Canadian gold junior Orosur Mining (TSX, AIM:OMI) will close its San Gregorio West mine in Uruguay after lower than expected grades at the underground operation lead the company to post pre-tax loss of $27.18-million in the 2018 financial year.
The miner, which has decided to focus on Colombia, said it expected the operation to yield between 2,500 – 3,500 ounces of gold in the next three months, after which it will be placed on care and maintenance.
“All future production shall depend on material developments in the funding and environmental permitting of the Veta A Underground project in Uruguay and the ongoing discussions with the government of Uruguay and other third parties,” it said in the statement.
Orosur is also withdrawing from Chile, where it has already sold its remaining 25% stake in Talca for $120,000 and returned its interest in the Anillo project to state-owned Codelco.
The firm’s main focus is now the Anzá exploration project, in Colombia, for which it is raising finance to fund the next stage of exploration.
“The drilling campaign in Anzá resulted in a number of high grade gold intercepts, providing support for our geological model, as well as materially extending the known extent of mineralization,” chief executive officer Ignacio Salazar said in the statement.
More to come…
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From:: Mining.com