Last checked at 21 Mar 2011 07:00
Orosur Mining Inc. ('OMI' or 'the Company') (TSX-V: OMI) (AIM: OMI), a South American-focused gold producer and explorer, announces that the environmental and mining permits have been granted for the development of the Arenal Deeps project as well as for the second tailings storage facility and that the first blast was successfully completed on Friday March 18th.
Highlights
Environmental and Mining Permits granted allowing development work to commence on the Arenal Deeps Project. Development contractor (Redpath) already on site and started work on the mine portal. Mining equipment, including the first jumbo and scoop, necessary to commence development work is on site and has been commissioned. Permits also granted to commence construction of the second tailings storage facility at OMI's San Gregorio operation. First Blast took place on March 18th and development has commenced.David Fowler, CEO of the Company commented: "We are making good progress in Arenal Deeps with the contractor mobilized, the main equipment necessary to commence development commissioned, permits granted and the first blast completed. The permit to commence construction of the second tailings storage facility, which is critical to extending operations at San Gregorio, has also been received. Last week we announced that a line of credit of $US 5.5 million had been obtained from HSBC Bank. Overall, the Company has financially and operationally positioned itself well to make a success of Arenal Deeps.
"The Arenal Deeps project is an important step for the Company in our objective to extend the San Gregorio operation's mine life at annual production levels of approximately 55,000 to 60,000 ounces of gold and achieve lower cash costs in two to three years. The development of Arenal Deeps as our first underground operation is expected to open up other underground mining opportunities at San Gregorio. We plan to conduct further infill and extension drilling at Argentinita and San Gregorio and complete pre feasibility studies in the coming year to target the definition of additional underground reserves."
Background
The Company submitted a request for an environmental permit for the Arenal Deeps project on April 30, 2010. DINAMA (Uruguayan Environmental Department) and DINAMIGE (Uruguayan Mines Department) have given the approvals to commence development at the project. An additional permit will be required from DINAMIGE to commence ore mining from stopes. This is expected to be received in due course to allow production to commence as scheduled.
The development work at Arenal Deeps consists of executing approximately 2 km of decline, 8 km of lateral development and stope preparation and is expected to be completed in approximately 30 months. Ore mining will be performed by Orosur and expected to be commenced concurrently with development starting during the 4th calendar quarter of 2011.
A permit was also granted to allow the Company to commence construction of its second tailings storage facility, which is adjacent to and an extension of the existing facility and will have a total nominal capacity of approximately 8 Million tonnes of tailings. This approval followed a rigid permitting process, which involved a public hearing conducted in the local community. Final permits will be required before the end of 2011 to allow the new facility to operate. With the appropriate permit, the Company has already successfully commenced the phased closure of the existing facility.
Forward-Looking Statements
All statements, other than statements of historical fact, contained or incorporated by reference in this news release, including any information as to the future financial or operating performance of the Company, constitute "forward-looking statements" within the meaning of certain securities laws, including the "safe harbour" provisions of the Securities Act (Ontario) and the United States Private Securities Litigation Reform Act of 1995 and are based on expectations estimates and projections as of the date of this news release. There can be no assurance that such statements will prove to be accurate; such statements are subject to significant risks and uncertainties, and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements include, without limitation 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.
ENDS
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
About Orosur Mining Inc.
Orosur Mining Inc. is a fully integrated gold producer and exploration company focused on identifying and developing gold projects in Latin 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 and Chile. The Company is quoted in Canada (TSX-Venture Exchange: OMI) and London (AIM: OMI).
Orosur Mining IncDavid Fowler, CEO + 598 2601 6354Ignacio Salazar, CFO + 598 2601 6354info@orosur.caorMatrix Corporate Capital LLP (Nominated Adviser & Broker)Louis Castro, +44 (0) 203 206 7209Tim Graham, +44 (0) 203 206 7206orBlythe Weigh Communications (Public Relations and Investor Relations)Tim Blythe: +44 (0) 7816 924626Ana Ribeiro: +44 (0) 7980 321505Matthew Neal: +44 (0) 7917 800011
Copyright Business Wire 2011