Orosur Mining Share News (OMI)

(Sharecast News) - Orosur Mining reported solid operational progress across its South American gold projects for the first quarter ended 31 August on Friday, while strengthening its balance sheet with an oversubscribed CAD 20m (£10.71m) fundraise completed after the period.

The AIM- and TSX-V-listed miner said it had formally started a work programme at its Pepas gold prospect within the Anzá project in Colombia, aimed at defining a maiden mineral resource estimate.

It said the decision followed external conceptual studies suggesting the deposit's characteristics and current high gold prices could support nearer-term production potential.

In-fill drilling continued through and beyond the quarter, with an evaluation of production economics to follow once the resource estimate was complete.

Earlier-stage exploration also advanced at the El Cedro prospect, a large gold porphyry system in the southern part of the Anzá project area.

Orosur said its ridge and spur soil sampling programme, previously delayed by heavy rains, had resumed and was now 90% complete.

In Argentina, Orosur confirmed the completion of the first phase of its two-stage joint venture over the El Pantano gold project in Santa Cruz province, earning a 51% interest in the project company Deseado Dorado after investing $1m over three years.

The company said it had now entered the second phase, under which it could acquire full ownership by investing an additional $2m over two years.

A 3,000-metre diamond drilling programme was due to begin shortly following the completion of a geophysical survey.

Meanwhile, Orosur said it would withdraw from its lithium project in Nigeria due to weak market conditions and a focus on core gold assets.

The investment had already been fully impaired as of May.

At the end of August, the company held $3.9m in cash, compared with $4.9m at the end of May.

Including proceeds from the recent placing, completed on 2 October, Orosur said its current cash balance stood at about $17.2m.

The placing raised CAD 20m through the issue of 58.8 million new shares at 34 Canadian cents each, without warrants.

Looking ahead, Orosur said it would continue to focus on advancing its Colombian and Argentine gold assets while evaluating new opportunities in South America.

It said it expected to complete the Pepas resource estimate in the coming months, advance exploration at APTA and El Cedro, and start drilling at El Pantano.

At 1056 BST, Orosur Mining shares were down 3.51% at 22.67p.

Reporting by Josh White for Sharecast.com.