TIDMASO
RNS Number : 3506D
Avesoro Resources Inc.
09 October 2018
9 October 2018
Avesoro Resources Inc.
TSX: ASO
AIM: ASO
Q3 2018 PRODUCTION UPDATE
RESULTS IN LINE WITH FULL YEAR GUIDANCE
Avesoro Resources Inc., ("Avesoro" or the "Company"), the TSX
and AIM listed West African gold producer, is pleased to announce
its preliminary production results for the quarter ended September
30, 2018 ("Q3" or the "Quarter") from its New Liberty Gold Mine
("New Liberty") in Liberia, and Youga Gold Mine, ("Youga") in
Burkina Faso.
Highlights:
-- Total gold production of 47,177 ounces in the Quarter,
bringing year to date gold production to 175,496 ounces;
-- The Company maintains full year 2018 production guidance of 220,000 -240,000 ounces;
-- Ore mining rates have increased at both New Liberty and Youga
compared with the previous quarter;
-- Total material moved consistent with the previous quarter
notwithstanding Q3 being the peak of the wet season in both Burkina
Faso and Liberia;
-- New Liberty gold production of 27,456 ounces in the Quarter; and
-- Youga gold production of 19,721 ounces in the Quarter.
Serhan Umurhan, Chief Executive Officer of Avesoro, commented:
"I am pleased that the Company has been able to maintain total
material movement throughout the peak of the wet seasons in both
Liberia and Burkina Faso, with Youga, in particular, experiencing
three times more rain this year than during the same period in
2017. Moving into the fourth quarter of the year we expect total
material movement to increase and we maintain our full year
production guidance of 220,000 to 240,000 ounces of gold."
Table 1: Preliminary Group Production Results
Parameter Unit Q3-2018 Q2-2018 Variance Year To
Date
Ore Mined kt 629 596 6% 1,817
-------- -------- -------- --------- --------
Waste Mined kt 9,146 9,242 -1% 25,700
-------- -------- -------- --------- --------
Total Material
Movement kt 9,775 9,838 -1% 27,517
-------- -------- -------- --------- --------
Ore Processed kt 633 659 -4% 1,942
-------- -------- -------- --------- --------
Gold Production Ounces 47,177 60,231 -22% 175,496
-------- -------- -------- --------- --------
New Liberty
Mining operations performed consistently during the Quarter
compared with the previous quarter resulting in total material
movement of 5,634Kt. Process plant throughput for the Quarter
increased by 1% to 354kt, as a result of further incremental
improvements to the process plant flowsheet, resulting in gold
recovery of 90%, an increase of 3% on the previous quarter and gold
production of 27,456 ounces. However, reported gold production in
the Quarter is 8% less than in Q2 2018 due to a change in the gold
in circuit inventory.
Table 2: New Liberty Performance Metrics
Parameter Unit Q3-2018 Q2-2018 Variance Q3-2017 Variance
-------- --------
Ore Mined kt 396 375 6% 247 60%
-------- -------- -------- --------- -------- ---------
Mined Grade g/t 2.86 2.70 6% 2.75 4%
-------- -------- -------- --------- -------- ---------
Waste Mined kt 5,237 5,312 -1% 2,980 76%
-------- -------- -------- --------- -------- ---------
Waste:
Strip Ratio Ore 13.2 14.2 -7% 12.1 10%
-------- -------- -------- --------- -------- ---------
Total Material
Movement kt 5,634 5,688 -1% 3,227 75%
-------- -------- -------- --------- -------- ---------
Ore Processed kt 354 352 1% 254 39%
-------- -------- -------- --------- -------- ---------
Feed Grade g/t 2.82 2.81 0% 2.59 9%
-------- -------- -------- --------- -------- ---------
Recovery % 90 87 3% 91 -1%
-------- -------- -------- --------- -------- ---------
Gold Production Ounces 27,456 29,808 -8% 19,885 38%
-------- -------- -------- --------- -------- ---------
Youga
Total material movement for the Quarter was 4,142kt, in line
with the previous quarter despite the heavy rains experienced
during the Quarter. Gold production in the Quarter was 19,721
ounces, a reduction of 35% on Q2 2018, primarily due to a 23% lower
mined grade due to a focus on the lower grade oxide ore zone at the
Gassore East pit and a reduction in ore tonnes mined from Balogo
which resulted in the plant feed grade being 29% lower than the
previous quarter. Process plant throughput also reduced by 9%
during the Quarter to 279kt due to the impact of the heavy rains
experienced at Youga. Management expect that both plant feed grade
and ore throughput will increase throughout Q4 2018.
