WEAJU DELIVERS HIGH GRADE INTERCEPTS FROM FIRST DRILLING PHASE
March 12, 2013Back
12 March 2013
Aureus Mining Inc.
TSX : AUE
AIM : AUE
WEAJU DELIVERS HIGH GRADE INTERCEPTS FROM FIRST DRILLING PHASE
Aureus Mining Inc. (TSX: AUE / AIM: AUE) (“Aureus Mining” or the “Company”) is pleased to announce the first results from a sixty two hole diamond drilling programme at the Weaju gold target. Weaju is located within the Company’s, 100% owned, Bea Mountain Mining licence in Liberia, and is situated approximately 30 km north-east of Aureus’s flagship New Liberty Gold project.
- Results have been received from 47 diamond drill holes (6,143m) which form part of a 62 hole (9,000m) programme designed to test grade and geological continuity of a mineralised system at the Weaju gold target
- Results, which are mainly from shallow intercepts, include:
- 10.0 g/t over 7.5m from 0.2m
- 6.6 g/t over 9.0m from 114.4m
- 4.6 g/t over 11.3m from 13.9m
- 2.5 g/t over 19.0m from 24.0m
- 3.7 g/t over 11.0m from 36.0m
- 5.5 g/t over 6.6m from 12.9m
- 3.8 g/t over 9.0m from 78.0m
- 3.2 g/t over 9.0m from 180.0m
- 4.7 g/t over 5.9m from surface
- 5.1 g/t over 4.4m from 7.2m
- 4.4 g/t over 5.0m from 79.8m
- The geological setting at Weaju is very similar to New Liberty
- Current and historical drilling has outlined the potential for approximately one kilometre of gold mineralisation, which is open in all directions
- Main and Ridge zones have a potential strike length of 600m
- North zone has a potential strike length of 400m
- Strong SW directed plunge of 45 degrees to the mineralisation, controlling the orientation of the high grade pay-shoots
- Potential to increase total strike to 2km by extensions indicated by detailed soil surveying. Pitting and trenching underway to define targets for drill testing in this additional strike length
- Assay results for the remaining 15 holes of the 9,000m programme are expected in April. These results cover the area between the Ridge and Main zones and the deeper extensions of the North zone and the Creek zone
- Resource potential and phase 2 drilling to be assessed once all results have been received. Metallurgical sampling is currently in progress
Commenting on the Weaju results, David Reading, President and Chief Executive Officer of Aureus Mining, said:
“The Weaju drilling and soil sampling results highlight the potential for a large mineralized system covering a two kilometre strike length. Drilling results to date are very positive and include a number of high grade, near surface intercepts. Further work is required to define the potential size, grade and geometry of this deposit. The possibility of a standalone mine or trucking high grade material from Weaju to New Liberty will be investigated.”
Diamond drilling programmes at Weaju have outlined mineralised zones with a cumulative strike potential of one kilometre
The Weaju gold target is located under 30km NE of the New Liberty Gold deposit within the Company’s Bea Mountain Mining License of 457 km2. Previously 48 diamond drill holes were drilled at Weaju by former license holder Mano River during the period 2000 to 2005. Weaju has been subjected to intense artisanal mining activity and in July 2012 the Company announced the settlement of a legacy mining claims issue with a local Liberian company, Weaju Hill Mining Corporation. In November 2012 the Company commenced exploration activities at Weaju involving a LIDAR survey, geological mapping, soil geochemistry for gold and a diamond drilling programme. At the end of February 2013 the Company had completed a phase one drilling programme of 62 holes for approximately 9,000m. To date, results have been received for 47 holes from this programme.
The geology at the Weaju target consists of a sequence of Ultramafic and Mafic rocks which have been intruded by various generations of Granite and Pegmatite. This package of rocks has been subjected to shearing and folding which led to the gold mineralisation event. Gold is associated with disseminated sulphides and intense hydrothermal alteration involving silicification and the introduction of Phlogopite and Sericite. The structure, alteration and mineralisation at Weaju are very similar in style to that developed at New Liberty which is located less than 30km to the SW, suggesting that both deposits are genetically related.
The gold mineralisation occurs on both north and south limbs of an asymmetrical synform (North and Main Zones) and within the fold closure (Creek and Ridge Zones). The North zone dips steeply at 70 degrees to the S-SW and the Main zone dips steeply at 60 degrees to the N-NW. The phase one exploration drilling programme at Weaju was designed to confirm the geological model developed from the historical drilling and to test the continuity of mineralisation in the four zones.
Drilling has outlined multiple gold intercepts within the four zones and all results from the first forty seven holes are presented in table one below:
Table 1: Weaju Drill Hole Results
The following highlights are noted from the drilling results:
- Comprehensive QA and QC procedures and protocols were undertaken on all sampling and assaying. Due to the presence of both coarse and fine gold a proportion of the drill samples were prepared and re-analysed using screen fire assay and gravimetric finish. The correlation between standard fire assay methods and screened methods was good and confirmed the efficacy of the standard fire assay method for this material and the accuracy and repeatability of the results.
- Shallow drilling within the oxide zones often encountered difficult ground conditions and high water inflows which resulted in significant core losses. Approximately 1000 metres of drilling covering the oxide zones of fourteen holes will be repeated in the near future with more advanced drilling technology to ensure better recoveries.
- Overall the drilling results confirm the presence of the North, Main and Ridge zones and suggest a potential cumulative strike of mineralised rock of over one kilometre.
