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Orsu Metals Corporation Interim Results for the Period Ended September 30, 2011 (Unaudited)

Date : 11/11/2011 @ 2:00AM
Source : UK Regulatory (RNS & others)
Stock : Orsu Metals (OSU)
Quote : 2.0  0.0 (0.00%) @ 2:45AM
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Orsu Metals Corporation Interim Results for the Period Ended September 30, 2011 (Unaudited)


 
TIDMOSU 
 
Orsu Metals Corporation Interim Results for the Period Ended September 30, 2011 (Unaudited) 
FOR: ORSU METALS CORPORATION 
 
TSX, AIM SYMBOL:  OSU 
 
November 11, 2011 
 
Orsu Metals Corporation Interim Results for the Period Ended September 30, 2011 (Unaudited) 
 
LONDON, UNITED KINDGDOM--(Marketwire - Nov. 11, 2011) - Orsu Metals Corporation ("Orsu" or the "Company" or the 
"Group"), the dual listed (TSX:OSU)(AIM:OSU) London-based precious and base metals exploration and development 
company today reports its unaudited results for the period ended September 30, 2011. 
 
A full Management's Discussion and Analysis of the results for the period ended September 30, 2011 ("MD&A") and 
Consolidated Financial Statements ("Financials") will soon be available on the Company's profile on SEDAR 
(www.sedar.com) or on the Company's website (www.orsumetals.com). Copies of the MD&A and Financials can be also 
be obtained upon request to the Company Secretary. 
 
The Financials for the interim period ended September 30, 2011 have been prepared in accordance with 
International Financial Reporting Standards ("IFRS"). 
 
All amounts are reported in United States Dollars unless otherwise indicated. Canadian Dollars are referred to 
herein as CAD$ and British Pounds Sterling are referred to as GBP. 
 
The following information has been extracted from the MD&A and the Financials. Reference should be made to the 
complete text of the MD&A and the Financials. 
 
BUSINESS REVIEW OF THE THREE MONTHS ENDED SEPTEMBER 30, 2011 
 
For the three months ended September 30, 2011 the Company continued to focus on its principle exploration 
project, the Karchiga Project and raised additional funds totalling $6.83 million: 
 
=-  The Company received the assay results from the central oxide/ 
 
    transitional drilling program (the "Karchiga Central Oxide") and the 
 
    infill drilling program of the North East sulphide (the "Karchiga North 
 
    East Sulphide") undertaken between June to September 2011. The positive 
 
    results obtained from the Karchiga Central Oxide means that it will now 
 
    be included into the definitive feasibility study (the "Karchiga 
 
    Definitive Feasibility Study") for the Karchiga Project due in December 
 
    2011. In addition, the Karchiga North East Sulphide programme carried 
 
    out on the North East Ore body of the Karchiga Project when remodelled 
 
    will increase the total tonnage in the indicated resource category which 
 
    will form the basis for the economic modelling. 
 
=-  The Company received an aggregate of US$6.83 million in cash in 
 
    September 2011: $5.5 million in cash from the Open Joint Stock Company 
 
    Polymetal ("Polymetal") as early and final settlement of its outstanding 
 
    deferred consideration entitlement (the "Deferred Consideration 
 
    Agreement"), pursuant to the sale and purchase agreement dated June 13, 
 
    2009 (the "SPA"), relating to the sale of the Varvarinskoye gold-copper 
 
    project in Kazakhstan (the "Varvarinskoye Project"): a further $1.33 
 
    million in cash was received following an agreement between its fifty 
 
    five per cent (55%) owned subsidiary Lisburne Holdings Limited 
 
    ("Lisburne") and the Tasbulat Oil Corporation LLP ("Tasbulat"), 
 
    Kazakhstan, for the early and final settlement of Lisburne's oil royalty 
 
    entitlement pursuant to the oil royalty agreement dated September 2, 
 
    1999 between Lisburne and Tasbulat (the "Tasbulat Oil Royalty 
 
    Agreement"). 
 
For the three months ended September 30, 2011 the Company reported a net loss of $2.7 million. 
 
QUARTER HIGHLIGHTS 
 
=-  July 2011 - the Company announced the commencement of 1,700m infill 
 
    drilling of the Karchiga Central Oxide and an additional 2,000m infill 
 
    drilling of the Karchiga North East Sulphide as part of the ongoing 
 
    definitive feasibility study for the Karchiga Definitive Feasibility 
 
    Study. 
 
=-  July 2011 - the Company announced that it has entered into the Deferred 
 
    Consideration Agreement, with Polymetal to receive $5.5 million in cash 
 
    by the end of September 2011 as early and final settlement of its 
 
    outstanding deferred consideration entitlement, pursuant to the terms 
 
    SPA. 
 
=-  September 2011 - the Company announced the on-schedule completion of 
 
    1,786m (46 holes) infill drilling of the Karchiga Central Oxide and an 
 
    additional 2,278m (26 holes) infill drilling of the Karchiga North East 
 
    Sulphide. 
 
=-  September 2011 - the Company announced that it had received an aggregate 
 
    of US$6.83 million in cash, consisting of US$5.5 million in cash from 
 
    Polymetal pursuant to the Deferred Consideration Agreement and US$1.33 
 
    million in cash following for the Tasbulat Oil Royalty Agreement. 
 
=-  September 2011 - the Company announced that it had received all final 
 
    assay results from its 2011 infill drilling programme in the Karchiga 
 
    Central Oxide and Karchiga North East Sulphide at its Karchiga Project. 
 
OPERATIONAL REVIEW 
 
The Company's principal and most advanced exploration project is the property comprising a 47.3km2 licence 
area in eastern Kazakhstan containing the Karchiga volcanogenic massive sulphide ("VMS") deposit (the "Karchiga 
Project"), which is part of the Rudny Altai polymetallic belt. The Company's other principal exploration asset 
is its property in northwest Kyrgyzstan, which is comprised of four licence areas within the Tien Shan gold 
belt: the Taldybulak, Barkol, Korgontash and Kentash licences (collectively, the "Talas Project"). 
Approximately 100km to the south west of the Talas Project is the Akdjol-Tokhtazan licence area comprising the 
Akdjol and Tokhtazan licences (the "Akdjol-Tokhtazan Project"). 
 
