The West Perth-based Orinoco Gold Limited (ASX: OGX), together with its subsidiaries, explores and develops gold projects. Its flagship property is the Cascavel gold mine, located within its Faina Goldfields project in the State of GoiÃ¡s, Central Brazil.
On March 18th, the company announced to have completed a new 101-ounce gold sale from the latest production at the Cascavel Gold Mine in Brazil. As per the report, around 3,127 grams of 100% equivalent gold (101 oz) was sold at USD 1300 per ounce on March 15th, 2019. Concludingly, the net proceeds, after commissions and fees, amounted to approximately AUD 173K. The recent transaction follows the sale of 109 ounces in February 2019.
For the latest gold sold on March 15th, it was produced from 1,492 tonnes of mineralised material processed through the Gekko plant on site, with a calculated average recovered grade of 2.1 g/t.
As for the prior gold sale, mineralised material was processed from a run-of-mine from slot raises between the level 7 and level 6 Mestre zones.Â A total of 3,396 grams of 100% equivalent gold (was produced and the price received was USD 1,315.60 per ounce, which resulted in net proceeds, after commissions and fees, of approximately AUD 187K. This also followed a smaller sale of 96 ounces in December 2018.
The consecutive sales encouraged the company and supported their strategy of accomplishing a consistent and more commercially viable level of production from Cascavel in the months ahead. Certain improvements are still being implemented at Cascavel to reach breakeven operational levels in Brazil. Meanwhile, Orinoco Gold is also progressing on the discussions with AngloGold concerning the exploration joint venture at the Faina Goldfields Project.
On February 13th, Orinoco Gold announced significant Board changes whereby Mr Adrian Byass took over as the new Chairman of the company replacing outgoing Chairman Mr Joseph Pinto. In addition, it also entered into a new agreement with Magna for the drawdown of another tranche of $ 400,000 under the existing facility with further withdrawals available upon completion of certain milestones concerning the AngloGold JV.
The companyâs quarterly results for the period ended December 31st, 2018 was released in January 2019. As per the figures posted, there were net cash outflows of AUD 932K from operating activities including payments for evaluation, exploration, development, commissioning as well as corporate and other costs. There were negligible investing activities during the quarter. Besides, the financing activities further added $ 312k to the net cash outflows resulting from transaction costs related to issues of shares and convertible notes and repayment of borrowings AUD 1.65 million). At the end of the period, the net cash and cash equivalents stood at AUD 111K. Going forward, the company estimates net cash outflows of AUD 1.27 million for the current quarter.
OGX has a market cap of AUD 5.69 million. Today, March 19th, 2019, the OGX stock is trading flat at AUD 0.004 (As at 1:05 PM AEST).
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