Orosur Mining reports first drilling in Colombia alongside first quarter numbers

Orosur Mining reported on Monday it had met its internal guidance for production and cash operating costs for a 20th consecutive quarter and announced the start of drilling in Colombia.

During the first quarter of 2018 ended August 31, 2017, gold production at the San Gregorio mine in Uruguay was at 8,626 ounces which, the company said, which management said in a statement put it on a path to meet the "higher end" of its 30,000-35,000 oz guidance for the full year.

That compared to 9,950 ounces in the comparable period of the year before, leading to a decline in revenues from $12.7m to $11.95m.

In parallel, the outfit fell into an after tax loss of $290,000, down from $2.76m of profits last year.

All-In-Sustaining costs increased from $989/oz. in the year earlier period to $989/oz., as it increased capital expenditures to $2.9m and exploration to $1.6m, from $1.9m to $0.5m, respectively, during the first quarter of 2017, with the aim of increasing production and mine life in Uruguay.

That said, by the the end of the quarter the company's total cash balance stood at $4.5m, versus $3.34m one year ago as it completed $3.2m worth of financing in order to allow it to fund drilling in Colombia.

Post period-end, on 12 October the AIM-quoted company began drilling a planned 15,000m resource definition campaign in Colombia.

As regards the outlook, Orosur reiterated a forecast for output from San gregorio for between 30,000 and 35,000 ounces in fiscal year 2018 at operating cash costs in a range between $800/oz. and $900/oz..

An update on the first results from drilling at the highly prospective Anza project in the mid-Cauca belt of Colombia was expected during the company's fiscal third quarter, before the end of February 2018.

Commenting on the results, Ignacio Salazar, CEO of the Orosur, said: "As in the past, variations in production and unit costs will occur quarter on quarter as the mine plan draws ore from several sources at varying grades and stages of development or stripping. Still, the Company plans to achieve its production and cost targets over the course of the year."

As of 1426 BST, shares of Orosur were down by 1.56% to 15.75p.