TIDMAMA
RNS Number : 6799G
Amara Mining PLC
24 November 2015
24 November 2015 AIM:AMA
Amara Mining plc
("Amara" or "the Company")
RESOURCE UPDATE DELIVERS 7.3 MILLION OUNCES AT
20% HIGHER GRADE AT YAOURE GOLD PROJECT
Amara Mining plc, the AIM-listed West African focused gold
mining company, is pleased to announce a National Instrument ("NI")
43-101 compliant Mineral Resource update for its Yaoure Gold
Project ("Yaoure") in Côte d'Ivoire.
HIGHLIGHTS
-- Total Mineral Resource at Yaoure increased by 491,000 ounces
to 7.3 million ounces at 1.50g/t - 7% increase in ounces at a 20%
increase in grade compared to previous Mineral Resource estimate(1)
, underlining Yaoure's position as the largest undeveloped gold
asset in West Africa
-- Yaoure further technically de-risked with 71% of Mineral
Resources now in the higher confidence Measured and Indicated
("M&I") categories following strong conversion of Inferred
Mineral Resources
o 17% increase (739,000 ounces) in Yaoure's M&I Mineral
Resource to 5.2 million ounces at a 19% higher grade (1.54g/t)
-- Higher overall grade and increased gold content in lower gold price pit shells
o 3.7 million ounces (69.5Mt at 1.66g/t) in M&I categories
in US$800 per ounce pit shell - 45% increase in gold content
o 4.5 million ounces (89.0Mt at 1.59g/t) in M&I categories
in US$950 per ounce pit shell - 47% increase in gold content
-- Increased understanding of mineralisation controls and higher
confidence Mineral Resource estimate through 2015 drilling
programme (11,904 metres), mapping in base of Yaoure Central pit
and re-analysis of historical drilling (132,964 metres)
-- Economics expected to be positively impacted:
o Potential for a lower upfront capital cost through a smaller
processing plant and mining fleet
o Potential for a simplified mine plan as Mineral Resources
within Yaoure Central zone concentrated in a more defined area
o Higher overall grade of Mineral Resource is expected to lead
to lower operating cost per ounce of gold produced
-- Pre-Feasibility Study ("PFS") optimisation underway,
including work on the effect of today's Mineral Resource update on
Yaoure's economics - results expected in Q1 2016
Notes
1. Mineral Resource estimate is reported at a 0.5g/t cut-off
grade. See Appendix 1 for previous Mineral Resource estimate, dated
5 January 2015, quoted within a US$800 per ounce, US$950 per ounce
and US$1,500 per ounce pit shell.
John McGloin, Chairman and Chief Executive Officer of Amara,
commented:
"Today's Mineral Resource update has delivered on all of our
objectives for the recent drilling campaign. We have increased the
overall grade by 20% to 1.50g/t and substantially increased the
amount of higher confidence M&I resources in the lower priced
pit shells. This will strengthen Yaoure's economics, allowing us to
focus on a lower priced pit shell with an increased cut-off grade
compared to the PFS announced in May 2015. By targeting higher
grade tonnes, we can maintain gold production with a lower upfront
capital cost due to the opportunity for a smaller processing plant
and mining fleet. The grade improvements will also reduce the
operating costs per ounce of production.
"The total contained Mineral Resource has grown to 7.3 million
ounces, which ranks Yaoure as the largest undeveloped gold project
in West Africa and brings the group's resources to over 10 million
ounces. The new resource estimate has also seen the centre of the
Yaoure Central portion of the resource migrate to the north of the
deposit, concentrating resource ounces into a better defined area.
This is expected to have a highly beneficial impact on Yaoure's
mine plan and further improve the project's economics. I look
forward to updating the market on the results of the Yaoure PFS
optimisation over the coming quarter."
