Last checked at 6 Jun 2013 07:00
Orosur Mining Inc. (the "Company") (TSX: OMI) (LSE: OMI) is pleased to announce that production for its financial year ending 31 May 2013 was 64,997 ounces of gold, ahead of the Company’s guidance of 63,000 ounces for the full year announced on 29 April 2013 and in the middle of the initial guidance range of 63,000 to 68,000 ounces for the year provided on June 14, 2012.
The production for the year compares with production of 55,458 oz and 55,817 oz in the previous two years. Stoping commenced at Arenal Deeps at the end of April with tonnes and grade for the stopes mined in May above expectations.
As previously announced, the Company has initiated an operational improvement program focused on cost cutting measures. As a result, the Company has restructured the mining and processing areas as well as its administration and corporate expenditure, reducing employee numbers by around 20%.
Additionally, the Company has elected to reduce the price used to optimise its mine plans from $US1,300 to $US1,100 to safeguard the reserves against unexpected gold price changes. Although that implies a reduction in reserves, as higher cost ounces are removed, the Company is focused on reducing unit cash costs while maintaining a mine plan of approximately 3 years producing 50,000 to 55,000 ounces per year. The operations in Uruguay have maintained a rolling three to five year mine life since inception in 1996.
For the 2013/2014 financial year, near mine and district exploration programs will focus on the definition of new resources and reserves. Production for the 2013/14 financial year is expected to be 50,000 to 55,000 ounces of gold.
Ignacio Salazar, Interim Managing Director of the Company said: “I am delighted that the Company has delivered the production target as originally announced at the beginning of the financial year. Whilst the implementation of cost reductions is always difficult, we are encouraged by operational improvements achieved during the past few months and we believe that the Company is now more resilient to gold price fluctuations. The strong performance of the stoping at Arenal Deeps in May is a particularly encouraging sign for the coming year when Arenal will be the key source of ore for Orosur”.
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.
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: OMI) and London (AIM: OMI).
Copyright Business Wire 2013