SANTIAGO, Chile -- (Business Wire)
Orosur Mining Inc. (“Orosur” or the “Company”) (TSX/AIM: OMI), a South
America-focused gold producer, developer and explorer, is pleased to
announce an operations and exploration update for its year ending 31 May
2017 (“FY 2017”).
Highlights:
Operations
-
Successfully built and developed the San Gregorio West underground
mine in Uruguay (“SGW UG”) from internal funds
-
FY 2017 production of 35,371 oz (within stated guidance of 35-40 koz)
following a significant increase in production in Q4 (10,748 oz)
-
Operating cash cost guidance of US$800 - 900/oz expected to be
confirmed when full year 2017 results are announced in mid-August
-
Cash balance at the end of May 2017 was US$3.3M (Q3 US$2.4M and FY
2016 US$4.3M) with debt of just US$0.4.
Exploration
-
In Uruguay, the Company is extending its mine life with a particular
focus into the Central and East areas of SG UG. SRK Consulting has
been engaged to prepare a scoping study covering an expanded SG UG
project which will include not only the extensions to Central, East
and Deeps, but also the neighbouring deposits of Veta Sur, Ombú and
Veta A.
-
The deadline for Asset Chile (“AC”) to make its decision to finance
Phase 2 in Anillo (which is strategically located between Yamana`s El
Peñon and Pampa Augusta Victoria) has been extended to December 2017
-
AC is expected to cover Anillo Spa corporate and ongoing costs
until then, which are estimated at approximately US$150k
-
the first US$85k was received from AC on June 14, 2017
-
under the extension agreement, Orosur is now able to have open
discussions with alternative partners to progress Anillo in the
event AC does not elect to fund Phase 2
-
The Company plans to commence a 15,000m - 30,000m drilling campaign in
2017 in Colombia, culminating in the preparation and publishing of a
maiden N.I. 43- 101 compliant resource report for the APTA project.
The Company will update the market once the exploration programme has
been designed and validated, and a drilling contractor engaged. Timing
and scope of the drilling programme will be driven by a combination of
exploration results, funding requirements of the Company and
prevailing equity and gold market conditions.
Ignacio Salazar, CEO of Orosur, commented:
“We are delighted to have delivered in line with production targets
for the fourth consecutive year. Exploration and development work has
been running in parallel with production at SGW UG this year allowing us
not only to open a new underground mine but also to expand it solely
with internal funding from operations. While emphasis on cost
management, operational excellence and delivery remains an overriding
priority for us, we expect our focus on growth to deliver further
results this next fiscal year initially centered on resource definition
in Colombia, tapping the potential of the 100km greenstone belt
controlled by OMI in Uruguay and advancing Anillo in Chile.”
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: general economic, market and business conditions;
international political events; commodity prices; 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 and future events, except to the extent
required by applicable law.
For more information, please visit www.orosur.ca.
The information contained within this announcement is deemed by the
Company to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No. 596/2014. Upon the publication of this
announcement via Regulatory Information Service, this inside information
is now considered to be in the public domain.
About Orosur Mining Inc.
Orosur Mining Inc. is a fully integrated gold producer, developer and
explorer 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 listed in
Canada (TSX: OMI) and London (AIM: OMI).
View source version on businesswire.com: http://www.businesswire.com/news/home/20170619006290/en/
Contacts:
Orosur Mining Inc.
Ignacio Salazar, +1-778-373-0100
Chief
Executive Officer
info@orosur.ca
or
Cantor
Fitzgerald Europe
David Porter / Craig Francis / Philip Davies
Tel:
+44 (0) 20 7894 7000
or
FTI Consulting
Ben
Brewerton / Sara Powell / Emerson Clarke
Tel: +44 (0) 20 3727 1000
Source: Orosur Mining Inc.
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