RESOURCES INCREASE AT NEW LIBERTY UPDATE ON COMPLETION OF DFS
May 30, 2012Back
May 30, 2012
Aureus Mining Inc.
TSX : AUE
AIM : AUE
RESOURCES INCREASE AT NEW LIBERTY
UPDATE ON COMPLETION OF DEFINITIVE FEASIBILITY STUDY
Aureus Mining Inc. (TSX: AUE / AIM: AUE) (“Aureus Mining” or the “Company”) is pleased to announce an upgrade to its NI 43-101 compliant Mineral Resource at its 100% owned New Liberty gold project in Liberia (“New Liberty”).
· NI 43-101 compliant Mineral Resource Estimate (“MRE”) has been increased to approximately 1.14 million ounces grading 3.6 g/t in the Measured and Indicated categories and 0.6 million ounces grading 3.2 g/t in the Inferred category
· MRE has increased by 56 koz (5%) in the Measured and Indicated categories and 110 koz (23%) in the Inferred category in comparison to the previous announcement on February 2, 2012. The resource upgrade is based on additional drilling of forty diamond drill holes for 9,143 meters
· New Liberty ore body remains open to the west and at depth (>200m)
· A total of 409 diamond holes and approximately 65,000 meters have now been drilled at New Liberty that were used in the MRE
· The Definitive Feasibility Study (“DFS”) for New Liberty will now be completed in Q3 2012 as a consequence of updating the Mineral Reserve as well as completion of the final comminution metallurgical testwork and associated design and drawing work
Commenting on the updated MRE for Aureus Mining, David Reading, President and Chief Executive Officer of Aureus Mining, said:
“We are very pleased to increase the total Mineral Resources at New Liberty to 1.14 million ounces in Measured and Indicated Resources and 0.6 million ounces in Inferred Resources. As a result of the need to upgrade the reserves and complete the final metallurgical testwork, the Definitive Feasibility Study is now scheduled to be released in Q3 2012. Aureus will continue to define the size of the New Liberty ore body, which remains open at depth and along strike, through drilling one kilometre to the west of the planned open pit area.”
Increased Resource at the New Liberty project
The increased MRE is accretive and updates the estimate announced on February 2, 2012, which was undertaken by AMC Consultants Pty Ltd (“AMC”) in accordance with the requirements of NI 43-101. The MRE incorporates all the results from drilling as at April 4, 2012, being 409 holes for 65,276 meters and was calculated on the basis of a 1.0 g/t cut-off grade.
The total Resource estimate is comprised of 651,000 tonnes grading 4.77 g/t (for 100,000 ounces) in the Measured category, 9,145,000 tonnes grading 3.55 g/t (for 1,043,000 ounces) in the Indicated category, and 5,730,000 tonnes grading 3.2 g/t (for 593,000 ounces) in the Inferred category, as detailed in the table below. The Measured and Indicated Resources are located generally within the first 200 meters below surface. The Inferred Resource remains open at depth.
