Geophysical work highlights potential extensions to the New Liberty deposit
October 25, 2011Back
October 25, 2011
Aureus Mining Inc.
TSX : AUE
AIM : AUE
Geophysical work highlights potential extensions to the New Liberty deposit
Aureus Mining Inc. (“Aureus” or the “Company”) the West African gold exploration and development company, is pleased to announce that its geophysical exploration programme has outlined potential extensions to the New Liberty deposit (“New Liberty”). New Liberty is located within the Company’s 100% owned Bea Mountain Mining Licence in Liberia.
-Induced polarization (“IP”) and magnetic surveys completed over the New Liberty deposit and surrounding areas demonstrate that the mineralisation has a distinctive geophysical signature which can be mapped for follow-up exploration.
-A potential eastern extension to New Liberty has been outlined by magnetic and metal factor anomalies which define a corridor traceable for 2.5km due east of the last drill intersection of 14m at 3.5 g/t gold (KGD 232).
-A drilling programme designed to extend the known gold mineralisation eastwards for a further 2.5km is currently in progress with 15 holes totalling 3,000m completed to date. A further 40 holes totalling 5,000m is planned over the next month. Assay results for completed holes are still pending and expected in Q4 2011.
-A review of historical, high resolution aeromagnetic survey data outlines a magnetic anomaly that is analogous to New Liberty, which is located 1km to the south west of the known deposit. This area is currently the subject of follow up IP surveys in order to define new drilling targets.
Commenting on the results, David Reading, Chief Executive Officer of Aureus, said:
“The use of IP as an exploration tool for New Liberty style gold-sulphide mineralisation has been highly effective in terrain with limited surface exposure. It is encouraging that the New Liberty ore body may be further extended along strike to the east and the west. Our exploration drilling programmes are now focused on defining extensions to New Liberty and drill testing other analogous geophysical targets, as well as other advanced targets within the mining lease area”.
New Liberty gold-sulphide mineralisation has a distinctive geophysical signature
The Company has undertaken ground geophysical surveys, including IP and ground magnetic measurements, over New Liberty and the surrounding areas. The surveys cover an area of over 5km2 and incorporate a potential eastern extension of 2.5km and a potential western extension of 1km to New Liberty. Survey work involved coverage over a total of 67 line kilometres and was undertaken by Fugro Ground Geophysics on behalf of the Company. A three dimensional IP survey was undertaken in the west and a gradient array IP survey in the east. In addition to the gridded methods over 16km of dipole-dipole IP lines were completed to aid with the positioning of exploration drill holes. All of the gridded areas were covered with a ground magnetic survey and soil samples were taken. Results are still pending for the soil sampling work.
Processing and interpretation of the IP data demonstrates a distinctive geophysical signature to the New Liberty deposit, with a strong correlation between gold plus sulphide mineralisation and zones of high chargeability and low resistivity. Integration of chargeability and resistivity data resulted in the development of metal factor anomalies which define areas with a higher percentage of sulphides. This work has outlined the presence of a metal factor / low-resistivity corridor which can be traced continuously eastwards and westwards from the New Liberty deposit. The magnetic data has also assisted in defining the geological picture as there is a strong correlation between the Magnetite-bearing, Ultramafic rocks that host the gold-sulphide mineralisation and an east-west trending magnetic anomaly.
The geophysical maps of the New Liberty area demonstrate an east-to-west trending metal factor / resistivity-low corridor which can be traced for a distance of over 5km and incorporate the New Liberty deposit and potential eastern and western extensions. Follow-up drilling has commenced over the eastern corridor from known gold-sulphide mineralisation in drill hole KGD 232 (grading 14m at 3.5 g/t) eastwards for a further 600m. To date 15 holes totalling 3,000m have been completed and results are pending. A further 40 holes totalling 5,000m is planned during Q4 2011 to test an additional 2km of potential strike extension.
Reprocessing of a high resolution aeromagnetic survey covering the New Liberty area has outlined a distinctive magnetic signature for the deposit which appears to be repeated 1km south-west of the gold deposit. The analogous magnetic anomaly has similar dimensions to New Liberty. This new target area is the subject of follow-up IP work in order to define further targets for drill testing.
The results of the ground and airborne geophysical work can be viewed in figures one to five by visiting 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.
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.