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Orosur Mining: Browning becomes executive chairman as Caron steps down

Tue, 17 Jan 2012 07:21:00 +0000

Ralph Browning, non-exec director of Orosur Mining (LON:OMI), has been appointed executive chairman with immediate effect as Mario Caron steps down as chairman.

Caron will continue as a non-executive director, the firm revealed today.

Finance executive Browning, 48, has been a director at the company since 2010 and David Fowler, the firm's CEO and managing director, said he was delighted at the appointment:

"Ralph's experience in corporate development and international transactions will be invaluable as we look to build a leading gold producer in South America.”

"I wish to thank Mario Caron for his leadership and dedication to the development of our company, exemplified by the recent successful commissioning of Orosur’s first underground mine at Arenal Deeps in Uruguay and the acquisition of the prospective ‘Mina Talca’ exploration properties in Chile."

Browning is also chairman of London quoted GMA Resources Plc, the firm said today.

Caron joined the Orosur board as chairman in October 2009. He has recently been appointed as CEO of Aldridge Minerals Inc. and is stepping down to dedicate more time to this role, the firm said.

Last week, Orosur revealed that the capital and operating costs of its Pantanillo Norte project in Chile will be in the order of US$178 million, according to a PEA of the planned gold mine.

The study ascribed a net present value of US$32.2 million to the development and an internal rate of return of 17 per cent at an 8 per cent discount rate.

The payback on the project is predicted to be 45 months, while the total cash cost of mining the gold is predicted to be in the order of US$581 an ounce. Output, meanwhile, is slated to be 97,000 ounces a year.

Orosur Mining's Fowler "pleased" with the results of Pantanillo Norte preliminary assessment

Thu, 12 Jan 2012 07:52:00 +0000

The capital and operating costs of Orosur Mining’s Pantanillo Norte project in Chile will be in the order of US$178 million, according to a Preliminary Economic Assessment of the planned gold mine. Prepared by AMEC E&C Services, the study ascribes a net present value of US$32.2 million to the development and an internal rate of return of 17 per cent at an 8 per cent discount rate.

Orosur Mining: A South American gold producer with plans to double output

Tue, 22 Nov 2011 14:00:00 +0000

In the coming weeks the Arenal Deeps underground mine expansion is expected to come on line, bringing with it higher grades and lower costs. Meanwhile Chilean projects, Talca and Pantantillo, also provide plenty of potential for future growth.

Orosur Mining receives water exploration permit for Pantanillo, further de-risking project

Wed, 09 Nov 2011 07:35:00 +0000

Gold miner Orosur Mining (LON:OMI, CVE:OMI) took a further step towards permitting its Pantanillo project - as it received a water exploration permit from the Chilean authorities.

The granting of the permit represents another vital step towards de-risking the project, the South America focused firm said today.

The company also revealed a summer exploration campaign beginning this month (November) to test prospective new target areas at Pantanillo.

Exploration at the project in the last two years has been focused on defining a measured and indicated resource of 45.9 million tonnes at 0.69 grammes of gold per tonne for 1.0 million ounces at Pantanillo Norte.

Last month, Orosur signed a contract with lithium focused LUMAX S.A and another two partners to form a consortium to explore for water in the Cienaga Redonda basin, which is close to the Pantanillo project.

Following this, the Chilean Government Water Administration allowed the consortium to explore for water on a 4.98 hectare land package in the Cienaga Redonda basin for 24 months assuming exploration begins within seven months.

Both companies will share water rights equally up to a rate of 120 litres per second. If available water exceeds that number, Orosur will retain 60 litres per second and the exploration costs will be split proportionally to the amount of water retained by each company.

The 60 litres per second flow rate is expected to support a heap leach project of approximately 15 million tonnes per annum.

This summer's exploration campaign, said Orosur, will focus on testing prospective new porphyry target areas aimed at increasing the firm's existing oxide and mixed ore resource.

Field work will focus on the Pantanillo Central, Quebrada Pantanillo, Oro 52 and areas surrounding the Pantanillo Norte discovery area and drilling is expected to begin in January next year, it said.

Orosur's Chilean properties were acquired as part of the Fortune Valley deal and chief among them is the Pantanillo project that comprises 11,750 of hectares optioned from Anglo-American.

It is located in the Maricunga Belt, an area rich in gold which is home to 60 million ounces of the metal.

First phase drilling has defined a maiden JORC resource of 1.05 million ounces at Pantanillo Norte - a small part of the total exploration area, and a second phase aims to build on this early impressive progress.

Orosur Mining boosted gold revenues in Q1 2012

Thu, 13 Oct 2011 07:43:00 +0100

South America-focused gold explorer Orosur Mining (LON:OMI, CVE:OMI) boosted revenues and income during the first quarter for its 2012 financial year thanks to a higher gold price, the firm revealed today.

The firm produced less gold in the three months to the end of August (12,488 ounces compared with 12,937 ounces in Q1 2011), but a higher average price per ounce of US$1,612 (Q1 2011: US$1,216) meant that Q1 2012 revenue amounted to US$21 million – an increase of 15.4 per cent over Q1 2011.

Net income for the period was US$4.4 million (Q1 2011: US$3.5 million) while cash flow from operations amounted to US$5.6 million (Q1 2011: US$5.4 million). Orosur’s cash position at the end of the period was US$20.3 million, almost double the US$10.7 million in had on its balance sheet at the end of August 2010.

The firm noted its success with positive infill drill programmes at San Gregoria, Sobresaliente and Vaca Muerta in Uruguay as well as encouraging results at the Santa Maria project, which included 25 metres at 1.72 grams per tonne gold in hole SMRC005 and 12 metres at 4.79 grams per tonne from 78 metres in hole SMRC022.