KARCHIGA COPPER PROJECT, KAZAKHSTAN 
 
2011 Exploration Programme 
 
In April 2011 the Company received positive metallurgical test work results on both the Karchiga Central Oxide 
and Karchiga North East Sulphide mineralization of the Karchiga Project. Subsequently in May 2011, the Company 
released an updated pit constrained mineral resource estimate as part of the ongoing Karchiga Definitive 
Feasibility Study prepared by SRK Consulting (UK) Limited ("SRK") (the "SRK 2011 Mineral Resource Estimate") 
which showed an increased (pit constrained) mineral resource estimate from the previously reported pit 
constrained mineral resource estimate (the "Karchiga Scoping Study") prepared by Micon International co Limited 
("Micon") in May 2010. Details of both the SRK 2011 Mineral Resource Estimate and the Karchiga Scoping Study 
can be found in the Company's MD&A under "Operational review - Karchiga Copper Project, Kazakhstan" or under 
the company's profile on SEDAR at www.sedar.com. 
 
In light of the positive heap leach metallurgical test work results for the Karchiga Central Oxide the Company 
believes there is the potential for including the Karchiga Central Oxide material into the Karchiga Definitive 
Feasibility Study. The infill sulphide drilling program completed on the Karchiga North East Sulphide will also 
allow the Company to increase the total indicated tonnage by upgrading sections which were previously 
categorized as inferred. 
 
2011 Metallurgical test work results 
 
The table below shows results from locked cycle tests performed on the Central and North East Composites from 
the Central and North East lodes, respectively, and the respective potential pits of the Karchiga deposit. The 
Central Composite is a blend of 15% massive and 85% disseminated mineralization, whereas the North East 
Composite is a blend of 25% massive and 75% disseminated mineralization. 
 
Locked cycle test for the Central and North East Composites: 
 
=-------------------------------------------------------------------------- 
 
Lode                    % Cu      % Zn 
 
         % Mass of  Grade in  Grade in    g/t Au 
 
           Mineral    Concen    Concen in Concen     % Cu     % Zn     % Au 
 
          -ization    -trate    -trate    -trate Recovery Recovery Recovery 
 
=-------------------------------------------------------------------------- 
 
Central      10.34     24.15      1.28      0.34    96.20    73.97    28.18 
 
=-------------------------------------------------------------------------- 
 
North 
 
 East         9.98     21.60      7.20      1.65    91.59    86.93    54.95 
 
=-------------------------------------------------------------------------- 
 
Comparison with previous Pit-Constrained Estimates 
 
The table below shows a comparison between the SRK 2011 Mineral Resource Estimates and previously reported 
mineral resource estimates in the Karchiga Scoping Study, both pit-constrained. The cut-off grade of 0.34% 
copper used in the mineral resource estimates in the Karchiga Scoping Study was back-calculated based on the 
economic parameters used in the Karchiga Scoping Study and shown in the table below. It should be noted that 
the SRK 2011 Mineral Resource Estimates are reported without dilution and loss, while the mineral resource 
estimates contained in the Karchiga Scoping Study were reported allowing for 5% mining loss and 5% mining 
dilution. 
 
Comparison of Pit-Constrained Mineral Resource Estimates for the Karchiga Project: 
=--------------------------------------------------------------------------- 
                         Indicated Mineral Resources 
=--------------------------------------------------------------------------- 
 
Estimate Effective Cut-off      Lode     Type Tonnes  Grade   Metal    Metal 
 
          Date      Cu (%)                      (Mt) Cu (%)  Cu (t) Cu (Mlb) 
=--------------------------------------------------------------------------- 
                           Central & 
 
         May 6,                North 
 
SRK 2011  2011        0.34      East Sulphide    7.1   1.85 131,789    290.5 
=--------------------------------------------------------------------------- 
                           Central & 
 
Micon    May 25,               North 
 
 2010     2010        0.34      East Sulphide    6.5   1.97 127,804    281.7 
=--------------------------------------------------------------------------- 
=--------------------------------------------------------------------------- 
 
                       Inferred Mineral Resources 
=--------------------------------------------------------------------------- 
 
Estimate Effective Cut-off      Lode     Type Tonnes  Grade   Metal    Metal 
 
         Date       Cu (%)                      (Mt) Cu (%)  Cu (t) Cu (Mlb) 
 
=--------------------------------------------------------------------------- 
         May 6,                North 
 
SRK 2011  2011        0.34      East Sulphide    1.2   1.68  19,849     43.8 
=--------------------------------------------------------------------------- 
Micon    May 25,               North 
 
 2010     2010        0.34      East Sulphide    1.1   1.71  18,810     41.5 
=--------------------------------------------------------------------------- 
 
Additional 2011 Oxide Drilling Programme 
 
In light of the positive heap leach metallurgical test results for the oxide mineral resources the Company 
believes there is the potential for including the Karchiga Central Oxide into the Karchiga Definitive 
Feasibility Study and for upgrading the inferred mineral resource estimate into an indicated mineral resource 
estimate for the Karchiga North East Sulphide, which is expected to maximize the additional value from the 
Karchiga Project. 
 
In July 2011, the Company announced the commencement of a 1,700 m drilling programme at the Karchiga Central 
Oxide. As reported by the Company in the Karchiga Technical Report on March 22, 2010, the Karchiga Central 
Oxide has an indicated mineral resource of 0.93Mt of mineralization (at 0.5% Cu cut-off) grading 1.39% Cu and 
containing 12,868 t Cu. However, due to a relatively small tonnage, the Karchiga Central Oxide mineral resource 
estimate was not included in the economic evaluations contained in the Karchiga Scoping Study. The Karchiga 
Scoping Study proposed that the mineralized oxide material be mined as waste material during the first years of 
operation at the Central lode to allow access to its sulphide material. However, taking into account current 
copper prices and the positive results of the recent metallurgy test work, the Company believes that there is 
potential for the Karchiga Central Oxide material to be treated economically via heap leaching, and therefore 
potentially representing an important uplift in the economic value of the Karchiga Project. As a result of the 
inclusion of the oxide mineralization, the Company expects the Karchiga Definitive Feasibility Study to be 
completed in December 2011. 
 