- The North zone has been defined with an east to west strike continuity of 400 metres and has been drilled down to a depth of 150 metres. It is still open in all directions. Gold intercepts vary in width from 1 to 18 metres and many holes have multiple intercepts. Higher grade zones are controlled by a 45 degree plunge to the SW. Results are still pending from five diamond holes drilled to test depth extensions in the North Zone.
- Drilling in the Main zone highlights a complex geometry controlled by tight folding which plunges to the west. Mineralized bodies can be traced over a NE-SW strike of 200 metres and widths of between 1 and 19 metres.
- The best Main zone grades locate within the shallow oxidized horizon and further drilling is required to trace the higher grade shoots at depth as structural studies indicate that mineralisation plunges to the west and therefore down dip extensions must take cognisance of this structural control.
- The Ridge zone has a strike continuity of some 150 metres in a NE-SW direction and can be traced down to 80 metres vertical depth. Results are still pending for three holes from this zone.
- Results from holes WJD0083 to 85 suggest the Main zone can be linked to the Ridge zone and this would outline a total potential mineralised strike length of some 600 metres from the northernmost Ridge zone to the southernmost Main zone intersections. Results are still pending for three diamond holes drilled within the gap area between the Main and Ridge zones.
- The Creek zone is still poorly understood in terms of geology and grade geometry and results of three holes are still pending from this area.
- Some very high historical grades were encountered in shallow oxide material for six of the first fourteen historical holes drilled into the Main and North Zones in 2000 by Mano River Resources (WJD0001 returned 24m grading 33.0 g/t, WJD0002 returned 22 metres at 4.5 g/t, WJD0005 returned 34 metres at 19.9 g/t, WJD0007 returned 4 metres at 15.1 g/t, WJD0009 returned 18 metres at 4.5 g/t and WJD0013 returned 12 metres at 10 g/t). Due to extensive pitting and excavating undertaken by artisanal miners since that time a portion of this shallow material has been removed. The exact location of these holes is therefore not known but, where possible, approximate positions have been identified and twin drilling has outlined the same mineralised intervals in holes WJD0049, WJD0081 and WJD0054. Grade differences are attributed to either loss from artisanal mining of a portion of the material or core loss from the current drilling programme. Surface trenching is being undertaken to understand grades in these areas and oxide drilling is to be repeated in fourteen holes from the current programme.
In summary work to date has confirmed the mineralised systems at the North, Main and Ridge zones. Continuity of mineralisation along strike and down dip is well defined in the North zone. In the Ridge and Main zones geological and structural modelling indicates that gold mineralisation is controlled by shallow pay shoots which plunge to the SW. Drilling in the gap between the Main and Ridge zones also highlights the potential for this plunging gold system to extend over at least 600 metres in a NE to SW direction. The current 62 hole drilling programme is not yet complete and results are still pending from fifteen holes.
Once all results have been received and repeat oxide drilling has been completed then geological and grade modelling will be undertaken to assess the Resource potential of the Weaju target. A metallurgical sampling programme is currently in progress to assess the amenability of this material to conventional CIL and gravity metallurgical recovery.
The following diagrams illustrate the location, geology and mineralisation of the Weaju Gold Target:
Soil sampling programmes for gold outline potential eastern and south western extensions to the Weaju target.
The Company has completed soil sampling for gold within a 2.8km² area surrounding the Weaju target. Gridding was on a line spacing of 100 metre with samples taken at 25 metre intervals on each line, with 1,029 samples analysed. Results from this work has outlined a 600m SW extension to the Main zone as defined by anomalous gold in soil values ranging between 100ppb and 1.2 g/t gold. An eastwards extension of 200 metres has also been outlined in the fold nose area (Creek and ridge zones) at similar levels of anomalism. Finally a potential westwards extension to the North zone has been identified on two soil lines. The soil results have been successful in outlining the potential size of the Weaju gold project which covers potentially double the area that has been drill tested.
All of the gold in soil anomalies are currently the subject of follow up pitting and trenching programmes in order to define targets for drill testing.
The following diagram illustrates the gold in soil results in the Weaju area:
|Contact InformationAureus Mining Inc.David Reading / Jeremy Cave
Tel: +44(0) 20 7010 7690
|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|
About Aureus Mining Inc.
The Company’s assets include the New Liberty gold deposit in Liberia (the “New Liberty Gold Project” or the “Project”), which has an estimated proven and probable reserve of 910,000 ounces of gold grading 3.3 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 feasibility study has been completed on the Project and construction has commenced with initial earthworks. The Project is expected to have an eight and a half year mine life and annual production of 120,000 ounces for the first five years of production. The Company has financed the Project’s equity funding requirement and is in advanced discussions with interested parties to fund the balance.
The New Liberty Gold Project is located within the Bea Mountain mining licence, 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 2013. The contiguous Archaen Gold exploration licence, which covers 89 km², is also a focus of exploration for 2013, with Leopard Rock being the main target.
The Company also has gold exploration permits in Cameroon.
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 SGS Laboratory in in Monrovia where pulps are prepared and analysed 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 the regular and specific programmes of re-assaying and umpire laboratory assaying.
Screen fire assay samples are taken from course reject samples at SGS, they are repacked by an Aureus geologist before being sent back to SGS Laboratory in Monrovia where the samples are prepared and sent to SGS Tarkwa in Ghana where they are processed using screen fire assay and then the plus size fraction analysed using a gravimetric finish and the undersize done using atomic absorption. Any undersize fraction greater than 5ppm is finished using a gravimetric finish.
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.