“It has been an exciting quarter for Orosur,” said David Fowler, Orosur’s chief executive officer. “The successful fund raising of US$13.5 million through a private placing demonstrated the support of our existing shareholders and attracted new investors, and their support resulted in the successful acquisition of Talca, a gold project in Chile which we believe will, long term, enhance our production potential.”

Fowler said the firm had “made good progress” at Arenal Deeps gold project in Uruguay, noting it had delivered the first development ore to the plant and is on schedule to commence stope mining in November. “In addition, exploration results from San Gregorio have confirmed the potential to continue extending mine life. All in all, it has been a successful start to our financial year and I am looking forward to updating the market on our continuing progress,” he added.

Orosur Mining appoints lawyer Gijsbert Groenewegen as non-exec director

Wed, 14 Sep 2011 07:32:00 +0100

Gijsbert Groenewegen has been appointed as a non-executive director, Orosur Mining (LON:OMI, CVE:OMI) told investors today.

The 53-year-old lawyer has more than 20 years of experience in finance and asset management, the South American focused gold explorer and producer said.

Chief executive David Fowler said Groenewegen's experience in financial markets will be very important as the firm looks to develop its growing gold interests in Latin America.

Orosur currently operates the only producing gold mine - San Gregorio - in Uruguay and has an exploration portfolio of assets in Uruguay, Chile and Argentina.

At the end of last month, it revealed how it had signed a definitive agreement for its proposed acquisition of the Talca gold property in Chile.

In June, the group provisionally agreed the terms of a deal to acquire the project. The deal required at least 66 percent of Talca’s owners – the Tellos family - to accept the offer and it confirmed it had received unanimous support acceptances for the deal.

Fowler had said of Talca: “The company´s plans are a first pass drilling campaign in calendar Q4 2011 and aims to publish its maiden N.I. 43-101 compliant resources during calendar Q2 2012.”

The Tellos family has produced gold at the Talca property for around 40 years with a total of 300,000 ounces produced in that time. The area hosts two historic, artisanal, non-mechanised mines, which have produced gold this year.

To acquire the property Orosur will initially pay US$3.84 million over 20 months, to buy the first 25 per cent of the property. It can subsequently buy the remaining 75 per cent stake for US$3.78 million over a five year period. There will also be a 1 per cent net smelter royalty on all production from Talca.

Orosur Mining seals Talca acquisition and begins exploration work

Tue, 30 Aug 2011 07:32:00 +0100

Orosur Mining (LON:OMI, CVE:OMI) told investors that it has now signed a definitive agreement for its proposed acquisition of the Talca gold property in Chile.

In June the group provisionally agreed the terms of a deal to acquire the project. The deal required at least 66 percent of Talca’s owners – the Tellos family - to accept the offer. Today Orosur confirmed that it has now received unanimous support acceptances for the deal.

“We are delighted to announce the closing of the acquisition of Talca and the start of its exploration programme,” said chief executive David Fowler.

“The company´s plans are a first pass drilling campaign in calendar Q4 2011 and aims to publish its maiden N.I. 43-101 compliant resources during calendar Q2 2012.”

The Tellos family has produced gold at the Talca property for around 40 years with a total of 300,000 ounces produced in that time. The area hosts two historic, artisanal, non-mechanized mines, which have produced gold this year.

As such Talca has ‘enhancing production potential’ according to Orosur. It has already begun surface exploration on the property and a 7,500 metre drill programme is pencilled in for September.

Then through next year Orosur plans to complete the project maiden gold resource estimate by the end of the second quarter. Meanwhile it is planning to fast-track a scoping study in that time too.

To acquire the property Orosur will initially pay US$3.84 million over 20 months, to buy the first 25 per cent of the property. It can subsequently buy the remaining 75 per cent stake for US$3.78 million over a five year period. There will also be a 1 per cent net smelter royalty on all production from Talca.

Orosur Mining upbeat on outlook after strong full year results

Thu, 18 Aug 2011 08:24:00 +0100

Orosur Mining (LON:OMI, CVE:OMI) posted a very handsome set of full year results, with profits and cash flow jumping as it benefited from a strong operational performance and higher gold prices. The gold mining company says it is now very well placed to continue advancing its existing assets.

Profits after tax for the full year to May came in at US$ 15.9 million versus US$ 1.4 million, and after an exploration write-off before tax of US$ 6.9 million.

Revenue jumped 32 per cent to US$ 78.7 million, with the realised gold price up significantly to US$ 1,347 from US$ 1,065 in 2010.

Production for the year totalled 55,817, in line with management expectations, and slightly down on the 56,050 ounces in 2010.

During the year 1,535,467 tonnes of ore were milled, slightly higher than last time, at an average grade of 1.22 g/t gold, same as last year. Recovery rates were also pegged versus last time at 93.4 percent.

Cash flow from operations increased by a whopping 230 percent to US$ 29.7 million, helping to ensure a strong cash balance of US$ 14.2 m at the end of the period compared to US$ 8.7 million last time.

Costs were kept under tight control with cash costs reduced to US$ 754 per ounce gold and operating cash costs reduced to US$ 724 per ounce versus US$ 827 per ounce gold and US$ 794 per ounce gold respectively in 2010.

David Fowler, chief executive of Orosur hailed the “excellent” performance: “It demonstrates the potential of the company to generate strong cash and profit relative to its enterprise value at current gold prices and puts us in a strong position to support and develop our existing assets as well as pursue further growth opportunities following the acquisition of the Talca project [in Chile] in June 2011.

He assures that the company is on track to deliver ore from Arenal Deeps project in Uruguay, with 417 meters of development having been completed there by the end of May.

Fowler adds: “We remain optimistic about the future and look forward to updating shareholders on our progress through the forthcoming year.”

The company is forecasting production for its 2011/12 year of 57,500 to 60,000 ounces of gold at an operating cash cost per ounce of approximately US$ 810 per ounce. This is equivalent to a total cash cost of approximately US$ 875 per ounce.

