New Exploration License area acquired
September 21, 2011Back
September 21, 2011
Aureus Mining Inc.
TSX : AUE
AIM : AUE
New Exploration License area acquired
Channel sampling highlights eleven metres grading 6.4 g/t gold.
Aureus Mining Inc. (“Aureus” or the “Company”), a West African gold exploration and development company, announces that it has entered into an agreement with Mansion Minerals Limited to purchase all of the shares of Archaen Gold (Liberia) Inc. (“Archaen Gold”), a company holding the exploration rights to a license area covering 89 km2. The Archaen Gold exploration license is contiguous with and immediately south of the Company’s Bea Mountain mining license in Liberia, West Africa. Under the terms of a share purchase agreement the Company has acquired Archaen Gold for a cash consideration of US$60,350 and a 2.5% net profit interest (“NPI”) in relation to any future production.
The Archaen Gold exploration license hosts the south eastern extension to the gold bearing rocks associated with the Ndablama prospect (“Ndablama”). Following the acquisition of this license, Aureus has increased its total holding by almost 20% to 546 km2 in a highly prospective gold belt in Liberia. The location of the Archaen gold exploration license and its proximity with respect to the mining license can be viewed in figure one by visiting the following link:
Reconnaissance sampling has been undertaken at the Leopard Rock target within the Archaen Gold exploration license. Continuous channel sampling of a 300m strike length along a North West trending structure returned the following encouraging intercepts:
Gold mineralization occurs within folded, deformed and metamorphosed ultramafic and mafic rocks along a North West trending shear zone. A series of trenches have been excavated across the mineralized structure and cover a potential mineralized strike length of 600m. Results from the trench sampling are pending. The Company is planning to undertake diamond drilling at the Leopard Rock target during Q4 2011.
The shear structure hosting the Leopard Rock target can be traced in the North West direction for a further three kilometres to Ndablama within Aureus’s Bea Mountain Mining lease. At Ndablama trenching and diamond drilling has outlined three mineralized zones referred to as the North, Central and Eastern zones. The Central zone is the most continuously mineralized zone with trench and diamond drill intercepts of up to 79 metres at 2.2 g/t and 16 metres at 2.4 g/t. A full summary of the all borehole and trench results at Ndablama are given in the Company’s press releases of 19 April 2011 and 12 July 2011. All of these documents are available for review on www.sedar.com or on the Company’s website, www.aureus-mining.com.
Commenting on the acquisition, David Reading, Chief Executive Officer of Aureus said:
“The Company has secured a highly prospective exploration license as part of our strategy to build a large and sustainable gold mining business within the region. The channel sample results again highlight the high grade tenor of the gold bearing systems within this area”.
Share Purchase Agreement
The Archaen Gold exploration license was granted to Archaen Gold (Liberia) Inc. on 29 December 2010 for an initial term of three years and may be extended for an additional term of two years. Prior to the expiry of the extension period, the Archaen Gold license must be converted to a mineral development agreement and a class A mining license in order to undertake mining activities.
The Archaen Gold exploration license is held by Archaen Gold (Liberia) Inc., which was a wholly-owned subsidiary company of Mansion Minerals Limited. Under the terms of the share purchase agreement, Mano Gold (Liberia) Ltd, a wholly-owned subsidiary of Aureus, has purchased all of the shares of Archaen Gold (Liberia) Inc. for a consideration of US$60,350 and the granting of a NPI of 2.5% in relation to any future production from the Archaen Gold exploration licence.
Change of Joint Broker’s Registered Name
Aureus’s Joint Broker, which trades as RBC Capital Markets, has changed its registered name to RBC Europe Limited.
|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
David Reading, the President and CEO of Aureus and a “Qualified Person” in accordance with National Instrument 43-101 (“NI 43-101”), has approved the inclusion in the announcement of the information relating to the Archaen Gold exploration license 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 is located 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 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 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 and its anticipated future growth, mineral resource estimates and the anticipated exploration and development activities of Aureus. The foregoing and any other forward-looking information contained in this press release reflects the current expectations, assumptions or beliefs of Aureus based on information currently available to Aureus. With respect to the forward-looking information contained in this press release, Aureus 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‘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 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 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, 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 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.