Yaoure Mineral Resource estimate within a US$1,500 per ounce pit
shell, including cut-off grade sensitivity, as of 24 November
2015
Resource category Unit Cut-Off Grade (g/t Au)
---------------------- --------- ---------------------------
0.5 0.8 1.0
-------------------------------- -------- -------- -------
Tonnes
Measured (Mt) 18.6 14.3 11.9
---------------------- --------- -------- -------- -------
Grade
(g/t) 1.86 2.23 2.49
-------------------------------- -------- -------- -------
Content
(Koz) 1,114 1,024 957
-------------------------------- -------- -------- -------
Tonnes
Indicated (Mt) 85.5 60.5 47.4
---------------------- --------- -------- -------- -------
Grade
(g/t) 1.47 1.81 2.07
-------------------------------- -------- -------- -------
Content
(Koz) 4,042 3,527 3,151
-------------------------------- -------- -------- -------
Tonnes
Measured & Indicated (Mt) 104.1 74.8 59.4
---------------------- --------- -------- -------- -------
Grade
(g/t) 1.54 1.89 2.15
-------------------------------- -------- -------- -------
Content
(Koz) 5,155 4,552 4,108
-------------------------------- -------- -------- -------
Tonnes
Inferred (Mt) 47.7 34.0 27.1
---------------------- --------- -------- -------- -------
Grade
(g/t) 1.41 1.71 1.92
-------------------------------- -------- -------- -------
Content
(Koz) 2,156 1,874 1,674
-------------------------------- -------- -------- -------
Tonnes
Total (Mt) 151.8 108.8 86.5
---------------------- --------- -------- -------- -------
Grade
(g/t) 1.50 1.84 2.08
-------------------------------- -------- -------- -------
Content
(Koz) 7,312 6,425 5,782
-------------------------------- -------- -------- -------
Notes
1. The effective date of the Yaoure Mineral Resource estimate is
24 November 2015, prepared by Mario E Rossi, GeoSystems
International, Inc.
2. The gold price used in the Mineral Resource estimate is
US$1,500 per ounce, assuming an open pit mining scenario,
processing via tank leaching. Recoveries have been assumed at 90%.
Pit Optimisation was completed by A. Wheeler for all prices shown
here, and parameters otherwise as derived in the 2015 PFS.
3. Mineral Resources which are not Mineral Reserves do not have
demonstrated economic viability.
4. There are no known environmental, permitting, legal, title,
taxation, socio-economic, marketing, and political or other
relevant issues that may materially affect the resource
estimates.
5. Totals and average grades are subject to rounding to the
appropriate precision and some columns or rows may not compute
exactly as shown.
6. The stated resources include dilution in the block model that
relates to the level of selectivity envisioned in an open pit
operation, with the block model regularised to a block size of
6.25m x 6.25m x 5m.
7. Numbers may not add correctly due to rounding.
Updated section diagrams to accompany the Mineral Resource
update are available on the Amara website at:
http://www.amaramining.com/operations/yaoure/maps-sections/
Mineral Resource estimate delivers on all objectives
The objective of the 2015 exploration and drilling campaign was
to improve the confidence in the Mineral Resource estimate through
conversion of Inferred resources to the Measured and Indicated
categories, together with gaining a more thorough understanding of
the northern area of the Yaoure Central zone. Previous grade
control sampling had indicated that higher grades were more present
in this area than evident in the previous Mineral Resource
estimate.
During 2015 Amara conducted 11,904 metres of in-fill drilling in
the Yaoure Central zone, together with a systematic channel
sampling and mapping programme to gain a better understanding of
the higher grade structures.
Today's Mineral Resource estimate achieves both these
objectives, delivering a 17% increase in M&I Mineral Resources
at a 19% higher grade. This means that 71% of the resources now lie
within the M&I categories, which are the basis for economic
modelling. This expansion of Mineral Resources in the M&I
categories presents the opportunity to raise the cut-off grade and
utilise lower gold price pit shells to deliver an operation that
retains the compelling economics seen in the Preliminary Economic
Assessment.
