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 reserve estimate of 8.5 million tonnes grading 3.4 g/t for 924,000 contained ounces of gold in the proven and probable category and a NI 43-101 compliant resource estimate comprised of 9.8 million tonnes grading 3.6 g/t for 1,143,000 ounces in the measured and indicated category and 5.7 million tonnes grading 3.2 g/t for 593,000 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.

 

The discovery and geology of the New Liberty gold deposit

 

The history of the New Liberty deposit can be traced back to the acquisition of an exploration license in 1996. Unfortunately, the project has been hampered by a shortage of funding and the turbulent history related to the Liberian civil war from 2000 to 2005. Good relations with the Ministry of Lands, Mines and Energy of Liberia really helped overcome these obstacles. Stability returned to Liberia from 2006.

 

During 2009 the discovery of the Latiff zone meant that the ore body could be mined over a continuous, 2km strike length. Various starter pits provide greater mining flexibility and a 2km long pit yields over 900Koz in reserves.

 

To advance New Liberty to its current position of an operating gold mine, the completion of the Project DFS and construction required the formation of a dedicated and gold-focused company with access to capital markets. Aureus Mining was formed in 2011 for this purpose and the project moved quickly through the feasibility and construction stages and is now Liberia’s first commercial gold mine, with first gold poured at New Liberty in May 2015.

 

Mineral Resource Estimate (as at 1 October 2012)

 

 

Measured

Indicated

Measured and Indicated

 

Tonnes

Au

Tonnes

Au

Tonnes

Au

Zone

(Kt)

(g/t)

(Koz)

(Kt)

(g/t)

(Koz)

(Kt)

(g/t)

(Koz)

Larjor + Latiff + Kinjor main zone

651

4.77

100

5,468

3.88

683

6,118

3.98

783

Kinjor footwall zone

     

874

2.51

71

874

2.51

71

Marvoe main zone

     

2,317

2.43

181

2,317

2.43

181

Marvoe Western Hanging Wall Zone

     

486

6.93

108

486

6.93

108

Marvoe Central Hanging Wall Zone

                 

Total

651

4.77

100

9,145

3.55

1,043

9,796

3.63

1,143

Notes:

 

  1. Canadian Institute of Mining, Metallurgy and Petroleum (CIM) definitions were used for mineral resources.
  2. A cut-off of 1.0 g/t Au is applied for all zones.
  3. Due to rounding, some columns or rows may not add up exactly to the computed totals.
  4. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Mineral Reserve Estimate (as at 20 May 2013)

 

Reserve Category

Oxide/Fresh

Tonnes (Mt)

Au Grade (g/t)

Au Ounces (koz)

Proven

Oxide

 

Fresh

0.7

4.4

99

Probable

Oxide

0.3

2.3

18

 

Fresh

7.5

3.3

806

Total

Oxide

0.3

2.3

18

 

Fresh

8.2

3.4

905

Grand Total

Mineral Reserves

8.5

3.4

924

Notes:

 

  1. CIM definitions were used for Mineral Reserves.
  2. A cut-off of 0.8 g/t Au is applied for all zones.
  3. Due to rounding, some columns or rows may not add up exactly to the computed totals