TIDMASO
RNS Number : 1911K
Avesoro Resources Inc.
09 April 2018
9 April 2018
Avesoro Resources Inc.
TSX: ASO
AIM: ASO
Q1 2018 PRODUCTION UPDATE
Avesoro Resources Inc., ("Avesoro" or the "Company"), the TSX
and AIM listed West African gold producer, is pleased to announce
its preliminary production results for the quarter ended March 31,
2018 ("Q1" or the "Quarter") from its New Liberty Gold Mine ("New
Liberty") in Liberia, and Youga and Balogo Gold Mines, ("Youga" and
"Balogo") in Burkina Faso.
Highlights:
-- All time high gold production levels from the Liberia and
Burkina Faso operations in the Quarter;
-- Total gold production in the Quarter of 68,088 ounces, in
line with 2018 production guidance;
-- Record quarterly gold production of 27,870 ounces from New
Liberty, an increase of 9% on the previous quarter;
-- Record quarterly gold production of 40,218 ounces from Youga
and Balogo, an increase of 39% on the previous quarter, which also
represented the highest quarterly production ever achieved by the
Youga process plant since it was commissioned in February 2008;
and
-- Further New Liberty plant optimisations completed during the
Quarter including the commissioning of a tertiary crusher
increasing the crushing circuit throughput by 17% to 140kt per
month and installation of a second gravity concentrator.
Serhan Umurhan, Chief Executive Officer of Avesoro, commented:
"Following a strong end to 2017, the continued operational
performance throughout the first Quarter of 2018 has resulted in
gold production of 68,088 ounces and leaves the Company on track to
meet 2018 production guidance of 220,000 to 240,000 ounces of gold
at an operating cash cost of between US$620 and US$660 per
ounce.
Each of our mines performed in line with our expectations. New
Liberty plant optimisations are now complete and combined with the
recent additions to the mining fleet the Quarter delivered record
quarterly gold production levels.
The Company also benefited from a full quarter of contribution
from the Youga and Balogo mines acquired in December 2017, with
record quarterly gold production achieved at the Burkina Faso
operations in the first full quarter under the Company's ownership.
The process plant at Youga also delivered its highest quarterly
gold production ever seen during the ten years since it was
commissioned in February 2008. Recoveries at Youga also improved
compared with Q4 2017 and we expect this trend to continue with the
addition of a new PSA Oxygen Plant in the coming weeks.
Together with our near mine exploration campaign, which is well
underway across the three mines, and delivering encouraging results
which suggest the potential to significantly increase mine lives,
we continue to strive to increase shareholder returns and end Q1 in
a position of strength."
Table 1: Preliminary Production Results
Parameter Unit Q1-2018 Q4-2017 Variance
----------------- -------- -------- -------- ---------
Ore Mined kt 591 564 5%
----------------- -------- -------- -------- ---------
Waste Mined kt 7,312 4,396 66%
----------------- -------- -------- -------- ---------
Total Material
Movement kt 7,904 4,961 59%
----------------- -------- -------- -------- ---------
Ore Processed kt 650 621 5%
----------------- -------- -------- -------- ---------
Gold Production Ounces 68,088 54,408 25%
----------------- -------- -------- -------- ---------
Table 2: New Liberty Performance Indicators
Parameter Unit Q1 2018 Q4 2017 Variance Q1 2017 Variance
----------------- -------- -------- -------- --------- -------- ---------
Ore Mined kt 359 354 1% 351 2%
----------------- -------- -------- -------- --------- -------- ---------
Mined Grade g/t 3.01 2.53 19% 2.21 36%
----------------- -------- -------- -------- --------- -------- ---------
Waste Mined kt 4,677 2,445 91% 3,944 19%
----------------- -------- -------- -------- --------- -------- ---------
Waste:
Strip Ratio Ore 13.0 6.9 89% 11.2 16%
----------------- -------- -------- -------- --------- -------- ---------
Total Material
Movement kt 5,036 2,800 80% 4,295 17%
----------------- -------- -------- -------- --------- -------- ---------
