Orosur Mining Inc (LON:OMI) booked an operating profit of US$1.68mln during the third quarter of fiscal 2018, as mining at the San Gregorio gold project in Uruguay continues.
The loss after tax came in at US$1.976mln after allowing for higher depreciation and of a provision for staff retrenchments.
READ: Orosur Mining lifted by latest drilling results from the Anzá project in Colombia
Orosur invested US$1.753mln in capital expenditures and US$1.236mln in exploration compared to US$3.218mln and US$449,000 respectively in the second quarter.
The company significantly increased its exploration as a result of the current drilling campaign in Colombia.
Orosur’s cash balance at February 28, 2018 was US$1,392mln, and the company has now drawn on the Santander line of credit in the amount of $1.50mln.
At San Gregorio, following definition of a weaker mineralised structure at depth and to the east, the mine plan and sequencing was redesigned with SRK to optimise economics, including the cancellation of development of deeper stopes from the previous mine plan and incorporation of marginal stopes from current levels at SGW into Q3 18.
As a consequence grades in the third quarter were lower, and production dropped to 6,859 ounces of gold, compared to the 7,820 ounces mined in the third quarter of 2017.
Average cash operating costs for the Quarter of were US$1,065 per ounce, compared to US$858 per ounce in the third quarter of 2017.
Meanwhile, in Colombia, high grade drilling continued at APTA, with results from the current diamond drilling campaign including 4.89 grams per tonne gold 13.9 metres, 4.86 grams over 25.0 metres, 9.42 grams over seven metres and 9.62 grams over six meters.
This campaign has already extended the known mineralisation at APTA down dip, up dip and along strike. In addition, early indications at the present drilling at Charrascala appear promising.