While, in terms of cash costs, that amounts to an increase compared to the current year, Orosur has decided to reduce its cut-off grade for the coming year and add additional higher cost production so as to benefit from the contribution margin generated at current levels of gold price.

It adds: “While emphasis in cost control remains a priority, it is expected Arenal Deeps will start contributing to the production in early calendar 2012 as well as contribute to reduce cash costs in the coming years due to the relatively higher gold grades that occur in this deposit."

Production for quarter one of the fiscal year 2011/12 is expected to be in the range of 12,000 to 12,500 ounces. Ounces produced will increase as additional ounces of underground ore are produced from the second quarter.

David Fowler, Director & CEO of Orosur Mining, talks about acquiring a well known artisanal gold mine in Chile

Mon, 27 Jun 2011 15:03:00 +0100

David Fowler, Director & CEO of Orosur Mining, talks about reducing the cash cost of gold production, a resource update for a satellite deposit, acquiring a well known artisanal gold mine in Chile, a run of mine heap leach project in the Maricunga gold-belt, and four joint ventured projects (June 2011).

Orosur raises £8.3 million needed to buy Talca operation in Chile

Wed, 22 Jun 2011 07:32:00 +0100

South America-focused gold miner Orosur Mining (LON:OMI, TSX:OMI) said it had completed a private placing of shares to raise gross proceeds of £8.25 million.

Canaccord Genuity acted as agent to the placing and was paid a commission of five percent of the gross proceeds in cash and 562,550 broker warrants (equivalent to 4.5 percent of the shares issued in the placing).

The proceeds from the fund raising will be used to help pay for the proposed acquisition of the Talca gold property in Chile, as well as for exploration at Talca and further acquisitions and exploration in the Talca district.

On 9 June, Orosur announced it would be buying Talca and would fund the acquisition through the private placing that has now been completed.

Talca, located some 375 kilometres north of Santiago, has been owned and operated by the Tellos family for approximately 40 years, having produced an estimated overall average grade of approximately 13 grams of gold per ton. The property hosts two gold mines where historic production is approximately 300,000 ounces of gold.

After completion of the acquisition of Talca, expected to be achieved by August, Orosur plans an accelerated exploration programme, including the completion of underground mine topography, as well as sampling and surface geologic mapping and sampling as a priority.

Earlier this month, Orosur said that its San Gregorio operation in Uruguay had exceeded the firm’s production target of 55,000 ounces for the year t 31 May.

UPDATE: Orosur Mining raises US$13.5 mln for acquisition of Talca gold project in Chile

Fri, 10 Jun 2011 09:24:00 +0100

UPDATE: With broker comment...

Gold miner Orosur Mining (LON:OMI, CVE:OMI) has successfully completed a private placing it announced after the London market close yesterday, raising US$13.5 million before expenses, which will be used to acquire the Talca gold property in Chile.

In a statement yesterday, Orosur said it has entered into an agreement to acquire Talca in Chile’s Region IV from Compañía Minera Demetrio Tello and other parties and that it wanted to raise up to US$15 million in a private placement to institutional and other investors.

Canaccord Genuity placed a total of 12.5 million shares at 66 pence each, a discount of 9 percent from yesterday's closing price. Orosur’s directors also took part in the fundraising.

Chief executive David Fowler said today: “We're delighted that we have raised the necessary funds for the acquisition and exploration programme at Talca, a project which we feel has great potential. I would also like to take this opportunity to thank our shareholders for their continued support and look forward to updating them on our progress."

Talca has been owned and operated by the Tellos family for approximately 40 years, having produced at an estimated overall average grade of approximately 13 grammes per tonne gold, from a system of 7 outcropping high grade veins.

Talca is located in northern Chile, 375 kilometres North of Santiago. The property hosts two gold mines that have been exploited by artisanal non-mechanized mining during 2011. Historic gold production is approximately 300,000oz of gold.

Gold has been historically mined at Talca to depths of more than 250 metres. Grades between 10 – 20 g/t gold have been reported and visible gold is common. Other historical and current operations in the district have been mined to depths of up to 600 metres.

Upon completion of the acquisition, anticipated around August 2011, Orosur will begin an accelerated exploration program including the completion of underground mine topography, and sampling and surface geologic mapping and sampling as a priority.

The company has already started a 480 kilometres linear ground magnetic survey, surface mapping and geochemical sampling has commenced. The company hopes to advance the initial exploration swiftly in order to plan a first pass exploration drill campaign which will consist of approximately 7,500 meters in the next six months.

The company plans to fast track production from the mine. Following an aggressive exploration program to commence in 2011, Orosur aims to publish its maiden NI43-101 compliant resources report during the second quarter of 2012.

It expects a scoping study to commence during the second quarter of 2012.

Broker Matrix notes that the transaction appears to have cleared the only precondition of 66.66% acceptance among family members of Talca, with Orosur securing 71% in lock-in agreement.

Matrix has a target price of 145p on the shares which midday stood at 70.5p, down 2p, valuing Orosur at £46m.

Orosur exceeds gold production target

Wed, 08 Jun 2011 15:33:00 +0100

Uruguayan gold miner Orosur Mining (LON:OMI, CVE:OMI) reported today that its San Gregorio operation exceeded the firm’s production target of 55,000 ounces for the year to 31 May.

Production came in at 55,820 ounces of gold. Ore processed for the year was just 1,535,468 tons at a gold grade of 1.21 grams per ton. Last year, the firm processed 1,530,477 tons at a grade of 1.22 grams per ton at San Gregorio – producing 56,050 ounces.

The firm said that its Arenal Deeps project – an underground extension to the San Gregorio operation that is aimed at significantly lowering Orosur’s cash costs – is progressing ahead of expectation. Ground conditions are good and the single face ramp has reached the first level to access the Main Vent raise.