Table 3: Youga Performance Metrics
Parameter Unit Q3-2018 Q2-2018 Variance Q3-2017 Variance
Ore Mined(1) kt 233 221 5% 159 47%
-------- -------- -------- --------- -------- ---------
Mined Grade(1) g/t 2.76 3.59 -23% 5.89 -53%
-------- -------- -------- --------- -------- ---------
Waste Mined kt 3,909 3,930 -1% 2,283 71%
-------- -------- -------- --------- -------- ---------
Waste:
Strip Ratio Ore 16.8 17.8 -6% 14.3 17%
-------- -------- -------- --------- -------- ---------
Total Material
Movement kt 4,142 4,150 0% 2,442 70%
-------- -------- -------- --------- -------- ---------
Ore Processed kt 279 307 -9% 277 1%
-------- -------- -------- --------- -------- ---------
Feed Grade g/t 2.44 3.44 -29% 4.79 -49%
-------- -------- -------- --------- -------- ---------
Recovery % 90 90 0% 89 1%
-------- -------- -------- --------- -------- ---------
Gold Production Ounces 19,721 30,423 -35% 38,126 -48%
-------- -------- -------- --------- -------- ---------
(1) Including 44 kt of ore at 4.53 g/t from the Balogo satellite
deposit in Q3 2018 (Q2 2018: 76kt at 4.78/t; Q3 2017: 55 kt at
12.82 g/t).
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
Contact Information
Avesoro Resources Inc.
Geoff Eyre / Nick Smith
Tel: +44(0) 20 3405 9160
Camarco finnCap
(IR / Financial PR) (Nominated Adviser and Joint Broker)
Gordon Poole / Nick Hennis / Christopher Raggett / Scott Mathieson
Monique Perks / Camille Gochez
Tel: +44(0) 20 7220 0500
Tel: +44(0) 20 3757 4980
Berenberg Hannam & Partners (Advisory) LLP
(Joint Broker) (Joint Broker)
Matthew Armitt / Sara MacGrath Rupert Fane / Ingo Hofmaier / Ernest
/ James Brooks Bell
Tel: +44(0) 20 3207 7800
Tel: +44(0) 20 7907 8500
About Avesoro Resources Inc.
Avesoro Resources is a West Africa focused gold producer and
development company that operates two gold mines across West Africa
and is listed on the Toronto Stock Exchange ("TSX") and the AIM
market operated by the London Stock Exchange ("AIM"). The Company's
assets include the New Liberty Gold Mine in Liberia ("New Liberty")
and the Youga Gold Mine in Burkina Faso ("Youga").
New Liberty has an estimated Proven and Probable Mineral Reserve
of 7.4Mt with 717,000 ounces of gold grading 3.03g/t and an
estimated Measured and Indicated Mineral Resource of 11.5Mt with
1,105,000 ounces of gold grading 3.0g/t and an estimated Inferred
Mineral Resource of 3.7Mt with 424,000 ounces of gold grading
3.6g/t. The Company has prepared an NI 43-101 compliant Technical
Report dated November 1, 2017 and entitled "New Liberty Gold Mine,
Bea Mountain Mining Licence Southern Block, Liberia, West Africa"
and is available on SEDAR at www.sedar.com.
Youga has an estimated Proven and Probable Mineral Reserve of
11.2Mt with 660,100 ounces of gold grading 1.84g/t and a combined
estimated Measured and Indicated Mineral Resource of 16.64Mt with
924,200 ounces of gold grading 1.73g/t and an Inferred Mineral
Resource of 13Mt with 685,000 ounces of gold grading 1.70g/t. The
foregoing Mineral Reserve and Mineral Resource estimates and
additional information in connection therewith, prepared in
accordance with CIM guidelines, is set out in an NI 43-101
compliant Technical Report dated July 31, 2018 and entitled
"Mineral Resource and Mineral Reserve Update for the Youga Gold
Mine, Burkina Faso" and is available on SEDAR at www.sedar.com.
For more information, please visit www.avesoro.com
Qualified Persons
The Company's Qualified Person is Mark J. Pryor, who holds a BSc
(Hons) in Geology & Mineralogy from Aberdeen University, United
Kingdom and is a Fellow of the Geological Society of London, a
Fellow of the Society of Economic Geologists and a registered
Professional Natural Scientist (Pr. Sci.Nat) of the South African
Council for Natural Scientific Professions. Mark Pryor is an
independent technical consultant with over 25 years of global
experience in exploration, mining and mine development and is a
"Qualified Person" as defined in National Instrument 43 -101
"Standards of Disclosure for Mineral Projects" of the Canadian
Securities Administrators and has reviewed and approved this press
release. Mr. Pryor has verified the underlying technical data
disclosed in this press release.
