along Karibib fault, historic drilling Structural mapping, drill testing 3b

Directly east of the THE target, a late-tectonic granite disrupts mineralization along the Karibib fault, however soil sampling east of the intrusive proves that the mineralization continues. Between 2017 to 2019, three high ranked targets called OJW South, OJW Central and Rheinsheim were identified. Initial reconnaissance work included infill soil sampling, trenching and limited scout drilling. Table 1 provides details on targeting vectors and follow-up work programs for these priority brownfields targets.

Regional Exploration

The regional exploration program aims to make new discoveries on Osino’s ~8,000km2 license position. The areas of activity are clustered into four main regions or project areas, namely Karibib District, Otjiwarongo, Otjikoto East and Sandveld (see Figure 3). Osino’s regional exploration strategy includes the use of its proven proprietary calcrete sampling techniques, which have been refined since the Twin Hills discovery, to explore highly prospective but covered areas, which have not previously been effectively explored.

In Figure 3, areas highlighted with purple stars show highly ranked exploration targets with work programs scheduled during H1 2023. These targets include Eureka, Ondundu South, Klein Aukas, Kranzberg South, Tweekoppies, and Buffelsjag.

Regional target generation and validation work has resulted in a ranked portfolio of regional greenfields targets outside of the Twin Hills/Karibib district project area. Geological mapping, detailed structural analysis, calcrete, soil and bedrock (RAB) sampling are used to define exploration drill targets.

Image 3

Figure 3: Four main project areas included in Osino’s dominant land position across the Damara Belt; highly ranked exploration targets, ranging from advanced brownfields to greenfields, are indicated as red stars, while purple stars highlight priority targets with work programs scheduled in H1 2023

Primary emphasis for regional exploration in H1 2023 will be on advancing the high-ranking Eureka and Ondundu South targets (see Figure 3), located within the Otjiwarongo Project area. These targets have strong support vectors including preferred host lithologies, geochemical anomalism and structural complexity. A detailed assessment of all historic data is underway to inform drill program design and scheduling.

Kranzberg South and Klein Aukas are recently outlined targets both located in the Karibib District. They are located along the western extent of the fertile Karibib fault and hosted within irregular structural zones. The scheduled follow-up programs will include surface geochemical sampling and bedrock RAB drilling.

Finally, with environmental clearance certificates in hand for three of the four Sandveld licenses, a maiden track-and-trail, top-of-calcrete geochemical sampling program is scheduled for the second quarter of 2023. Initial target areas have been identified along 2nd and 3rd order structures of the Karibib and Mon Repo fault systems.

Qualified Person’s Statement

David Underwood, BSc. (Hons) is Vice President Exploration of Osino Resources Corp. and has reviewed and approved the scientific and technical information in this news release and is a registered Professional Natural Scientist with the South African Council for Natural Scientific Professions (Pr. Sci. Nat. No.400323/11) and a Qualified Person for the purposes of National Instrument 43-101.

About the Twin Hills PFS

Twin Hills’ most recent technical study, a pre-feasibility study (“PFS”) dated effective September 6, 2022, signed October 25, 2022 entitled, “Amended and Restated Pre-Feasibility Study of the Twin Hills Gold Project, Namibia, National Instrument 43-101 Technical Report”, outlines a 13-year open-pit mine life with an average annual gold production of 169 koz per annum at all-in sustaining costs of US$930/oz in the first 10 years of operation. The PFS outlined 2.15 Moz in reserves (average Au grade of 1.04 g/t with a cut-off of 0,3 g/t), and was based on a resource estimate released in August 2022 with measured and indicated mineral resources of 81.3 Mt at 1.08 g/t Au for a total of 2.83 Moz and an inferred mineral resources of 7.2 Mt at 1.05 g/t Au for a total of 0.24 Moz.

The PFS was prepared by Anton Geldenhuys, MEng, MGSSA, PrSciNat, Glenn Bezuidenhout, Nat Dip (Ex Met), FSAIMM, Robert Armstrong, B.Sc., FGSSA, COMREC, Pr.Sci.Nat, Peter Theron, Pr.Eng. (ECSA), MSAIMM, Werner Moeller, B.Eng. (Mining), B.Eng. (Industrial), MSAIMM, MAusIMM, MCIM, Georgi Doundarov, M.Sc., P.Eng., PMP, CCP, Diana Duthe, M.Sc., Pr.Sci.Nat., and Luke Towers, MSc. Geohydrology, Pr.Sci.Nat., who are all independent “qualified persons” for the purposes of National Instrument 43-101 and are the authors responsible for the preparation of the PFS.

About Osino Resources

Osino is a Canadian gold exploration and development company focused on the fast-tracked development of our wholly owned Twin Hills Gold Project (“Twin Hills”) in central Namibia. Since its grassroots discovery by Osino in August 2019 the Company has completed more than 225,000m of drilling and has completed a suite of specialist technical studies culminating in the recently published Twin Hills PFS. The PFS describes a technically simple and economically robust open-pit gold operation with a 2.15moz gold reserve, 13-year mine life and average annual gold production of over 169koz per annum.

Osino has a commanding ground position of approximately 8,000km2 located within Namibia’s prospective Damara sedimentary mineral belt, mostly in proximity to and along strike of the producing Navachab and Otjikoto Gold Mines. The Company is actively exploring a range of gold prospects and targets along the belt by utilizing a portfolio approach geared towards discovery, targeting gold mineralization that fits the broad orogenic gold model.

Our core projects are favorably located north and north-west of Namibia’s capital city Windhoek. By virtue of their location, the projects benefit significantly from Namibia’s well-established infrastructure with paved highways, railway, power and water in close proximity. Namibia is mining-friendly and lauded as one of the continent’s most politically and socially stable jurisdictions. Osino continues to evaluate new ground with a view to expanding our Namibian portfolio.

Further details are available on the Company’s website at https://osinoresources.com/

On Behalf of The Board of Directors
Heye Daun, President & CEO

CONTACT INFORMATION
Osino Resources Corp.
Leily Omoumi
VP, Corporate Development
604-687-2038
[email protected]

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 press release.

Cautionary Statement Regarding Forward-Looking Information

This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, without limitation, statements regarding the use of proceeds from the Company’s future plans or prospects of the Company, including prospects for economic recoverability of mineral resources. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements are necessarily based upon a number of assumptions that, while considered reasonable by management, are inherently subject to business, market and economic risks, uncertainties and contingencies that may cause actual results, performance or achievements to be materially different from those expressed or implied by forward-looking statements. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. Other factors which could materially affect such forward-looking information are described in the risk factors in the Company’s most recent annual management’s discussion and analysis which is available on the Company’s profile on SEDAR at www.sedar.com. The Company does not undertake to update any forward- looking information, except in accordance with applicable securities laws.

Photos accompanying this announcement are available at: 

https://www.globenewswire.com/NewsRoom/AttachmentNg/31d9af26-ed37-4717-b53c-dff2f3e275b8

https://www.globenewswire.com/NewsRoom/AttachmentNg/06eeee2e-f947-4612-bb64-8f95f7348659

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