The contractor, Redpath, reports 417 metres have been achieved since the first blast on 18 March. Meanwhile, advance meter rates are above plan and costs in line with budget. First ore development is scheduled for August when the Uruguayan mining authority is expected to grant full permission for the project.

The Arenal Deeps project is an important step for Orosur as it looks to extend San Gregorio’s mine life at annual production levels of 55,000 to 60,000 ounces of gold and achieve lower cash costs in two to three years.

Orosur's share price was up a half a penny at 71 pence at 15:27pm today.

Orosur Mining options non-core Uruguay gold assets to Ferlesol

Tue, 24 May 2011 07:38:00 +0100

Orosur Mining Inc (LON:OMI, CVE:OMI) has granted an option to Mineral Group Corp (UMG) subsidiary Ferlesol SA to earn up to 80 percent in the Arroyo Polanco, Casupá-Madre, Mal Abrigo-Cerros Negros and María Albina gold and other metals projects in Uruguay.

The farm-out is in line with Orosur’s strategy to concentrate on its core assets and extract maximum value from the rest, it said in a statement.

UMG is committed to spend US$300,000 in exploration work within a period of twenty four months to earn 20 percent interest in the assets. Subsequently, UMG will have the right to earn a further 31 percent, reaching a total of 51 percent, by spending a further US$750,000 on exploration within the following year.

Subsequently, UMG will have the right to earn an additional 29 percent for the full 80 percent interest by completing a bankable feasibility study for the assets, no later than 4 years after having reached the 51 percent interest.

The Casupá and Mal Abrigo projects are located in the Piedra Alta Terrane in south-central Uruguay along the northern limit of the La Florida greenstone belt of southern Uruguay.

Casupa is around 25 kilometers south of Orosur’s Crucera gold project. The Mal Abrigo-Cerros Negros project further to the west features nickel and platinum group elements mineralisation.

The María Albina, Old Texas and Arroyo Polanco projects are all located in the Nico Perez Terrane in central eastern Uruguay within the constraints of the Don Feliciano Mobile Belt.

Marina Albina, prospective for base metals, is approximately 25 kilometers due north of Orosur’s Presidente Terra project. The Old Texas and Arroyo Polanco projects lie within two splays of Sierra Ballena Fault Zone, along the eastern and western margins of the mobile belt respectively, and host lead, zinc, and copper mineralization.

Orosur is a gold producer and exploration company focused on identifying and developing gold projects in Latin America. The company operates the only producing gold mine in Uruguay , San Gregorio, and has assembled an exploration portfolio of high quality assets in Uruguay and Chile.

Last month, the group revealed improving economics in its mining operations, cutting cash costs per ounce significantly in the third quarter to US$521 (Q310: US$984).

Consequently Orosur now expects that 2011’s full year cash costs to be US$750 an ounce, rather than the previous US$850 forecast.

From an operational point of view Orosur is also making good progress. At the Arenal Deeps mine development project it has contracted the work programme, permitting work is underway and it has arranged US$5.5 million in financing from HSBC.

Meanwhile at Sobresaliente it carried out metallurgical tests on a 50,000 tonne trial parcel, achieving 90 percent recoveries – 10 percent more than assumed in current resource estimates.

Orosur is also busily exploring Sobresaliente and a new resource update is expected in August. Elsewhere at Pantanillo drilling is currently underway in preparation for a feasibility study, which will start towards the end of 2011.

A maiden resource estimate is scheduled for the Vaca Muerta prospect in August and first pass drilling will get underway at the Anillo prospect next month.

Orosur's improving economics lead to sharper than expected fall in cash costs

Thu, 14 Apr 2011 07:41:00 +0100

Orosur Mining has revealed improving economics in its mining operations, cutting cash costs per ounce significantly in the third quarter to US$521 (Q310: US$984). Consequently Orosur now expects that 2011’s full year cash costs to be US$750 an ounce, rather than the previous US$850 forecast.

Orosur Mining: Gladiator Resources earns first 20 pct of Isla Cristalina JV

Thu, 24 Mar 2011 07:49:00 +0000

Orosur Mining (LON:OMI, CVE:OMI) told investors that its joint venture partner Gladiator Resources (ASX:GLA) has now earned its first 20 percent interest in the Isla Cristalina group of prospects in Uruguay.

Gladiator is funding exploration work on the iron ore and manganese projects to earn into an 80 percent stake. It has now spent over US$1 million on the projects and under the terms of August's option agreement it has taken ownership of the first 20 percent.

The Australian firm will earn another 31 percent by spending a further US$4 million. After that it must prepare a bankable feasibility study for the projects to earn the remaining 29 percent.

Gladiator expects to earn the next 31 percent over the current calendar year.

"We are very pleased with the progress that Gladiator has made in the past year since committing to proceed with their option agreement and the continued aggressive program they have planned and funded for 2011 to achieve their 51% interest in the project by spending US$5 million,” chief executive David Fowler said.

“Through the interest that Orosur retains in the project, we are hopeful that Gladiator's continued investment will lead to future revenue for the company."

The company highlighted drill results from Isla Cristalina that were released recently by Gladiator. “The initial drill and test results announced to date by Gladiator have been encouraging, including drilling 60 holes for 3,395 meters,” Orosur said.

The drilling highlights included between 30 -53 metres grading 26.5 – 33.2 percent iron at the Papagayo prospect and 16 – 33 metres grading 29.9 - 32.4 iron.

Orosur highlights that the initial assay results for the first 11 holes are consistent with test work and they confirm that a high quality magnetite concentrate can be produced.

Orosur Mining says development of Arenal Deeps gold project has now started

Mon, 21 Mar 2011 11:12:00 +0000

Orosur Mining (LON:OMI, CVE:OMI) said the environmental and mining permits have been granted for the Arenal Deeps gold project in Uruguay and that the first blast was completed on Friday.

