Orosur reports progress through its second quarter

26th Jan 2024 16:23

(Sharecast News) - Orosur Mining updated the market on its second quarter on Friday, reporting that in Colombia, exploration activities were scaled back as it primarily focussed on regulatory compliance work.

The AIM-traded firm said efforts were made to consolidate smaller licences, as Monte Aguila continued its engagement with local community groups to enhance the social licence for the Anza Project.

In Brazil, Orosur moved to the next phase of its regional stream sediment programme in the Ariquemes district.

However, issues arose around the accuracy and reliability of sampling and assaying of alluvial mineralisation.

The company said it conducted test programmes to address those concerns and ensure the reliability of future results.

In Argentina, sampling and ground magnetic surveys resumed after the winter recess in September, with the goal of completing coverage in priority project areas to define drill targets.

That work was nearing completion, and field teams were set to return in early 2024.

In Uruguay, Orosur's subsidiary Loryser continued its focus on the final stages of the creditors agreement, successfully selling all assets, settling with former employees, and concluding reclamation and remediation of the tailings dam.

The proceeds were being distributed to trade creditors in accordance with the agreement, following court approval.

Finally, in Nigeria, the company signed a joint venture agreement over four licences in the lithium belt.

Orosur's subsidiary Lithium West could earn up to 70% equity in the lithium project in two phases by investing a total of $5m.

Field work began immediately after the signing of the joint venture, with promising results reported at the end of November.

The company also acquired two new exploration licences, increasing its prospective land area to 533 square kilometres.

Since the end of the period, discussions were ongoing with Monte Aguila regarding Orosur's potential acquisition of MMA's interest in the Anza Project in Colombia.

However, the outcome remained uncertain, and negotiations involved exploring various commercial and structuring options.

Financially, as of 30 November, Orosur had a cash balance of $2.1m, down from $3.75m at the end of May.

At its annual general meeting on 19 December, all resolutions were passed by shareholders.

At 1452 GMT, shares in Orosur Mining were down 5.65% at 4.01p.

Reporting by Josh White for Sharecast.com.