The New Liberty Gold Mine

 

The key asset in Avesoro Resources’ portfolio is the New Liberty Gold Mine, which is Liberia’s First and largest commercial gold mine.

 

Construction at New Liberty commenced in April 2014, with first gold poured from the process plant on 31 May 2015 and gold sales commencing in August 2015. Commercial Production was declared at New Liberty on 1 March 2016.

 

New Liberty is an open-pit mining operation and the process plant has an industry standard flowsheet consisting of a two stage crushing, ore stockpiling, milling and gravity and carbon in leach plant with an annual throughput capacity of 1.1 million tonnes of ore.

 

 

The New Liberty Gold Mine has a NI 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) compliant Proven and Probable Mineral Reserve estimate of 7.4 million tonnes grading 3.03 g/t for 717,000 contained ounces of gold and a NI 43-101 compliant Mineral Resource estimate comprised of 9.6 million tonnes grading 3.2 g/t for 985,000 ounces in the Measured and Indicated category and 6.4 million tonnes grading 3.0 g/t for 620,000 ounces in the Inferred category.

 

Location

 

The New Liberty Gold Mine is located within the Bea-MDA property, in Grand Cape Mount County in the north-western portion of the Republic of Liberia, approximately 100km north-west of the capital, Monrovia.

 

From the capital there is approximately 80km of excellent paved road to the town of Daniels Town and then a small 20km section of laterite road to the Project site. Avesoro Resources has recently upgraded the laterite section of road and installed three new culvert-type bridges to facilitate the transportation of equipment to site. Road access is all year round.

 

Title

 

On July 29, 2009 the Government of Liberia granted a Class A Mining Licence within the Bea Mountain Mineral Development Agreement property. The Bea Mining Licence permits mining within a 478 km2 area which encompasses the New Liberty Gold Mine. The Government of Liberia holds a 10% free carry interest in the Bea Mining Licence.

 

In September 2013 the Government of Liberia ratified a Restated and Amended Mineral Development Agreement for the Bea Mountain Mining Licence covering the 478 km² area which includes the New Liberty Gold Mine along with the Ndablama Project, Silver Hills, Gondoja, the Weaju Project and Leopard Rock exploration targets.

 

2018 Mineral Resource Statement

Updated Mineral Resource Estimate prepared in accordance with CIM Standards

CategoryCut-offTonnes MtAu Grade g/tAu Koz
Measured Mineral Resources0.70 g/t (OP)0.82.3360
1.90 g/t (UG)2.430.4
Indicated Mineral Resources0.70 g/t (OP)10.23.02995
1.90 g/t (UG)0.53.3349
Measured and Indicated Mineral Resource0.70 g/t (OP)112.971055
1.90 g/t (UG)0.53.3250
Inferred Mineral Resources0.70 g/t (OP)1.33.7158
1.90 g/t (UG)2.43.5266

Notes:

  1. With reference to the table above, “OP” refers to Mineral Resources within a US$1,500 pit shell (the shell used to demonstrate reasonable prospects of eventual economic extraction) and “UG” Mineral Resources situated below the US$1,500 pit shell which, at a higher reporting cut-off, resulting tonnages have reasonable chances of eventual economic extraction via underground mining. An economic study focussing on an underground mining scenario is currently being considered by Avesoro.
  2. Reporting cut-off is 0.70 g/t Au for Open Pit and 1.90 g/t Au for Underground Mining.
  3. The MRE has been depleted for mining up to 30 June 2018. The effective date of the Mineral Resource is 30 June 2018.
  4. Figures have been rounded to the appropriate level of precision for the reporting of Mineral Resources.
  5. Due to rounding, some columns or rows may not compute exactly as shown.
  6. The Mineral Resources are stated as in situ dry tonnes. All figures are in metric tonnes.
  7. The Mineral Resource has been classified under the guidelines of the CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM Council.
  8. The Open Pit Mineral Resource is reported above a surface based on a conceptual pit shell using a US$1,500 gold price pit optimisation run to support assumptions relating to reasonable prospects of eventual economic extraction. The Underground Mineral Resource is reported below this shell.
  9. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
  10. Mineral Resources have been reported inclusive of Mineral Reserves, where applicable.

 

Updated 2017 Mineral Reserve Estimate prepared in accordance with CIM Standards

CategoryTonnes (Mt)Au Grade (g/t)Au Contained (koz)
Proven
In-Pit0.23.0315
Probable
In-Pit73.09690
Stockpiles0.21.411
Sub-Total Probable7.23.03701
Total Proven & Probable7.43.03717

Notes:

  1. Effective date August 1, 2017
  2. Cut-off grade of 0.85g/t Au applied
  3. Includes ore loss and dilution as reported from a regularised block model at 5 m x 2.5 m x 5 m, which has an average ore loss and dilution of 3.3% and 13.5%, respectively.
  4. Gold price US$1,300/oz
  5. Life of mine operating costs of US$1.85/t ex-pit, US$20/t processed, US$7/t G&A, royalty 3% gross revenue, freight and refining costs US$3.5/oz
  6. Life of mine processing recovery 92.2%