Osino Announces Assay and Metallurgical Test Results From Ondundu Exploration Project, Namibia

Highlights

• A total of 3,148m of Reverse Circulation (RC) drilling was completed in fifteen holes since the publication of the Ondundu maiden mineral resource estimate ("MRE").
• Assays received from RC step-out and infill holes at Ondundu include:
  • ONRC23-019: 157m @ 1.50g/t (55-212m) incl. 54m @ 1.76g/t, 5m @ 7.36g/t and 3m @ 22.21g/t
  • ONRC23-015: 51m @ 1.92g/t (153-204m) incl. 42m @ 2.24g/t
  • ONRC23-013: 10m @ 2.65g/t (31-41m) and 88m @ 0.98g/t (53-141m)
  • ONRC23-014: 70m @ 1.02g/t (0-70m) incl. 17m @ 2.30g/t and 41m @ 0.85g/t (99-140m)
  • ONRC23-022: 7m @ 2.25g/t (41-48m) and 69m @ 1.36g/t (129-198m) incl. 12m @ 2.67g/t, and 6m @ 4.57g/t (211-217m)

• Metallurgical testwork samples were recently tested on sensor-based optical sorting machines which returned excellent separation of the gold-bearing quartz veins against the homogenous sediment, indicating very good pre-concentration potential.
• Previous metallurgical testwork indicated gold recovery in the range of 76-79% from gravity only (after milling to 80% passing 75 micron), at less than 5% mass pull of the solid feed to the circuit.

• In addition to infill and step-out drilling, the objective of the program was to evaluate alternative assay techniques more suitable to the very pronounced gold nugget effect at Ondundu.
• Results from the orientation program will be used to plan a larger infill and resource expansion drill program across the Ondundu deposit.
  

VANCOUVER, British Columbia, July 20, 2023 -- Osino Resources Corp. (TSXV:OSI) (FSE:RSR1) (OTCQX:OSIIF) ("Osino" or "the Company") is pleased to provide an update on the recently completed infill and orientation drill program at the Ondundu Gold Project ("Ondundu" or "the Project").

Osino remains focused on the financing and construction activities for the Twin Hills Gold Project, while progressing its other exploration projects including Ondundu.

The Ondundu drill program was designed to upgrade the mineral resource around the Razorback Main Zone while the orientation program will provide guidance on the optimum drilling, sampling and assay methodologies for future work in the nuggety coarse gold mineralization at Ondundu.

Dave Underwood, Osino's VP Exploration commented: "The short drill program we recently completed at Ondundu has produced some exceptional intercepts including 157m @ 1.50g/t in hole ONRC23-019 and 109m @ 2.30g/t as previously reported in hole ONRC23-017. These results indicate potential to increase the size and grade of the main ore zones with further detailed infill and step-out drilling. In addition, the two holes drilled in a westerly orientation to check for mineralization perpendicular to the main ore shoots, intersected unexpected mineralization to the east of the current resource and indicate potential to define a new zone of mineralization in an area never previously drilled."

About Ondundu

Ondundu is a sedimentary hosted, structurally controlled orogenic gold deposit located 130km to the north-west of Osino's Twin Hills gold project, in an area of known gold deposits hosted within the inland arm of the Pan African Neoproterozoic Damara Belt. The main area of gold mineralization stretches about 1.9km from Margarethental in the north to Razorback in the south (the Ondundu Main Zone or OMZ) and occurs on the steep, west-facing limb of a parasitic syncline-anticline pair (previously termed the "Common Limb") on the eastern limb of the south-eastern part of the Ondundu anticline.

The bulk of the gold at Ondundu is free gold associated with bedding-parallel quartz?Fe?carbonate-pyrite veins, commonly with related sericite alteration. These veins occur as extensional and shear veins along the west?southwest dipping common limb and form as single or in sets of parallel veins which occur in zones up to 1 m wide in outcrop.

