FURTHER STRONG RESULTS FROM NDABLAMA DRILLING
July 10, 2014Back
10 July 2014
Aureus Mining Inc.
TSX : AUE
AIM : AUE
- Results are presented for 16 diamond drill holes (3,882 metres) from the phase four drilling programme at Ndablama. Drilling was undertaken on the down dip and northern extensions to the current Inferred Mineral Resource of 451,000 ounces at 2.1 g/t Au. Intercepts include:
- 2.4 g/t over 30 metres from 211 metres
- 2.4 g/t over 28 metres from 238 metres
- 2.2 g/t over 23 metres from 338 metres
- 2.0 g/t over 25 metres from 205 metres
- 2.8 g/t over 14 metres from 304 metres
- 3.2 g/t over 7 metres from 275 metres
- Phase four diamond drilling results received to date (37 holes) confirm continuity of the mineralised system down dip for another 300 metres beyond the limits of the initial maiden resource, more than doubling the down dip extent of the mineralised system. Intercepts commence from 90 metres below surface to a maximum of 240 metres below the surface. All drill holes have intersected the mineralised system and confirm the shallow westerly dip of less than thirty degrees. The mineralised zone is still open in all directions.
- To date results have been announced from 37 holes (8,907 metres) from the planned 62 holes (13,000 metres) diamond drilling programme. Assay results are pending for 12 holes and 13 are still to be drilled.
- The results announced today include the first 14 RC drill holes (2,347 metres) carried out as infill holes in advance of upgrading the current inferred resource. Intercepts include:
- 2.1 g/t over 37 metres from 89 metres
- 2.1 g/t over 33 metres from 91 metres
- 2.7 g/t over 26 metres from 168 metres
- 1.6 g/t over 36 metres from 95 metres
- 1.2 g/t over 50 metres from 58 metres
- 4.6 g/t over 9 metres from 94 metres
- The infill RC drilling results confirm mineralisation continuity within the already defined ore body. This programme was designed to close the drill spacing down to 50 metres. The infill programme is now complete for a total of 39 holes and approximately 5,828 metres. Assay results are pending for 25 holes.
- The full phase four RC and diamond drilling programme is expected to be completed by the end of July 2014 as the rainy season has now commenced. To date over 90% of the drilling programme has been completed.
- On receipt of all the results for the phase four drilling programme the Company will undertake a new NI 43-101 Resource estimate for Ndablama in early Q4 2014.
- Ndablama forms part of a five kilometre long pressure shadow corridor. Exploration work has confirmed that gold mineralisation is associated with a shallow, westerly dipping shear zone which can be followed at surface for five kilometres. To date only two kilometres of this zone has been drill tested, and includes Ndablama and Leopard Rock targets.
- Trenching results at Ndablama North and Leopard Rock South include intercepts of:
- 5.7 g/t over 7 metres (Ndablama North)
- 1.4 g/t over 8 metres (Ndablama North)
- 1.1 g/t over 14 metres (Ndablama North)
- 1.3 g/t over 10 metres (Leopard Rock South)
- 1.6 g/t over 11 metres(Leopard Rock South)
- 2.3 g/t over 7 metres (Leopard Rock South)
Follow up exploration drilling will be undertaken in these areas during the next field season commencing in Q4 2014.
Commenting on the latest Ndablama drilling results, David Reading, President and Chief Executive Officer of Aureus Mining, said:
“The Phase Four drilling programme at Ndablama has further underpinned the management’s belief that Aureus has another prospective gold field beyond the New Liberty area. The results demonstrate that there is gold mineralisation throughout the pressure shadow zone, and that there is continuity of grade between the holes drilled earlier this year. We look forward to receiving the assay results for the remaining holes drilled to date, completing the drilling programme and updating the resource estimate before year end.”
Details relating to the latest drilling results and the pressure shadow corridor are illustrated in the following diagrams:
The Ndablama gold target is located within the Northern block of the Company’s 457 km2, 100% owned, Bea Mountain Mining licence in Liberia, and is situated approximately 40 kilometres north-east of Aureus’ flagship New Liberty Gold project. To date a total of 103 diamond drill holes covering 19,334 metres, 39 RC infill holes totalling 5,828 metres and 63 trenches for 3,967 metres have been completed at the Ndablama gold target. Ndablama locates within a five kilometre gold bearing pressure shadow zone which is defined by a shallow, westerly dipping shear zone locating near the contact between granite and greenstone rocks. Geological mapping and trenching has now been undertaken over the whole pressure shadow zone.
