Orinoco Gold Releases Operations Update For Brazil Site Visit

  • Mar 20, 2019 AEDT
  • Team Kalkine
Orinoco Gold Releases Operations Update For Brazil Site Visit

Orinoco Gold Limited (ASX: OGX), based in West Perth, Australia, is focussed on the exploration and development of gold projects primarily in Brazil. On March 20th, the company released an update to shareholders following a recently completed visit to the Company’s Brazilian gold operations by Executive Director Matthew O’Kane. During the period between February 25th to March 4th, 2019, Mr O’Kane met with key stakeholders, shareholders and suppliers of the Company and spent time in Sao Paolo, Goiania, Goias township and at the Company’s flagship property Cascavel Gold Mine, within the Faina Goldfields project.

At the Cascavel operations, Mr O’Kane was joined by a Brazilian National Geologist, Mr Angelo Scopel, to provide independent reporting and to interact with the Orinoco’s geological team to gain a better understanding of the Cascavel deposit, before going on a tour of the underground operations.

After the completion of the review of the underground operations, the team moved to the processing plant, where the new in-charge of processing operations, an independent metallurgist Mr Rob Riggir, took over the tour. Interestingly for the week of the trip, the plant processed approximately 100 tonnes of ROM a day, at an average head grade of about 4 g/t gold, with recoveries averaging near to 80%.

Besides, Orinoco Gold recently executed an agreement with MEF I, L.P. (Magna) to draw down AUD 250,000 under its existing funding facility. The latest funding tranche, convertible into shares upon the approval of shareholders, will support the progression of the company’s operational and corporate objectives. The most recent agreement follows the withdrawal of another tranche of $ 400,000, under the same facility, back in early February 2019.

The year 2019 has been quite eventful for Orinoco as it recently completed the new sale of 101-ounce gold produced at the Cascavel Gold Mine. The details of the transaction include around 3,127 grams of 100% equivalent gold sold at USD 1300 per ounce resulting in the net proceeds, after commissions and fees, of ~ AUD 173K. Another lot of 109 ounces gold was sold back in February 2019.

The consistent and commercially viable level of production from Cascavel has pushed the company to implement few improvements at Cascavel and reach breakeven operational levels in Brazil in the months ahead. Meanwhile, the negotiations around the exploration joint venture at the Faina Goldfields Project, with AngloGold are underway.

The company closed the quarter ended three months to December 31st, 2018, with a net cash of AUD 111K. The operating activities including payments for exploration, evaluation, commissioning as well as other costs amounted to net cash outflows of AUD 932K which was further intensified by $ 312k of net cash outflows from the financing activities. For the subsequent quarter, the company estimates the net cash outflows to be ~ AUD 1.27 million.

Orinoco Gold has a market cap of AUD 5.69 million with ~ 1.42 billion outstanding shares. At the end of the market trading on March 20th, 2019, the OGX stock price closed at AUD 0.004 with approximately 28.07 million shares traded.


Disclaimer

This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.

 

All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.

 

There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK