Orogen Gold writes off 3.7m pounds on Serbian gold scheme

23rd Apr 2014 15:21

Orogen Gold wrote off 3.7m pounds on a project in Serbia and said challenging markets for junior gold explorers were set to continue in 2014.Orogen, which has the Mutsk gold project in Armenia and 55% of the Deli Jovan scheme in Serbia, made a £4.2m loss in 2013 against a £651,000 loss the year before due to the write-off on the Deli Jovan project.It has an exclusive option to earn-in to an extra 20% interest in Deli Jovan, which it said had exhibited encouraging high grades of gold, although it may need detailed drilling.The company is reviewing the earn-in and a future work programme on the project with partner Reservoir.It said it was focusing on the Mutsk scheme, where drilling had shown substantially higher gold grades than first reported and which had potential to be a large gold deposit.Chairman Adam Reynolds said: "With a challenging market for juniors expected to continue in 2014, it is important for companies to have a flexible approach to the development of their projects."Orogen is very excited about the prospects for the Mutsk gold project and will continue to prioritise its development in the coming months."At 16:10, shares in Orogen had fallen 0.03p or 16.2% to 0.2p.PW