LONDON (ShareCast) - Orogen Gold narrowed its pre-tax loss for 2012 as the mining company cut costs and edged ahead in production.

The group reported an annual pre-tax loss of £0.65m, down from £1.21m the previous year.

Gross profit came to £0.07m compared to nil the prior year. Operating loss after expenses fell to £0.69m, from £1.22m.

Its Deli Jovan prospect in Serbia helped drive results with the completion of 55% of its earn-in agreement with Reservoir Minerals.

Orogen added to the second phase of the agreement on the gold project and its planned exploration will take its stake up to 75%.

The firm said it has significant cash resources to complete the exploration programme at Deli Jovan this year and to finish the recently negotiated acquisition at Mutsk in Armenia.

Funding of £1.2m was raised in October through share placing and a further £0.2m was made through issue of equity in December.

"2012 saw the company make significant progress towards its target of outlining a preliminary mineral resource at Deli Jovan, during what was universally considered a difficult economic climate for AIM-quoted junior explorers," said Chief Executive Officer Ed Slowey.

During the period the company also completed drilling at the Gindusa prospect which confirmed high grade gold values.

"The discovery of a new high grade gold zone at Gindusa West and the encouraging down hole intercepts at Gindusa have provided the company with a solid base as it continues its first stage drilling programme across the mine area,” Slowey added.

RD

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