TIDMASO
RNS Number : 9572R
Avesoro Resources Inc.
06 March 2019
6 March 2019
Avesoro Resources Inc.
TSX: ASO
AIM: ASO
NEW LIBERTY PRE-FEASIBILITY UNDERGROUND STUDY
AND 2019 PRODUCTION GUIDANCE
Avesoro Resources Inc., ("Avesoro" or the "Company"), the TSX
and AIM listed West African gold producer, is pleased to announce
positive results from the Pre-Feasibility Study ("PFS") for its New
Liberty Gold Mine ("New Liberty" or the "Mine") in Liberia,
including an updated Mineral Resource and Mineral Reserve Estimate,
Maiden Mineral Reserves at the Ndablama satellite deposit and an
updated Life of Mine ("LOM") plan, incorporating the transition to
underground mining operations.
The decision to transition to underground mining operations and
undertake an updated PFS at New Liberty reflected the significant
improvement in the level of confidence in the Mineral Resource
following an extensive drilling programme over the last 12 months.
The PFS shows a significant positive impact on the value of New
Liberty and the economics of the Mine.
Pre-Feasibility Study Highlights:
-- Seven year LOM extension to 2029, based on current Proven and
Probable Mineral Reserves, with potential to extend further via the
drilling of prospective satellite prospects across the Company's
1,394km(2) exploration portfolio surrounding New Liberty;
-- Proven and Probable Mineral Reserves increased by 89% to 17Mt
containing 1,355,000 ounces of gold grading 2.49g/t;
o New Liberty Open Pit Mineral Reserves are 4.91Mt containing
494,000 ounces of gold grading 3.12g/t;
o New Liberty Underground Mineral Reserves are 4.66Mt containing
461,000 ounces of gold grading 3.08g/t;
o Ndablama Open Pit Maiden Mineral Reserves are 7.28Mt
containing 400,000 ounces gold grading 1.71g/t;
-- Measured and Indicated Mineral Resource of 20.47Mt containing
1,748,200 ounces of gold grading 2.66g/t;
-- Inferred Mineral Resource of 3.0Mt containing 271,000 ounces of gold grading 2.8g/t;
-- The New Liberty Mineral Resource remains open down dip,
whilst the Ndablama Mineral Resource remains open down dip, as well
as along strike. Additional resource development drilling in these
areas has the potential to increase the resource base and infill
drilling has the potential to convert a further portion of the
existing Inferred Mineral Resources to the Indicated Mineral
Resource category;
-- Total forecast recovered gold of 1,259,446 ounces over LOM;
-- Average forecast annual gold production of approximately
114,500 ounces over an eleven year LOM (2019 to 2029);
-- Total development capital cost of US$35.9 million;
-- Average LOM operating cash costs of US$767 per ounce and all
in sustaining cash costs ("AISC") of US$862 per ounce(1) ; and
-- Post Tax NPV of US$286 million at a 5% discount rate and
US$1,300/oz gold price (after debt repayment and associated finance
charges) and LOM free cash generation of US$370 million(1) .
As part of the PFS, the Company has revised the mining schedule
at New Liberty to take into account the transition of New Liberty
from a solely open-pit operation to a combined open-pit and
underground mining operation. As a consequence, New Liberty is now
entering a period of higher waste stripping to complete the final
open pit pushback and prepare the pit for the development of
underground operations and as a result the AISC for New Liberty
will temporarily increase as the Company undertakes this waste
stripping that will be completed during 2019. The Company has held
discussions with a number of open-pit mining contractors and
received preliminary quotations which could enable the Company to
further lower its open pit mining costs in future years.
Consolidated 2019 Production Guidance:
-- Consolidated 2019 gold production expected to be 210,000 to 230,000 ounces;
-- Consolidated 2019 operating cash costs expected to be US$850 to US$910 per ounce sold(1) ;
-- Consolidated 2019 AISC is expected to be US$1,110 to US$1,190
per ounce sold(1) , which includes higher waste: ore strip ratio of
22:1 and preparation for underground development at New Liberty;
and
-- Consolidated capital expenditure of US$45.1 million, of which
US$43.4 million is sustaining capital investment and US$1.7 million
related to the development of underground operations at New
Liberty.
