www.orosur.ca
Orosur Mining Inc. is a gold producer and exploration company focused on identifying and developing gold projects in Latin America. The Company is a fully integrated mining company, possessing the skills necessary to explore and develop its discoveries. The Company operates the only producing gold mine in Uruguay (San Gregorio), and has assembled an exploration portfolio of high quality assets in Uruguay,Chile and Argentina.
Orosur Mining swings to profit after 'significantly improved' Q4
In its full-year results statement, Orosur Mining (TSX-V:OMI, LON:OMI) told investors that it significantly improved production and profitability in the fourth quarter, consequently the company swung to a net profit of US$1.4m for the full-year ended 31 May 2010.
“The current gold price coupled with our ability to reduce costs were key contributors to this achievement,” Orosur chief executive David Fowler commented.
“I am delighted that we have ended the year in line with company´s guidance with 56,050 ounces produced at a cost of US$827 per ounce for the year”.
“Our objective for 2011 is to produce 55,000 ounces at a cost of US$825 per ounce. Our medium term objective is to grow our gold production assets in South America by continuing to invest in exploration and development.”
Over the twelve-month period the company has dramatically swung into profit, banking US$1.4m compared with a US$14.3m loss in 2009. Orosur processed 1.5m tonnes during the year at 1.22 g/t with recovery averaging 93.4%, for 56,050oz of gold. The average realized gold price was up at US$1,065 per ounce, from US$841 in the previous year.
From an operational perspective, the period was marked by a number of key achievements, including positive drilling results from San Gregorio; the definition of over 300,000oz in NI43-101 gold resources at Arenal Deeps; and the successful definition of additional open pit resources at Zapucay, Santa Teresa, Veta Sur and Picaflor.
The company also highlighted that the initial drill programme at Pantanillo, complete with an NI43-101 resource calculation, is expected to be finished by end of August. Additionally, scoping studies are currently underway on Pantanillo, and they are slated for completion in early 2011.
Looking ahead, Fowler commented: “A scoping study is underway at Pantanillo, in anticipation of releasing of our first NI43-101 resource on Pantanillo Norte and we have commenced exploration at Anillo in northern Chile.”
“We remain optimistic about these projects and look forward to updating shareholders in the coming months. In the next few weeks, we expect to have the results of the feasibility study in Arenal and an initial resource estimate on Pantanillo.”
