Orogen Gold halves 2012 pre-tax loss

Orogen Gold narrowed its pre-tax loss for 2012 as the mining company cut costs and edged ahead in production. The group reported an annual pre-tax loss of £0.65m, down from £1.21m the previous year. Gross profit came to £0.07m compared to nil the prior year. Operating loss after expenses fell to £0.69m, from £1.22m. Its Deli Jovan prospect in Serbia helped drive results with the completion of 55% of its earn-in agreement with Reservoir Minerals. Orogen added to the second phase of the agreement on the gold project and its planned exploration will take its stake up to 75%.The firm said it has significant cash resources to complete the exploration programme at Deli Jovan this year and to finish the recently negotiated acquisition at Mutsk in Armenia.Funding of £1.2m was raised in October through share placing and a further £0.2m was made through issue of equity in December. "2012 saw the company make significant progress towards its target of outlining a preliminary mineral resource at Deli Jovan, during what was universally considered a difficult economic climate for AIM-quoted junior explorers," said Chief Executive Officer Ed Slowey.During the period the company also completed drilling at the Gindusa prospect which confirmed high grade gold values. "The discovery of a new high grade gold zone at Gindusa West and the encouraging down hole intercepts at Gindusa have provided the company with a solid base as it continues its first stage drilling programme across the mine area," Slowey added.RD