(MENAFN- ProactiveInvestors - N.America) Uruguay-based Orosur Mining Inc's (LON:OMI CVE:OMI) switch to underground production at its San Gregorio mine has gone smoothly so far, the junior reported.
Ignacio Salazar, Orosur's chief executive, said first production from the underground stopes was recorded on 24 November, which was on time and within budget.
A higher received gold price also allowed Orosur to post net profits for the three months to November of US$942,000 versus an US$870,000 loss a year earlier.
For the half year, net profits came in at US$3.7mln from a US$2.6mln deficit the last time.
Production in the second quarter totalled 6,852 ounces (8,172) as the company cut back ahead of the move deeper at San Gregorio.
Costs were also higher due to the switch underground at US$914 an oz (US$858) due to shifting staff and equipment over.
But that was planned said Salazar and overall operations were healthy with US$7mln of cash also generated in the first half.
'The successful transition to San Gregorio UG as the Company's primary source of ore feed to the plant in Uruguay, was a significant achievement for Orosur,' he added.
Guidance for the full year remains in a range of 35,000 to 40,000 oz of gold at operating cash costs of between $800 - $900/oz.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.