This Karchiga Central Oxide mineral resource estimate also included part of the 1 to 2 m thick transition zone 
of secondary sulphides (with chalcocite, covellite and native copper), located between the primary sulphide 
(chalcopyrite, pyrrhotite, pyrite) and oxide (malachite, chrysocolla, native copper) mineralization. Due to its 
insignificant thickness, the transition zone was not modelled as a separate mineralized body in previous 
mineral resource estimates for the Karchiga deposit. Based on the distribution of the greater than 50% acid 
soluble copper, the top part of the transition zone was included into oxide mineralization, whereas the bottom 
portion was estimated as part of the sulphide mineralization. Additionally, the results of the most recent 
metallurgical test work announced by the Company (see the Company's press-release dated April 28, 2011) 
indicated that acid leaching of a blend of oxide and transitional secondary sulphide achieved 68% Cu recovery. 
 
As announced in the Company's September 29, 2011 press release, the 2011 infill 1,786m (46 holes) in the 
Karchiga Central Oxide revealed better than expected continuity and much greater thickness and grade of the 
transition zone than was previously estimated. 
 
The diagram below shows the principal relationships between the oxide, transition and primary sulphide zones in 
the Central lode of the Karchiga deposit (full details can be found in the Company's MD&A under "Operational 
Review - Karchiga copper project, Kazakhstan"). Dashed blue line shows schematic position of the dividing line 
between heap leachable and floatable sulphides from the transition zone. The area above the 50% acid soluble Cu 
line is potentially amenable to heap leaching. 
 
To view the diagram of the Karchiga deposit, please visit the following link: 
http://media3.marketwire.com/docs/kco-fig1.pdf 
 
Below are the best grade intercepts obtained from the drilling in the Karchiga Central Oxide (a full table of 
all the intercepts can be found in the Company's MD&A in Table 13 of the "Operational review - Karchiga Copper 
Project, Kazakhstan"): 
 
=-  1.7m grading 7.43% Cu (Hole KGDD11-161); 
 
=-  3.55m grading 6.61% Cu (Hole KGDD11-165); 
 
=-  5.4m grading 5.00% Cu (Hole KGDD11-168); 
 
=-  1.9m grading 33.00% Cu (Hole KGDD11-170); 
 
=-  8.25m grading 2.66% Cu (Hole KGDD11-171); 
 
=-  8.0m grading 3.90% Cu (Hole KGDD11-173); 
 
=-  4.55m grading 1.75% Cu (Hole KGDD11-176); 
 
=-  10.5m grading 3.94% Cu (Hole KGDD11-181); 
 
=-  2.4m grading 23.60% Cu (Hole KGDD11-182); 
 
=-  4.5m grading 6.43% Cu (Hole KGDD11-183); 
 
=-  7.4m grading 4.18% Cu (Hole KGDD11-189); 
 
=-  1.65m grading 5.81% Cu (Hole KGDD11-190); 
 
=-  4.4m grading 4.86% Cu (Hole KGDD11-192); 
 
=-  16.2m grading 7.22% Cu (Hole KGDD11-198); 
 
=-  24.8m grading 2.86% Cu (Hole KGDD11-200). 
 
Additional 2011 Sulphide Infill Drilling Programme 
 
A 2,000m infill drilling programme in the Karchiga North East Sulphide was commenced in July, 2011 and aimed to 
convert between 0.5Mt and 1Mt of sulphide mineralization from inferred to indicated mineral resource 
categories. On September 1, 2011, the Company reported completion of 2,278m (26 holes) infill drilling of the 
Karchiga North East Sulphide and on September 29, 2011, announced all final assay results from this programme. 
 
Assays on samples collected from the North East lode sulphide infill drill core returned results, which are 
generally as the Company had anticipated and can be seen in Table 14 in the Company's MD&A under the 
"Operational review - Karchiga Copper Project, Kazakhstan". 
 
Milestones for the Karchiga Project 
 
The milestones for the Karchiga Definitive Feasibility Study are expected to be: 
 
=-  Q2 2011 - finalisation of the metallurgical flow sheet (completed); 
 
=-  Q2 2011 - updated NI 43-101 mineral resource, incorporating 2010 
 
    drilling results (completed); 
 
=-  Q3 2011 - finalisation of metallurgical flow sheet for oxide heap 
 
    leaching (completed); 
 
=-  Q3 2011 - completion of oxide and sulphide drilling programmes 
 
    (completed); 
 
=-  Q4 2011 - completion of geological remodelling with the inclusion of the 
 
    results from the new drilling; 
 
=-  Q4 2011 - start of detailed mine design; 
 
=-  Q4 2011 - completion of the locally commissioned Kazakh Feasibility 
 
    Study and submission for approval; 
 
=-  Q4 2011 - review of the Karchiga Project financing options; 
 
=-  Q4 2011 - completion of the Karchiga Definitive Feasibility Study; 
 
=-  Q1 2012 - approval of the Kazakh Definitive Feasibility Study and; 
 
=-  Q2 2012 - start of construction. 
 
TALAS COPPER-GOLD-MOLYBDENUM PROJECT, KYRGYZSTAN 
 
Exploration Programme 
 
Pursuant to the joint venture agreement dated December 3, 2008, as amended on August 14, 2009, between the 
Company, Gold Fields Orogen Holding BVI ("Gold Fields"), Lero, Kami Associates Limited (the "JV Company") and 
Talas Copper Gold LLC ("TCG") (the "JV Agreement"), Gold Fields is the project operator for the Talas Project. 
Pursuant to the JV Agreement Gold Fields has a 60% interest in the Talas Project and is the project operator 
and the Company retains a 40% interest in the Talas Project. 
 
For the Talas Project, Orsu and Gold Fields have approved a 2011 exploration programme and expenditure budget 
of $3.6 million. As per the terms of the JV Agreement, the Company is required to fund its 40% pro rata share 
of approximately $1.4 million. The majority of the licence expenditures are expected to be incurred in 
connection with environmental, social, metallurgical and resource studies, as well as a ground magnetic survey 
at the Taldybulak licence. As at September 30, 2011 the Company had contributed $611,000 of its 40% share of 
expenditure. 
 
AKDJOL-TOKHTAZAN PROJECT, KYRGYZSTAN 
 
2011 update on progress of the Akdol-Tokhtazan Project 
 
In July 2011, the Company initiated a ground magnetic survey programme at the Akdjol-Tokhtazan Project. The 
programme is designed to complete mapping of the magnetic anomalies in both the Akdjol and Tokhtazan licenses. 
In September 2011, the Company received preliminary results of the ground magnetic survey, which are currently 
being processed. The results are expected to help in interpretation of structural controls of gold 
mineralisation in the project area. 
 
The Company mobilized drilling equipment in September 2011 and began a drilling programme consisting of 2,200 m 
of drilling at the Tokhtazan licence and 600 m of drilling at the Akdjol licence which is expected to be 
completed by the end of the year. In order to complete the planned drilling programme the Company has estimated 
potential drilling costs of $659K for the Tokhtazan licence and $91K for the Akdjol licence to meet the 
obligations which will be funded from the Company's available funds. 
 
FINANCIAL RESULTS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2011 
 
For the three months ended September 30, 2011 the Company recorded a net loss of $2.7 million. 
 
The net loss of $2.7 million consisted of administrative costs of $1.1 million, legal and professional expenses 
of $0.3 million, exploration costs of $1.7 million, a stock-based compensation charge of $0.3 million, the 
Company's share of the Talas Joint Venture losses of $0.3 and $0.1 million net foreign exchange losses 
partially offset by a net gain on settlement of the Tasbulat Oil Royalty Agreement of $0.9 million and 
unrealized derivative gains of $0.2 million. 
 
In September 2011, the Company received $1.3 million cash per the Tasbulat Oil Royalty Agreement. The Company 
had previously recorded as long term other assets a brought forward value of its outstanding oil interest of 
$0.4 million. Following the receipt of the outstanding oil interests of $1.3 million the Company recognised net 
income of $0.9 million for the three months ended September 30, 2011. 
 
In respect of the Company's cash flows, cash and cash equivalents decreased by $5.6 million in the nine months 
to September 30, 2011. The decrease of $5.6 million for the nine months to September 30, 2011 was due primarily 
to the Karchiga Acquisition for approximately $6.2 million, exploration expenditure primarily for the Karchiga 
Project of $3.4 million, corporate expenditure of $4.0 million and Orsu's pro-rata funding for the Talas 
Project of $0.6 million, partially offset by deferred consideration received of $7.0 million and settlement 
from the Tasbulat Oil Royalty Agreement of $1.6 million (full details can be found in the Company's MD&A under 
"Financial Review"). 
 
FINANCIAL POSITION AS AT SEPTEMBER 30, 2011 AND DECEMBER 31, 2010 
 
As at September 30, 2011, the Company's net assets were $35.4 million, compared with $40.4 million as at 
December 31, 2010, of which $14.0 million consisted of cash and cash equivalents ($19.6 million as at December 
31, 2010). 
 
The decrease of $5.0 million was due to the payment of $6.2 million for the Karchiga Acquisition, the Company's 
40% share of losses in the Talas Joint Venture of $0.7 million and corporate and exploration expenditure of 
$7.4 million partially offset by a $6.1 million decrease in derivative warrant liabilities, deferred 
consideration income of $1.9 million and income from the Tasbulat Oil Royalty Agreement of $1.3 million. 
 
A summary of the carrying value of the Company's equity investment in the Talas Joint Venture as at September 
30, 2011 is set out below: 
 
                                                                       $000s 
 
 
 
Fair value of equity investment as at January 1, 2011                 10,221 
 
 
 
Funding provided by the Company during the six months ended 
 
 September 30, 2011                                                      611 
 
Less: Company's 40% share of operating losses for the six months 
 
 ended September 30, 2011                                              (712) 
 
 
 
                                                                   --------- 
 
Fair value of equity investment as at September 30, 2011              10,120 
 
                                                                   --------- 
 
                                                                   --------- 
 
LIQUIDITY AND CAPITAL RESOURCES 
 
As at September 30, 2011 the Company's main source of liquidity was unrestricted cash of $14.0 million, 
compared with $19.6 million as at December 31, 2010. 
 
The Company measures its consolidated working capital as comprising free cash, accounts receivable, prepayments 
and other receivables, less accounts payable and accrued liabilities. As at September 30, 2011, the Company's 
consolidated working capital was $14.6 million (compared with a consolidated working capital of $21.5 million 
as at December 31, 2010), which, in the Company's view, is sufficient to satisfy its working capital needs for 
the remainder of 2011. 
 
The Company's working capital needs as at September 30, 2011 included the maintenance of the Company's 
interests in, and the further exploration and the development of, the Company's mineral properties in 
Kyrgyzstan, the completion of the Karchiga Definitive Feasibility Study, and the funding of general corporate, 
legal and professional expenses. The Company expects to fund the remaining working capital requirements for 
2011 as well as the contribution towards the pursuit of future growth opportunities (which may include 
acquiring one or more additional assets), if and when such opportunities arise from its unrestricted cash of 
$14.0 million as at September 30, 2011, which includes the $5.5 million cash received in September 2011 from 
the Deferred Consideration Agreement and the receipt of $1.3 million in September 2011 from the Tasbulat Oil 
Royalty Agreement. 
 
The future advancement, exploration and development of the Company's properties, including continuing 
exploration and development projects, and the construction of mining facilities and commencement of mining 
operations, if any, will require substantial additional financing in the future. To the extent that such 
funding is required in the future, the Company expects that it would try to raise such funding through debt and 
equity financing if and when required. Whilst the Company has been successful in raising debt and equity 
financing in the past, the Company's ability to raise additional debt and equity financing may be affected by 
numerous factors beyond the Company's control, including, but not limited to, adverse market conditions and/or 
commodity price changes and economic downturn and those other factors that are listed under "Risks and 
Uncertainties" on the Company's MD&A. 
 
