RESULTS FOR Q2 2012
August 13, 2012Back
August 13, 2012
Aureus Mining Inc.
TSX : AUE
AIM : AUE
RESULTS FOR Q2 2012
Aureus Mining Inc. (TSX: AUE / AIM: AUE) (“Aureus Mining” or the “Company”) is pleased to announce its unaudited second quarter results for the 3 month period ended June 30, 2012.
Highlights (inclusive of activities since the beginning of 2012):
- Final NI 43-101 Compliant Mineral Resource Estimate (“MRE”) for New Liberty of 1.14Moz at 3.6g/t Measured and Indicated and 0.59Moz at 3.2g/t Inferred resource announced in May 2012, from 65,276m/406 holes drilled
- Resource greatly de-risked with drilling in deposit more than doubled since the December 2010 MRE
- MRE includes 9,143m/40 holes of post-feasibility drilling, filling in gap areas and highlighting the potential for underground mining after the 8-year open pit operation
- NI 43-101 compliant Maiden Reserve delivered in February 2012, defining 873koz at 3.1g/t within an optimised open pit, with a mine life of 8 years and production of over 120kozpa modelled for the first 4 years
- Environmental and Social Impact Assessment (“ESIA”) delivered to the Environmental Protection Agency of Liberia in July 2012, with approval expected in time for the delivery of the Definitive Feasibility Study (“DFS”) in September 2012
- A successful field season focussed on drill testing targets at Leopard Rock, Ndablama and Gondoja, defining and drilling new targets around New Liberty, and the generation of new targets through airborne geophysical surveys and geochemical programmes throughout the whole licence portfolio. Work undertaken this field season includes:
- 18,000m of diamond drilling over 12 targets
- 9,500m of trenching over four targets
- 17.6km2 of ground geophysical studies
- 50km2 of soil geochemistry
- 13km strike gold corridor identified by soil anomalies in the north-west of the large Bea Mountain mining lease and the contiguous Archaen Gold exploration licence, with bedrock mineralisation intercepted at three separate locations: Leopard Rock, Ndablama and Gondoja
- Results released for the entire first phase of drilling at Leopard Rock (27 holes – 4,294m) in June 2012. This drilling combined with trenching has outlined a 1.1km mineralised shear zone open in both directions, with key intercepts of 17.6g/t over 4m, 13.9g/t over 4m and 9.4g/t over 6m
- Second phase of drilling at Ndablama completed in Q2 (21 holes – 2,975m), with results expected in August 2012. Intercepts from previous drilling include 6.0g/t over 8m and 2.9g/t over 14m
- A Second phase of drilling at Gondoja was also completed in Q2 (13 holes – 2,699m), with results expected at the end of Q3 2012. Key intercepts at Gondoja from previous drilling and trenching results include 3.3g/t over 36m, 13.1g/t over 7m and 2.2g/t over 30m. Gondoja is part of a large 8km x 2km series of gold in soil anomalies, with multiple targets, to be drill tested in the next field season
- With legacy mining claims now settled at Weaju and the camp prepared, an extensive 8,500m drilling programme is planned to commence in Q4 2012. Key intercepts from previous drilling include:
- 33.0g/t over 24m
- 19.9g/t over 34m
- 27.7g/t over 6m
- Ten targets identified for follow-up drilling proximal to New Liberty, by geophysical studies. 7,864m drilled at these targets to date
- Magnetic and radiometric airborne survey over entire licence area has defined multiple targets for follow-up exploration work in the next field season
- Key appointment of an experienced General Manager of Construction and Mine Operations in August 2012, as the Company moves into development and production phase at New Liberty
- Settlement of legacy Weaju mining claims in July 2012 paves the way for a next phase of drilling in Q4 2012 on a high grade deposit
- Shareholder rights plan adopted in March 2012
- Cash and cash equivalents of $19.4 million
- Total assets of $79.0million
- The Company remains debt-free
Commenting on the results, David Reading, President and Chief Executive Officer of Aureus Mining, said:
“Aureus Mining has built upon its success since it listed in April 2011. In 2012 we have delivered two resource updates at New Liberty and a maiden reserve estimate, de-risking the project significantly and further enforcing its economic potential and attractiveness for debt financing. We also submitted the ESIA for the development of New Liberty, which was a critical step and well timed, with approval anticipated to take approximately 3 months, and coincide with the delivery of the DFS at the end of Q3 2012. This leaves us well positioned to finance the project and commence construction in Q4 2012.”
“Exploration also continues apace. Since the beginning of the year we have drilled 18,000m between targets around New Liberty, Leopard Rock, Ndablama and Gondoja. We should be able to release the remaining results to the market over the coming months and will plan the next phases of drilling for the start of the next field season in October. A comprehensive drilling programme at Weaju will also start at this time along with follow-up work on various targets that we have identified through the airborne magnetic and radiometric survey. Taken together this exploration work outside New Liberty is very promising and the possibility for an additional mine in the 457km2 mining licence or 89km2 exploration licence looks strong.”
“The strength of Aureus’ business is its project pipeline, starting with New Liberty which is on track to become the key engine to our future growth”.
The full Report and Accounts including the accompanying Management’s Discussion and Analysis are available for review at the Company’s website, www.aureus-mining.com, as well as being available on www.sedar.com, and should be read in conjunction with this press release.
|Aureus Mining Inc.David Reading / Jeremy CaveTel: +44(0) 20 7257 2930
|BuchananBobby Morse / Gordon PooleTel: +44(0) 20 7466 5000|
|RBC Capital Markets (Nominated Adviser and Joint Broker)Martin Eales / Richard HughesTel: +44(0) 20 7653 4000||GMP Securities Europe LLP (Joint Broker)Richard Greenfield / Alexandra CarseTel: +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. The Reserve Study was prepared by Mr M Staples of AMC, a Qualified Person, for the purposes of the study, under the standards set forth by National Instrument 43-101 “Standards of Disclosure for Mineral Project”, of the Canadian Securities Administrators (“NI 43-101”), and he has also reviewed and approved the contents of this news release, as applicabl
About Aureus Mining Inc.
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.