Arenal Deeps is essentially an underground extension to the San Gregorio operation, which should significantly lower Orosur’s cash costs.

Last week the company announced it had received a US$5.5 million loan from HSBC, which will be used to buy equipment for Arenal.

Today it said development contractor Redpath is already on site and has begun on the mine portal. Orosur has also received permits to build a second tailings facility at San Gregorio.

Chief executive David Fowler said: "We are making good progress in Arenal Deeps with the contractor mobilised, the main equipment necessary to commence development commissioned, permits granted and the first blast completed.”

The Arenal Deeps project is an important step for Orosur as it looks to extend San Gregorio’s mine life at annual production levels of 55,000 to 60,000 ounces of gold and achieve lower cash costs in two to three years.

A feasibility study on the project, carried out by Amec, gives a conservative assessment of the cash costs - put at US$545 per ounce - and the gold payable (135,000 ounces in total) and doesn’t take account of the silver that will be mined.

“The development of Arenal as our first underground operation is expected to open up other underground mining opportunities at San Gregorio,” the Orosur CEO said.

“We plan to conduct further infill and extension drilling at Argentinita and San Gregorio and complete pre-feasibility studies in the coming year to target the definition of additional underground reserves.”

Orosur secures US$5.5 million financing for Arenal Deeps equipment

Fri, 18 Mar 2011 08:19:00 +0000

Orosur Mining (LON:OMI, CVE:OMI) said this morning it secured a US$5.5 million loan with HSBC that will fund the purchase of equipment for the Arenal Deeps project in Uruguay.

The three-year loan is at 3.25 percentage points over the London inter-bank rate, and is secured against the machinery being bought.

Chief executive David Fowler said: “We are delighted with the confidence that the team at HSBC has shown by providing this new facility for the development of the Arenal Deeps project and are pleased to be working with a financial institution with such an extensive experience and excellent credentials in global mining finance.

“This facility complements cash from operations to fund the Arenal Deeps project. As well as firming up our financial position, this financing minimises dilution for our shareholders, and maintains full leverage to further increases in the gold price.”

The Arenal Deeps are right next door to the company’s San Gregorio open pit gold project. The decision to go underground will actually bring down significantly the cash costs of the combined San Gregorio and Arenal operation because Arenal’s gold grades are so much higher.

A feasibility study on the project, carried out by Amec, gives a conservative assessment of the cash costs (US$545 per ounce) and the gold payable (135,000 ounces in total) and doesn’t take account of the silver that will be mined.

Orosur Mining: Positive early results from gold drilling in Uruguay and Chile

Mon, 14 Feb 2011 12:21:00 +0000

Orosur Mining (LON:OMI, TSX-V:OMI) released positive early results from drilling programmes in Uruguay and Chile.

In Uruguay it is now halfway through almost 10,000 metres of drilling at the Sobresaliente project, 5 kilometres north of the San Gregorio mine. Meanwhile in Chile it has completed 2,497 meters of ‘first pass’ drilling in 16 holes at the Anillo project.

"The first half of our drill program on the Sobresaliente project has confirmed the existing resources on the project and identified a number of new positive intercepts outside the existing resource such as hole SSRC045 which contained 23 meters at 1.64 grams per tonne gold,” chief executive David Fowler said.

With reference to Chile, Fowler added: “The first pass drill program at Anillo tested five targets to a depth of up to 200 meters.

“Anomalous, low temperature epithermal mineralization at a number of these targets leads us to believe that we may be in the upper portions of the system and that deeper drilling is required. We plan to commence this drilling in May 2011.”

At Sobresaliente the best gold intercepts included 5 meters grading 14.8 grams per tonne gold from 84 meters - including 1 metre at 64.29 grams per tonne gold - and 23 meters at 1.64 grams per tonne gold from 157 meters.

Orosur also ran through its exploration plans across its other projects, as part of the operations update.

At the Pantanillo project in Chile – its other flagship project, alongside San Gregorio – it is preparing a 6,500 meter summer drilling program. The programme will largely focus on the Pantanillo Norte deposit – with 5,000 metres of drilling earmarked – so it can enlarged the current 1.05 million ounce NI43-101 resource.

Meanwhile work is also scheduled for the Vaca Muerta project in Uruguay, about 85 kilometres from San Gregorio. The company completed 2,736 metres of drilling on the project back in December 2010.

Orosur is currently fast-tracking Vaca Muerta and initial metallurgical testing and resource modelling is already underway.

More drilling is also scheduled at Vaca Muerta in March. This new programme is expected to facilitate a measured and indicated NI 43-101 compliant resource estimation.

Meanwhile it also plans to start a 1,500 meter infill drill campaign at Crucera, in Uruaguay this month, a measured and indicated NI43-101 resource estimate will then be completed by the end of 2011.

First pass drilling is also slated for the Rocha and Texas projects in southern Uruguay. Here between 2,000 and 2,500 metres of drilling has been earmarked to start in April.

Orosur prepares to start work on Arenal Deeps after positive Q2 results

Thu, 13 Jan 2011 07:45:00 +0000

Orosur Mining (LON:OMI, TSX-V:OMI) is getting ready to start developing the Arenal Deeps gold-silver project in February.

Arenal Deeps is an underground mining project located near Orosur’s only producing asset, the San Gregorio mine in northern Uruguay.

This morning the junior gold producer revealed a positive set of results for the second quarter of the 2011 fiscal year.

In the three months ended 30 November 2010 it made total sales of US$16.6 million (Q2-2010: US$14.8 million), and reported net income of US$ 2.7 million (Q2-2010: US$0.7 million).

Costs were reduced significantly from US$871 per ounce - in the corresponding period of 2010 - to US$790 per ounce. Meanwhile prices continued to improve, with Orosur achieving an average gold price of US$1,332 per ounce (Q2-2010: US$1,065).