CONVERSION TO IFRS FROM CANADIAN GAAP 
 
Effective January 1, 2011, the Canadian Accounting Standards Board required all publicly listed companies to 
prepare their financial statements in accordance with IFRS from the previous Canadian Generally Accepted 
Accounting Principles ("Canadian GAAP"). The Company has prepared in the interim financial statements as at 
September 30, 2011 a restated consolidated balance sheet as at September 30, 2010, and statements of net 
income/ (loss) and comprehensive income/ (loss) for the three and nine months ended September 30, 2010 (details 
can be found in note 3. "Transition to IFRS" of the Company's consolidated financial statements as at September 
30, 2011). 
 
Impact on the consolidated balance sheet and equity 
 
The following table summarises the impact of conversion to IFRS on the Company's consolidated equity, as 
previously reported under Canadian GAAP for the six months ended September, 2010 and the year ended December 
31, 2010: 
 
                                                         September  December 
 
                                                           30 2010   31 2010 
 
                                                              $000      $000 
 
 
 
Equity as previously reported under Canadian GAAP as at 
 
 January 1, 2010                                            24,833    24,833 
 
                                                        -------------------- 
 
Reclassification of share purchase warrants to 
 
 derivative liabilities                                   (42,041)  (42,041) 
 
 
 
Expense of share issue costs prior to January 1, 2009      (4,598)   (4,598) 
 
Re-measurement of fair value of derivative warrant 
 
 liabilities                                                35,411    35,411 
 
                                                        -------------------- 
 
Re-stated Equity under IFRS as at January 1, 2010           13,605    13,605 
 
                                                        -------------------- 
 
Share issue (net of share issue and broker warrant issue 
 
 costs)                                                     18,705    18,705 
 
Share purchase warrants issued                               1,131     1,131 
 
Share based payments                                         1,440     1,817 
 
Net loss as previously reported under Canadian GAAP for 
 
 the period                                                (7,105)   (4,622) 
 
Re-measurement of fair value of derivative warrant 
 
 liabilities in period                                       9,840    11,184 
 
Expense of share issue costs from 2010                       (793)     (793) 
 
Reversal of future income tax adjustments                        -     (639) 
 
                                                        -------------------- 
 
Equity under IFRS                                           36,823    40,388 
 
                                                        -------------------- 
 
                                                        -------------------- 
 
Details and further discussion of the impact of the significant accounting policy changes on transition to IFRS 
can be found both in the Company's MD&A under "Financial Review - Conversion to IFRS from Canadian GAAP" and 
the Company's consolidated financial statements note 3. "Transition to IFRS" as at September 30, 2011. 
 
DERIVATIVE FINANCIAL INSTRUMENTS 
 
The Company's derivative instruments consist of derivative assets in the form of deferred consideration 
relating to the sale of the Varvarinskoye Project, discontinued operations, and derivative warrant liabilities 
in relation to its share purchase warrants. 
 
Deferred consideration 
 
On October 30, 2009, the Company completed the sale of its Varvarinskoye Project to Polymetal for an initial 
consideration of $8 million with deferred consideration of up to $12 million and, as a result, the Company was 
released from all of its financial and guarantor obligations relating to the Varvarinskoye Project. 
 
As at December 31, 2010, the Company recognized a deferred consideration receivable asset of $5.1 million, 
representing the net present value of the Company's estimated future deferred consideration earnings, based 
upon the Company's forecast of future gold and copper metal prices and adjusted for counterparty credit risk. 
Of the $5.1 million deferred consideration receivable asset as at December 31, 2010 the Company recorded $1.5 
million as a current deferred consideration receivable and $3.6 million as a long term deferred consideration 
receivable asset. 
 
In July 2011, the Company entered into Deferred Consideration Agreement with Polymetal pursuant to which the 
Company is to receive $5.5 million in cash by the end of September 2011 as early and final settlement of its 
outstanding deferred consideration entitlement, pursuant to the SPA relating to the sale of the Varvarinskoye 
Project. The Company received $5.5 million in September 2011, and as a result recorded net deferred 
consideration income of $1.9 million for the nine months ended September 30, 2011. 
 
Derivative warrant liabilities 
 
In prior years the Company has issued listed share purchase warrants in conjunction with public offerings for 
the purchase of common shares of the Company. These share purchase warrants were issued with an exercise price 
in Canadian dollars, rather than U.S. dollars (the Reporting and Functional Currency (as defined in "Critical 
accounting policies and estimates" in the Company's MD&A) of the Company), were only issued to participants in 
these public share offering, are not able to be tracked by the Company and are transferable by the warranty 
holder. Such share purchase warrants are considered to be derivative instruments and the Company is required to 
re-measure the fair value of these at the reporting date. As at September 30, 2011 the Company calculated a 
fair value for its warrant derivative liabilities of $0.2 million, and recorded an unrealized derivative gain 
to $0.2 million to net income for the three months ended September 30, 2011. 
 
 
Consolidated Statements of Net Income, and Comprehensive Income (Unaudited) 
 
(Prepared in accordance with IFRS) 
 
=--------------------------------------------------------------------------- 
 
 
                                             3 months ended   9 months ended 
 
                                              September 30,    September 30, 
 
                                               2011    2010     2011    2010 
 
                                               $000    $000     $000    $000 
 
(Expenses)/ income 
 
Administration                              (1,074)   (836)  (2,708) (2,626) 
 
Legal and professional                        (315)   (501)    (899) (1,800) 
 
Exploration                                 (1,767)   (764)  (3,446) (1,028) 
 
Stock based compensation                      (289)   (600)    (481) (1,440) 
 
Stock based compensation - non employees        (2)     (-)     (37)     (-) 
 
Unrealized derivative gains/ (losses)           155 (2,588)    6,071   9,840 
 
Foreign exchange (losses)/ gains              (141)     498      (6)   (378) 
 
                                           ---------------- ---------------- 
 
Net (loss)/ income from operations          (3,433) (4,791)  (1,506)   2,568 
 
 
 
Deferred consideration income                     -       -    1,908       - 
 
Net gain on settlement of oil interests         942       -      942       - 
 
Company's share of Talas Joint Venture 
 
 losses                                       (269)   (271)    (712)   (656) 
 
