Last checked at 19 Sep 2014 07:00
Orosur Mining Inc. (the “Company”) (TSX: OMI) (AIM: OMI), a South American-focused gold producer, developer and explorer, is pleased to announce operating results for its first quarter ended August 31, 2014.
Production and cash operating costs for the quarter ended August 31, 2014 (“Q1 2015”) are in line with the Company’s mine plan and previously stated guidance.
Highlights
Gold production of 13,684 oz, in line with the top end of annual guidance (50,000–55,000 oz) Cash operating costs of US$945/oz, compared with US$755/oz in the quarter ended August 31, 2013| First quarter ended August 31, | ||||||||
| 2014 (Actual) | 2014 (Guidance) | 2013 (Actual) | ||||||
| Gold Produced | Ounces | 13,684 | 12,500–13,750 | 16,851 | ||||
| Cash Operating Costs | US$/oz | $945 | $850–$950 | $754 | ||||
As advised in its fiscal 2014 year-end results announced on August 18, 2014, Orosur expected higher unit costs in Q1 2015, and for this trend to continue into the second quarter. During Q1 2015, in accordance with the mine plan, work at Arenal Deeps focused on room and pillar mining (instead of transverse stoping) which entails operating at smaller, lower grade stopes, grading on average approximately 1.68 g/t. The Company expects similar results in the second quarter, after which a return to higher grade, larger transverse stopes in the second half of fiscal 2015 is expected to reduce cash operating costs.
Having reduced costs by approximately 30% in 2013, Orosur continues to focus on cost reduction initiatives, including optimizing corporate and operational teams, geological modelling, mine planning, and fleet use.
Ignacio Salazar, CEO of Orosur, said:
“Orosur is pleased to have once again delivered quarterly results in line with its guidance. As stated in our full year results, costs during the first half of the 2015 fiscal year are expected to be on the higher end of, or exceed, our annual guidance, in large part due to planned lower grade ore from room and pillar mining at Arenal Deeps.
“We expect costs to drop in the second half of the year as we return to transverse stoping and mining of higher grade ore.
“The current gold price environment is not strong; however, the operational improvements implemented over the past 18 months have positioned the Company to continue to generate positive cash flow whilst also advancing exploration and development efforts across our portfolio of South American assets.”
About Orosur Mining Inc.
Orosur Mining Inc. is a fully integrated gold producer and exploration company focused on identifying and developing 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).
For more information please visit www.orosur.ca
Orosur Mining IncIgnacio Salazar, + 562 2924 6800Chief Executive Officerinfo@orosur.caorCantor Fitzgerald EuropeStewart Dickson / Jeremy Stephenson / Carrie LunTel: +44 (0) 20 7894 7000orFTI ConsultingBen Brewerton / Oliver Winters / Sara PowellTel: +44 (0) 20 3727 1000
Copyright Business Wire 2014