Last checked at 15 Jun 2015 07:00
Orosur Mining Inc. (“Orosur” or the “Company”) (TSX: OMI) (AIM: OMI), a South American-focused gold producer, developer and explorer, is pleased to announce strong operating results for its fourth quarter (“Q4”) and for the fiscal year ending 31 May 2015 (“FY15”).
Highlights
FY15 production of 53,485 oz in line with guidance (50,000 - 55,000 oz) FY15 operating cash costs of US$912/oz in line with guidance (US$850 - US$950/oz) Q4 production of 13,187 oz and operating cash costs of US$848/oz FY16 Guidance of 50,000 – 55,000 oz production and US$850 – US$950/oz operating cash cost Internal mine design, engineering and budget work has been completed for San Gregorio West underground Project (“SG Deeps”) SG Deeps has received approval from the Board of Directors to proceed to development and construction, with funding expected to be provided through a mixture of internally generated cash flow and non-dilutive capitalIgnacio Salazar, CEO of Orosur, commented:
“I am pleased that Orosur has delivered on its production and cost guidance for the eighth consecutive quarter; demonstrating additional cost reductions during the fourth quarter. We also continue to deliver on our stated operational and financial goals in a challenging gold environment. During the year, Orosur successfully put several open pits, including Laureles, into production and we have now finalized the engineering and planning work required to proceed with the development of the SG Deeps West project.”
FY15 Performance
FY15 production was comprised of a higher proportion of material produced from open pits than originally planned, resulting in an annual average of approximately 45% from open pits and 55% from Arenal underground. Good performance from several new open pits, including Laureles, has increased the open pit contribution resulting in the Company postponing mining some material from Arenal to the next fiscal year. These endeavours were accomplished through a solid team effort highlighting the high level of operational flexibility Orosur possesses at its operations in Uruguay.
| FY15 Guidance | FY15 Actual | ||||||||||||
| Gold produced | Ounces | 50,000 - 55,000 | 53,485 | ||||||||||
| Cash Operating cost | US$/oz | 850 – 950 | 912 | ||||||||||
SG Deeps Development Decision
Further to the revised SG Deeps resource estimate announced on May 13, 2015, the Company has now completed internal detailed mine designs, engineering and budgeting work to support the development decision to start underground mining, focusing only on the west area of the deposit. The Board has approved the construction, development and the sourcing of additional non-dilutive project funding.
Decisions to potentially develop further extensions to mine the central and eastern areas of the deposit are expected to be considered at a later stage and once the SG Deeps project in the west area has been advanced sufficiently. SG Deeps remains open at depth.
The west 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 duration. The mine design contemplates production rates of 1,000 tpd, using the same stope dimensions at the Arenal Deeps underground mine, and on the basis of the latest geotechnical studies. Sub-Level Stoping (“SLS”) will be the primary mining method employed in the widest and more vertical mineralized structures and a secondary method of Cut-and-Fill (“C&F”) for narrower zones of variable inclination. As in the case of the Arenal mine, SLS stopes will be filled with Cemented Rock Fill (“CRF”) and uncemented waste rock will be used for the C&F chambers. Applications are underway for the approval of the development of an underground mine by the relevant environmental and mining authorities in Uruguay, DINAMA and DINAMIGE, respectively
Orosur has commenced a review and analysis of the options available to the Company to fund, by way of short term non-dilutive non-equity related financing, a portion of the initial pre-production development capital requirement. Several options are being advanced at present and Orosur has no intention to raise funds via an equity issuance for this purpose.
For more information please visit www.orosur.ca.
Forward Looking Statements
This news release contains forward looking information including information as to the completion of the Transaction, funding under the Option, timing of entering into definitive documentation; and future financial or operating performance of the Company. There can be no assurance that such statements will prove to be accurate, such statements are subject to significant risks, uncertainties and other factors and actual results and future events could differ materially from those anticipated in such statements. Such factors include, among others, negotiating definitive documentation, satisfying conditions to closing the proposed Transaction, success of exploration activities; permitting time lines; the failure of plant; equipment or processes to operate as anticipated; accidents; labour disputes; requirements for additional capital, title disputes or claims and limitations on insurance coverage. The Company disclaims any intention or obligation to update or revise any forward looking statements whether as a result of new information, future events and such forward-looking statements, except to the extent required by applicable law.
About Orosur Mining Inc.
Orosur Mining Inc. is a fully integrated gold producer, developer and exploration company focused on identifying and advancing gold projects in South America. The Company operates the only producing gold mine in Uruguay (San Gregorio), and has assembled an exploration portfolio of high quality assets in Uruguay, Chile and Colombia. The Company is quoted in Canada (TSX: OMI) and London (AIM: OMI).
Qualified Person's Statement
The scientific and technical information related to the current assets of Orosur Mining in this press release has been reviewed and approved by Michael Schwabe, an Exploration Consultant who is a Qualified Person under NI 43-101 reporting guidelines. Mr. Schwabe is a graduate in Science, majoring in Geology from the University of Tasmania and is Fellow of the Australian Institute of Mining and Metallurgy, a Senior Fellow of the Society of Economic Geologists and a Professional Member of the Society for Mining, Metallurgy and Exploration. Mr. Schwabe has 47 years of professional experience in the field of mineral exploration, mine development and management.
Orosur Mining Inc.Ignacio Salazar, Chief Executive Officerinfo@orosur.caTel: + 562 2924 6800orCantor Fitzgerald EuropeStewart Dickson / Jeremy StephensonTel: +44 (0) 20 7894 7000orFTI ConsultingBen Brewerton / Oliver Winters / Sara PowellTel: +44 (0) 20 3727 1000
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