MINING LICENCE ENLARGED TO INCLUDE LEOPARD ROCK AND EBOLA UPDATE
May 11, 2015Back
11 May 2015
Aureus Mining Inc.
TSX : AUE
AIM : AUE
MINING LICENCE ENLARGED TO INCLUDE LEOPARD ROCK
AND EBOLA UPDATE
Aureus Mining Inc., (“Aureus” or the “Company”), is pleased to announce that its Bea Mountain Mining Licence has been enlarged to include the Leopard Rock gold target. Following this enlargement, the entire 13 kilometre gold bearing structural corridor stretching from the Gondoja target to the Leopard Rock South target is now located within the Company’s Bea Mountain Mining licence. The rights to mine are covered by the Bea Mountain Mineral Development Agreement (“MDA”), which provides a stable environment in respect to the legal, operational and fiscal parameters for the operations, as announced in the Company’s release of 24 September 2013.
- The Bea Mountain Mining Licence has been increased from 457km2 to 478km2. This extension was undertaken in accordance with the Minerals and Mining Law for Liberia.
- The Bea Mountain Mining Licence now includes the Leopard Rock gold target. The entire 13 km mineralised gold corridor from the Gondoja target to the Leopard Rock South target, including the Ndablama target, now locates within the Bea Mountain Mining licence.
- The gold corridor is a mineralised shear system adjacent to the contact zone between Archean Greenstones and granite. This structural zone is associated with extensive bedrock gold mineralisation and artisanal gold mining.
- The enlargement of the licence allows for the commercial development of the entire mineralised gold corridor under the same parameters as detailed in the MDA, subject to the granting of an Environmental Permit.
- To date, eight gold targets have been outlined within the 13 km corridor but only one of these, Ndablama, has been drill tested to a Resource level.
- Previously reported drilling at the Leopard Rock target highlighted encouraging intercepts including:
- § 17.6 g/t over 4 m
- § 13.9 g/t over 4 m
- § 9.4 g/t over 6 m
- § 9.5 g/t over 3 m
- The Company’s exploration team is currently carrying out detailed field mapping, sampling and target preparation along the corridor in advance of a drilling campaign planned for Q1 2016.
Liberia Declared Ebola Free:
- The Republic of Liberia was declared Ebola Free by the World Health Organisation (“WHO”) on 9 May 2015 following a period of 42 continuous days elapsing without a confirmed case of the Ebola virus in the country.
Commenting, David Reading, President and Chief Executive Officer of Aureus Mining, said:
“The inclusion of the Leopard Rock gold target within our existing mining licence area will allow Aureus to develop the entire 13 kilometre gold corridor under the same fiscal and operating terms as the New Liberty Project. This consolidation enables us to focus our efforts solely on defining a second economic project rather than negotiating a new mineral development agreement for a portion of the corridor. We consider the gold corridor to be highly prospective and to date we have only drill tested approximately one kilometre of this area. This has resulted in the definition of over 900,000 ounces at Ndablama.”
A Map of the Leopard Rock area now included within the Bea Mountain MDA can be found at the link below:
Leopard Rock Gold Target
Leopard Rock is located approximately 40km ENE of the New Liberty deposit. The Leopard Rock gold target is contiguous to the Ndablama deposit and is part of a 13 kilometre mineralised corridor, of which five kilometres is represented by a shallow dipping shear zone (pressure shadow zone) and the remaining eight kilometres forms part of a steeper shear system ( Yambesei shear zone).
The Ndablama gold project, with its existing Mineral Resource at a 0.5 g/t cut off of 386,000 ounces at 1.6 g/t gold Indicated Resources and 515,000 ounces at 1.7 g/t gold Inferred Resources, is located in the five kilometre pressure shadow zone. This zone extends southwards to Leopard Rock South and is characterised by a 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 the Ndablama granitoid. It is associated with extensive bedrock and artisanal gold mining. As a part of a reconnaissance programme, a phase one drilling programme was completed at Leopard Rock during the 2011-2012 exploration season with 27 diamond drill holes totalling 4,293m. The reconnaissance work included detailed geological mapping, soil geochemistry, an induced polarisation ground geophysical survey and 27 trenches covering 2,965m.