The resource model is based upon a regularised block size of
6.25 metres x 6.25 metres x 5 metres in the X, Y and Z dimensions
respectively. Given the dimensions and orientation of the various
structures present in the Yaoure deposit, it is estimated that this
represents an inherent dilution of approximately 12%. The previous
block model was based on a block size of 12.5 metres x 12.5 metres
x 10 metres, which incorporated excessive dilution of the high
grade structures.
Increased ounces in all pit shells
The estimate also delivers increased ounces in the lower gold
price shells, quoted at US$800 per ounce (45% increase) and US$950
per ounce (47% increase). In addition, 89% of the Mineral Resources
within the US$800 per ounce pit shell and 81% of the Mineral
Resources within the US$950 per ounce pit shell are within the
M&I categories.
(MORE TO FOLLOW) Dow Jones Newswires
November 24, 2015 02:00 ET (07:00 GMT)
The higher gold content in the lower priced pit shells will
allow Amara to optimise the PFS on a smaller pit shell, with a
higher cut-off grade, than the US$975 per ounce pit shell used in
the original PFS. This is expected to translate into a significant
increase in the average grade processed, with lower operating costs
per ounce produced, and suggests the potential to reduce the
project's upfront capital requirement. It is expected that Yaoure
could generate robust production through a smaller processing plant
and utilising a smaller mining fleet, as a result of the higher
grade material. The concentration of the Yaoure Central zone's
Mineral Resources in the northern area of the zone also suggests
the opportunity for a starter pit, which may reduce the need for
pre-stripping of the CMA zone, and deliver a simplified mine
plan.
Yaoure Mineral Resource estimate within a US$800 per ounce pit
shell, including cut-off grade sensitivity, as of 24 November
2015
Resource category Unit Cut-Off Grade (g/t Au)
---------------------- --------- ---------------------------
0.5 0.8 1.0
-------------------------------- -------- -------- -------
Tonnes
Measured (Mt) 17.8 13.8 11.6
---------------------- --------- -------- -------- -------
Grade
(g/t) 1.88 2.25 2.50
-------------------------------- -------- -------- -------
Content
(Koz) 1,078 995 931
-------------------------------- -------- -------- -------
Tonnes
Indicated (Mt) 51.7 38.3 30.9
---------------------- --------- -------- -------- -------
Grade
(g/t) 1.58 1.90 2.15
-------------------------------- -------- -------- -------
Content
(Koz) 2,621 2,346 2,131
-------------------------------- -------- -------- -------
Tonnes
Measured & Indicated (Mt) 69.5 52.1 42.4
---------------------- --------- -------- -------- -------
Grade
(g/t) 1.66 1.99 2.24
-------------------------------- -------- -------- -------
Content
(Koz) 3,700 3,341 3,062
-------------------------------- -------- -------- -------
Tonnes
Inferred (Mt) 9.6 7.1 6.0
---------------------- --------- -------- -------- -------
Grade
(g/t) 1.58 1.91 2.08
-------------------------------- -------- -------- -------
Content
(Koz) 485 435 405
-------------------------------- -------- -------- -------
Tonnes
Total (Mt) 79.1 59.2 48.5
---------------------- --------- -------- -------- -------
Grade
(g/t) 1.65 1.98 2.22
-------------------------------- -------- -------- -------
Content
(Koz) 4,185 3,775 3,467
-------------------------------- -------- -------- -------
Yaoure Mineral Resource estimate within a US$950 per ounce pit
shell, including cut-off grade sensitivity, as of 24 November
2015
Resource category Unit Cut-Off Grade (g/t Au)
---------------------- --------- ---------------------------
0.5 0.8 1.0
-------------------------------- -------- -------- -------
Tonnes
Measured (Mt) 18.4 14.2 11.9
---------------------- --------- -------- -------- -------
Grade
(g/t) 1.87 2.24 2.49
-------------------------------- -------- -------- -------
Content
(Koz) 1,110 1,023 957
-------------------------------- -------- -------- -------
Tonnes
Indicated (Mt) 70.6 50.5 39.9
---------------------- --------- -------- -------- -------
Grade
(g/t) 1.51 1.86 2.11
-------------------------------- -------- -------- -------
Content
(Koz) 3,430 3,016 2,712
-------------------------------- -------- -------- -------
Tonnes
Measured & Indicated (Mt) 89.0 64.7 51.8
---------------------- --------- -------- -------- -------
Grade
(g/t) 1.59 1.94 2.20
-------------------------------- -------- -------- -------
Content
(Koz) 4,540 4,039 3,668
-------------------------------- -------- -------- -------
Tonnes
Inferred (Mt) 21.9 16.4 13.7
---------------------- --------- -------- -------- -------
Grade
(g/t) 1.58 1.90 2.10
-------------------------------- -------- -------- -------
Content
(Koz) 1,113 1,001 923
-------------------------------- -------- -------- -------
Tonnes
Total (Mt) 110.9 81.1 65.5
---------------------- --------- -------- -------- -------
Grade
(g/t) 1.59 1.93 2.18
-------------------------------- -------- -------- -------
Content
(Koz) 5,653 5,040 4,592
-------------------------------- -------- -------- -------
Notes to tables
1. The Mineral Resource estimates reported here are calculated
on the same basis as the US$1,500 per ounce pit shell - see notes
above.
