Ormonde Mining posts loss as costs rise

IEX-listed exploration group Ormonde Mining widened its losses for the six months ended 30 June 2008, blaming rising costs.

IEX-listed exploration group Ormonde Mining widened its losses for the six months ended 30 June 2008, blaming rising costs.

The company posted a loss of €379,000 for the six-month period, compared to €284,000 a year earlier, citing increased corporate costs associated with managing two advanced-stage assets.

The company said its efforts in the past six months had largely centred on fast-tracking its tungsten exploration at Barruecopardo Tungsten Project and reviewing the La Zarza development options.

"In particular, progress on our Barruecopardo Tungsten Project has greatly exceeded our expectations in terms of both the technical results and the increasing size and economic potential of this project," said chairman of the company Michael Donoghue.

"We will now focus on finalising the technical evaluation to advance the Barruecopardo Project to the permitting and funding stage with a view to development."

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Mr Donoghue said the firm was expecting significant developments in its projects.

"Work for the remainder of 2008 will be directed towards completing the required drilling and mining/processing design at Barruecopardo. In pursuing the further evaluation of La Zarza, we will seek to explore options for project specific funding rather than via shareholder equity dilution.