Results from the drilling and trenching outlined multiple gold zones which are hosted within a NW to SE trending shear zone over a strike length of 1.1 kilometres. The encouraging results of the initial 27 hole diamond drilling campaign at the Leopard Rock target was published in June 2012 and are detailed below.
|Borehole ID||From (m)||To
|Intersection Length (m)||Au Grade g/t|
|NSV: LDD003, LDD015, LDD018, LDD025 and LDD027|
At Leopard Rock South, where a 400 metres long mineralised zone was previously defined through trenching (press release of 10 July 2014), new soil anomalies resulting from additional infill soil sampling have extended the mineralisation trace for a further 200 metres towards the south-west. This is further confirmed by rock sample results returning grades up to 1.9 g/t Au. The previously reported trench results from Leopard Rock South include 8 metres at 1.2 g/t, 10 metres at 1.3 g/t, 11 metres at 1.6 g/t and 7 metres at 2.3 g/t.
The Company’s exploration team is currently carrying out detailed field mapping, sampling and target preparation in the area in advance of further drilling over the whole Leopard Rock target area, including Leopard Rock South. This drilling programme will commence in Q1 2016.
Liberia Declared Ebola Free
Despite a reported 10,500 clinical cases of Ebola Virus Disease (“EVD”) and 4,700 deaths within the Republic of Liberia; and 26,600 cases and 11,000 deaths across the West Africa region since December 2013, significant progress has been made throughout Liberia during late 2014 and 2015 in the fight against Ebola. The Republic of Liberia was declared Ebola Free by the WHO on the 9 May, following a period of 42 days passing without the occurrence of a confirmed case of EVD.
There was a single confirmed case of EVD reported in the Monrovia area in the week ending 22 March. However, since this time there has been a continuous period of 42 days elapsed with no new confirmed cases of EVD reported. There have also been no confirmed cases of EVD in the areas within Guinea and Sierra Leone, adjacent to the Liberian borders, in more than 42 days.
The WHO has credited the Liberian government’s decentralized Ebola management approach in successfully turning around the situation. The Red Cross, World Bank Group, International Finance Corporation and WHO will continue to work with other non-governmental organisations to continue to undertake Ebola-related programmes in Liberia, including emotional and psychosocial support, strengthening health systems, aiding the economic recovery and cross border surveillance to ensure Ebola infected individuals do not enter Liberia from Guinea and Sierra Leone. The Company will continue to implement stringent health protocols across its operations.
|Aureus Mining Inc.
David Reading / Paul Thomson
Tel: +44(0) 20 7010 7690
Bobby Morse / Gordon Poole
Tel: +44(0) 20 7466 5000
|Numis Securities Limited (Nominated Adviser and Joint Broker)
John Prior / James Black / Paul Gillam
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,” “New Liberty” or the “Project”), which has an estimated proven and probable mineral reserve of 8.5 Mt with 924,000 ounces of gold grading 3.4 g/t and an estimated measured and indicated mineral resource of 9,796 Kt with 1,143,000 ounces of gold grading 3.63 g/t and an estimated inferred mineral resource of 5,730 Kt with 593,000 ounces of gold grading 3.2 g/t. A Definitive Feasibility Study (“DFS”) has been completed on the Project and construction is well progressed. 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 foregoing mineral reserve and mineral resource estimates and additional information in connection therewith are set out in the Company’s technical report dated March 25, 2015 and entitled “New Liberty Gold Project, Bea Mountain Mining Licence Southern Block, Liberia, West Africa, Definitive Project Plan.”
