TIDMAMA
RNS Number : 3966I
Amara Mining PLC
30 May 2014
30 May 2014 AIM:AMA
Amara Mining plc
("Amara" or "the Company")
INITIAL IN-FILL DRILLING RESULTS FROM YAOURE GOLD PROJECT,
INCLUDING 31M AT 5.4G/T
Amara Mining plc, the AIM-listed West African-focused gold
mining company, is pleased to announce the first phase of results
from its 2014 in-fill drilling programme at its Yaoure Gold Project
("Yaoure") in Côte d'Ivoire.
HIGHLIGHTS:
-- Results from the first 19 reverse circulation ("RC") holes
confirm the high grade nature of the CMA zone, with the in-fill
drilling intersecting the deposit as expected. Significant
intercepts include:
o 11m at 4.4g/t from 213m in hole YRC0678
o 31m at 5.4g/t from 184m in hole YRC0682
o 6m at 10.4g/t from 149m and 6m at 6.6g/t from 171m in hole
YRC0686
o 22m at 9.1g/t from 48m and 11m at 5.5g/t from 80m in hole
YRC0688*
o 24m at 4.1g/t from 176m in hole YRC0690
-- In-fill drilling campaign at Yaoure commenced with one RC rig
in early April 2014, with three diamond drill ("DD") rigs now also
operating on site
-- RC drilling focused on the simple, high grade CMA zone, which
comprises 30% of the current 6.3 million ounce Mineral Resource,
and DD focused on the more complex Yaoure Central zone
-- Drilling programme anticipated to be completed in October
2014 and two Mineral Resource updates are expected in H2 2014:
o First update to expand current resource base expected in Q3
2014
o Second update to upgrade Inferred resources within US$950 per
ounce pit design expected in Q4 2014
-- Fully-funded to deliver Pre-Feasibility Study ("PFS") in Q1 2015
*See Note 2 of Appendix
John McGloin, Executive Chairman of Amara, commented:
"These strong initial results from the Yaoure in-fill drilling
campaign confirm the high grade nature of the CMA zone and increase
our confidence in the deposit. I look forward to regularly
reporting the drilling results from the ongoing programme and
delivering the resulting Mineral Resource updates throughout the
remainder of 2014."
Initial RC Drilling Programme
The in-fill drilling programme at Yaoure commenced on 11 April
2014 and the first 26 RC holes (5,763 metres) were completed on 17
May 2014, focusing on the CMA zone. The CMA zone is a north-south
striking, easterly-dipping, mineralised shear zone, typically 20
metres thick and located approximately 140 metres above the Yaoure
Central body. The assay results from the first 19 holes have been
received and they confirm the continuity and high grade nature of
the CMA zone, increasing Amara's confidence in the deposit. These
results are reported in the Appendix and a drilling map is
available on Amara's website at
http://www.amaramining.com/Operations/Yaoure on the page named
'Exploration'.
In conjunction with the RC programme, nine DD holes have been
completed and three are in progress for 2,832 metres, although no
results have yet been received. Currently, there is one RC rig and
three DD rigs at Yaoure and this will increase to seven DD rigs
plus one RC rig as the drilling programme continues to ramp up.
Amara is on track to deliver two Mineral Resource updates for
Yaoure in H2 2014. The first update is expected to increase the
current 4.2 million ounces within the US$950 per ounce pit design
and the second is expected to upgrade the Inferred resources to the
Indicated category. This will allow Amara to deliver a PFS for
Yaoure in Q1 2015.
Background on Yaoure Gold Project
Amara delivered a Preliminary Economic Assessment for Yaoure in
Q1 2014. It demonstrated that the project has the potential to be
one of the top 10 gold mines in Africa by production and top 50 in
the world. With average production of 325,000 ounces per annum over
a 12 year mine life and all-in sustaining costs of US$691 per
ounce, the headline 8Mtpa scenario delivers an IRR of 32% at a gold
price of US$1,250 per ounce and an NPV of US$688 million. Yaoure is
one of the few development projects in West Africa that remains
resilient at low gold prices, with an IRR of 23% at US$1,100 per
ounce. The project is flexible and delivers similarly strong
returns over a range of alternative throughput scenarios. The
compelling economics are driven by the excellent existing
infrastructure in Côte d'Ivoire, with low cost hydro-electric power
from the Kossou dam (5km from site) and a dual carriageway to
within 40km of site. With 80,000 metres of drilling planned in
2014, there is expected to be strong exploration upside potential
on the current 6.3 million ounce resource base.