Gold mineralization is located within a sheared package of intercalated ultramafic and mafic rocks which are enveloped by a gneissic sequence and overly a granite batholith. The mineralization has a shallow westerly dip of 30° or less and strikes to the North. It has been drill investigated to a maximal vertical depth of 240 metres below surface. It remains open along strike and down dip.
The latest phase four diamond drilling results for holes NDD076 to NDD091 are presented below:
|Borehole ID||From (m)||To
|Vertical depth to top of mineralised zone (m)|
NDD078 : NSR
Drilling to date has shown that mineralisation is associated with phlogopite, silica, chlorite alteration and disseminated pyrrhotite. Detailed examination of cores consistently shows the presence of coarse gold. Initial metallurgical testwork results which were announced on 10 December 2013 returned an average of + 70% gravity recovery from the fresh ore, which will make a positive impact on the plant design.
Of the 16 diamond drill holes reported in this release, six holes (NDD079 to 84) tested the down dip extension of the mineralisation in the central part and highlighted the presence of two ore shoots plunging respectively to the NW and the SW. Some of the deeper holes, such as NDD079, show a tendency for the mineralisation to flatten out. The maiden Inferred resource of 451,000 at 2.1g/t, as reported on 11 November 2013, was based on only 250 metres of down dip mineralisation while the latest holes have extended it by an additional 300 metres. The current maximal vertical depth that the mineralised zone has been intercepted is now 240 metres below surface. Holes NDD076 to 78 drilled to test the SE down dip extension show variable mineralisation. Drill holes NDD085 to 91 tested the immediate northern extension of Ndablama and confirmed mineralisation continuity but with some lower grades. Due to the commencement of the rainy season, potentially prospective, but more remote parts of Ndablama North pressure zone targets could not be accessed and will be tested next season.
The phase four diamond drill programme that started in November 2013 will be completed by end July 2014 as the rainy season has now commenced. To date 49 holes totalling 11,020 metres from a planned 62 holes and 13,000 metres programme have been drilled. Results have been announced from 37 holes (8,907 metres) with further results pending for 12 holes. 13 holes still need to be drilled and will continue testing the down dip extension and the SE extension towards Leopard Rock. To date, over 90% of the programme has been completed.
The results of the first 14 holes of the infill RC program are presented below:
|Borehole ID||From (m)||To
|Vertical depth to top of mineralised zone (m)|
NDRC 009: Abandoned hole due to ground conditions
The infill drilling programme initial results (14 holes) confirm mineralisation continuity within the already defined ore body. This programme that started in May 2014 was designed to close the drill spacing down to 50 metres from Ndablama’s central portion in prevision of upgrading the resource confidence in early Q4 2014. The first 6 RC holes were drilled as twin holes and the results compare well with those of the diamond holes. The bulk of the infill holes targeted a 400 metre north-south strike length by a 350 metre down dip length (maximal depth is 150 metres). The infill programme is now complete for a total of 39 holes and approximately 5,828 metres. Results are pending for 25 holes.
Ndablama is situated within a five kilometre pressure shadow corridor and is an area of extensive artisanal gold activity
The Ndablama gold project locates within a five kilometre mineralised, structural zone which dips shallowly to the west and occurs close to the altered and sheared geological contact between Metavolcanic rocks (ultramafic and mafic units) and granite. This target is referred to as the pressure shadow zone (“PSZ”). The PSZ extends from Ndablama North to Leopard Rock South and covers a distance of five kilometres. It is associated with extensive bedrock and alluvial artisanal gold mining. To date only 40% of the pressure shadow zone has been drill tested.
Resource expansion work is currently being undertaken at the Ndablama target. To the north and south of Ndablama the Company has undertaken pitting, trenching, rock sampling and geological mapping and has defined additional targets for follow up drilling programmes. The surface exploration work undertaken along the whole pressure shadow corridor confirms that the gold mineralized structure can be followed for five kilometres.
