TIDMAUE
RNS Number : 7765M
Aureus Mining Inc.
22 January 2016
22 January 2016
Aureus Mining Inc.
TSX : AUE
AIM : AUE
NEW LIBERTY GOLD MINE: OPERATIONAL UPDATE
Aureus Mining Inc., ("Aureus" or the "Company"), the TSX and AIM
listed West African Gold Producer, provides the following
operational update for the New Liberty Gold Mine ("New Liberty" or
"Mine") in Liberia.
Summary
-- Comminution circuit (consisting of the primary and secondary
crushers and ball mill) now operating at design throughput
capacity;
-- Ongoing optimisation programme to focus on improving the
performance of the gravity and Carbon in Leach ("CIL") circuits to
achieve production performance in accordance with design
specifications;
-- Issues experienced during the final phase of commissioning in
the gravity and CIL circuits have affected plant recoveries
resulting in reduced gold sales;
-- Gold production achieved during 2015 was 17,172 ounces,
against a target of 27,000 ounces, and 3,663 ounces of gold have
been produced to date in 2016;
-- The Company has entered into discussions with its banks to
obtain a deferral of the first bullet repayment, scheduled for 31
January 2016.
Operations Update and Commercial Production
Since the resumption of processing operations at New Liberty on
30 October 2015, over the last 81 days the ball mill has been
operating at an average of 82% of its designed capacity, including
planned downtime for ongoing optimisation. The criteria for the
declaration of Commercial Production, which has previously been
communicated to the market, has been reached, however, Aureus has
experienced issues during the final phase of commissioning in the
gravity and CIL circuits of the plant, affecting plant recoveries
and resulting in an impact on cash flow and therefore does not feel
it is prudent to officially declare commercial production at this
point.
The Company continues to focus on fine-tuning and improving the
operational performance of the gravity circuit and further
optimising CIL leach kinetics, with various options being evaluated
and systematically implemented in order to improve overall plant
performance to within design specifications.
It is anticipated that plant performance will improve to design
levels by the end of Q1 2016, when the Company intends to declare
full commercial production at New Liberty once the entire process
plant is operating at full design capacity and in a manner
consistent with management expectations.
Production Update
Mining operations at New Liberty are progressing, with fresh ore
run of mine ("ROM") stockpiles currently standing at 83,509 tonnes
at a grade of 2.78 g/t and oxide and transitional stockpiles of
75,248 tonnes at a grade of 1.35 g/t. To date, the New Liberty
process plant has processed 386,262 tonnes of ROM fresh sulphide
ore and lower grade oxide material resulting in 19 shipments of
gold doré from New Liberty for smelting and refining at the MKS
PAMP refinery in Switzerland, totalling 20,835 ounces of gold. The
average achieved price for gold sold is US$ 1,113 per ounce.
Gold production achieved for the calendar year 2015 was 17,172
ounces, against a target of 27,000 ounces, and 3,663 ounces of gold
have been produced to date in 2016, with production since
mid-December hampered by issues experienced during the final phases
of plant commissioning. Performance from the gravity circuit of the
plant has not yet reached design specifications, resulting in
overall gold recoveries of approximately 70% throughout December
2015 and early January 2016. The Company has implemented various
initiatives to address these issues - there has recently been a
subsequent improvement in the performance of the CIL circuit, with
further improvements expected over the coming weeks.
Updated Mine Plan
Several Life of Mine ("LoM") options for New Liberty are
currently being evaluated by the Company to align production to the
current gold price environment. It is anticipated that this review
process will be completed by the end of February 2016, upon which
time further updates will be communicated.
Bank Debt Repayment Being Rescheduled
Following discussions with FirstRand Bank Limited, acting
through its Rand Merchant Bank division ("RMB"), Nedbank Limited
("Nedbank") and the Export Credit Insurance Corporation of South
Africa Limited ("ECIC"), (collectively, the "Lenders"), who are
progressing through their credit approval process to obtain
approval for a deferral of the first debt repayment (which is
scheduled for 31 January 2016) and thereafter will work with the
Company to agree upon an appropriate debt repayment schedule in
conjunction with the Updated Mine Plan.
The Company has sought Lenders approval for deferral of the
first debt repayment as it currently has insufficient cash
resources available to pay both the first debt repayment and
continue to make payments to suppliers as they fall due. It is
anticipated that revenue generated from future gold production
should ensure that suppliers continue to be paid and operations can
continue at New Liberty.