Serhan Umurhan, Chief Executive Officer of Avesoro, commented:
"Following a successful 2018, we now look to build upon our
position as a multi-asset producer and continue our focus on
delivering further shareholder value. I am very pleased that we
have been able to add substantially to the value of the New Liberty
Gold Mine by increasing the NPV to US$286 million via the addition
of Maiden Mineral Reserves at Ndablama and the planned transition
to underground mining operations at New Liberty. We are also
reviewing the potential for a heap leach operation at Ndabalama
with a view to further optimising the value of the asset.
As part of the plan to unlock the increasing value of New
Liberty as outlined in the PFS, 2019 will see a substantially
higher level of waste stripping and as a result, higher
all-in-sustaining costs. In 2019 we expect production of 210,000 to
230,000 ounces of gold at an operating cash cost of US$850 to
US$910 per ounce sold and all-in sustaining cost of US$1,110 to
US$1,190 per ounce sold.
I also look forward to updating the market during the second
quarter of 2019 about the results of our extensive 2018 exploration
programme in Burkina Faso, which we expect to significantly add to
the Mineral Reserves of the Youga Gold Mine".
2019 Operational Outlook by Asset:
New Liberty Gold Mine, Liberia ("New Liberty")
-- Gold production is expected to be between 100,000 and 110,000
ounces in 2019 compared to production of 109,707 ounces in
2018;
-- Operating cash costs are expected to be between US$870 and US$925 per ounce(1) ;
-- AISC, excluding the cost of capitalised waste stripping, is
expected to be between US$990 and US$1,055 per ounce(1) ;
-- Additionally, the Company expects to incur capitalised waste
stripping costs of US$200 to US$220 per ounce due to higher waste
stripping ratio required to complete the final open pit pushback
and to prepare the pit for the development of underground
operations; and
-- US$31.1 million of sustaining capital expenditure is planned for 2019.
Youga Gold Mine, Burkina Faso ("Youga")
-- Gold production is expected to be between 110,000 and 120,000
ounces in 2019 compared to 2018 production of 110,751 ounces;
-- Operating cash costs are expected to be between US$750 and US$800 per ounce(1) ;
-- AISC is expected to be between US$950 and US$1,015 per ounce(1) ; and
-- US$12.3 million of sustaining capital expenditure is planned for 2019.
Notes:
1. See "Non-GAAP Financial Measures".
Table 1: Summary of Forecast Project Physicals for each Full
Year of Production
Parameter Unit 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 LOM
Total
Mining Physicals
New Liberty Open Pit
Ore Mined kt 1,649.3 1,468.9 1,287.3 511.9 - - - - - - - 4,917.5
------ --------- --------- --------- -------- --------- -------- -------- -------- -------- -------- ------- ----------
ROM Grade g/t 2.53 3.16 3.65 3.63 - - - - - - - 3.12
------ --------- --------- --------- -------- --------- -------- -------- -------- -------- -------- ------- ----------
Waste
Mined kt 33,502.2 33,876.3 22,175.0 38.6 - - - - - - - 89,529.1
------ --------- --------- --------- -------- --------- -------- -------- -------- -------- -------- ------- ----------
Strip
Ratio W:O 18.1 21.1 11.9 0.8 - - - - - - - 16.7
------ --------- --------- --------- -------- --------- -------- -------- -------- -------- -------- ------- ----------
New Liberty Underground
Ore Mined kt - 41.3 233.3 382.4 552.3 579.4 617.8 613.0 605.6 577.2 456.8 4,658.9
------ --------- --------- --------- -------- --------- -------- -------- -------- -------- -------- ------- ----------
ROM Grade g/t - 2.64 3.21 3.34 3.37 2.93 2.97 3.05 2.98 2.86 3.22 3.08
------ --------- --------- --------- -------- --------- -------- -------- -------- -------- -------- ------- ----------
Waste
Mined kt - 119.9 125.7 286.8 208.4 76.8 88.0 2.3
------ --------- --------- --------- -------- --------- -------- -------- -------- -------- -------- ------- ----------
Ndablama Open Pit
Ore Mined Kt - - - 1,123.2 873.8 1,430.4 1,484.3 906.1 1,464.5 - - 7,282.3
------ --------- --------- --------- -------- --------- -------- -------- -------- -------- -------- ------- ----------
ROM Grade g/t - - - 1.60 1.60 1.67 1.81 1.66 1.83 - - 1,71