The Ondundu Project has a long history of mining and exploration, dating back to the first European to note gold in the area in 1917. Between 1922 and 1964, it was reported that a significant amount of gold was recovered by small scale miners on various mining claims in what is now known as the Ondundu Main Zone (OMZ). Gold was recovered from alluvial, eluvial and shallow oxidised gold bearing rocks. The project has been extensively drilled by various operators, most recently by B2Gold, who completed extensive exploration and drilled 119 diamond drillholes (24,490m) and 3 RC holes (564m) on the OMZ and Margarethental North areas during the period 2015 until 2021.

On July 21, 2022 Osino Resources Corp. completed the acquisition of the 100% owned Ondundu Gold Project from B2Gold. Osino has since completed initial metallurgical testwork which indicates that after milling to 80% passing 75 micron, gold recovery in the range of 76-79% to gravity concentrate (containing less than 5% of the solid feed to the circuit) could be achieved. This suggests that gravity concentration (and potentially optical sorting) on site, with subsequent transport to and further processing at Twin Hills could be a feasible process route for Ondundu material.

As initially announced in its news release dated October 27, 2022, the maiden MRE for the Ondundu Gold Project comprises 26 million tonnes (Mt) at an average grade of 1.13 g/t Au for a total of 0.9 million ounces (Moz) of gold in the Inferred mineral resource category (0.5 g/t cut-off).

Ondundu Orientation Drill Program

Ondundu's drill program was designed to upgrade the mineral resource around the Razorback main zone and to conduct an orientation program to optimise drilling, sampling and assay techniques with a specific emphasis on capturing the potential upside due to the very pronounced nugget effect at Ondundu.

A total of 3,148m was completed in 15 reverse circulation (RC) holes at Razorback main zone, aimed at step-out drilling and to infill previous drilling carried out by B2Gold in 2016. These holes were drilled towards a 70-degree azimuth with 60-degree inclinations, resulting in a net combined inter-hole spacing of ~16m (refer to Figures 1 and 2).

The RC drill program was also designed as an orientation program to assist in optimising drilling and assay techniques, given that the mineralization at Ondundu displays high nuggety, coarse gold characteristics. The main orientation aspects comprised the following:

1. Comparison of larger RC sample size with previous diamond drilling by B2Gold, to determine whether there is a statistically meaningful difference in assay results between diamond drilling and RC drilling. This essentially compares the efficiency of the drilling techniques in capturing nugget gold mineralization, but also weighs up the different sampling techniques.
2. Comparison of three different sample preparation and assay techniques, namely conventional fire assay, metallic screen fire assay and Leachwell bottle roll methods, to test whether a more appropriate analytical method could better account for the nugget effect and thereby improve the overall grade distribution and average grades.

Figure 1: Ondundu Project Overview with recent drill results (ONDD22-225 and ONDD22-226 were reported previously).

Additional Upside Potential at Ondundu

Two diamond scissor holes (ONDD22-226 and ONDD22-225) were drilled into the Margarethental and Razorback mineralized zones in late 2022, in opposite directions (azimuth of 250⁰) to the resource drilling. These results were previously reported and comprise the following:

ONDD22-226 intersected a zone of conformable mineralization between 73 and 89m of 16m @ 2.66g/t and 10m @ 3.89g/t between 105 and 115m, while ONDD22-225 intersected a wide zone of low-grade gold mineralization between 10 and 63m, and higher intercepts between 119 and 189m which is made up of both conformable and extensional quartz veins (see Figure 1).

These holes demonstrated the existence of mineralized extensional quartz veins which are non-parallel to the typical bedding conformable vein sets, which are responsible for bringing about the bulk of the mineralization. These non-bedding parallel vein sets thus represent significant upside potential both in terms of additional ounces, but also in terms of converting previously non-mineralized material into mineralized material within the eastern parts of the current resource model, still within the RPEEE pit.

There are also several prospective brownfields exploration targets within a 5km radius to the Ondundu resource, which warrants further exploration. These targets could eventually also contribute to the total mineral resources at Ondundu .

