Orosur Mining (LON:OMI) expects to maintain current levels of production from its San Gregorio mine in Uruguay in the year ahead.
Orosur expects to produce between 50,000 – 55,000 ounces (oz) in a cost range of US$850 – US$950/oz in the twelve months to May 2016.
The miner produced 53,485 oz of gold in the year just ended, in the middle of the guidance range of 50,000 - 55,000 oz, with 13,187 oz produced in the final quarter
Operating cash costs over the year were also in the middle of forecasts at US$912/oz , but had dropped to US$848/oz in the last three months of the financial year.
The miner produced more from its open pits than originally planned, resulting in an annual average of approximately 45% from open pits and 55% from Arenal underground.
The company has also now decided to go ahead with the underground development of San Gregorio West, to be funded by a mixture of internally generated cash flow and non -equity capital.
This area of SG Deeps is expected to produce approximately 30,000 – 35,000 oz over an 15 – 18 month time period after a relatively short construction.
The mine design contemplates production rates of 1,000 tonnes per day (tpd), using the same stope dimensions at the Arenal Deeps underground mine.
Ignacio Salazar, chief executive, said the company has now met its production and cost guidance for eight quarters running.
“During the year, Orosur successfully put several open pits, including Laureles, into production and we have now finalised the engineering and planning work required to proceed with the development of the SG Deeps West project.”