Q2 2017 Production Update

July 11, 2017


Avesoro Resources Inc.



Q2 2017 Production Update

Avesoro Resources Inc. (“Avesoro” or the “Company”), the TSX and AIM listed West African gold producer, is pleased to announce production results for the quarter ended 30 June 2017 (the “Quarter” or the “Period”) from its New Liberty Gold Mine (“New Liberty”) in Liberia.

Total gold production for the Quarter was 15,824 ounces representing a 6% increase on the previous quarter. The Company maintains its 2017 production guidance of 90,000 -100,000 ounces.

The total material movement (waste rock and ore) achieved in the Quarter was 3,779kt, a 12% reduction on the previous quarter’s performance. The reduced mining rate was attributable to a transition from free-dig oxide material into fresh rock within the Kinjor pit with the latter requiring drilling and blasting prior to excavation. Despite the reduction in ore mined throughout the Period, mined ore grades averaged 2.64g/t, an increase of 19% on the previous quarter. Throughout the Period, the Company continued to focus on opening access to new areas of fresh ore and catching up on previously postponed waste pushbacks.

Process plant performance remained stable throughout the Quarter with plant utilisation reaching a record 97% during June 2017. Gold recovery for the quarter reduced to 88% due to low recovery levels achieved during May 2017 as a result of a high proportion of transitional ore from the Marvoe pit contained within the plant feed.



Q1 2017

Q2 2017


Ore Mined





Waste Mined





Strip Ratio





Total Material Movement





Plant Utilisation





Ore Processed










Gold Production





Following the previously announced management review and optimisation of operations at the mine, New Liberty has realised improved cost and operational performance. As a result, the Company has commenced work on a revised open pit optimisation exercise and the production of a new life of mine (“LOM”) schedule for New Liberty. The Company expects to be in a position to update the market on the results arising from this exercise during Q3 2017.

Serhan Umurhan, Chief Executive Officer of Avesoro Resources, commented:

“I am pleased with the operational performance to date at New Liberty as evidenced by the increase in gold production during the Quarter. The process plant is now consistently operating above its designed throughput as a result of the modifications we have made since taking control of the Company. The operation will be further enhanced through the arrival of an additional drill-rig which is currently en route to New Liberty. The new rig will increase the drill and blast capacity which was a constraint for our mining operations during the Quarter.

As previously disclosed, gold production for 2017 will be weighted towards the second half of the year, and we remain on course to meet our full year production guidance for 2017 of 90,000 – 100,000 ounces of gold at a cash cost of US$750 – US$800 per ounce and all-in sustaining cost of US$925 – US$975 per ounce of gold produced”.

Contact Information

Avesoro Resources Inc.

Geoff Eyre / Nick Smith

Tel: +44(0) 20 7010 7690


Gordon Poole / Nick Hennis

Tel: +44(0) 20 3757 4980

Numis Securities Limited

(Nominated Adviser and Joint Broker)

John Prior / James Black / Paul Gillam

Tel: +44(0) 20 7260 1000

Hannam & Partners (Advisory) LLP

(Joint Broker)

Rupert Fane / Andrew Chubb / Ingo Hofmaier

Tel: +44(0) 20 7907 8500

About Avesoro Resources Inc.

The Company’s assets include the New Liberty Gold Mine in Liberia (the “New Liberty Gold Mine,” “New Liberty” or the “mine”) 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, the first gold pour has taken place and commercial production has been declared. 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 Mine is located within the Southern Block of the 100% owned Bea Mountain mining licence. This licence covers 478 km² and has a 25 year, renewable, mineral development agreement. The Bea Mountain mining license also hosts additional gold projects of Ndablama, Gondoja, Weaju and Leopard Rock which are the focus of exploration programs during 2016. Ndablama has an indicated mineral resource of 386,000 ounces of gold grading 1.6 g/t and inferred mineral resource of 515,000 ounces of gold grading 1.7 g/t and Weaju has an inferred mineral resource of 178,000 ounces of gold grading 2.1 g/t. The Yambesei (473 km2), Archaen West (56 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.

Qualified Persons

The Company’s Qualified Person is Mark J. Pryor, who holds a BSc (Hons) in Geology & Mineralogy from Aberdeen University, United Kingdom and is a Fellow of the Geological Society of London, a Fellow of the Society of Economic Geologists and a registered Professional Natural Scientist (Pr.Sci.Nat) of the South African Council for Natural Scientific Professions. Mark Pryor is an independent technical consultant with over 25 years of extensive global experience in exploration, mining and mine development and is a “Qualified Person” as defined in National Instrument 43 -101 “Standards of Disclosure for Mineral Projects” of the Canadian Securities Administrators and has reviewed and approves this press release.

Forward Looking Statements

Certain information contained in this Announcement constitutes forward looking information. This information may relate to future events or the Company’s future performance. All information other than information of historical fact is forward looking information. The use of any of the words “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “should”, “believe”, “predict” and “potential” and similar expressions are intended to identify forward looking information. Specific statements that constitute forward looking information include statements regarding the timing and completion of legal documentation required to amend the loan facilities and to document the guarantees. This forward looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward looking information. No assurance can be given that this information will prove to be correct and such forward looking information included in this Announcement should not be unduly relied upon. This information speaks only as of the date of this Announcement.

Actual results could differ materially from those anticipated in the forward looking information contained in this news release as a result of the risk factors, including: the risk that the waiver and standstill agreement will terminate; the risk that legal documentation may not be completed as anticipated; risks normally incidental to exploration and development of mineral properties; the inability to obtain required waivers and amendments from the Company’s creditors in respect of its debt repayment obligations and consequential risks of default thereon; risks related to operating in West Africa; health risks associated with the mining workforce in West Africa; risks related to the Company’s title to its mineral properties; adverse changes in commodity prices; risks related to current global financial conditions; the inability of the Company to obtain, maintain, renew and/or extend required licences, permits, authorizations and/or approvals from the appropriate regulatory authorities and other risks relating to the legal and regulatory frameworks in Liberia, including adverse changes in applicable laws; competitive conditions in the mineral exploration and mining industry; risks related to obtaining insurance or adequate levels of insurance for the Company’s operations; risks related to environmental regulations; uncertainties in the interpretation of results from drilling; risks related to the legal systems in Liberia; risks related to the tax residency of the Company; changes in exchange and interest rates; risks related to the activities of artisanal miners; actions of third parties that the Company is reliant upon; lack of availability at a reasonable cost or at all, of plants, equipment or labour, including required equipment, explosives and other necessary material not being delivered in the expected time frame, or at all; the inability to attract and retain key management and personnel; political risks; and future unforeseen liabilities and other factors.

The forward looking information included in this Announcement is expressly qualified by this cautionary statement and is made as of the date of this Announcement. The Company does not undertake any obligation to publicly update or revise any forward looking information except as required by applicable securities laws.