Finance income                                   22      22       53      30 
 
                                           ---------------- ---------------- 
 
Net income/ (loss) and comprehensive 
 
 income/ (loss) for the period              (2,738) (5,040)      685   1,942 
 
                                           ---------------- ---------------- 
 
                                           ---------------- ---------------- 
 
 
 
Net income/ (losses) attributable to: 
 
Shareholders of the Company                 (2,653) (4,817)    1,302   2,293 
 
Non-controlling interest                       (85)   (223)    (617)   (351) 
 
                                           ---------------- ---------------- 
 
                                            (2,738) (5,040)      685   1,942 
 
                                           ---------------- ---------------- 
 
                                           ---------------- ---------------- 
 
 
 
Earnings/ (loss) per share 
 
Basic                                       $(0.02) $(0.03)    $0.01   $0.02 
 
Diluted                                     $(0.02) $(0.03)    $0.01   $0.02 
 
 
 
Weighted average number of common shares 
 
 (in thousands)                             157,696 157,696  157,696 114,209 
 
 
 
Consolidated Balance Sheets (Unaudited) 
 
(Prepared in accordance with IFRS) 
 
=--------------------------------------------------------------------------- 
 
 
 
                                                  September 30   December 31 
 
                                                          2011          2010 
 
Assets                                                    $000          $000 
 
 
 
Current assets 
 
Cash and cash equivalents                               14,031        19,596 
 
Current deferred consideration receivable                    -         1,500 
 
Prepaid and receivables                                  1,342         1,217 
 
                                                  -------------------------- 
 
                                                        15,373        22,313 
 
 
 
Non-current assets 
 
Deferred consideration receivable                            -         3,592 
 
Exploration properties                                  10,458        10,458 
 
Property, plant and equipment                              416           449 
 
Equity investment in Talas Joint Venture                10,120        10,221 
 
Other assets                                                 -           392 
 
                                                  -------------------------- 
 
                                                        20,994        25,112 
 
 
 
                                                  -------------------------- 
 
Total assets                                            36,367        47,425 
 
                                                  -------------------------- 
 
                                                  -------------------------- 
 
 
Liabilities 
 
 
 
Current liabilities 
 
Accounts payable and accrued liabilities                   670           672 
 
Current portion of derivative warrant liabilities          174             - 
 
                                                  -------------------------- 
 
                                                           844           672 
 
 
 
Non-current liabilities 
 
Derivative warrant liabilities                               -         6,245 
 
Other liabilities                                          120           120 
 
                                                  -------------------------- 
 
                                                           964         7,037 
 
 
Equity 
 
Share capital                                          380,145       380,145 
 
Share purchase warrants                                  4,897         4,897 
 
Share purchase options                                   5,893         5,904 
 
Contributed surplus                                     23,012        22,483 
 
Non-controlling interest                                 (374)         (773) 
 
Deficit                                              (378,170)     (372,268) 
 
 
 
                                                  -------------------------- 
 
                                                        35,403        40,388 
 
 
 
                                                  -------------------------- 
 
Total equity and liabilities                            36,367        47,425 
 
                                                  -------------------------- 
 
                                                  -------------------------- 
 
 
 
Consolidated Statements of Cash Flows (Unaudited) 
 
(Prepared in accordance with IFRS) 
 
=------------------------------------------------------------------------- 
 
 
                                                         Nine months ended 
 
                                                             September 30, 
 
                                                           2011       2010 
 
                                                           $000       $000 
 
                                                    ---------------------- 
 
Operating activities 
 
Income for the period                                       685      1,942 
 
Items not affecting cash: 
 
 Company share of Talas Joint Venture losses                712        656 
 
 Gain on settlement of oil interests                      (942)          - 
 
 Depreciation and amortization                               94        112 
 
 Deferred consideration                                 (1,908)          - 
 
 Share-based payments                                       518      1,440 
 
 Unrealized foreign exchange losses/ (gains)                 13      (124) 
 
 Unrealized derivative gains                            (6,071)    (9,840) 
 
                                                    ---------------------- 
 
                                                        (6,899)    (5,814) 
 
Changes in non-cash working capital 
 
 Accounts receivable and other assets                     (373)      (125) 
 
 Accounts payable and accrued liabilities                  (15)      (317) 
 
                                                    ---------------------- 
 
Net cash used by the operating activities               (7,287)    (6,256) 
 
 
 
Cash flows from/ (used by) investing activities 
 
Expenditures on property, plant and equipment              (61)       (42) 
 
Proceeds from settlement of oil interests                 1,582        241 
 
Deferred consideration received                           7,000          - 
 
Funding of investment in Talas Joint Venture              (611)      (592) 
 
Acquisition of Eildon minority interest                 (6,188)          - 
 
                                                    ---------------------- 
 
Net cash generated from/ (used by) investing              1,722      (393) 
 
 activities 
 
 
 
Cash flows from financing activities 
 
Gross proceeds of share issue                                 -     27,646 
 
Share issue costs                                             -    (1,609) 
 
                                                    ---------------------- 
 
Cash flows from financing activities                          -     26,037 
 
                                                    ---------------------- 
 
 
 
                                                    ---------------------- 
 
Net (decrease)/ increase in cash and cash 
 
 equivalents                                            (5,565)     19,388 
 
                                                    ---------------------- 
 
 
 
Cash and cash equivalents - Beginning of period          19,596      3,386 
 
                                                    ---------------------- 
 
Cash and cash equivalents - End of period                14,031     22,774 
 
                                                    ---------------------- 
 
                                                    ---------------------- 
 
 
 
 
Consolidated Statements of changes in Equity (Unaudited) 
 
(Prepared in accordance with IFRS) 
 
=--------------------------------------------------------------------------- 
 
 
Consolidated statements of changes to equity as at December 31, 2010 and 
 
 September 30, 2011: 
 
 
 
                                  Share capital 
 
                            ------------------------ 
 
                                                           Share       Share 
 
                               Number of       Share    purchase    purchase 
 
                                  shares     capital    warrants     options 
 
                                 (000s')       $0000        $000        $000 
 
                            ------------------------------------------------ 
 
 
Balance as at January 1, 
 
 2010                             45,696     361,440       6,609      12,550 
 
 
 