Ore Processed kt 344 315 9% 280 23%
----------------- -------- -------- -------- --------- -------- ---------
Feed Grade g/t 2.91 2.97 -2% 1.97 48%
----------------- -------- -------- -------- --------- -------- ---------
Recovery % 87 90 -3% 90 -3%
----------------- -------- -------- -------- --------- -------- ---------
Gold Production Ounces 27,870 25,563 9% 14,906 87%
----------------- -------- -------- -------- --------- -------- ---------
Table 3: Youga and Balogo Performance Indicators
Parameter Unit Q1 2018 Q4 2017 Variance Q1 2017 Variance
-------------------- -------- -------- -------- --------- -------- ---------
Total Ore Mined kt 232 210 10% 281 -17%
-------------------- -------- -------- -------- --------- -------- ---------
Ore Mined (Youga) kt 198 156 27% 278 -29%
-------------------- -------- -------- -------- --------- -------- ---------
Mined Grade
(Youga) g/t 2.06 2.53 -19% 2.04 1%
-------------------- -------- -------- -------- --------- -------- ---------
Ore Mined (Balogo) kt 35 55 -36% 3 1067%
-------------------- -------- -------- -------- --------- -------- ---------
Mined Grade
(Balogo) g/t 17.94 15.27 18% 6.45 178%
-------------------- -------- -------- -------- --------- -------- ---------
Total Waste
Mined kt 2,635 1,951 35% 1,883 40%
-------------------- -------- -------- -------- --------- -------- ---------
Waste Mined
(Youga) kt 1,549 807 92% 1,745 -11%
-------------------- -------- -------- -------- --------- -------- ---------
Waste Mined
(Balogo) kt 1,086 1,144 -5% 138 687%
-------------------- -------- -------- -------- --------- -------- ---------
Waste:
Strip Ratio Ore 11.3 9.3 22% 6.7 69%
-------------------- -------- -------- -------- --------- -------- ---------
Total Material
Movement kt 2,867 2,161 33% 2,164 33%
-------------------- -------- -------- -------- --------- -------- ---------
Ore Processed kt 306 306 0% 318 -4%
-------------------- -------- -------- -------- --------- -------- ---------
Feed Grade g/t 4.53 3.30 37% 1.84 146%
-------------------- -------- -------- -------- --------- -------- ---------
Recovery % 90 89 1% 90 1%
-------------------- -------- -------- -------- --------- -------- ---------
Gold Production Ounces 40,218 28,845 39% 16,900 138%
-------------------- -------- -------- -------- --------- -------- ---------
New Liberty
Total material movement for the Quarter was 5,036kt, an 80%
increase on the previous quarter. Waste mined increased by 91%
totalling 4,677kt as a result of the commissioning of the
additional mining equipment delivered to site during Q4 2017 and Q1
2018. Process plant throughput for the Quarter was 344kt, a 9%
increase on the previous quarter and in line with our 2018 annual
forecast and a direct result of the improvements made to the
comminution circuit, including the commissioning of an additional
crusher and upgrades to the ball mill liner and grate system,
allowing an increase in throughput. The installation of a second
gravity concentrator at the end of the Quarter is also expected to
increase the recovery of gravity gold and reduce the level of
reagent usage within the carbon in leach ("CIL") circuit.
Youga and Balogo
Total material movement for the Quarter was 2,867kt, a 33%
increase on the previous quarter. Process plant throughput for the
Quarter remained stable at 306kt and in line with our 2018 annual
forecast, resulting in gold production of 40,218 ounces. Post
Quarter end the Company is planning to add a PSA Oxygen Plant to
the Youga Process Plant, with the aims of increasing gold
recoveries by approximately 4% in sulphide ore and 2% in oxide ore
during the coming months.
Contact Information
Avesoro Resources Inc.
Geoff Eyre / Nick Smith
Tel: +44(0) 20 3874 4740
Camarco finnCap
(IR / Financial PR) (Nominated Adviser and
Gordon Poole / Nick Hennis Joint Broker)
Tel: +44(0) 20 3757 4980 Christopher Raggett / Scott
Mathieson / Emily Morris
Tel: +44(0) 20 7220 0500
Berenberg Hannam & Partners (Advisory)
(Joint Broker) LLP
Matthew Armitt / Charlotte (Joint Broker)
Sutcliffe Rupert Fane / Ingo Hofmaier
Tel: +44(0) 20 3207 7800 / Ernest Bell
Tel: +44(0) 20 7907 8500
About Avesoro Resources Inc.
