The New Liberty Gold Mine

 

The key asset in Avesoro Resources’ portfolio is the New Liberty Gold Mine, which is Liberia’s First and largest commercial gold mine.

 

Construction at New Liberty commenced in April 2014, with first gold poured from the process plant on 31 May 2015 and gold sales commencing in August 2015. Commercial Production was declared at New Liberty on 1 March 2016.

 

New Liberty is an open-pit mining operation and the process plant has an industry standard flowsheet consisting of a two stage crushing, ore stockpiling, milling and gravity and carbon in leach plant with an annual throughput capacity of 1.1 million tonnes of ore.

 

 

The New Liberty Gold Mine has a NI 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) compliant Proven and Probable Mineral Reserve estimate of 7.4 million tonnes grading 3.03 g/t for 717,000 contained ounces of gold and a NI 43-101 compliant Mineral Resource estimate comprised of 9.6 million tonnes grading 3.2 g/t for 985,000 ounces in the Measured and Indicated category and 6.4 million tonnes grading 3.0 g/t for 620,000 ounces in the Inferred category.

 

Location

 

The New Liberty Gold Mine is located within the Bea-MDA property, in Grand Cape Mount County in the north-western portion of the Republic of Liberia, approximately 100km north-west of the capital, Monrovia.

 

From the capital there is approximately 80km of excellent paved road to the town of Daniels Town and then a small 20km section of laterite road to the Project site. Avesoro Resources has recently upgraded the laterite section of road and installed three new culvert-type bridges to facilitate the transportation of equipment to site. Road access is all year round.

 

Title

 

On July 29, 2009 the Government of Liberia granted a Class A Mining Licence within the Bea Mountain Mineral Development Agreement property. The Bea Mining Licence permits mining within a 478 km2 area which encompasses the New Liberty Gold Mine. The Government of Liberia holds a 10% free carry interest in the Bea Mining Licence.

 

In September 2013 the Government of Liberia ratified a Restated and Amended Mineral Development Agreement for the Bea Mountain Mining Licence covering the 478 km² area which includes the New Liberty Gold Mine along with the Ndablama Project, Silver Hills, Gondoja, the Weaju Project and Leopard Rock exploration targets.

 

2017 Mineral Resource Statement

Updated Mineral Resource Estimate prepared in accordance with CIM Standards

Category

Tonnes

(Mt)

Au Grade

(g/t)

Au Contained

(Koz)

 

In-situ

     

Measured

0.1

3.6

15

Indicated

9.1

3.3

955

Sub-total Measured and Indicated

9.2

3.3

970

Inferred

6.4

3.0

620

Stockpiles

     

Measured

Indicated

0.4

1.1

15

Sub-total Measured and Indicated

0.4

1.1

15

Inferred

Total

     

Total Measured

0.1

3.6

15

Total Indicated

9.5

3.2

970

Total Measured and Indicated

9.6

3.2

985

Total Inferred

6.4

3.0

620

Notes:

1. All figures are rounded to reflect the relative accuracy of the estimate and have been used to derive sub-totals, totals and weighted averages. Such calculations inherently involve a degree of rounding and consequently introduce a margin of error. Where these occur, SRK does not consider them to be material.

2. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.

3. Mineral Resources are reported inclusive of those converted to Mineral Reserves.

4. The effective date is 1 August 2017. The Mineral Resource includes material with potential to be mined by open pit and underground methods. The marginal cut-off grade used for resource reporting is 0.8/t Au for Open Pit and 2.0g/t Au for Underground Mining.

5. Of the total Indicated Mineral Resource, some 0.6Mt at 3.3g/t and containing some 65koz is considered to have potential to be mined underground with the balance having potential to be mined by open pit.

6. Of the total Inferred Mineral Resource, some 2.8Mt at 3.3g/t and containing some 295koz is considered to have potential to be mined underground, with the balance having potential to be mined by open pit.

 

Updated 2017 Mineral Reserve Estimate prepared in accordance with CIM Standards

Category

Tonnes

Au Grade

Au Contained

 

(Mt)

(g/t)

(koz)

Proven

     

In-Pit

0.2

3.03

15

Probable

     

In-Pit

7.0

3.09

690

Stockpiles

0.2

1.40

11

Sub-Total Probable

7.2

3.03

701

Total Proven & Probable

7.4

3.03

717

Notes:

1. Effective date August 1, 2017

2. Cut-off grade of 0.85g/t Au applied

3. Includes ore loss and dilution as reported from a regularised block model at 5 m x 2.5 m x 5 m, which has an average ore loss and dilution of 3.3% and 13.5%, respectively.

4. Gold price US$1,300/oz

5. Life of mine operating costs of US$1.85/t ex-pit, US$20/t processed, US$7/t G&A, royalty 3% gross revenue, freight and refining costs US$3.5/oz

6. Life of mine processing recovery 92.2%