Share issue                      112,000      21,445           -           - 
 
Share issue costs                      -     (1,862)           -           - 
 
Broker Warrant issue costs             -       (878)           -           - 
 
Share-based payments                   -           -           -       1,817 
 
Share purchase warrants 
 
 issued                                -           -       1,131           - 
 
Share purchase warrants 
 
 lapsed                                -           -     (2,843)           - 
 
Share options forfeited or 
 
 lapsed                                -           -           -     (8,463) 
 
Net income/ (loss) for the 
 
 period                                -           -           -           - 
 
 
                            ------------------------------------------------ 
 
Balance as at December 31, 
 
 2010                            157,696     380,145       4,897       5,904 
 
                            ------------------------------------------------ 
 
                            ------------------------------------------------ 
 
 
 
 
Share-based payments                   -           -           -         518 
 
Share options forfeited or 
 
 lapsed                                -           -           -       (529) 
 
Eildon minority interest 
 
 acquisition                           -           -           -           - 
 
Net income/ (loss) for the 
 
 period                                -           -           -           - 
 
 
 
                            ------------------------------------------------ 
 
Balance as at September 30, 
 
 2011                            157,696     380,145       4,897       5,893 
 
                            ------------------------------------------------ 
 
                            ------------------------------------------------ 
 
 
 
Consolidated Statements of changes in Equity (Unaudited) 
 
(Prepared in accordance with IFRS) 
 
=--------------------------------------------------------------------------- 
 
 
 
Consolidated statements of changes to equity as at December 31, 2010 and 
 
 September 30, 2011: 
 
                                                Non- 
 
                             Contributed controlling                   Total 
 
                                 surplus    interest     Deficit      equity 
 
                                   $000         $000       $000         $000 
 
                            ------------------------------------------------ 
 
 
Balance as at January 1, 
 
 2010                             11,177           -   (378,171)      13,605 
 
 
 
Share issue                            -           -           -      21,445 
 
Share issue costs                      -           -           -     (1,862) 
 
Broker Warrant issue costs             -           -           -       (878) 
 
Share-based payments                   -           -           -       1,817 
 
Share purchase warrants 
 
 issued                                -           -           -       1,131 
 
Share purchase warrants 
 
 lapsed                            2,843           -           -           - 
 
Share options forfeited or 
 
 lapsed                            8,463           -           -           - 
 
Net income/ (loss) for the 
 
 period                                -       (773)       5,903       5,130 
 
 
 
                            ------------------------------------------------ 
 
Balance as at December 31, 
 
 2010                             22,483       (773)   (372,268)      40,388 
 
                            ------------------------------------------------ 
 
                            ------------------------------------------------ 
 
 
Share-based payments                   -           -           -         518 
 
Share options forfeited or 
 
 lapsed                              529           -           -           - 
 
Eildon minority interest 
 
 acquisition                           -       1,016     (7,204)     (6,188) 
 
Net income/ (loss) for the 
 
 period                                -       (617)       1,302         685 
 
 
                            ------------------------------------------------ 
 
Balance as at September 30, 
 
 2011                             23,012       (374)   (378,170)      35,403 
 
                            ------------------------------------------------ 
 
                            ------------------------------------------------ 
 
FORWARD-LOOKING INFORMATION 
 
This press release and the Company's MD&A contain or refer to forward-looking information. All information, 
other than information regarding historical fact that addresses activities, events or developments that the 
Company believes, expects or anticipates will or may occur in the future is forward-looking information. Such 
forward-looking information includes, without limitation, statements relating to: the continued and future 
maintenance, exploration and development of the Company's properties, including the proposed work programs, 
anticipated milestones and the timing related thereto; development and operational plans and objectives; the 
Company's ability to satisfy its future expenditure obligations on mineral properties in which it has an 
interest; mineral resource estimates and updates and upgrades relating thereto as well as the impact thereof on 
the value of certain of the Company's projects; estimated project economics, cash flow, costs, expenditures, 
and sources of funding; the sufficiency of the Company's current working capital for the remainder of the year 
and anticipated exploration expenditures and estimates relating thereto; the estimated LOM, NPV and IRR for, 
and forecasts relating to tonnages and amounts to be mined from, and average recoveries and grades at, the 
Karchiga Project and/or Taldybulak as well as the other forecasts, estimates and expectations relating to the 
Karchiga Scoping Study, the SRK 2011 Mineral Resource Estimates, the NI 43-101 Taldybulak Scoping Study Report 
and the Taldybulak Scoping Study set out above in "Operational Review"; future prices and trends relating to 
copper, gold and molybdenum; the completion of the Karchiga Definitive Feasibility Study (and the expected mineral 
resource estimates to be included therein) and the potential start of construction at the Karchiga Project 
(including the expected timing for same); the anticipated completion of a mineral reserves estimate for, the 
productionof marketable concentrates from, and a reduction in future transportation costs at, the Karchiga Project; 
estimates and expectations relating to the transition zone and the anticipated impact thereof on the economics and 
payback on Karchiga operations; the potential for further enlarging the mineral endowment and improving metal 
grades at, and completion of a pre-feasibility study for, the Taldybulak deposit; the Company's belief that the 
results from the mineralogical study relating to the Akdjol-Tokhtazan Project suggest that gold should be 
metallurgically accessible; the future political and legal regimes and regulatory environments relating to the 
mining industry in Kyrgyzstan and/or Kazakhstan; the expected use of the net proceeds from the Offering; the 
Company's expectations and beliefs with respect to the waiver of the State's pre-emptive right with respect to 
the Karchiga Project and the past placements of the Common Shares being covered thereby; the significance of 
any individual claims by non-Ontario residents with respect to the Claim; and the Company's future growth 
(including new opportunities and acquisitions) and its ability to raise new funding. 
 
