News & Analysis

Orosur Mining Inc (OMI: AIM) review and analysis

By PSQ Analytics

OROSUR Mining Inc. (OMI) is a fully integrated gold exploration and production company focused on identifying and developing gold mining projects in Latin America. The company operates the only producing gold mine in Uruguay (San Gregorio) and has assembled an exploration portfolio of high-quality assets in Uruguay, Chile and Argentina.

- San Gregorio Mine Complex: This complex is located in Uruguay’s Isla Cristalina Belt region 400km north of Montevideo and is composed of two main pits (San Gregorio and Arenal) and a gold processing plant. The San Gregorio mine complex is the company’s main gold producing asset and is a mature property. In FY 2009, San Gregorio produced 70,147 oz of gold at a grade of 1.73 g/t. For FY 2010, Orosur projects production of 57,500 oz at a grade of 1.25 g/t.

- Arenal Deeps Project: This is a mine rejuvenation project for the exhausted Arenal pit. Arenal Deeps targets higher grade core to mineralization below/beneath existing pits. Geotechnical studies and resource modeling are underway. A feasibility study is due in calendar 2Q/3Q 2010 and planned production starts in calendar 1Q 2011.

- Fortune Valley Resources: In January 2010, Orosur acquired Fortune Valley, a mining company with assets in Chile and Argentina, in a stock and cash transaction. Fortune Valley shareholders received 0.4534 shares of Orosur plus CAD0.001 in cash for each common share of Fortune Valley.

- Development Projects: With the Fortune Valley acquisition, Orosur broadened its portfolio of mine development projects. The company is focused on two projects in Chile: Pantanillo and Anillo. Pantanillo, located in Chile’s Maricunga Belt, comprises 11,750 hectares optioned from Anglo American. Anillo comprises 30,600 hectares optioned from Codelco, north and east of  Yamana’s El Penon gold and silver mine.