Multiple High Grade Intercepts from New Liberty Project – Deposit Open to the East
August 23, 2011Back
August 23, 2011
Aureus Mining Inc.
TSX : AUE
AIM : AUE
Multiple High Grade Intercepts from New Liberty Project – Deposit Open to the East
Aureus Mining Inc. (“Aureus” or the “Company”) announces further positive results from feasibility drilling at the New Liberty gold project within the Company’s 100% owned Bea Mountain Mining License in Liberia.
- Results from the second set of 42 holes (4,663 metres) of the New Liberty feasibility drilling programme returned multiple high grade intercepts which include highlights of:
- – 17.3 g/t over 8 metres
- – 15.9 g/t over 11 metres
- – 7.2 g/t over 11 metres
- – 5.9 g/t over 11 metres
- – 5.6 g/t over 23 metres
- – 5.5 g/t over 17 metres
- – 5.3 g/t over 15 metres
- – 4.9 g/t over 15 metres
- – 4.3 g/t over 10 metres
- – 4.0 g/t over 11 metres
- – 3.5 g/t over 14 metres
- – 3.3 g/t over 15 metres
- – 2.8 g/t over 31 metres
- – 2.3 g/t over 26 metres
- – 2.5 g/t over 24 metres
- Drilling in the eastern end of the deposit area returned an encouraging intercept of 14 metres grading 3.5 g/t in borehole KGD232 and confirmed that the deposit is still open to the east. Ground geophysical surveys in this area confirmed that the typical geophysical signature of the ore zone can be extended beyond the eastern end of the known gold mineralization for at least a further 1,000 metres. This potential eastern extension will be drill tested during September 2011. The deposit also remains open in all other directions.
- The current feasibility drilling programme is designed to estimate the number of ounces that could potentially fall within an open pit covering a strike length of 1.75 kilometres and a depth of 200 metres. These are the approximate dimensions of the open pit design as defined within the Preliminary Economic Assessment (“PEA”), based on the previous resource estimate, and filed by the Company in December 2010. This drill programme is designed to fill in the gaps within the known mineralised ore body and outline potential strike and depth extensions to the previous resource estimate.
- To date the Company has completed 170 holes and over 23,800 metres of the 25,000 metre programme. The remaining infill drilling is expected to be completed by the end of August 2011.
Commenting on the results, David Reading, Chief Executive Officer of Aureus, said:
“We have now received over a third of our assaying results from the New Liberty feasibility drilling programme, with the latest results providing some of the best intercepts in the history of the project. Having drilled over 20,000 metres in only three months, and with the remaining 5,000 metres due to be completed this month, results to date confirm and add to the resource block model stipulated in the original PEA. The early indications from the geophysical work that the ore body is open to the east beyond the original pit design also suggest additional upside to the project. The final results will be included in the Definitive Feasibility Study, which remains on track to be completed by the year end”.
New Liberty Project – further feasibility drilling results highlight excellent grades from 50 to 120 metres vertical depth below surface
The feasibility drilling programme is designed to estimate the quantity of gold resources within the New Liberty deposit down to a depth of 200 metres below surface and over a strike length of 1.75 kilometres. These are the approximate dimensions of the open pit design as defined within the Preliminary Economic Assessment (“PEA”), which was filed on SEDAR in December 2010 and was based on the previous filed resource estimate. New Liberty 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). This NI 43-101 resource estimate was filed on SEDAR in December 2010.
The 42 holes announced in this release cover 4,663 metres of a planned 25,000 metre programme which is designed to fill in the gaps and outline potential extensions to the previous resource wireframe model. To date 95% of the feasibility programme has been completed and covers 170 holes for 23,800 metres of diamond drilling. The company now has four diamond drill rigs on site and is utilising the drilling services of Boart Longyear. The results of the 42 holes are outlined below.
Table 1: New Liberty Diamond drill results
Note: KGD214, 218 219 and 246 were un-mineralised. KGD235 and 238 still have repeat assays pending.