------ --------- --------- --------- -------- --------- -------- -------- -------- -------- -------- ------- ----------
Waste
Mined kt - - - 8,307.3 15.926.4 9,620.1 8,410.4 7,081.4 1,407.9 - - 50,753.4
------ --------- --------- --------- -------- --------- -------- -------- -------- -------- -------- ------- ----------
Strip
Ratio W:O - - - 4.3 10.0 2.7 6.8 9.2 0.6 - - 4.4
------ --------- --------- --------- -------- --------- -------- -------- -------- -------- -------- ------- ----------
Production
Tonnes
Milled kt 1,576.2 1,453.7 1,602.4 1,794.4 1,800.0 1,800.0 1,800.0 1,800.0 1,800.0 1,185.5 456.8 17,069
------ --------- --------- --------- -------- --------- -------- -------- -------- -------- -------- ------- ----------
Milled
Grade g/t 2.64 3.04 3.00 3.15 2.06 2.13 2.31 2.06 2.31 2.00 3.22 2.49
------ --------- --------- --------- -------- --------- -------- -------- -------- -------- -------- ------- ----------
Recovered
Gold koz 123,600 131,100 142,500 167,600 109,900 113,900 123,500 109,900 123,400 70,300 43,700 1,259,400
------ --------- --------- --------- -------- --------- -------- -------- -------- -------- -------- ------- ----------
Table 2: Key LOM Financials
Parameter Unit LOM Total
Pre-Tax Project NPV(1,3) US$m 411
-------- ----------
Post-Tax Post Debt
NPV(1,2,3) US$m 286
-------- ----------
Free Cash - Life of
Mine (2) US$m 370
-------- ----------
LOM Operating Cash
Cost(3) US$/oz 767
-------- ----------
LOM AISC(3) US$/oz 862
-------- ----------
Notes:
(1) At 5% discount rate and US$1,300/oz
Au price
(2) After tax and all debt repayments
and associated finance costs
(3) See "Non-GAAP Financial Measures"
New Working Capital Facility
The strip ratio at New Liberty began to increase throughout the
fourth quarter of 2018 as utilisation rates of the additional
mining fleet that arrived during the second half of the year began
to ramp up. This had the effect of increasing the Company's working
capital requirements and operating costs at New Liberty during a
period of lower production at both New Liberty and Youga as per the
Q4 and full year 2018 physicals announced on January 17, 2019. In
response to this, the Company drew down US$15m on its existing
working capital facility with its majority shareholder, Avesoro
Jersey Limited ("Avesoro Jersey"), to assist with satisfying a
scheduled repayment due under the Company's Project Finance
Facility (the "Project Finance Facility") with Nedbank Limited and
FirstRand Bank Limited (acting through its Rand Merchant Bank
division) (collectively the "Lenders") at the end of 2018.
The Company also entered into an additional working capital
facility of US$10 million with Avesoro Jersey (the "New Facility")
on March 5, 2019, which it intends to draw down fully during March
2019 with funds available for general working capital purposes. The
New Facility is unsecured, and ranks subordinated to the Company's
existing facilities. Interest will be charged on drawn amounts at a
fixed rate of 8.0 per cent. per annum. The New Facility is due to
repaid in full no later than twelve months following the first
drawdown and has no early repayment penalty. Following full draw
down of the New Facility, the balance of working capital loans
provided by Avesoro Jersey will be US$37.2 million.
Related Party Transaction (AIM Rule 13)
Avesoro Jersey is the Company's majority shareholder (72.9% of
the Company's issued share capital). As a result, entering into the
Facility constitutes a related party transaction under the AIM
Rules as well as under Multilateral Instrument 61-101 ("MI 61-101")
in Canada. The Company is relying on the exemptions available under
sections 5.4(1) and 5.7(f) of MI 61-101 from the formal valuation
and minority shareholder approval requirements. The independent
directors of the Company, consisting of Mr David Netherway, Mr
Jean-Guy Martin and Mr Loudon Owen consider, having consulted with
the Company's Nominated Adviser, that the terms of the transaction
are fair and reasonable insofar as its shareholders are
concerned.
Updated Mineral Resource and Mineral Reserve Estimate
The updated Mineral Resource and Reserve Estimates were produced
by CSA Global (UK) Ltd with an effective date of December 31,
2018.
