Orosur mining announces commencement of drilling in Colombia & Q1 2018 results

Monday, October 16, 2017

Press release by

Orosur Mining

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MONTEVIDEO, Uruguay- Orosur Mining Inc. ("Orosur" or the "Company") (TSX/AIM: OMI), a South American-focused gold producer, developer and explorer is pleased to announce the commencement of drilling in Colombia and the results for the first quarter of its fiscal 2018 ended August 31, 2017 ("Q1 18" or the "Quarter").


Colombia Exploration

  • Completed C$4.0 million (US$3.2 million) financing in August 2017 to fund drilling in Colombia
  • Drilling of the planned 15,000m resource definition campaign commenced on October 12, 2017
  • Gold production of 8,626 oz, in Q1 18 at the San Gregorio mine in Uruguay on the higher end of the Company's 30,000 - 35,000 oz guidance for the full year (Q1 17: 9,950 oz)

Q1 2018 Results

  • Cash operating costs of US$901/oz, as expected for a full year guidance of between US$800 to US$900/oz (Q1 17: US$693/oz)
  • All-In-Sustaining costs ("AISC") of US$1,348/oz (Q1 17: US$989/oz) as the Company increased capital expenditures to US$2.9M and exploration to US$1.6M (US$1.9M and $0.5M, respectively, in Q1 17) with objective to increase production and/or mine life in Uruguay
  • Cash generated from operations of US$1.5M (Q1 17: US$4.8M)
  • Total cash balance of US$4.5M at the end of Q1 18

Ignacio Salazar, CEO of Orosur, said: "Q1 18 marks the 20th consecutive quarter of meeting internal production and cash operating cost guidance. We are very pleased with our team's commitment to delivery and optimistic that our recent push in exploration and development activities will shortly begin delivering new reserves and resources. These advances will allow the Company to exploit the potential that exists in both of our core areas, by growing production and mine life in Uruguay and expanding the mineralized potential of our assets in Colombia. We are also excited to announce the recent commencement of drilling at our highly prospective Anza project in Colombia and look forward to updating the market with assay results in the coming months."

Operational & Financial Summary1Quarter ended August 31

Operating Results

Gold producedOunces8,6269,950(1,324)
Operating cash cost3US$/oz901693208
Average price receivedUS$/oz1,2601,324(64)
Financial Results
RevenueUS$ '00011,95112,658(707)
Net profit/(loss) after taxUS$ '000(290)2,759(3,049)
Cash flow from operations2US$ '0001,4544,795(3,341)
Cash & Debt SummaryAugust 31, 2017May 31, 2017Diff
Cash balanceUS$ '0004,5333,3571,176
Total debtUS$ '000330403(73)
Cash net of debtUS$ '0004,2032,9541,249

1 Results are based on IFRS and expressed in US dollars

2 Before non-cash working capital movements

3 Operating cash cost is total cost discounting royalties and capital tax on production assets.

To read the full report click here.