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Full Orosur Mining profile here Orosur Mining Inc. is a gold producer and exploration company focused on identifying and developing gold projects in Latin America. The Company is a fully integrated mining company, possessing the skills necessary to explore and develop its discoveries. 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 Argentina.
Cash costs at the San Gregorio mine in Uruguay are falling South America focused gold miner Orosur Mining (LON:OMI, TSX-V:OMI) moved decisively into profit during the first quarter of the financial year thanks to a sharp rise in the value of the precious metal.
The company, which has operations in Uruguay and Chile, posted net income of US$3.5 million for the three months to August 31 compared with a loss of US$2.16 million a year earlier.
Cash costs from its only gold producing asset – the San Gregorio open pit in Uruguay – fell to US$839 an ounce from US$880, while production was steady at 12,937 ounces.
The average price the company received for its gold production jumped to US$1,216 an ounce from US$912.
Orosur has almost US$11 million of cash – up from US$8.7 million a year ago – which means it has the funds to finance its current exploration programme.
Production costs will tumble significantly once the company brings into production the Arenal Deeps project, adjacent to San Gregorio.
The Arenal Deeps feasibility study, carried out by Amec, is a conservative assessment of the cash costs (US$545 per ounce) and the gold payable (135,000 ounces in total) and doesn’t take account of the silver that will be mined.
However the real excitement is provided by the Chilean properties acquired as part of the Fortune Valley deal.
Chief among them is the Pantanillo project that comprises 11,750 of hectares optioned from Anglo-American.
It is located in the Maricunga Belt, an area rich in gold which is home to 60 million ounces of the metal.
First phase drilling has defined a maiden JORC resource of 1.05 million ounces at Pantanillo Norte, a small part of the total exploration area, and a second phase aims to build on this early impressive progress.
“Right now we have targeted the oxidized and mixed portion of the deposit and have confirmed (a resource of) 1 million.
“(Former owners) Kinross and Anglo were heading for two or three, so we will keep going and our objective of the next drilling campaign is to evaluate the deeper sulphide mineralisation which we believe is a significant exploration target” Ignacio Salazar, the company’s chief financial officer, said in a recent interview with Proactive Investors.
A scoping study on Pantanillo began in June and will be completed by the end of the year.
“The study will look at the project and what we want to get from Pantanillo - whether we will concentrate on the oxide, or go for something bigger,” Salazar said.
A programme due to get underway by the end of the year will look also at other areas on the Pantanillo property.
Orosur has another Chilean project, Anillo, which is next to Yamana’s El Penon gold-silver mine, which produces 400,000 gold equivalent ounces a year.
Outside that, the group is investigating potential high grade porphyry targets at Incahausi in Chile. Meanwhile, earlier this month the exploration “resulted in positive drill intercepts at Vaca Muerta in Uruguay.
“In summary, operations are well on track, exploration has been delivering both in Uruguay and Chile, and financing in the medium term can be covered with cash flow from operations and debt due to the strong gold price and the result of the cost savings efforts,” chief executive David Fowler told investors today.
“Looking forward, drilling will continue in Vaca Muerta, Pantanillo and Anillo and other targets during the fiscal year and the board will within the next month review and decide on Arenal Deeps."
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The junior gold miner hit a new 12-month high on London’s AIM market today. The stock has now doubled in value since the start of September. Orosur has been transformed over the past year, and these latest drill results provide further evidence of its expansion in South America.
Orusur Mining's Uruguay gold production is the cash machine to finance development of the Arenal Deeps and Pantanillo projects. Even after the spectacular performance of late, the stock is trading below the level it was a year ago – yet the company’s prospects have changed beyond recognition.
Engineer AMEC has begun work on a feasibility study that should be complete by the end of September at the latest. Fowler confirms that ‘development of this resource is expected to progressively reduce cash costs and extend mine life’.
Stratex shares have advanced over 40% in recent weeks, and this new farm-out deal with an international mining major is likely to stir up further interest in the AIM-listed gold junior. An AngloGold subsidiary has invested US$500,00o into Stratex and it can earn up to 70% of the Afar project in Ethiopia and Djibouti.
We look at the rapid progress being made by the company at Tulu Kapi, in Ethiopia, which has the capacity to become a world class gold project.
When the movers and shakers of mining and finance meet under one roof it can mean just one thing: the FINEX 2010 conference is about to get into full swing. Here we preview the event, which takes place on October 27 and 28 at the Geological Society, Burlington House, Piccadilly, and pick out some of the highlights.
The gold explorer has been trading strongly as interest surrounding its new Saudi Arabian venture hots up. Unveiling plans for a £625,000 cash call, managing director Jeffrey Rayner also gave a particularly bullish assessment of the company's prospects.
As you will see from our coverage earlier, Pan African is offloading a fringe asset in Ghana. Here we look at the company's transformation from promising junior to cash generating gold producer, which has seen it step up in class.
Cluff Gold's transformation from junior explorer to profitable, cash generating gold producer was underlined by a strong set of interim results today. The update also revealed the company's founder, Algy Cluff, is to relinquish the role of CEO and cede day-to-day control of the business to COO Peter Spivey.
Trading in Solomon Gold (LON:SOLG) reached fever pitch on London’s AIM market after the group revealed its Fauro Island Project has the potential to be a world class deposit.
Solomon Gold topped the London Stock Exchange leaderboard today, with its shares still up 62% at midday after the company announced that assay results from sampling on its wholly owned Fauro Island project indicated a world class gold deposit.
With established expertise in Turkey, and a rapidly growing awareness of both precious and base metals potential in Saudi Arabia, Kefi Minerals are well placed to go places.
The 2010 drilling programme is designed to expand on Olcha's maiden JORC resource and initial results demonstrate the project's significant potential. According to Davy's resource analyst Job Langbroek, the latest grades ‘comfortably achieve commercial status’.
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