Table 3: Updated Mineral Resource Estimate, prepared in
accordance with CIM Standards.
Mineral Resource Estimate for the New Liberty Gold Mine, Liberia,
as at December 31, 2018
Deposit Measured Indicated Measured & Indicated Inferred
------------------------ ------------------------- ------------------------- ------------------------
Tonnes Au Au Tonnes Au Au Tonnes Au Au Tonnes Au Au
(Mt) Grade Metal (Mt) Grade Metal (Mt) Grade Metal (Mt) Grade Metal
(g/t) (koz) (g/t) (koz) (g/t) (koz) (g/t) (koz)
------- ------ ------- ------- ------ -------- ------- ------ -------- ------- ------ -------
New Liberty
Open Pit 0.19 1.82 10.9 4.48 3.49 503.0 4.67 3.42 513.9 0.0 1.7 2
------- ------ ------- ------- ------ -------- ------- ------ -------- ------- ------ -------
New Liberty
Underground 0.18 2.85 16.4 5.90 3.32 630.0 6.08 3.30 646.3 2.7 3.0 253
------- ------ ------- ------- ------ -------- ------- ------ -------- ------- ------ -------
Ndablama
Open Pit 9.72 1.88 588.0 9.72 1.88 588.0 0.3 1.6 16
------- ------ ------- ------- ------ -------- ------- ------ -------- ------- ------ -------
Total 0.37 2.32 27.3 20.10 2.66 1,720.9 20.47 2.66 1,748.2 3.0 2.8 271
------- ------ ------- ------- ------ -------- ------- ------ -------- ------- ------ -------
Notes:
1. Reporting cut-off for New Liberty is 0.80 g/t Au for Open Pit
(OP), reported above a surface based on the conceptual shell from
a US$1,300 gold price pit optimisation run to support reasonable
prospects for eventual economic extraction. The New Liberty Underground
Mining (UG) is reported below the US$1,300 conceptual shell, within
conceptual stope volumes based on a US$1,500 gold price optimisation
at 1.90 g/t cut-off, run to support assumptions relating to reasonable
prospects of eventual economic extraction.
2. Reporting cut-off for Ndablama Open Pit (OP) is 0.85 g/t Au, reported
above a surface based on the conceptual shell from a US$1,500 gold
price pit optimisation run to support assumptions relating to reasonable
prospects of eventual economic extraction.
3. The New Liberty Mineral Resource estimate has been depleted for
mining up to December 31, 2018. The effective date of the New Liberty
Mineral Resource is December 31, 2018.
4. The Ndablama Mineral Resource estimate has not been depleted,
since there has been no previous mining. The effective date of the
Ndablama Mineral Resource is November 24, 2018.
5. Figures have been rounded to the appropriate level of precision
for the reporting of Mineral Resources.
6. Due to rounding, some columns or rows may not compute exactly
as shown.
7. The Mineral Resources are stated as in situ dry tonnes. All figures
are in metric tonnes.
8. The Mineral Resource has been classified under the guidelines
of the Canadian Institute of Mining, Metallurgy and Petroleum (CIM)
Standards on Mineral Resources and Reserves, Definitions and Guidelines
prepared by the CIM Standing Committee on Reserve Definitions and
adopted by CIM Council, and procedures for classifying the reported
Mineral Resources were undertaken within the context of the Canadian
Securities Administrators National Instrument 43-101 (NI 43-101).
Table 4: Updated Mineral Reserve Estimate, prepared in
accordance with CIM Standards.