The Mineral Resource update is NI 43-101 compliant.
Next steps
Work is underway on the optimisation of the Yaoure PFS,
including the impact of the updated Mineral Resource estimate on
the project's economics. The aim of the optimisation work is to
reduce the upfront capital requirement of the PFS and to increase
the head grade of the ore being fed to the processing plant. The
work will also evaluate the optimal processing plant size and pit
shell combination to deliver the strongest returns.
Amara expects to report the PFS optimisation results in Q1
2016.
For more information please contact:
Amara Mining plc
John McGloin, Chairman & Chief Executive
Officer
Pete Gardner, Finance Director
Katharine Sutton, Head of Investor +44 (0)20 7398
Relations 1420
Peel Hunt LLP
(Nominated Adviser & Joint Broker)
Matthew Armitt +44 (0)20 7418
Ross Allister 8900
GMP Securities Europe LLP
(Joint Broker)
Richard Greenfield +44 (0)20 7647
Mitch Limb 2800
Farm Street Communications
(Media Relations) +44 (0)7593
Simon Robinson 340 107
About Amara Mining plc
Amara is a gold explorer/developer with assets in West Africa.
The Group 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 Amara progresses it through to Bankable
Feasibility Study. At Baomahun, this will be achieved by gaining an
improved understanding of the exploration upside potential and
underground opportunity. Amara aims to further increase its
production profile with highly prospective opportunities across
both assets.
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.
Mario Rossi is a "Qualified Person" within the definition of
National Instrument 43-101 and is responsible for the estimation of
the Yaoure Mineral Resource. He has reviewed and approved the
relevant technical information relating to the resource estimates
in this release. Mr Rossi (Fellow AusIMM, Member CIM, Member SME)
is Principal Geostatistician of GeoSystems International, Inc.
Adam Wheeler is a "Qualified Person" within the definition of
National Instrument 43-101 and is responsible for pit optimisation
aspects of the Yaoure Mineral Resource. He has reviewed and
approved the relevant technical information relating to the
resource estimates in this release. Mr. Wheeler (Fellow IOM(3) ,
C.Eng) is an Independent Mining Consultant.
The 2016 DD drilling programme at Yaoure was undertaken by an
independent drilling contractor. Typically 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 were carried out
at ALS Geochemistry in Vancouver, Canada. The laboratories used are
independent of the Company.