Appointment of Financial Advisor
Aureus is finalising the appointment of a Financial Advisor to
conduct a strategic review to assess potential options that may be
available to Aureus.
Commenting, David Reading, President and Chief Executive Officer
of Aureus Mining, said:
"The commissioning phase of New Liberty has brought some
unexpected challenges, however, the recent progress being made and
improved performance of the process plant are encouraging. I am
confident that the various process improvements that our
experienced operations team are systematically implementing will
continue to improve the overall plant performance towards design
specifications.
"We look forward to receiving the final approvals from Nedbank,
RMB and the ECIC and would like to thank them for their continuing
support and we look forward to agreeing a new repayment schedule in
due course."
Contact Information
Aureus Mining Inc. Buchanan
David Reading / Paul Thomson Bobby Morse / Anna Michniewicz
Tel: +44(0) 20 7010 7690 Tel: +44(0) 20 7466 5000
Numis Securities Limited
(Nominated Adviser)
John Prior / James Black
/ Paul Gillam
Tel: +44(0) 20 7260 1000
About Aureus Mining Inc.
The Company's assets include the New Liberty Gold Mine in
Liberia (the "New Liberty Gold Mine," "New Liberty" or the "mine")
which has an estimated proven and probable mineral reserve of 8.5
Mt with 924,000 ounces of gold grading 3.4 g/t and an estimated
measured and indicated mineral resource of 9,796 Kt with 1,143,000
ounces of gold grading 3.63 g/t and an estimated inferred mineral
resource of 5,730 Kt with 593,000 ounces of gold grading 3.2 g/t. A
Definitive Feasibility Study ("DFS") has been completed, the first
gold pour has taken place and work continues on commissioning the
plant for full scale commercial production. The mine is expected to
have an 8 year life and annual production of 119,000 ounces for the
first 6 years of production. The foregoing mineral reserve and
mineral resource estimates and additional information in connection
therewith are set out in the Company's technical report dated March
25, 2015 and entitled "New Liberty Gold Project, Bea Mountain
Mining Licence Southern Block, Liberia, West Africa, Definitive
Project Plan."
The New Liberty Gold Mine is located within the Southern Block
of the 100% owned Bea Mountain mining licence. This licence covers
478 km(2) and has a 25 year, renewable, mineral development
agreement. The Bea Mountain mining license also hosts additional
gold projects of Ndablama, Gondoja, Weaju and Leopard Rock which
are the focus of exploration programs during 2016. Ndablama has an
indicated mineral resource of 386,000 ounces of gold grading 1.6
g/t and inferred mineral resource of 515,000 ounces of gold grading
1.7 g/t and Weaju has an inferred mineral resource of 178,000
ounces of gold grading 2.1 g/t. The Yambesei (759 km(2) ), Archaen
West (112.6 km(2) ), Mabong (36.6 km(2) ) and Mafa West (15.6 km(2)
) licences will also be subject to preliminary reconnaissance
geological work. The foregoing mineral resource estimates and
additional information in connection therewith are set out in the
Company's technical report dated December 1, 2014 and entitled
"Ndablama and Weaju Gold Projects, Bea Mountain Mining Licence,
Northern Block, Technical Report on Mineral Resources" ("Ndablama
and Weaju Technical Report 2014").
The Company also has a gold exploration permit in Cameroon.
Qualified Persons
The Company's Qualified Person is David Reading, who holds a MSc
in Economic Geology from University of Waterloo, Canada and is a
Fellow of the Institute of Materials, Minerals and Mining. David
Reading is the President and CEO of Aureus Mining Inc. and has
reviewed and approves this press release.
Forward Looking Statements
Certain information in this news release relating to Aureus is
forward-looking and related to anticipated events and strategies.