Avesoro Resources is a West Africa focused gold producer and
development company that operates three gold mines across West
Africa and is listed on the Toronto Stock Exchange ("TSX") and the
AIM market operated by the London Stock Exchange ("AIM"). The
Company's assets include the New Liberty Gold Mine in Liberia (the
"New Liberty Gold Mine" or "New Liberty") and the Youga and Balogo
Gold mines in Burkina Faso ("Youga" and "Balogo").
New Liberty has an estimated proven and probable mineral reserve
of 7.4Mt with 717,000 ounces of gold grading 3.03g/t and an
estimated measured and indicated mineral resource of 9.6Mt with
985,000 ounces of gold grading 3.2g/t and an estimated inferred
mineral resource of 6.4Mt with 620,000 ounces of gold grading
3.0g/t. The foregoing Mineral Reserve and Mineral Resource
estimates and additional information in connection therewith is set
out in an NI 43-101 compliant Technical Report dated November 1,
2017 and entitled "New Liberty Gold Mine, Bea Mountain Mining
Licence Southern Block, Liberia, West Africa" and is available on
SEDAR at www.sedar.com.
Youga and Balogo have a combined estimated proven and probable
mineral reserve of 9.3Mt with 513,000 ounces of gold grading 1.7g/t
and a combined estimated indicated mineral resource of 16.05Mt with
801,600 ounces of gold grading 1.55g/t and a combined inferred
mineral resource of 13Mt with 655,000 ounces of gold grading
1.57g/t. The foregoing Mineral Reserve and Mineral Resource
estimates and additional information in connection therewith is set
out in two NI 43-101 compliant Technical Reports, dated June 16,
2017 entitled "Mineral Resource and Mineral Reserve Update for the
Balogo Project" and dated June 19, 2017 and entitled "Mineral
Resource and Mineral Reserve Update for the Youga and Ouaré
Projects" and are available on SEDAR at www.sedar.com.
For more information, please visit www.avesoro.com.
Ndablama has an estimated indicated mineral resource of 7.6Mt
with 386,000 ounces of gold grading 1.6 g/t and inferred mineral
resource of 9.6Mt with 515,000 ounces of gold grading 1.7 g/t.
Weaju has an inferred mineral resource of 2.7Mt with178,000 ounces
of gold grading 2.1 g/t. The foregoing Mineral Resource estimates
and additional information in connection therewith is set out in an
NI 43-101 compliant Technical Report dated December 1, 2014 and
entitled "Ndablama and Weaju Gold Projects, Bea Mountain Mining
Licence Northern Block, Liberia, West Africa" and is available on
SEDAR at www.sedar.com.
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 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 approved the
scientific and technical disclosures contained in this
announcement.
Forward Looking Statements
Certain information contained in this press release constitutes
forward looking information or forward looking statements within
the meaning of applicable securities laws. This information or
statements may relate to future events, facts, or circumstances or
the Company's future financial or operating performance or other
future events or circumstances. All information other than
historical fact is forward looking information and involves known
and unknown risks, uncertainties and other factors which may cause
the actual results or performance to be materially different from
any future results, performance, events or circumstances expressed
or implied by such forward-looking statements or information. Such
statements can be identified by the use of words such as
"anticipate", "plan", "continue", "estimate", "expect", "may",
"will", "would", "project", "should", "believe", "target",
"predict" and "potential". No assurance can be given that this
information will prove to be correct and such forward looking
information included in this press release should not be unduly
relied upon. Forward looking information and statements speaks only
as of the date of this press release.
Forward looking statements or information in this press release
include, among other things, statements regarding 2018 production
guidance of 220,000 to 240,000 ounces of gold at a cash cost of
US$620 and US$660 per ounce, and the addition of a new PSA Oxygen
plant at Youga.
In making the forward looking information or statements
contained in this press release, assumptions have been made
regarding, among other things: general business, economic and
mining industry conditions; interest rates and foreign exchange
rates; the continuing accuracy of Mineral Resource and Reserve
estimates; geological and metallurgical conditions (including with
respect to the size, grade and recoverability of Mineral Resources
and Reserves) and cost estimates on which the Mineral Resource and
Reserve estimates are based; 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 and that unforeseen
events do not impact the ability of the Company to use existing
funds to fund future plans and projects as currently contemplated;
the stability and predictability of the political environments and
legal and regulatory frameworks including 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; that
contractual counterparties perform as agreed; 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.
