FEASIBILITY WORK UPDATE AT NEW LIBERTY
April 19, 2011Back
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April 19, 2011
Aureus Mining Inc.
Feasibility work UPDATE at New liberty
Aureus Mining Inc. (“Aureus” or the “Company”), the TSX (AUE) and AIM (AUE) listed exploration and Development Company focused on gold in sub-Saharan Africa, provides an update on the feasibility work undertaken at the Company’s 100 % owned Bea Mountain Mining licence in Liberia.
- Approximately 4,450 metres of infill drilling complete – a further 15,000m planned
- Detailed geotechnical and metallurgical work in progress
- Definitive feasibility study on track for Q4 2011.
David Reading, President and CEO of Aureus commented:
“Aureus Mining is focused on moving New Liberty towards a definitive feasibility study and ultimately through to production with a minimum target of 100,000 ounces of gold per year. Our commitment to the feasibility and exploration objectives is endorsed by our new contract for diamond drilling programmes.”
Feasibility work commences – Company on track to complete DFS by Q4 2011
Based on a positive Preliminary Economic Assessment completed by the Company in December 2010, the DFS supports an open pit mine and gold processing plant with an average annual production rate of 850,000 tonnes of ore over an 8.5 year production life. In the first 5 years of the project, forecast gold production is expected to average 100,000 ounces per year with total gold production for the project expected to be some 786,700 ounces.
In-fill Drilling Activities
4,450 m of infill diamond core drilling has been completed to the end of Q1, 2011. An additional 15,000m is planned. Additional diamond drill rigs are en-route to the project and all drilling for the DFS is planned to be complete by the end of Q3 2011. The infill diamond drilling operations are being conducted in order to:
- Provide additional geological resource knowledge with particular emphasise being placed on infill drilling of areas identified to add additional resource tonnages within the current defined pit shell
- Obtain metallurgical samples for testing to update the mill comminution and recovery test work previously completed by SGS Lakefield of Canada, and Mintek of South Africa. The work will be aimed at providing final design parameters for the grinding circuit together with investigations to improve recovery performance and optimise reagent additions.
- Complete within the diamond drill programme approximately 8,000m of drilling specifically located for geotechnical and pit definition assessments in order to optimise the planned open pit wall designs in order to minimise all waste mining operations.
Other key DFS Areas
The project environmental and social impact assessment was started by Golders Associates Africa Ltd (GAA) in August 2010 and the study is on track to be completed within the DFS period in 2011. GAA is also engaged in the design aspects of the tailings dam facility of the project feasibility study.
The geotechnical and hydrology test work, and the mine planning and optimisation work for the open pit designs are being conducted by Australian Mining Consultants (UK) Ltd and are planned for completion by the end of Q3 2011. AMC will also, in collaboration with the Aureus Geological team, be responsible for updating a 43-101 compliant resource statement for the DFS on completion of the in fill drilling programme.
The metallurgical test work programmes, process and gold plant design studies will be managed by an appropriate mineral processing contractor. A tender process is being undertaken by the Company at present to select a suitable contractor.
The Company’s Qualified Person responsible for preparing this release 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 and Metallurgy. David Reading is the President and CEO of Aureus Mining Inc. and consents to the inclusion in the announcement of the matters based on their information in the form and context in which it appears and confirms that this information is accurate and not false or misleading.
About Aureus Mining Inc.
Aureus is a TSX and AIM listed gold mining company (AUE). Its assets include the New Liberty gold deposit in western Liberia (the “New Liberty Gold Project”), which has an estimated Indicated Mineral Resource of 751,000 ounces of gold grading 4.17 g/t (contained in 5,599,000 tonnes) and an estimated Inferred Mineral Resource of 762,000 ounces of gold grading 3.40 g/t (contained in 7,040,000 tonnes). The New Liberty Gold Project is being advanced through a bankable feasibility study, and the proximal Ndablama, Weaju, Silver Hills and Gondoja gold projects are all within the Company’s Bea Mountain 25 year renewable Mineral Development Agreement.
In addition, the Aureus Mining has an approximate 14% interest in AIM-listed diamond producer Stellar Diamonds Plc (AIM: STEL, www.stellar-diamonds.com) which is advancing the highly diamondiferous Druzhba kimberlite pipe.
Aureus Mining Inc.
David Reading, CEO
Tel: +44 (0) 20 7257 2930
Evolution Securities Limited RBC Capital Markets
Jeremy Ellis/ Neil Elliot/ Tim Redfern Martin Eales
Tel: +44 (0) 20 7071 4300 Tel: 44 (0)207 653 4000
Buchanan Communications Limited Bobby Morse / Katharine Sutton
Tel: +44 (0) 20 7466 5000
This press release contains certain forward-looking information. All information, other than information regarding historical fact, that addresses activities, events or developments that Aureus Mining believe, expect or anticipate will or may occur in the future is forward-looking information. Forward-looking information contained in this press release includes, but may not be limited to, the future plans and objectives of Aureus Mining and their anticipated future growth, the admission and listing of the common shares of Aureus Mining as set forth above, mineral resource estimates and the anticipated exploration and development activities of Aureus Mining. The foregoing and any other forward-looking information contained in this press release reflects the current expectations, assumptions or beliefs of Aureus Mining based on information currently available to Aureus Mining. With respect to the forward-looking information contained in this press release, Aureus Mining has made assumptions regarding, among other things: general business, economic and mining industry conditions; and it has also been assumed that no material adverse change in the price of precious and/or base metals occurs, no unusual geological or technical problems occur and no significant events occur outside of the normal course of Aureus Mining’s respective business.
Such forward-looking information is subject to a number of risks and uncertainties that may cause actual results or events to differ materially from current expectations, including: risks normally incidental to exploration and development of mineral properties; 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; uncertainty of mineral resources estimates; adverse changes in precious and/or base metal prices; and future unforeseen liabilities and other factors including, but not limited to, those listed under “Risk Factors” in the Information Circular of African Aura dated February 28, 2011, 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.
Any mineral resource 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 Aureus Mining believes that the mineral resource estimates in respect of their respective properties are well established, by their nature mineral resource estimates are imprecise and depend, to a certain extent, upon statistical inferences which may ultimately prove unreliable. If such mineral resource estimates are inaccurate or are reduced in the future, this could have a material adverse impact on Aureus Mining, as applicable. 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.
Forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable law, Aureus Mining disclaim any obligation to update or modify such forward-looking information, either as a result of new information, future events or for any other reason.