Ondundu Geology and Mineralization

The main geological feature in the Project area is the low amplitude Ondundu anticline, a major north - south trending fold which plunges approximately 30° to the south. Parasitic folds within the regional anticline have concentrated gold mineralization mainly in conformable (bedding parallel) veins.

The main mineralized zone extends sub-vertically from the surface and trends in a north-south direction, with the conformable mineralization dipping to the west and pinching out to the east and west (see Figures 2 and 3). Mineralized quartz veins within this main zone are also parallel to bedding. The intensity of these veins in this main zone is high compared to other areas of the mineralization. Mineralization is generally hosted by finely interlayered, upward-fining turbiditic sediments belonging to the Kuiseb Formation.

Razorback Mineralized Zone

The style of mineralization depicted within the Razorback mineralized zone in Figures 2 and 3 below is representative of the entire Ondundu main mineralized area, including Razorback and Margarethental.

Most holes from the recently completed drill program intersected the target mineralization which compliments and expands on previous drilling by B2Gold and confirms the robust nature of the main Razorback mineralized zone.

Hole ONRC23-019, was excellent starting in the hanging wall and drilling through the centre of the south plunging main ore shoot with 157m @ 1.50g/t from 55 to 212m. This is a step-out hole that intersected shallow mineralization that will extend the mineralized envelopes in the hanging wall area.

This hole also confirms the main high-grade shoot at depth, which is modelled in a north-south direction in both Razorback and Margarethental zones, see Figure 4. The hole has great potential to improve the overall grade of the MRE and to add extra ounces.

Hole ONRC23-021 is also a step-out in the same area and intersected several new zones of low-grade mineralization that will also contribute positively to the growth of the resource. All indications at this stage are that mineralization keeps going and is open at depth.

ONRC23-013 and ONRC23-014 were very good infill holes which intersected shallow mineralization as expected with 10m @ 2.65g/t (31-41m), and 70m @ 1.02g/t (0-70m), respectively - and with both these holes intersecting good mineralization at depth which will extend some conformable mineralized zones. Holes ONRC23-015 and ONRC23-022 also intersected very good mineralization as expected (see table 1).

Figure 2: Razorback target, showing assay results of recently drilled infill and step-out holes.

All step-out and infill holes drilled to date on the Razorback main zone produced assay results in line with expectations. New zones of mineralization, both high and low grade, have been intersected which show potential for increasing the mineralized envelopes.

Most holes intersected excellent mineralization that confirms the current model and the robust nature of the mineralization at Razorback. Some holes also intersected higher grades than expected which will improve the overall grade and ounces of the MRE.

There is significant scope for the Ondundu MRE to be improved in the next iteration, through better definition and modelling. Additionally, step-out drilling is required to further extend the mineralized zones to the west and east of the current model.

Figure 3: Section one across Razorback Main Zone - looking north

Figure 4: Section two across Razorback Main Zone - looking north

All fire assay results have now been received and are presented in Table 1, including eight holes reported previously in April 2023.

Drill Intercept Table

Table 1: Mineralized Intercepts for recently received Ondundu Infill RC Holes

Notes on Drill Assay Reporting:

1. Total intercepts reported are unconstrained - all combined intercepts above 0.4g/t reported. GM values based on unconstrained intercepts. All reported intercepts are apparent widths rounded to the nearest meter. Included (incl.) intercepts are constrained at 0.4g/t cut-off, minimum 2m wide and no more that 2m internal dilution. True widths are unknown at this stage. Collar positions are in UTM WGS84 surveyed by digital GPS.
2. The GM number indicated by color coding in Figure 1 and 2 is a commonly used short-hand method of representing gold grade (g/t) and unconstrained intercept width (m) as a single metric by multiplying the average intercept grade with the intercept width.

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 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 Definitive Feasibility Study ("DFS"). The DFS 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 favourably 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.
Yaron Conforti, Corporate Development
+1-604-687-2038
yconforti@osinoresources.com

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.

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