Appendix 1: Previous Mineral Resource estimate, dated 5 January
2015, within US$800 per ounce, US$950 per ounce and US$1,500 per
ounce pit shells
(MORE TO FOLLOW) Dow Jones Newswires
November 24, 2015 02:00 ET (07:00 GMT)
Previous Yaoure Mineral Resource estimate within a US$800 per
ounce pit shell, including cut-off grade sensitivity, as of 5
January 2015
Resource category Unit Cut-Off Grade (g/t Au)
------------------- --------- ---------------------------
0.5 0.8 1.0
----------------------------- -------- -------- -------
Tonnes
Indicated (Mt) 50.7 35.2 28.8
------------------- --------- -------- -------- -------
Grade
(g/t) 1.57 1.98 2.22
----------------------------- -------- -------- -------
Content
(Koz) 2,560 2,241 2,058
----------------------------- -------- -------- -------
Tonnes
Inferred (Mt) 15.6 11.7 8.9
------------------- --------- -------- -------- -------
Grade
(g/t) 1.35 1.58 1.80
----------------------------- -------- -------- -------
Content
(Koz) 676 595 513
----------------------------- -------- -------- -------
Tonnes
Total (Mt) 66.2 46.9 37.7
------------------- --------- -------- -------- -------
Grade
(g/t) 1.52 1.88 2.12
----------------------------- -------- -------- -------
Content
(Koz) 3,236 2,836 2,571
----------------------------- -------- -------- -------
Previous Yaoure Mineral Resource estimate within a US$950 per
ounce pit shell, including cut-off grade sensitivity, as of 5
January 2015
Resource category Unit Cut-Off Grade (g/t Au)
------------------- --------- ---------------------------
0.5 0.8 1.0
----------------------------- -------- -------- -------
Tonnes
Indicated (Mt) 64.8 42.4 33.9
------------------- --------- -------- -------- -------
Grade
(g/t) 1.48 1.92 2.18
----------------------------- -------- -------- -------
Content
(Koz) 3,079 2,620 2,377
----------------------------- -------- -------- -------
Tonnes
Inferred (Mt) 20.2 14.1 10.5
------------------- --------- -------- -------- -------
Grade
(g/t) 1.28 1.55 1.78
----------------------------- -------- -------- -------
Content
(Koz) 831 706 602
----------------------------- -------- -------- -------
Tonnes
Total (Mt) 85.0 56.5 44.5
------------------- --------- -------- -------- -------
Grade
(g/t) 1.43 1.83 2.08
----------------------------- -------- -------- -------
Content
(Koz) 3,911 3,327 2,979
----------------------------- -------- -------- -------
Previous Yaoure Mineral Resource estimate within a US$1,500 per
ounce pit shell, including cut-off grade sensitivity, as of 5
January 2015
Resource category Unit Cut-Off Grade (g/t Au)
------------------- --------- ---------------------------
0.5 0.8 1.0
----------------------------- -------- -------- -------
Tonnes
Indicated (Mt) 106.3 62.5 46.7
------------------- --------- -------- -------- -------
Grade
(g/t) 1.29 1.75 2.05
----------------------------- -------- -------- -------
Content
(Koz) 4,416 3,526 3,070
----------------------------- -------- -------- -------
Tonnes
Inferred (Mt) 63.0 37.4 26.9
------------------- --------- -------- -------- -------
Grade
(g/t) 1.19 1.57 1.83
----------------------------- -------- -------- -------
Content
(Koz) 2,405 1,883 1,580
----------------------------- -------- -------- -------
Tonnes
Total (Mt) 169.3 99.9 73.5
------------------- --------- -------- -------- -------
Grade
(g/t) 1.25 1.68 1.97
----------------------------- -------- -------- -------
Content
(Koz) 6,821 5,410 4,651
----------------------------- -------- -------- -------
Notes to tables
1. The effective date of the Yaoure Mineral Resource estimate is
5 January 2015, prepared by Mario E Rossi, GeoSystems
International, Inc.
2. The gold price used in the Mineral Resource estimate is
stated in the title of each table, assuming an open pit mining
scenario, processing via tank leaching. Pit slopes are 44 in oxide,
53 in sulphide. Recoveries have been assumed at 90%. Pit
Optimisation was completed by A. Wheeler for all prices shown
here.
3. Mineral Resources which are not Mineral Reserves do not have
demonstrated economic viability.
4. There are no known environmental, permitting, legal, title,
taxation, socio-economic, marketing, and political or other
relevant issues that may materially affect the resource
estimates.