Mineral Reserves Estimate for the New Liberty Gold Mine Liberia, as at December 31, 2018
Deposit Cut-off Proven Probable Total Ore Reserve
Grade
(g/t)
-------- -------------------------- ---------------------------- ----------------------------
Tonnes Au Au Tonnes Au Au Metal Tonnes Au Au Metal
(Mt) Grade Metal (Mt) Grade (koz) (Mt) Grade (koz)
(g/t) (koz) (g/t) (g/t)
-------- ------- ------- -------- ------- -------- --------- ------- -------- ---------
New Liberty Open
Pit 0.80 0.216 1.65 11 4.701 3.19 482 4.917 3.12 494
-------- ------- ------- -------- ------- -------- --------- ------- -------- ---------
New Liberty
Underground 2.00 0.084 3.36 9 4.575 3.07 452 4.659 3.08 461
-------- ------- ------- -------- ------- -------- --------- ------- -------- ---------
Ndablama Open Pit 1.00 0.00 0.00 0.0 7.282 1.71 400 7.282 1.71 400
-------- ------- ------- -------- ------- -------- --------- ------- -------- ---------
Total (Excluding
Stocks) 0.300 2.13 21 16.559 2.51 1,334 16.859 2.50 1,355
-------- ------- ------- -------- ------- -------- --------- ------- -------- ---------
New Liberty ROM
Stockpiles
(LG, MG, HG) 0.210 1.47 10 0.210 1.47 10
-------- ------- ------- -------- ------- -------- --------- ------- -------- ---------
Ndablama ROM
Stockpiles
(LG,MG,HG)
-------- ------- ------- -------- ------- -------- --------- ------- -------- ---------
Total (Including
Stocks) 0.300 2.13 21 16.769 2.49 1,344 17.069 2.49 1,365
-------- ------- ------- -------- ------- -------- --------- ------- -------- ---------
Notes:
1. The Mineral Reserves have been depleted for mining up to December 31, 2018 and stated as
of the same date.
2. Figures have been rounded to the appropriate level of precision for reporting
3. Due to rounding, some columns or rows may not compute exactly as shown
4. The Mineral Reserves are stated as in-situ dry metric tonnes
5. The Mineral Reserves were prepared under the guidelines of the CIM, for reporting under
NI 43-101
6. The Mineral Reserve is reported at a US$ 1,300 / oz gold price
7. Modifying factors applied:
New Liberty Open Pit: mining recovery of 95% and waste dilution of 10% at 0g/t Au.
New Liberty Underground: pillar loss 17%, ore loss 4%, waste dilution 9 %
Ndablama Open Pit: mining recovery of 95% and waste dilution of 5% at 0g/t Au
8. Proven Mineral Reserves were derived from Measured Mineral Resources and Probable Mineral
Reserves from Indicated Mineral Resources
9. There are no known legal, political, environmental, or other risks that could materially
affect the potential Mineral Reserves.
10. The Mineral Reserve has been classified under CIM Standards and reported within the context
of NI 43-101.
Technical Report
The PFS was completed by CSA Global UK Ltd ("CSA") with input
from Avesoro and has an effective date of January 1, 2019. A
supporting Technical Report summarising the PFS, prepared in
accordance with the requirements of National Instrument 43-101 will
be filed on SEDAR at www.sedar.com and on the Company's corporate
website www.avesoro.com within 45 days of the date of this press
release.
Disclosure of Other Related Party Transactions
Further to the Company's announcement dated 9 November 2018, the
Company discloses at this time the following other related party
transactions that it has entered into during the three months ended
December 31, 2018. These transactions do not constitute related
party transactions under rule 13 of the AIM Rules for
Companies.
Drilling services provided to Burkina Mining Company SA ("BMC"),
Netiana Mining Company SA ("NMC"), Eutruscan Resources Burkina Faso
SA ("ERBF") and MNG Gold Burkina SARL ("MNGGB"), all subsidiaries
of the Company, by Faso Drilling Company Sarl. ("Faso")
During Q4 2018, Faso, a wholly owned subsidiary of Avesoro
Jersey Limited, has provided diamond and reverse circulation
drilling services to BMC, NMC, ERBF and MNGGB. These services are
provided on an arms-length basis at a rate of US$41-69 per metre, a
rate significantly more favourable than the Company has previously
been able to obtain from other third-party providers. The total
value of these services provided over Q4 2018 is approximately
US$1.2 million, payable in cash.
Drilling services provided to Bea Mountain Mining Corporation
("BMMC", a subsidiary of the Company) by Zwedru Mining Inc.
("Zwedru")
During Q4 2018, Zwedru, a wholly owned subsidiary of Avesoro
Jersey Limited, has provided diamond and reverse circulation
drilling services to BMMC. These services are provided on an
arms-length basis at a rate of US$40-85 per metre, a rate
significantly more favourable than the Company has previously been
able to obtain from other third-party providers. The total value of
these services provided over Q4 2018 is approximately US$1.1
million, payable in cash.
Charter plane services provided to BMMC by MNG Gold Liberia Inc.