It spent US$1.9 million (Q2-2010: US$ 1.7 million) on exploration during the quarter and it ended the period with US$13.9 million in the bank.

“We have completed another solid quarter with 12,576 ounces of gold produced. This was in accordance with expectations of between 12,000 and 13,000 ounces”, chief executive David Fowler said.

He adds: “Good progress was made on finalizing plans for the development of Arenal Deeps.

“A development contract for Arenal Deeps was awarded to Redpath, an experienced underground contractor, and we anticipate commencing development in February 2011 with a progressive ramp up in ore production from mid calendar 2011.

“We look forward to the successful implementation of the Arenal Deeps project as we believe that it will provide significant opportunity to develop other underground ore sources and further extend mine life.”

Fowler also highlights that Orosur made good progress with its exploration work, thanks to the discovery of significant gold mineralization at the Vaca Muerta project – which is around 85 kilometres from the San Gregorio mine.

“Follow-up drilling has confirmed and extended this mineralization, and additional targets along strike and around Vaca Muerta are expected to be tested in the second half of the 2011 fiscal year,“ Fowler added.

Orosur awards Arenal Deeps development contract to Redpath

Tue, 21 Dec 2010 10:27:00 +0000

South America-focused gold producer and explorer Orosur Mining (LON:OMI, TSX-V:OMI) said its board has approved the Arenal Deeps gold-silver project project in Uruguay and has chosen the Chilean unit of the Redpath Group for the mining development contract.

The company expects to sign a definitive agreement early in 2011 with development work scheduled to begin February 2011, following equipment delivery and final environmental permitting.

The contract with Redpath Chilena Construcciones y Compañía Limitada will involve the development of approximately 2 kilometres of decline, 8km of lateral development and stope preparation and is expected to be completed in approximately 30 months.

Redpath has committed to training Uruguayan personnel to allow Orosur to develop a longer term capability to undertake owner operated mining.

Orosur submitted a request for an environmental permit for Arenal Deeps in April 2010 and expects to receive the environmental approvals for the project from DINAMA, the relevant authority in Uruguay, by early calendar 2011.

At current gold prices, the project can be funded from cashflow from operations and modest debt levels. Orosur has received a number of preliminary debt funding offers for the project and expects to close financing arrange for US$5-10 million of debt funding in the first quarter of the 2011 calendar year.

Mobilisation of Redpath is targeted for February 2011, when development is planned to start. Gold production is anticipated in the second half of calendar 2011.

Chief executive David Fowler said: “Arenal Deeps is an important step for the company in our objective to extend the San Gregorio mine life in Uruguay while maintaining production levels at approximately 50,000 to 60,000 ounces of gold per annum and reducing cash costs. The initial investment in capital and skills will also allow additional underground reserves to be targeted at San Gregorio and Argentinita to further extend mine life.”

"Arenal Deeps will be the first underground mine in Uruguay. Partnering with Redpath, a premium international underground mining contractor, is an important step in reducing project risk,” Fowler added.

The current feasibility study for Arenal Deeps supports a six year mine life with an IRR (internal rate of return) of 32.3 percent.

The price assumption for the study was US$1,000 per ounce of gold. The current spot price is just over US$1,380/oz.

Total cash costs have been estimated at US$545/oz, while total life of mine capital and operating costs were put at US$24.7 million and US$73.4 million respectively. Net present value (NPV) with a 7 percent discount amounted to US$16.4 million.

Payable gold has been estimated at 135,000 oz.

Orosur Mining extends gold zone at Vaca Muerta

Thu, 02 Dec 2010 07:41:00 +0000

Orosur Mining (LON:OMI, TSX-V:OMI) has extended the gold zone at the Vaca Muerta project in northern Uruguay through drilling.

Vaca Muerta is 85 kilometres away from Orosur’s San Gregorio gold mine on the Isla Cristalina Belt in northern Uruguay. Vaca Muerta is one of three prospects in the eastern portion of the Isla Cristalina Belt, alongside Vichadero and Curtume.

The company has received assays from 18 of the 25 holes drilled there recently.

All 25 holes encountered anomalous gold values, and the assays received so far demonstrate strong, shallow gold mineralization. It remains open along strike to the northwest and also down dip.

“The follow up drilling at Vaca Muerta confirmed and expanded on the results we announced early in October,” chief executive David Fowler said.

“The company plans to restart drilling in January 2011 to target a 43-101 compliant resource by mid 2011.”

Fowler expects Vaca Muerta has significant potential to add to the San Gregorio mine plan.

He adds: “Additional exploration around Vaca Muerta and in the eastern end of the Isla Cristalina belt will continue in 2011 to investigate other gold targets.”

According to Orosur, October and November’s drilling has provided additional information on the dip and width of the mineralized zone.

It has expanded the strike length of significant gold mineralization to 425 metres, and extended down dip continuation to 120 metres from the surface.

Among the first 18 assays the highlights include 24 metres grading 1.65 grams per tonne (g/t) gold from 26 metres deep, 19 metres at 1.78 g/t from just 6 metres, 15 metres at 3.38 g/t from 50 metres, 10 metres at 1.65 g/t from 56 metres and 12 metres at 1.96 g/t from 69 metres.

Some assays are still outstanding and 3 holes are left in the current drill programme. Once complete, Orosur plans to compile and evaluate all the data.

Subsequently it will begin metallurgical studies and it will carry out additional infill and extension drilling in January 2011.

Orosur aims to complete a maiden 43-101 compliant resource for Vaca Muerta by mid 2011.

Potential of Uruguay magnetite prospect confimed in Gladiator/Orosur JV area

Mon, 25 Oct 2010 13:19:00 +0100

Gladiator Resources' (ASX:GLA) recent drilling results have confirmed that a high grade magnetite concentrate can be produced at Iman West and the company has successfully lodged an application for a prospecting permit over a mineral reserve recently released by the Uruguayan government.