Forward Looking Statements
Certain information contained in this press release constitutes
forward looking information or forward-looking statements within
the meaning of applicable securities laws. This information or
statements may relate to future events, facts, or circumstances or
the Company's future financial or operating performance or other
future events or circumstances. All information other than
historical fact is forward looking information and involves known
and unknown risks, uncertainties and other factors which may cause
the actual results or performance to be materially different from
any future results, performance, events or circumstances expressed
or implied by such forward-looking statements or information. Such
statements can be identified by the use of words such as
"anticipate", "plan", "continue", "estimate", "expect", "may",
"will", "would", "project", "should", "believe", "target",
"predict" and "potential". No assurance can be given that this
information will prove to be correct and such forward looking
information included in this press release should not be unduly
relied upon. Forward looking information and statements speak only
as of the date of this press release.
Forward looking statements or information in this press release
include, among other things, statements regarding full year 2018
production guidance of 220,000 to 240,000 ounces of gold.
In making the forward looking information or statements
contained in this press release, assumptions have been made
regarding, among other things: general business, economic and
mining industry conditions; interest rates and foreign exchange
rates; the continuing accuracy of Mineral Resource and Reserve
estimates; geological and metallurgical conditions (including with
respect to the size, grade and recoverability of Mineral Resources
and Reserves) and cost estimates on which the Mineral Resource and
Reserve estimates are based; 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 and that unforeseen
events do not impact the ability of the Company to use existing
funds to fund future plans and projects as currently contemplated;
the stability and predictability of the political environments and
legal and regulatory frameworks including 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; that
contractual counterparties perform as agreed; 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.
Actual results could differ materially from those anticipated in
the forward-looking information or statements contained in this
press release as a result of risks and uncertainties (both foreseen
and unforeseen) and should not be read as guarantees of future
performance or results and will not necessarily be accurate
indicators of whether or not such results will be achieved. These
risks and uncertainties include the risks normally incidental to
exploration and development of mineral projects and the conduct of
mining operations (including exploration failure, cost overruns or
increases, and operational difficulties resulting from plant or
equipment failure, among others); the inability of the Company to
obtain required financing when needed and/or on acceptable terms or
at all; risks related to operating in West Africa, including
potentially more limited infrastructure and/or less developed legal
and regulatory regimes; health risks associated with the mining
workforce in West Africa; risks related to the Company's title to
its mineral properties; the risk of adverse changes in commodity
prices; the risk that the Company's exploration for and development
of mineral deposits may not be successful; the inability of the
Company to obtain, maintain, renew and/or extend required licences,
permits, authorizations and/or approvals from the appropriate
regulatory authorities and other risks relating to the legal and
regulatory frameworks in jurisdictions where the Company operates,
including adverse or arbitrary changes in applicable laws or
regulations or in their enforcement; competitive conditions in the
mineral exploration and mining industry; risks related to obtaining
insurance or adequate levels of insurance for the Company's
operations; that Mineral Resource and Reserve estimates are only
estimates and actual metal produced may be less than estimated in a
Mineral Resource or Reserve estimate; the risk that the Company
will be unable to delineate additional Mineral Resources; risks
related to environmental regulations and cost of compliance, as
well as costs associated with possible breaches of such
regulations; uncertainties in the interpretation of results from
drilling; risks related to the tax residency of the Company; the
possibility that future exploration, development or mining results
will not be consistent with expectations; the risk of delays in
construction resulting from, among others, the failure to obtain
materials in a timely manner or on a delayed schedule; inflation
pressures which may increase the cost of production or of
consumables beyond what is estimated in studies and forecasts;
changes in exchange and interest rates; risks related to the
activities of artisanal miners, whose activities could delay or
hinder exploration or mining operations; the risk that third
parties to contracts may not perform as contracted or may breach
their agreements; the risk that plant, equipment or labour may not
be available at a reasonable cost or at all, or cease to be
available, or in the case of labour, may undertake strike or other
labour actions; the inability to attract and retain key management
and personnel; and the risk of political uncertainty, terrorism,
civil strife, or war in the jurisdictions in which the Company
operates, or in neighbouring jurisdictions which could impact on
the Company's exploration, development and operating
activities.
Although the forward-looking statements contained in this press
release are based upon what management believes are reasonable
assumptions, the Company cannot provide assurance that actual
results or performance will be consistent with these
forward-looking statements. The forward looking information and
statements included in this press release are expressly qualified
by this cautionary statement and are made only as of the date of
this press release. The Company does not undertake any obligation
to publicly update or revise any forward looking information except
as required by applicable securities laws.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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