Actual results could differ materially from those anticipated in
the forward looking information or statements contained in this
press release as a result of risks and uncertainties (both foreseen
and unforeseen), and should not be read as guarantees of future
performance or results, and will not necessarily be accurate
indicators of whether or not such results will be achieved. These
risks and uncertainties include the risks normally incidental to
exploration and development of mineral projects and the conduct of
mining operations (including exploration failure, cost overruns or
increases, and operational difficulties resulting from plant or
equipment failure, among others); the inability of the Company to
obtain required financing when needed and/or on acceptable terms or
at all; risks related to operating in West Africa, including
potentially more limited infrastructure and/or less developed legal
and regulatory regimes; health risks associated with the mining
workforce in West Africa; risks related to the Company's title to
its mineral properties; the risk of adverse changes in commodity
prices; the risk that the Company's exploration for and development
of mineral deposits may not be successful; 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 jurisdictions where the Company operates,
including adverse or arbitrary changes in applicable laws or
regulations or in their enforcement; competitive conditions in the
mineral exploration and mining industry; risks related to obtaining
insurance or adequate levels of insurance for the Company's
operations; that Mineral Resource and Reserve estimates are only
estimates and actual metal produced may be less than estimated in a
Mineral Resource or Reserve estimate; the risk that the Company
will be unable to delineate additional Mineral Resources; risks
related to environmental regulations and cost of compliance, as
well as costs associated with possible breaches of such
regulations; uncertainties in the interpretation of results from
drilling; risks related to the tax residency of the Company; the
possibility that future exploration, development or mining results
will not be consistent with expectations; the risk of delays in
construction resulting from, among others, the failure to obtain
materials in a timely manner or on a delayed schedule; inflation
pressures which may increase the cost of production or of
consumables beyond what is estimated in studies and forecasts;
changes in exchange and interest rates; risks related to the
activities of artisanal miners, whose activities could delay or
hinder exploration or mining operations; the risk that third
parties to contracts may not perform as contracted or may breach
their agreements; the risk that plant, equipment or labour may not
be available at a reasonable cost or at all, or cease to be
available, or in the case of labour, may undertake strike or other
labour actions; the inability to attract and retain key management
and personnel; and the risk of political uncertainty, terrorism,
civil strife, or war in the jurisdictions in which the Company
operates, or in neighbouring jurisdictions which could impact on
the Company's exploration, development and operating
activities.
This press release also contains Mineral Resource and Mineral
Reserve estimates. Information relating to Mineral Resource and
Mineral Reserve contained in this press release is considered
forward looking information in nature, as such estimates are
estimates only, and that involve the implied assessment of the
amount of minerals that may be economically extracted in a given
area based on certain judgments and assumptions made by qualified
persons, including the future economic viability of the deposit
based on, among other things, future estimates of commodity prices.
Such estimates are expressions of judgment and opinion based on the
knowledge, mining experience, analysis of drilling results and
industry practices of the qualified persons making the estimate.
Valid estimates made at a given time may significantly change when
new information becomes available, and may have to change as a
result of numerous factors, including changes in the prevailing
price of gold. 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 (including through changes
in grade or tonnage), this could have a material adverse impact on
the Company and its operating and financial performance. Mineral
resources that are not mineral reserves do not have demonstrated
economic viability. 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.
Although the forward-looking statements contained in this press
release are based upon what management believes are reasonable
assumptions, the Company cannot provide assurance that actual
results or performance will be consistent with these
forward-looking statements. The forward looking information and
statements included in this press release are expressly qualified
by this cautionary statement and are made only as of the date of
this press release. The Company does not undertake any obligation
to publicly update or revise any forward looking information except
as required by applicable securities laws.
This information is provided by RNS
The company news service from the London Stock Exchange
END
UPDFKFDKCBKDCQK
(END) Dow Jones Newswires
April 09, 2018 03:25 ET (07:25 GMT)
Avesoro Resources (LSE:ASO)
Historical Stock Chart
From Apr 2024 to May 2024
Avesoro Resources (LSE:ASO)
Historical Stock Chart
From May 2023 to May 2024