When used in this context, words such as "will", "anticipate",
"believe", "plan", "intend", "target" and "expect" or similar words
suggest future outcomes. Forward-looking information contained in
this press release includes, but may not be limited to, statements
or information relating to: the New Liberty Gold Project (including
the quantity and quality of mineral resource and mineral reserve
estimates), the potential to upgrade inferred mineral resources,
opportunities to optimize the New Liberty Gold Project, the ability
of the Company to develop the New Liberty Gold Project into a mine
and the proposed new plans relating thereto regarding operations
and mine design, future gold production, and future cash flows, the
expected mine life of the New Liberty Gold Project, progress in the
fight against Ebola and the anticipated exploration and development
activities of Aureus. By their nature, such statements are subject
to significant risks and uncertainties that may cause actual
results or events to differ
January 22, 2016 10:45 ET (15:45 GMT)
materially from current expectations, including: risks normally
incidental to exploration and development of mineral properties;
the inability of the Company to obtain required financing when
needed and/or on acceptable terms or at all; risks that the cost of
implementing the new mine plan at the New Liberty Gold Project and
the operating cash costs of the New liberty Gold Project exceed
those estimated in the new mine plan; uncertainties in the
interpretation of results from drilling and test work; the
possibility that future exploration, development or mining results
will not be consistent with expectations; regulatory and government
decisions; the possibility that future drawdowns under the loan
facilities may not be available; construction of the New Liberty
Gold Project being delayed and/ or over budget; economic
conditions; availability and cost of financing; estimates of
capital and operating costs and start-up costs; plans regarding
construction activities; risks related to the Ebola crisis; and
future unforeseen liabilities and other factors including, but not
limited to, those listed under "Risk Factors" in the Company's
Annual Information Form dated March 26, 2015, a copy of which is
available on SEDAR at www.sedar.com, and in the Aureus Mining
Admission Document, a copy of which is available at
www.aureus-mining.com. Readers are cautioned not to place undue
reliance on forward-looking information as actual results could
differ materially from the plans, expectations, estimates or
intentions expressed in the forward-looking information.
Forward-looking information speaks only as of the date on which it
is made and, except as may be required by applicable law, Aureus
disclaims any obligation to update or modify such forward-looking
information, either as a result of new information, future events
or for any other reason.
With respect to forward looking information contained in this
news release, assumptions have been made regarding, among other
things: general business, economic and mining industry conditions;
interest rates and foreign exchange rates; mineral resource and
mineral reserve estimates; geological and metallurgical assumptions
(including with respect to the size, grade and recoverability of
mineral resources and mineral reserves) and cost estimates on which
the mineral resource and mineral reserve estimates are based; the
parameters and assumptions employed in the New Liberty Technical
Report, (including but not limited to, those relating to
construction, future mining and operating costs, processing and
recovery rates, net present values and internal rates of return,
timing for the commencement of production, tax and royalty rates,
future gold prices, metallurgical rates, pit design, operations and
management, grades, the base case analysis and the proposed budget
for further exploration plans and objectives); the supply and
demand for commodities and precious and base metals and the level
and volatility of the prices of gold; market competition; the
ability of the Company to raise sufficient funds from capital
markets and/or debt to meet its future obligations and planned
activities; the business of the Company including the continued
exploration of its properties; the political environments and legal
and regulatory frameworks in Liberia and Cameroon with respect to,
among other things, the ability of the Company to obtain, maintain,
renew and/or extend required permits, licences, authorizations
and/or approvals from the appropriate regulatory authorities and
the ability of the Company to continue to obtain qualified staff
and equipment in a timely and cost-efficient manner to meet its
demand. Assumptions used in the preparation of such information,
although considered reasonable by Aureus at the time of
preparation, may prove to be incorrect.
Any mineral resource and mineral reserve figures referred to in
this press release are estimates and no assurances can be given
that the indicated levels of minerals will be produced. Such
estimates are expressions of judgment based on knowledge, mining
experience, analysis of drilling results and industry practices.
Valid estimates made at a given time may significantly change when
new information becomes available. While the Company believes that
the mineral resource and mineral reserve estimates in respect of
its properties are well established, by their nature mineral
resource and mineral reserve estimates are imprecise and depend, to
a certain extent, upon statistical inferences which may ultimately
prove unreliable. If such mineral resource and mineral reserve
estimates are inaccurate or are reduced in the future, this could
have a material adverse impact on the Company. Due to the
uncertainty that may be attached to inferred mineral resources, it
cannot be assumed that all or any part of an inferred mineral
resource will be upgraded to an indicated or measured mineral
resource as a result of continued exploration. Mineral resources
that are not mineral reserves do not have demonstrated economic
viability.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCEASFAAAEKEFF
(END) Dow Jones Newswires
January 22, 2016 10:45 ET (15:45 GMT)
Avesoro Resources (LSE:ASO)
Historical Stock Chart
From Apr 2024 to May 2024
Avesoro Resources (LSE:ASO)
Historical Stock Chart
From May 2023 to May 2024