("MNGGL")
During Q4 2018, BMMC has chartered flights from MNGGL, a
subsidiary of Avesoro Jersey Limited. BMMC undertook a benchmarking
exercise and agreed an hourly rate to be paid to MNGGL in respect
of these services and is charged US$3,000 per flying hour. The
total value of these services provided over Q4 2018 is
approximately US$90,000, payable in cash.
Technical and support services provided to MNGGL by Avesoro
Madencilik Hizmetleri A. . ("AMH", a subsidiary of the Company)
During Q4 2018, AMH has provided technical and support services
to MNGGL to support the Kokoya Gold Mine. These services are
recharged to MNGGL at a mark-up of 5.5-13.5% over the cost incurred
by AMH in providing these services. The total value of these
services provided over Q4 2018 is approximately US$138,000, payable
in cash.
Sale of consumables by AMH to MNGGL and Faso Drilling Company
("Faso") and provision of catering services by Burkina Mining
Company ("BMC", a subsidiary of the Company) to Faso
During Q4 2018, AMH has procured on behalf of and sold to MNGGL
and Faso consumables totaling US$1.2 million, payable in cash. The
consumables are charged at a rate of cost plus 4.5%. During Q4 2018
BMC has provided catering services to Faso totaling US$37,000,
payable in cash.
Non-GAAP Financial Measures
The Company has included certain non-GAAP financial measures in
this press release, including operating cash costs, all-in
sustaining costs ("AISC") per ounce of gold sold and net present
value ("NPV"). These non-GAAP financial measures do not have any
standardised meaning. Accordingly, these financial measures are
intended to provide additional information and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with International Financial
Reporting Standards ("IFRS").
Operating cash costs and AISC are a common financial performance
measure in the mining industry but have no standard definition
under IFRS. Operating cash costs are reflective of the cost of
production.
AISC include operating cash costs, net-smelter royalty,
corporate costs, sustaining capital expenditure, sustaining
exploration expenditure and capitalised stripping costs. The
Company reports cash costs on an ounces of gold sold basis.
Other companies may calculate these measures differently and
should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS.
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
/ Camille Gochez
Tel: +44(0) 20 3757 4980 Tel: +44(0) 20 7220 0500
Berenberg Hannam & Partners
(Joint Broker) (Joint Broker)
Matthew Armitt / Detlir Elezi Rupert Fane / Ingo Hofmaier / Ernest
Tel: +44(0) 20 3207 7800 Bell
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 17Mt with 1,365,000 ounces of gold grading 2.49g/t and an
estimated Measured and Indicated Mineral Resource of 20.47Mt with
1,748,200 ounces of gold grading 2.66g/t and an estimated Inferred
Mineral Resource of 3.0Mt with 271,000 ounces of gold grading
2.8g/t. A supporting Technical Report summarising the PFS, prepared
in accordance with the requirements of National Instrument 43-101
will be filed on SEDAR at www.sedar.com and on the Company's
corporate website www.avesoro.com within 45 days of the date of
this press release.
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 information in this press release relating to the Mineral
Resource estimates for the New Liberty Gold Mine and Ndablama Gold
Deposit has been prepared by Dr. Belinda van Lente, who is a
registered Professional Natural Scientist (Pr.Sci.Nat) of the South
African Council for Natural Scientific Professions. Dr. van Lente
is a full-time employee of CSA Global (UK) Ltd and has sufficient
experience which is relevant to the style(s) of mineralisation and
type of deposit(s) under consideration and to the activity which
she has undertaken to qualify as a "Qualified Person" as defined in
National Instrument 43-101 "Standards of Disclosure for Mineral
Projects" of the Canadian Securities Administrators. Dr. van Lente
has reviewed and approved this press release and consents to the
inclusion in the press release of the matters based on her
information, in the form and context in which this appears.
The information in this announcement relating to the open pit
Mineral Reserves for the New Liberty Gold Mine has been prepared by
Dr. Matthew Randall, who is Chartered Engineer and a registered
Member of the Institute of Materials, Minerals and Mining (IMMM) of
the UK. Dr. Matthew Randall is an associate mining engineer of CSA
Global (UK) Ltd and has sufficient experience which is relevant to
the style of mineralisation and type of deposit under consideration
and to the activity which he has undertaken to qualify as a
"Qualified Person" as defined in National Instrument 43-101
"Standards of Disclosure for Mineral Projects" of the Canadian
Securities Administrators. Dr. Matthew Randall has reviewed and
approved this announcement and consents to the inclusion in the
announcement of the matters based on his information, in the form
and context in which this appears.
