The project area contains four principal gold bearing quartz veins and the area is located about 130 km from Montevideo and 405km from the San Gregorio mine in the Florida Greenstone belt.
A programme of about 3,000m comprising 2,000m of RC pre-collars and 1,000m of diamond drilling is planned, said by the company.
Orosur CEO David Fowler said the company believes that Mahoma could ultimately deliver an increase in Orosur’s Uruguayan production by 25,000 to 30,000 ounces per annum with minimal capital.
Drilling work is expected to be followed by infill drilling to target an initial measured and indicated resource of 250,000 tons.
The company said if the program is successful a feasibility study to develop an underground operation producing 25,000 to 30,000 ounces per annum is planned.
