ENP Newswire -
Release date- 19082014 -
Gold production of 60,271 oz ahead of upgraded guidance (55,000 - 60,000 oz).
Cash operating costs reduced by 28% to
All-In-Sustaining costs reduced by 34% to
Average gold price received of
Net Profit after tax of
Cash Flow from operations increased by 13% to
Net cash increased by
The San Gregorio-Arenal trend in
Exploration models have been advanced in
'Whilst implementing numerous programmes to improve operations during a year of significant change for Orosur, we successfully executed the exploration and development work necessary to extend San Gregorio's mine-life and grow our reserve base. Guided by disciplined capital investment evaluations, progress has been made at delineating the Arenal-San Gregorio mineralized corridor in
'After financing all our growth programs internally, Orosur still improved its net cash position by
Chief Executive Officer
Tel: + 562 2924 6800
Tel: +44 (0) 20 3727 1000
FY2014 & Q4 Production and Cash Costs
The constant emphasis on cost control adopted since
Cash operating costs for the year were
FY 2015 Outlook & Guidance
The Company's forecast production guidance for FY 2015 is between 50,000 to 55,000 ounces of gold at operating cash costs of between
The Company's 2015 guidance is in line with the original guidance adopted in FY 2014, which were upgraded and beat, however the Company considers it prudent to maintain similar targets, as external factors are expected to contribute to cost appreciation and lower production grades are anticipated in the mining plan for the year. The United States Dollar: Uruguayan Peso exchange rate has remained relatively stable over the last several years despite the varying inflation rates between these two currencies.
While this exchange rate is not sustainable in the long run and the Company is expected to get the benefit of the depreciation of the Peso at some stage, this has not been included in the current plan. Having said this, the Company expects to maintain the level of savings achieved since 2013 and plans to continue its operational improvement program focused on sustainable cost cutting measures and driving ongoing operational efficiencies.
As in the past, variations in production and unit costs will occur quarter on quarter as the mine plan draws ore from several Arenal stopes with different grades, positions and sizes, changing the level of access required as well as the addition of ore from several open pits at varying grades and stages of stripping.
The Company plans to achieve its production and cost targets over the course of the year and is expecting higher unit cash costs in the first half of the year compared to the second half based on the current planned mining sequence.
FY 2014 Financial Summary
FY 2014 cash flow generated from operations before working capital was
FY 2014 Corporate expenses were
FY 2014 profit after tax was
Orosur's cash position as at
During the year, the Company has been systematically identifying new gold resources, and converting them to reserves. As a result, the Company has created a portfolio of projects to develop around San Gregorio which have extended its life of mine. The Company's objective remains to sustainably carry out sufficient exploration to maintain a four-to-six year rolling reserve, as it has done for many years now.
As previously announced, the Company successfully added 40,000 oz of gold reserves from pillar-less mining using Cemented Rock Fill at the
In addition, on the basis of historical drilling since 2006 and following a 4,886m exploration drilling campaign in Q4, the Company has successfully added an additional 11,000 oz of gold reserves in the Laureles open pit and 27,000 oz of resources (note that all resources are stated inclusive of reserves).
The cost of the drilling campaign is equivalent to
The recent 2,504 m brownfield exploration drilling campaign in Arenal Deeps, below and along strike of the Arenal Deeps underground mine was conducted from underground platforms and targeting three different zones with potential mineralization, in close proximity to the current underground operations. As a result, Orosur has added 18,000 oz of resources and 15,000 oz of reserves.
Additional exploration, targeting mineralization further along strike as well as at depth is planned to continue in FY 2015 at Arenal, with 2,300m of drilling focused on four additional blocks aimed to add similar geological resources to those added in the FY 2014 campaign. In total, the Company added 75,000 oz of reserves to its main projects during FY 2014, thereby extending the minelife at San Gregorio to approximately 4 years.
Uruguay Development Projects
In additional to the brownfield exploration and development work in the above-mentioned open pits and at Arenal, the Company is carrying out modelling and engineering work on the San Gregorio deposit, aimed at delineating a significant geological resource adjacent to the existing open pit as well as evaluation an underground project at Veta A.
The current potential of the underground project at Veta A Deeps was calculated using a cut-off of 1.71 g/t Au with a total of 138 kt @ 2.55 g/t Au for total resources of approximately 11,000 oz. Management believes that there is ample room for adding reserves to these projects and is evaluating potential synergies and optimal sequencing of these two projects as they are located within 1 km of each other.
Uruguay Greenfield Exploration
The Company's exploratory efforts during Q4 continued to focus primarily on the high grade granulite basement and specifically on the corridor of the Santa Teresa,
This zone was delineated in 2014 within an approximate 200m wide corridor and along an extension of approximately 10 km. Six initial targets have been defined on this highly prospective potential belt and a program of 2,000m of DDH drilling, planned as a first pass campaign, started during Q4 and continues at present. Additionally, in the
Mineralization is hosted in irregular, pod like bodies that require a more robust geophysical analysis as well as further drilling to delineate. The recently acquired L-500 diamond rig is operational and supporting all surface exploration drilling. The incorporation of this drill rig is not only providing flexibility but also reducing the Company's drilling costs.
At Anillo, the Company completed a structural interpretation study by
The acquisition of
There are several targets in Anza at different stages of development. In FY 2015, Orosur is planning to review and advance the technical evaluation of the various options in Anza to plan and define the upcoming round of drilling in
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 (
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 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, future events and such forward-looking statements, except to the extent required by applicable law.
Hispanic #1 Breaking News for Entrepreneurs, Professionals and Small Business Owners - HispanicBusiness.com
OCTOBER 30, 2014
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