The information in this press release relating to the
underground Mineral Reserves estimate for the New Liberty Gold Mine
has been prepared by Clive Brown, who is a registered Professional
Engineer (Pr. Eng.) with the Engineering Council of South Africa
and a fellow of the South African Institute of Mining and
Metallurgy. Mr Brown is a director of Bara Consulting and an
associate of CSA Global (UK) Ltd and has sufficient experience
which is relevant to the style of mineralisation and type of
deposit under consideration and to the activity which he has
undertaken to qualify as a "Qualified Person" as defined in
National Instrument 43-101 "Standards of Disclosure for Mineral
Projects" of the Canadian Securities Administrators. Mr Brown has
reviewed and approved this press release and consents to the
inclusion in the press release of the matters based on his
information, in the form and context in which this appears.
The information in this announcement relating to the study for
the New Liberty Gold Mine has been prepared by Andrew Bamber, who
is a registered Professional Engineer (P.Eng.) with the Association
of Professional Engineers and Geoscientists of British Columbia
(APEGBC) and a Member of the Canadian Institute of Mining,
Metallurgy and Petroleum Engineers (CIM). Dr. Bamber is a director
of Bara Consulting Ltd. and an associate of CSA Global (UK) Ltd.,
and has sufficient experience relevant to the type of deposit under
consideration and to the work which he has undertaken to qualify as
a "Qualified Person" as defined in National Instrument 43-101
"Standards of Disclosure for Mineral Projects" of the Canadian
Securities Administrators. Dr. Bamber has reviewed and approved
this press release and consents to the inclusion in the press
release of the matters based on his information, in the form and
context in which this appears.
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 2019 production
of 210,000 to 230,000 ounces of gold and operating cost guidance of
US$850 to US$910 per ounce sold, all-in-sustaining cash costs of
US$1,100 to US$1,190 per ounce sold, as well as project level
guidance of 100,000 and 110,000 ounces at New Liberty and 110,000
and 120,000 ounces at Youga, with operating cash costs at New
Liberty of between US$870 and US$925 per ounce and US$750 and
US$800 per ounce at Youga, and AISC at New Liberty of US$990 and
US$1,055 per ounce and at Youga of US$950 and US$1,015 per
ounce.
As well, all of the results of the PFS constitute
forward-looking information or statements, including statements of
average forecast annual gold production of approximately 114,500
ounces over eleven years (2019 to 2029), total forecast recovered
gold of 1,259,446 ounces, total development capital cost of US$35.9
million, average LOM operating cash costs of US$767per ounce and
AISC of US$862 per ounce, post tax NPV of US$286 million at a 5%
discount rate (after debt repayment and associated finance charges)
and LOM free cash generation of US$370million.
This release also contains references to estimates of Mineral
Resources and Mineral Reserves. The estimation of Mineral Resources
and Mineral Reserves is inherently uncertain and involves
subjective judgments about many relevant factors. Mineral Resources
that are not Mineral Reserves do not have demonstrated economic
viability. The accuracy of any such estimates is a function of the
quantity and quality of available data, and of the assumptions made
and judgments used in engineering and geological interpretation
(including estimated future production, the anticipated tonnages
and grades that will be mined and the estimated level of recovery
that will be realized), which may prove to be unreliable and
depend, to a certain extent, upon the analysis of drilling results
and statistical inferences that may ultimately prove to be
inaccurate. Mineral Resource or Mineral Reserve estimates may have
to be re-estimated based on: (i) fluctuations in the gold price;
(ii) results of drilling, (iii) the results of metallurgical
testing and other studies, including their subsequent refinement
and updating; (iv) proposed mining operations, including dilution;
(v) the evaluation of mine plans subsequent to the date of any
estimates; (vi) changes in mining or other costs, and (vii) the
possible failure to receive required permits, approvals and
licenses or changes to existing mining licences.
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
DRLGMGGFZVDGLZG
(END) Dow Jones Newswires
March 06, 2019 02:02 ET (07:02 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