At Ndablama North Zone, gold mineralization can be traced over a further 1.5 kilometres in a northerly direction. Trench NNT07 returned 7 metres at 5.7 g/t, trench NNT08 returned 8 metres at 1.4 g/t and 15 metres at 0.7 g/t. At the far north end of the pressure shadow zone, historic trench NNT02 intersected 14 metres at 1.1 g/t and 7 metres at 1.8 g/t while new trenches NNT09 and NNT10 dug in a strongly lateritised profile returned respectively 8metres at 0.9 g/t and 7 metres at 0.9 g/t.
800 metres south east of Ndablama, the Leopard Rock target has been drilled at a reconnaissance level and demonstrated shallow westerly dipping gold mineralisation, which is very similar to Ndablama. This drilling has extended the mineralisation system a further one kilometre to the south east. Detailed mapping over Leopard Rock south-eastern extension show that mineralisation is part of a large scale synform fold plunging to the west. Historic trenching over a 400 metres strike extend returned consistent mineralisation with best intersects of 8 metres at 1.2 g/t, 10 metres at 1.3 g/t, 11 metres at 1.6 g/t and for the southernmost trench 7 metres at 2.3 g/t. This area which is open to the south remains to be drill tested.
The mineralised system of the Ndablama pressure shadow zone continues to the north-east for at least an additional 8 kilometres. This corridor, referred to as the Yambesei shear corridor, is highlighted by continuous soil anomalies and the presence of three identified targets, namely Gondoja, Gbalidee and Koinja. Detailed geology and regolith mapping show that a number of soil anomalies remain untested. A pitting programme is underway and strongly deformed and altered formations have so far been intersected (pending assay results). Rock chip sampling in an existing pit in the north-easterly extremity of the corridor at Welinkua has returned grades averaging 2 g/t over 17 metres. The potentially new targets along with Welinkua and existing Gondoja, Gbalidee and Koinja targets will continue to be assessed and these will be prioritised for next phases of reconnaissance drilling.
Sampling and QA / QC
Drill core is split on site and RC samples are split at the rig with a 3 tier splitter. Samples are despatched under custody to the SGS Laboratory in in Monrovia.
All samples collected by Aureus are analysed using aqua regia digestion and 50g fire assay analysis with an atomic absorption finish. Assays with grades above 5 g/t are systematically assayed with a gravimetric finish. Assay quality control protocols include the submission of commercial certified reference standards, blanks, field duplicates, pulp duplicates and umpire control samples. Standards are inserted into the sample stream at a frequency of 1 in 10. All other quality control samples are submitted at a frequency of 1 in 20. Assay quality control samples are reviewed on a monthly basis. Aureus also submits samples for screened fire assay analysis.
The Company’s Qualified Person for exploration results 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.
|Aureus Mining Inc.
David Reading / Paul Thomson
Tel: +44(0) 20 010 7690
Bobby Morse / Gordon Poole
Tel: +44(0) 20 7466 5000
|Numis Securities Limited (Nominated Adviser and Joint Broker)
John Prior / James Black
Tel: +44(0) 20 7260 1000
|GMP Securities Europe LLP (Joint Broker)
Richard Greenfield / Alexandra Carse
Tel: +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 924,000 ounces of gold grading 3.4 g/t and an estimated measured and indicated mineral resource of 1,143,000 ounces of gold grading 3.63 g/t and an estimated inferred mineral resource of 593,000 ounces of gold grading 3.2 g/t. A Definitive Feasibility Study has been completed on the Project and construction has commenced with initial earthworks. The Project is expected to have an 8 year mine life and annual production of 119,000 ounces for the first 6 years of production. The Company has financed the Project’s equity and debt funding requirement.
The New Liberty Gold Project is located within the Southern Block of the 100% owned Bea Mountain mining licence. This licence covers 457 km² and has a 25 year, renewable, mineral development agreement. The Northern Block of the Bea Mountain mining license also hosts additional gold projects of Ndablama, Gondoja and Weaju, which are the focus of exploration programs during 2014. Ndablama has an inferred mineral resource of 451,000 ounces of gold grading 2.1 g/t and Weaju has an inferred mineral resource of 178,000 ounces of gold grading 2.1 g/t. The Archaen Gold exploration licence, which covers 89 km², is also a focus of exploration for 2014, with Leopard Rock being the main target. The Yambesei (759 km2), Archaen West (112.6 km2), Mabong (36.6 km2) and Mafa West (15.6 km2) licences will also be subject to preliminary reconnaissance geological work.
The Company also has gold exploration permits 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 Annual Information Form of Aureus Mining Inc. dated March 20, 2013 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