For more information please contact:
Amara Mining plc
John McGloin, Chairman
Peter Spivey, Chief Executive Officer
Pete Gardner, Finance Director
Katharine Sutton, Head of Investor Relations +44 (0)20 7398 1420
Peel Hunt LLP
(Nominated Adviser & Joint Broker)
Matthew Armitt
Ross Allister +44 (0)20 7418 8900
GMP Securities Europe LLP
(Joint Broker)
Richard Greenfield
David Wargo +44 (0)20 7647 2800
Farm Street Communications
(Media Relations) +44 (0)7593 340
Simon Robinson 107
About Amara Mining plc
Amara is a gold developer-producer with assets in West Africa.
The Company generates cash flow through its Kalsaka/Sega gold mine
in Burkina Faso. Amara is focused on unlocking the value in its
development projects. At Yaoure in Côte d'Ivoire, this will be done
by increasing the confidence in the existing Mineral Resource and
economics at the project as the Company progresses it through to
Pre-Feasibility Study and Bankable Feasibility Study. At Baomahun,
this will be done by gaining an improved understanding of the
exploration upside potential and underground opportunity. With its
experience of bringing new mines into production and a project
pipeline spanning four countries, Amara aims to further increase
its production profile with highly prospective opportunities across
all assets.
APPENDIX: Results of initial RC holes
Borehole ID From (m) To (m) Interval (m)(1) Au (g/t)
YRC0673 83 89 6 2.13
YRC0674 98 103 5 3.44
YRC0675 0 2 2 0.86
YRC0675 21 28 7 0.62
YRC0675 142 147 5 3.37
YRC0676 29 31 2 0.54
YRC0676 163 174 11 2.73
YRC0676 184 189 5 0.68
YRC0676 198 208 10 3.08
YRC0677 3 5 2 0.70
YRC0677 191 210 19 2.70
YRC0677 218 220 2 2.37
YRC0678 9 15 6 0.86
YRC0678 213 224 11 4.37
YRC0678 238 243 5 3.14
YRC0679 215 219 4 0.67
YRC0679 222 226 4 0.58
YRC0679 229 242 13 3.23
YRC0680 7 9 2 1.05
YRC0680 133 135 2 12.45
YRC0680 176 182 6 3.81
YRC0681 76 78 2 4.04
YRC0681 85 87 2 2.08
YRC0681 100 102 2 0.57
YRC0682 184 215 31 5.40
YRC0683 219 230 11 2.20
YRC0683 264 267 3 0.46
YRC0684 55 59 4 0.64
YRC0684 71 73 2 2.43
YRC0684 82 88 6 2.54
YRC0685 68 70 2 2.64
YRC0685 85 93 8 0.91
YRC0685 96 105 9 4.53
YRC0686 1 3 2 0.63
YRC0686 6 8 2 0.82
YRC0686 149 155 6 10.42
YRC0686 171 177 6 6.59
YRC0686 180 184 4 1.44
YRC0687 0 3 3 0.55
YRC0687 200 208 8 2.28
YRC0687 217 228 11 1.06
YRC0688 48 70 22(2) 9.13
YRC0688 80 91 11(2) 5.49
YRC0688 121 125 4 0.57
YRC0688 140 153 13 2.62
YRC0688 156 158 2 0.64
YRC0688 241 250 9 3.82
YRC0689 8 10 2 1.34
YRC0689 88 95 7 3.61
YRC0689 154 162 8 4.98
YRC0689 176 179 3 2.37
YRC0690 81 88 7 0.61
YRC0690 176 200 24 4.05
YRC0690 218 221 3 0.48
YRC0691 15 19 4 0.49
YRC0691 199 204 5 3.11
Notes
1. Interval lengths are not true widths. Composite intersections
are based on a minimum width of 2m and a cut-off of 0.40 g/t Au.
Internal dilution of up to 2.00m at less than 0.40 g/t has been
allowed for continuity.
2. Steep cross-cutting quartz vein
Peter Brown is a "Qualified Person" within the definition of
National Instrument 43-101 and has reviewed and approved the
information contained within this announcement. Dr Brown (MIMMM) is
the Group Exploration Manager.
This initial RC drilling programme at Yaoure was undertaken by
an independent drilling contractor. RC samples for assaying were
taken at one metre intervals. Sample preparation was carried out at
the Company's facility at Yaoure, prior to fire assay at Actlabs in
Ouagadougou, Burkina Faso. The samples were crushed down to minus
2mm and then pulverised down to 90% passing 75 microns, prior to
analysis for gold by 50g fire assay. As part of the Company's QA/QC
procedures, internationally recognised standards, duplicates and
blanks were inserted. Check assays will be carried out at ALS
Geochemistry in Johannesburg, South Africa. The laboratories used
are independent of the Company.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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