The forward-looking information referred to in this press release and the Company's MD&A reflects the current 
expectations, assumptions or beliefs of the Company based on information currently available to the Company. 
With respect to forward-looking information contained in this press release and the Company's MD&A, the Company 
has made assumptions regarding, among other things, the Company's ability to generate sufficient funds from 
capital markets to meet its future expected obligations and planned activities, the Company's business 
(including the continued exploration and development of its properties and the methods to be employed with 
respect to same), the estimation of mineral resources (as set out above under "Operational Review"), the 
parameters and assumptions employed in the Karchiga Scoping Study, the SRK 2011 Mineral Resource Estimates, as 
well as in defining the pit optimization of the Karchiga deposit, the NI 43-101 Taldybulak Scoping Study Report 
and the Taldybulak Scoping Study, the economy and the mineral exploration industry in general, the political 
environments and the regulatory frameworks in Kazakhstan and Kyrgyzstan with respect to, among other things, 
the mining industry generally, royalties/MPTs, taxes, environmental matters and the Company's ability to 
obtain, maintain, renew and/or extend required permits, licences, authorisations and/or approvals from the 
appropriate regulatory authorities, that the waiver granted by the Competent Authority covers any pre-emptive 
right that the Competent Authority or State has in respect of any past placements, future capital costs and 
cash flow discounts, anticipated mining and processing rates, the Company's ability to continue to obtain 
qualified staff and equipment in a timely and cost-efficient manner and to engage international and Kazakh 
companies to carry out additional studies for the Karchiga Definitive Feasibility Study and to obtain Kazakh 
Feasibility Study approval, the treatment of the Varvarinskoye Project as discontinued operations, assumptions 
relating to the Company's critical accounting policies, that the Company has identified all of the key issues 
to be investigated in connection with the Karchiga Definitive Feasibility Study, and has also assumed that no 
unusual geological or technical problems occur, and that equipment works as anticipated, no material adverse 
change in the price of copper, gold or molybdenum occurs and no significant events occur outside of the 
Company's normal course of business. 
 
Forward-looking information is subject to a number of risks and uncertainties that may cause the actual results 
of the Company to differ materially from those discussed in the forward-looking information, and even if such 
actual results are realised or substantially realised, there can be no assurance that they will have the 
expected consequences to, or effects on, the Company. Factors that could cause actual results or events to 
differ materially from current expectations include, but are not limited to: risks normally incidental to 
exploration and development of mineral properties; uncertainties in the interpretation of results from drilling 
and metallurgical test work; the possibility that future exploration, development or mining results will not be 
consistent with expectations; uncertainty of mineral resources estimates; uncertainty of capital and operating 
costs, production and economic returns; uncertainties relating to the estimates and assumptions used, and risks 
in the methodologies employed, in the Karchiga Scoping Study, the SRK 2011 Mineral Resource Estimates, the NI 
43-101 Taldybulak Scoping Study Report and/or the Taldybulak Scoping Study and that the completion of 
additional work on the Karchiga Project and/or Taldybulak, as the case may be, could result in changes to the 
estimates relating to the Karchiga Scoping Study, the SRK 2011 Mineral Resource Estimates, the NI 43-101 
Taldybulak Scoping Study Report and/or the Taldybulak Scoping Study, as applicable; a delay in the completion 
of the Karchiga Definitive Feasibility Study; the Company's inability to obtain, maintain, renew and/or extend 
required licences, permits, authorizations and/or approvals from the appropriate regulatory authorities and 
other risks relating to the regulatory frameworks in Kazakhstan and Kyrgyzstan; adverse changes in the 
political environments in Kazakhstan and Kyrgyzstan and the laws governing the Company, its subsidiaries and 
their respective business activities; inflation; changes in exchange and interest rates; adverse changes in 
commodity prices; the inability of the Company to obtain required financing; adverse changes with respect to 
the Talas Joint Venture; adverse general market conditions; lack of availability at a reasonable cost or at 
all, of equipment or labour; inability to attract and retain key management and personnel; the possibility of 
non-resident class members commencing individual claims in connection with the Claim; the Company's inability 
to delineate additional mineral resources and delineate mineral reserves; and future unforeseen liabilities and 
other factors including, but not limited to, those listed under "Risk and Uncertainties" in this MD&A. 
 
Any mineral resource figures referred to in this press release and the Company's MD&A are estimates and no 
assurances can be given that the indicated levels of minerals will be produced. Such estimates are expressions 
of judgment based on knowledge, mining experience, analysis of drilling results and industry practices. Valid 
estimates made at a given time may significantly change when new information becomes available. While the 
Company believes that the mineral resource estimates in respect of its properties are well established, by 
their nature mineral resource estimates are imprecise and depend, to a certain extent, upon statistical 
inferences which may ultimately prove unreliable. If such mineral resource estimates are inaccurate or are 
reduced in the future, this could have a material adverse impact on the Company. Due to the uncertainty that 
may be attached to inferred mineral resources, it cannot be assumed that all or any part of an inferred mineral 
resource will be upgraded to an indicated or measured mineral resource as a result of continued exploration. 
Mineral resources that are not mineral reserves do not have demonstrated economic viability. The Karchiga 
Scoping Study, the NI 43-101 Taldybulak Scoping Study Report and/or the Taldybulak Scoping Study are 
preliminary in nature, and include inferred mineral resources that are considered too speculative geologically 
to have the economic considerations applied to them that would enable them to be categorized as mineral 
reserves. There is no certainty that the conclusions of the Karchiga Scoping Study, the NI 43-101 Taldybulak 
Scoping Study Report and/or the Taldybulak Scoping Study will be realized. 
 
Any forward-looking information 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 
information, whether as a result of new information, future events or results or otherwise. Although the 
Company believes that the assumptions inherent in the forward-looking information are reasonable, forward- 
looking information is not a guarantee of future performance and accordingly undue reliance should not be put 
on such information due to the inherent uncertainty therein 
 
FOR FURTHER INFORMATION PLEASE CONTACT: 
 
Orsu Metals Corporation 
Petro Mychalkiw 
CFO 
+44 (0) 20 7518 3999 
 
OR 
 
Orsu Metals Corporation 
Tania Tchedaeva 
Company Secretary 
+44 (0) 20 7518 3999 
www.orsumetals.com 
 
OR 
 
Canaccord Genuity Limited 
Ryan Cohen/Andrew Chubb 
+44 (0) 20 7050 6500 
 
OR 
 
Vanguard Shareholder Solutions 
+1 604 608 0824 
 
 
Orsu Metals Corporation 
 

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