The new application (File 2091/10) covers an area of approximately 1,433 hectares and is known to contain the southern extensions of the both the Papagayo and Buena Orden magnetite deposits. It also covers much of the area between the Papagayo deposit and the Iman deposit to the east.

The new tenement is located within the Area of Interest defined under the Joint Venture with Orosur Mining Inc (TSX-V:OMI, LON:OMI) and will be included in the JV exploration area.

The resource potential of this latter area is unknown and remains to be assessed. The application secures the area for mapping to commence immediately within the mineral reserve area.

Diamond and Reverse Circulation (RC) drilling continues at Papagayo and Iman. The first Davis Tube Recovery (DTR) results have been returned for an RC hole at Iman West.

The results are consistent with test work previously undertaken on surface samples from Papagayo and show that a high grade magnetite concentrate can be produced with very low levels of contaminants such as sulphur and phosphorous.

On August 4, Orosur entered into a definitive option and joint venture agreement with Gladiator which provides GLA the right to earn up to an 80 percent interest in Orosur’s iron ore, manganese ore and base metals prospects in the Isla Cristalina Belt in Uruguay.

Orosur Mining moves into profit as gold price spikes and costs tumble

Tue, 12 Oct 2010 08:33:00 +0100

The South America focused gold miner has moved decisively into profit during the first quarter of the financial year, and costs are expected to tumble significantly once the Arenal Deeps project near the San Gregorio open pit in Uruguay comes into production.

Orosur Mining shares surge over 30% on excellent drill results in Uruguay

Tue, 05 Oct 2010 13:08:00 +0100

The junior gold miner hit a new 12-month high on London’s AIM market today. The stock has now doubled in value since the start of September. Orosur has been transformed over the past year, and these latest drill results provide further evidence of its expansion in South America.

Orosur Mining: Golden Prospects in Chile and Uruguay

Fri, 01 Oct 2010 09:30:00 +0100

Orusur Mining's Uruguay gold production is the cash machine to finance development of the Arenal Deeps and Pantanillo projects. Even after the spectacular performance of late, the stock is trading below the level it was a year ago – yet the company’s prospects have changed beyond recognition.

Orosur Mining`s CFO snaps up 50,000 shares in company

Fri, 10 Sep 2010 14:13:00 +0100

Orosur Mining’s (LON:OMI, TSX-V:OMI) chief financial officer Ignacio Salazar has bought 50,000 shares in the company for C$0.395 each.

Salazar now has an interest in 80,000 shares, which represents 0.12% of the company.

So far September has been a strong month for Orosur, with the company achieving significant development milestones.

Last week, the company revealed its feasibility study for its Arenal Deeps gold-silver project in Uruguay, which supported a six year mine life with an IRR (internal rate of return) of 32.3%.

The price assumption for the study was US$1,000/oz, which is 20% less than the current spot price of US$1,250/oz.

Total cash costs have been estimated at US$545/oz, while total life of mine capital and operating costs were put at US$24.7 million and US$73.4 million respectively. Net present value (NPV) with a 7% discount amounted to US$16.4 million.

Payable gold has been estimated at 135,000 oz.

“This feasibility study for Arenal Deeps is an important step for the company in our objective to extend the San Gregorio mine life in Uruguay while maintaining production levels at approximately 50-60,000 ounces of gold per annum," said chief executive David Fowler.

“The initial investment in capital and skills will also allow additional underground reserves to be targeted at San Gregorio to further extend mine life.”

Previously, on 1 September, Orosur reported a 1.04 million ounce (Moz) maiden NI43-101 gold resource for the Pantanillo Norte deposit in Chile.

In the Measured and Indicated category, Pantanillo Norte has 1,049,071 ounces, with 47,093,000 tonnes grading 0.69 grams per tonne (g/t). There is also 5,166 ounces in the Inferred category, with 304,000 tonnes at 0.53g/t gold.

Orosur Mining CFO Ignacio Salazar ups shareholding

Thu, 09 Sep 2010 16:38:00 +0100

Orosur Mining’s (LON:OMI, TSX-V:OMI) chief financial officer Ignacio Salazar has bought 50,000 shares in the company for C$0.395 each.

Salazar now has an interest in 80,000 shares, which represents 0.12% of the company.

So far September has been a strong month for Orosur, with the company achieving significant development milestones.

Last week, the company revealed its feasibility study for its Arenal Deeps gold-silver project in Uruguay, which supported a six year mine life with an IRR (internal rate of return) of 32.3%.

The price assumption for the study was US$1,000/oz, which is 20% less than the current spot price of US$1,250/oz.

Total cash costs have been estimated at US$545/oz, while total life of mine capital and operating costs were put at US$24.7 million and US$73.4 million respectively. Net present value (NPV) with a 7% discount amounted to US$16.4 million.

Payable gold has been estimated at 135,000 oz.

“This feasibility study for Arenal Deeps is an important step for the company in our objective to extend the San Gregorio mine life in Uruguay while maintaining production levels at approximately 50-60,000 ounces of gold per annum," said chief executive David Fowler.

“The initial investment in capital and skills will also allow additional underground reserves to be targeted at San Gregorio to further extend mine life.”

Previously, on 1 September, Orosur reported a 1.04 million ounce (Moz) maiden NI43-101 gold resource for the Pantanillo Norte deposit in Chile.

In the Measured and Indicated category, Pantanillo Norte has 1,049,071 ounces, with 47,093,000 tonnes grading 0.69 grams per tonne (g/t). There is also 5,166 ounces in the Inferred category, with 304,000 tonnes at 0.53g/t gold.

Orosur Mining completes Arenal Deeps gold-silver project feasibility study

Tue, 07 Sep 2010 15:43:00 +0100

Orosur Mining (TSX-V:OMI, LON:OMI) said the feasibility study (FS) for its Arenal Deeps gold-silver project in Uruguay has indicated a six year mine life with an IRR (internal rate of return) of 32.3%.

