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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...Read more
Orosur Mining reduces cash cost for producing gold at Pantanillo Norte in updated PEAJune 01 2012, 9:05am
Orosur Mining (LON:OMI, TSE:OMI) reported that the cost of producing gold on the Pantanillo Norte project in Chile will be lower than stated in the Preliminary Economic Assessment published in January this year.
The group updated the PEA, incorporating further details and calculations from the NI 43-101 technical report from AMEC International for the property which will be filed on SEDAR shortly.
The updated PEA has lowered the cash cost of producing gold to US$568 per ounce from the previous figure of US$581, and has increased the net present value to US$49.7 million from US$32.2 million.
The internal rate of return has been increased to 19 per cent from 17 per cent.
Output, meanwhile, remains slated to be 97,000 ounces a year. The updated study has increased the capital cost for Pantanillo Norte to US$189 million from US$178 million.
Pantanillo Norte is part of the wider Pantanillo property, which is located 125 kilometres east of the northern Chilean city of Copiapo in the productive Maricunga gold belt and covers 11,750 hectares. It has a measured and indicated resource of 1.05 million ounces.
Orosur said the higher net present value largely reflects the adoption of a new higher long term gold price of US$1,250 against US$ 1,200 in the previous PEA.
The higher capital cost is related to the indirect construction costs and an increased contingency to reflect current conditions.
Chief executive David Fowler said: “This PEA is based on the existing resource at Pantanillo Norte and demonstrates Pantanillo´s development potential. We believe that further exploration can significantly enhance the project and a number of initiatives will be pursued to improve the project further.”