The results to date confirm the tenor of gold mineralisation outlined in the previous resource estimate. These holes are mainly located in the central and western portions of the ore body, cover a strike length of 1,100 metres and have returned intercepts from surface to depths of 120 metres below surface. The programme has been designed to fill in gaps within the present wireframe model as well as look at possible pit extensions at depth and to the east. This drilling is confirming and extending the continuity of the mineralised system and outlines extension of high grades to depth in the Marvoe and Kinjor areas. Intercepts in the Marvoe area also confirm the presence of multiple mineralised zones. Grade variability with the ore body reflects the pinch and swell nature of this shear hosted mineralisation and the steeply dipping plunge of the high grade zones. In all cases the mineralised units are defined by the presence of disseminated sulphides which are hosted in altered and sheared ultramafic rocks.
Diamond drilling on the eastern edge of the proposed PEA open pit design returned very encouraging intercepts of 14 metres at 3.5 g/t and 31 metres at 2.8 g/t (KGD232 and 236) and highlighted that the ore body is still open to the east. Further drilling is planned to extend the mineralised system in this direction.
The location of the drill intercepts in plan and in a longitudinal section as well as representative sections over the 1,100 metre strike length can be viewed in figures one to seven by visiting the following links:
New Liberty Extensions – ground geophysics outlines potential eastern and western extensions
Ground geophysical survey’s involving magnetic and induced polarisation (“IP”) methods have now been completed over the New Liberty deposit as well as potential western and eastern extensions. The survey covers approximately five kilometres of possible strike along an WNW-ESE direction. This work highlights that the ore body has a definite geophysical signature which is defined by high magnetic susceptibility and IP chargeability readings and low IP apparent resistivity readings. The survey highlights a potential western extension of 500 metres and easterly extending zones covering at least 1,000 metres. These target areas will be drill tested once the infill programme has been completed. The ground geophysical survey continues and is testing potential new zones to the south, east and west of the deposit.
A number of additional chargeability targets have been outlined within the western portion of the ore zone and could represent new, potentially mineralised, shear structures. These targets will also require drill testing.
Concurrent with the geophysical work the company is undertaking full soil sample coverage over the same gridded areas and to date a total of 1,389 samples have been collected and sent for analysis with results pending.
The location of the soil and geophysical grids and some diagrams highlighting the potential western and eastern extensions can be viewed on figures eight to eleven within the following links:
Aureus Mining Inc.
David Reading / Jeremy Cave
Tel: +44(0) 20 7257 2930
Bobby Morse / James Strong
Tel: +44(0) 20 7466 5000
Evolution Securities Limited
Nomad: Jeremy Ellis / Neil Elliot
Joint Broker: Tim Redfern
Tel: +44(0) 20 7071 4300
RBC Capital Markets
Martin Eales / Richard Hughes
Tel: +44(0) 20 7653 4000
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. 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.
Assay and sampling information are taken from the Company’s database as prepared on New Liberty site by the project geologists. Drill core is split on site and sent under custody to the Alex Stewart-OMAC sample preparation facility in Monrovia where pulps are prepared and dispatched to the OMAC laboratory in Ireland for analysis by fire assay with an atomic absorption finish.
Quality control and quality assurance procedures include the regular and methodical implementation of field duplicates, blank samples, standards and laboratory repeats as well as regular and specific programmes of re-assaying and umpire laboratory assaying.
About Aureus Mining
The Company’s assets include the New Liberty gold deposit in 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). A preliminary economic assessment (“PEA”) of the New Liberty Gold Project filed in December 2010 outlined a robust open pit gold mine with a pre-tax NPV of US$234 million based on an $1100/oz. gold price and a 10% discount rate. The PEA outlined an 8.5 year mine life with approximate production of 100,000 ounces per year in the first five years. The New Liberty Gold Project is being advanced through to a definitive feasibility study.
The New Liberty Gold Project locates within the Bea Mountain mining license which covers 457 km² and has a 25 year, renewable, mineral development agreement. The Bea Mountain mining license also hosts the proximal gold targets of Ndablama, Weaju, Silver Hills and Gondoja, which are the focus of exploration programs during 2011.
The Company also has gold assets within exploration properties in Sierra Leone and Cameroon.
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 believes, expects or anticipates 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, 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 Preliminary Prospectus of Aureus Mining Inc. dated April 20, 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 disclaims any obligation to update or modify such forward-looking information, either as a result of new information, future events or for any other reason.