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 2015. Ndablama has an indicated mineral resource of 386,000 ounces of gold grading 1.6 g/t and inferred mineral resource of 515,000ounces of gold grading 1.7g/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 2015, 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 foregoing mineral resource estimates and additional information in connection therewith are set out in the Company’s technical report dated December 1, 2014 and entitled “Ndablama and Weaju Gold Projects, Bea Mountain Mining Licence, Northern Block, Technical Report on Mineral Resources” (“Ndablama and Weaju Technical Report 2014”).
The Company also has a gold exploration permit in Cameroon.
The Company’s Qualified Person 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 has reviewed and approves this press release.
Forward Looking Statements
Certain information in this news release relating to Aureus is forward-looking and related to anticipated events and strategies. When used in this context, words such as “will”, “anticipate”, “believe”, “plan”, “intend”, “target” and “expect” or similar words suggest future outcomes. Forward-looking information contained in this press release includes, but may not be limited to, statements or information relating to: the New Liberty Gold Project (including the quantity and quality of mineral resource and mineral reserve estimates), the potential to upgrade inferred mineral resources, opportunities to optimize the New Liberty Gold Project, the ability of the Company to develop the New Liberty Gold Project into a mine and the proposed new plans relating thereto regarding operations and mine design, future gold production, and future cash flows, the expected mine life of the New Liberty Gold Project, progress in the fight against Ebola and the anticipated exploration and development activities of Aureus. By their nature, such statements are subject to significant 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; the inability of the Company to obtain required financing when needed and/or on acceptable terms or at all; risks that the cost of implementing the new mine plan at the New Liberty Gold Project and the operating cash costs of the New liberty Gold Project exceed those estimated in the new mine plan; 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; regulatory and government decisions; the possibility that future drawdowns under the loan facilities may not be available; construction of the New Liberty Gold Project being delayed and/ or over budget; economic conditions; availability and cost of financing; estimates of capital and operating costs and start-up costs; plans regarding construction activities; risks related to the Ebola crisis; and future unforeseen liabilities and other factors including, but not limited to, those listed under “Risk Factors” in the Company’s Annual Information Form dated March 26, 2015, 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. Readers are cautioned not to place undue reliance on forward-looking information as actual results could differ materially from the plans, expectations, estimates or intentions expressed in the forward-looking information. Forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable law, Aureus 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.
With respect to forward looking information contained in this news release, assumptions have been made regarding, among other things: general business, economic and mining industry conditions; interest rates and foreign exchange rates; mineral resource and mineral reserve estimates; geological and metallurgical assumptions (including with respect to the size, grade and recoverability of mineral resources and mineral reserves) and cost estimates on which the mineral resource and mineral reserve estimates are based; the parameters and assumptions employed in the New Liberty Technical Report, (including but not limited to, those relating to construction, future mining and operating costs, processing and recovery rates, net present values and internal rates of return, timing for the commencement of production, tax and royalty rates, future gold prices, metallurgical rates, pit design, operations and management, grades, the base case analysis and the proposed budget for further exploration plans and objectives); the supply and demand for commodities and precious and base metals and the level and volatility of the prices of gold; market competition; the ability of the Company to raise sufficient funds from capital markets and/or debt to meet its future obligations and planned activities; the business of the Company including the continued exploration of its properties; the political environments and legal and regulatory frameworks in Liberia and Cameroon with respect to, among other things, the ability of the Company to obtain, maintain, renew and/or extend required permits, licences, authorizations and/or approvals from the appropriate regulatory authorities and the ability of the Company to continue to obtain qualified staff and equipment in a timely and cost-efficient manner to meet its demand. Assumptions used in the preparation of such information, although considered reasonable by Aureus at the time of preparation, may prove to be incorrect.
Any mineral resource and mineral reserve 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 the Company believes that the mineral resource and mineral reserve estimates in respect of its properties are well established, by their nature mineral resource and mineral reserve estimates are imprecise and depend, to a certain extent, upon statistical inferences which may ultimately prove unreliable. If such mineral resource and mineral reserve estimates are inaccurate or are reduced in the future, this could have a material adverse impact on the Company. 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. Mineral resources that are not mineral reserves do not have demonstrated economic viability.