|Average Gold Grade (g/t)
|Contained Gold (koz)
1. CIM definitions were used for Mineral Resources
2. A cut-off grade 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
Resource estimation parameters
– The estimates of mineral Resources were calculated in accordance with NI 43-101 and carried out by Chris G Arnold BSc (Hons), MSc, MAusIMM (CP) of independent consultants AMC
– At the time of the update, a total of 409 diamond drill holes were available at New Liberty for 65,276 meters, the majority of which have been utilised in the MRE. The drilling has been carried out with holes typically inclined at -60°, resulting in intersection angles generally being 75% of the true width. Down hole surveys have been completed on the majority of the holes, and core recovery averages over 90%
– The MRE has been based on interpretations using integrated geological and grade information recorded from diamond core logging and assaying. The database was subject to a series of standard validation procedures, and approximately 15% of the data was randomly selected for validation against source information
– The interpreted mineralised zones present as strongly planar shapes striking generally slightly south of east and dipping between 60° and 80° to the south. The geological and mineralisation shapes were formed into solid triangulated wireframes, which were filled with model cells based on parent cell XYZ dimensions of 10m x 5m x 10m for more densely drilled areas and 20m x 10m x 20m elsewhere. Cells were permitted to reduce to 5m, 2.5m and 10m in the X, Y and Z dimensions respectively in order to better represent the geometry of the mineralisation. The model was coded to reflect individual mineralised zones, as well as to distinguish between weathered and unweathered material, using an interpreted top-of-fresh surface based on geological logs. A triangulated surface of topography was used to constrain the upper bounds of the model
– Samples were coded by mineralisation zone and weathering in a manner consistent with the cell model. Statistical analysis was conducted on one metre composites within different subsets extracted from the coded sample file (e.g. by mineralisation zone)
– Statistical analysis was used in conjunction with a spatial assessment of high grade samples to determine individual high grade cap values for each mineralised zone, for use during grade estimation. Variographic analysis was conducted on all but one of the mineralised zones
– Gold grade estimation was conducted from one metre composites, using ordinary kriging in those zones for which variogram parameters were generated. For one small zone and the narrow weathered horizon, inverse distance squared weighting was applied
– The Resource model was populated through grade interpolation into parent cells, under hard-bounded zonal control, using mostly 35m x 60m x 10m (strike / dip / cross plane) search ellipsoids, aligned in the local plane orientation of each zone
Quality assurance / quality control (“QA/QC”) and chain of custody
– QA/QC analyses for the period from 2005 to 2011 were undertaken by AMC in preparation for resource estimation. The progressive introduction of QA/QC procedures included the standard implementation of field duplicates (quarter core and crushed), blank samples, standards and laboratory repeats, as well as specific programmes of re-assaying and umpire laboratory assaying
– Diamond drilling at New Liberty was supervised by the Company’s geologists who also conducted and managed the preparation, logging and sampling of core. In recent campaigns, bulk density measurements were taken from a sample in every core tray
– During the sampling, quality control standards and blanks samples were inserted at pre-determined intervals. For all holes drilled since 2009, samples were sent from site directly to the OMAC sample preparation facility in Monrovia. OMAC is accredited by Irish National Accreditation Board to ISO 17025 and fire assay is included in the Schedule of Accreditation
– Pulp weights sent from Liberia for analysis were between 100 and 200g
– Aqua regia digests are analysed for gold using a Varian AA Spectrometer
Definitive Feasibility Study
The upgraded Mineral Resource will now be incorporated into a revised and upgraded Mineral Reserve. As a consequence of updating the Mineral Reserve as well as completion of the final comminution metallurgical testwork and associated design and drawing work, the DFS will now be completed in Q3 2012.
|Aureus Mining Inc.David Reading / Jeremy Cave
Tel: +44(0) 20 7257 2930
|BuchananBobby Morse / Gordon Poole
Tel: +44(0) 20 7466 5000
|RBC Capital Markets (Nominated Adviser and Joint Broker)Martin Eales / Richard Hughes
Tel: +44(0) 20 7653 4000
|GMP Securities Europe LLP (Joint Broker)Richard Greenfield / Alexandra Carse
Tel: +44(0) 20 7647 2800
The estimates of mineral Resources were calculated in accordance with NI 43-101 and carried out by Chris G Arnold BSc (Hons), MSc, MAusIMM (CP) of independent consultants AMC Consultants Pty Ltd. He has also reviewed and approved the contents of this news release, as applicable.
About Aureus Mining
The Company’s assets include the New Liberty gold deposit in Liberia (the “New Liberty Gold Project”), which has an estimated Reserve of 873,000 ounces of gold grading 3.1 g/t and an estimated Measured and Indicated Mineral Resource of 1,143,000 ounces of gold grading 3.6 g/t and an estimated Inferred Mineral Resource of 593,000 ounces of gold grading 3.2 g/t. A technical update for the New Liberty gold project was released in February 2012, derisking and building on the robust PEA, filed in December 2010. The project is expected to have an eight year mine life and annual production of 123,000 ounces for the first four years.
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, Gondoja and Weaju, which are the focus of exploration programs during 2012. The contiguous Archaen Gold exploration licence is also a focus of exploration for 2012, with Leopard Rock being the main target.
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 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.