5. Totals and average grades are subject to rounding to the
appropriate precision and some columns or rows may not compute
exactly as shown.
6. The stated resources include dilution in the block model that
relates to the level of low selectivity envisioned in an open pit
operation, assuming 10m bench heights.
Appendix 2: Mineral Resource Classification
The Yaoure Mineral Resource classification was developed in two
stages:
1. The conditions for Measured, Indicated, and Inferred
categories were defined based on the data spacing, the geologic
model, and the amount of information used to estimate each block.
These criteria were expressed in simple terms, such as the number
of holes and composites required to exist within specific distances
and orientations for each category.
2. The classification was implemented through the estimation
passes aided by other algorithms applied on the block model that
reflect the criteria defined in the previous step.
Appendix 3: Resource Estimation Parameters
1. The estimates of Mineral Resources were calculated in
accordance with the definitions adopted by the Canadian Institute
of Mining Metallurgy and Petroleum ("CIM") and incorporated into NI
43-101. The Mineral Resource estimate was carried out by Mario
Rossi of GeoSystems International, Inc.
2. The geological model used to support grade estimation is
structurally controlled and based on a combination of interpreted
structures (wireframes) and structural domains probabilistically
assigned to the block model.
3. Block model preparation and resource estimation has been
completed using Datamine and GSLib. One-metre primary samples were
used to define mineralised outline wireframes, whilst two-metre
down hole composites were used for statistical analysis,
variography and resource estimation. Special restrictions of high
grade composites depended on the estimation domain used.
4. Resource estimation has been completed using a combination of
Multiple Indicator Kriging (MIK), Indicator-modified Ordinary
Kriging, and Inverse Distance Cubed, depending on the estimation
domain. Bulk density has been estimated into the block model using
Inverse Distance Squared.
5. A whittle optimised shell has been used to delineate the
ounces that would potentially be mined. This optimisation was
conducted on a block size of 12.5 x 12.5 x 10m and the resources
quoted on a regularised model with blocks of 6.25 x 6.25 x 5m. The
parameters used in the whittle runs were those generated in the PFS
study earlier this year.
6. Ounces represent estimated gold content present in the tonnes
of material which would be mined and processed once they are
converted to a Mineral Reserve. Mining recovery, dilution and mill
recovery rates have not been applied in calculating the contained
ounces.
7. In accordance with the guidelines set out by the CIM and
contained within NI 43-101, this Mineral Resource estimate for the
Yaoure property uses a 0.5g/t Au cut-off and a US$1,500/oz Au
"Resource Pit" to represent that portion of the resource which has
"reasonable prospects for economic extraction" from an open pit
mining scenario. The open pit mining scenario considers that both
oxides and sulphides assuming a Carbon-in-Leach process plant
economics. Pit slopes are 44 in oxide, 53 in sulphide; and
metallurgical recoveries have been assumed at 90%. The pit
optimisation was carried out by Adam Wheeler, Independent Mining
Consultant.
8. Amara's attributable portion of the Mineral Resource estimate
is 100%, although on development the Government of Côte d'Ivoire
will be entitled to a 10% free carried interest.
9. The classification methodology used was based on a
combination of drill density, data quality, and evaluations of the
statistical and spatial characteristics of the gold
mineralisation.
10. Glossary
A "Mineral Resource" is a concentration or occurrence of solid
material of economic interest in or on the Earth's crust in such
form, grade or quality and quantity that there are reasonable
prospects for eventual economic extraction. The location, quantity,
grade or quality, continuity and other geological characteristics
of a Mineral Resource are known, estimated or interpreted from
specific geological evidence and knowledge, including sampling.
(MORE TO FOLLOW) Dow Jones Newswires
November 24, 2015 02:00 ET (07:00 GMT)
Amara (LSE:AMA)
Historical Stock Chart
From Apr 2024 to May 2024
Amara (LSE:AMA)
Historical Stock Chart
From May 2023 to May 2024