The price assumption for the FS was US$1,000/oz, which is 20% less than the current spot price of US$1,250/oz.

Total cash costs have been estimated at US$545/oz, while total life of mine capital and operating costs were put at US$24.7 million and US$73.4 million respectively. Net present value (NPV) with a 7% discount amounted to US$16.4 million.

Payable gold has been estimated at 135,000 oz.

“This feasibility study for Arenal Deeps is an important step for the company in our objective to extend the San Gregorio mine life in Uruguay while maintaining production levels at approximately 50-60,000 ounces of gold per annum.

“The initial investment in capital and skills will also allow additional underground reserves to be targeted at San Gregorio to further extend mine life,” said chief executive David Fowler.

Orosur is progressing tenders for contract mining and equipment purchases with board approval to be considered in the coming months.

Funding for the project will be generated from debt and operating cash flow, which the company said was enhanced by the recent surge in gold prices.

The mineral resource at Arenal Deeps was modeled and estimated by Mine Development Associates (MDA) at 2.05 Mt (million tonnes) at 3.68 g/t (grammes per tonne) gold as a base case.

Arenal Deeps is the down plunge continuation of the Arenal deposit that waste mined as an open pit between October 2004 and April 2009 and produced 388,000 ounces of gold at an average grade of 2.16 g/t gold.

AMEC E&C Services, which completed the FS, estimated the total measured and indicated resource at 4 Mt grading 2.49 g/t gold for a total 321,000 oz contained at a 1 g/t cut off. The inferred resource stands at 99 kt (kilotonnes) grading 2.84 g/t gold for 9,000 oz contained.

Orosur now expects to have a NI43-101 compliant mineral resource/reserve for silver contained within the gold estimates completed in October this year.

Infill drilling planned in the FS is also expected to identify additional mineralization that could support conversion to mineral resources, and eventually to mineral reserves.

A request for environmental approval for the Arenal Deeps project was submitted in late April and Orosur is currently in the process of obtaining the environmental approvals for the project from DINAMA, the relevant authority in Uruguay.

At the start of the month, Orosur reported a 1.04 million ounce (Moz) maiden NI43-101 gold resource for the Pantanillo Norte deposit in Chile.

In the Measured and Indicated category, Pantanillo Norte has 1,049,071 ounces, with 47,093,000 tonnes grading 0.69 grams per tonne (g/t). There is also 5,166 ounces in the Inferred category, with 304,000 tonnes at 0.53g/t gold.

Back in August, Orosur entered into a definitive option and joint venture agreement with Gladiator Resources Ltd (ASX:GLA), providing GLA with the right to earn up to an 80 percent interest in Orosur’s iron ore, manganese ore and base metals prospects in the Isla Cristalina Belt in Uruguay.

Orosur Mining completes Arenal Deeps gold-silver project feasibility study

Tue, 07 Sep 2010 10:41:00 +0100

The price assumption for the FS was US$1,000/oz, which is 20% less than the current spot price of US$1,250/oz.

Payable gold has been estimated at 135,000 oz.

“The initial investment in capital and skills will also allow additional underground reserves to be targeted at San Gregorio to further extend mine life,” said chief executive David Fowler.

Orosur is progressing tenders for contract mining and equipment purchases with board approval to be considered in the coming months.

Funding for the project will be generated from debt and operating cash flow, which the company said was enhanced by the recent surge in gold prices.

The mineral resource at Arenal Deeps was modeled and estimated by Mine Development Associates (MDA) at 2.05 Mt (million tonnes) at 3.68 g/t (grammes per tonne) gold as a base case.

Orosur now expects to have a NI43-101 compliant mineral resource/reserve for silver contained within the gold estimates completed in October this year.

Infill drilling planned in the FS is also expected to identify additional mineralization that could support conversion to mineral resources, and eventually to mineral reserves.

At the start of the month, Orosur reported a 1.04 million ounce (Moz) maiden NI43-101 gold resource for the Pantanillo Norte deposit in Chile.

Matrix bullish on Orosur Mining after maiden resource for Pantanillo Norte deposit

Wed, 01 Sep 2010 12:10:00 +0100

Investment bank Matrix was bullish on Orosur Mining (LON:OMI, TSX-V:OMI) in its ‘Daily Update’ after the group reported a 1.05 million ounce (Moz) maiden NI43-101 gold resource for the recently acquired Pantanillo Norte deposit in Chile.

“This is a very positive initial result, both in terms of size and the speed in which the resource was defined – substantial upside also remains,” Matrix said.

In the Measured and Indicated category, Pantanillo Norte has 1,049,071 ounces, with 47,093,000 tonnes grading 0.69 grams per tonne (g/t). There are also 5,166 ounces in the Inferred category, with 304,000 tonnes at 0.53g/t gold.

"This initial Independent NI 43-101 Mineral resource estimate is a critical step in our objective to create a second producing asset in Chile,” said Orosur chief executive David Fowler.

Matrix noted that drilling to this point had concentrated largely on the main oxide zone, with work on the sulphide and transition areas to be undertaken later, offering the potential for the project to ultimately be well over 2Moz.

Most importantly, the resource consultants have also applied some basic cost estimates to arrive at a base case of roughly US$6.65/t for mining and processing. Applying this figure to the grade and recovery expected, would suggest a potential cash cost of less than US$450/oz, and thus on par with what it would expect in the Maricunga region of Chile, it said.

“This is a major step for OMI – the share price continues to lag because of a lack of interest in the aging assets in Uruguay, but the market has to date not been prepared to give any credit for Pantanillo. With this project now booked to 43-101 standard, showing that is it large and on par with the other similar projects being operated in the Maricunga, we would expect to see the market focus shift to Chile and value this project more highly,” Matrix said.

It has a target price of 77 pence on the stock.