TIDMASO
RNS Number : 3588O
Avesoro Resources Inc.
17 May 2018
17 May 2018
Avesoro Resources Inc.
TSX: ASO
AIM: ASO
POSITIVE NEW LIBERTY INFILL DRILLING RESULTS
Avesoro Resources Inc., (the "Company" or "Avesoro") is pleased
to report the final assay results from its 55 hole New Liberty
infill drilling programme. The 19,500 metre programme was completed
in Q1 2018 and is designed to upgrade a proportion of 275koz of
existing Inferred Mineral Resource which sits below the current
designed pit floor but within a US$1300/oz pit shell. It forms part
of the Company's wider 2018 exploration programme which has the
objective of converting approximately 1 million ounces of Mineral
Resources into Mineral Reserves across the Company's portfolio of
assets.
These results build on the earlier assay results from 34 holes
that were reported in March. An updated CIM compliant Mineral
Resource and Reserve estimate for New Liberty is now being prepared
and expected to be announced during Q3 2018.
Highlights
-- Management has set a 2018 target of converting 1Moz of
existing Mineral Resources into Reserves across the Avesoro
portfolio (including New Liberty)
-- New Liberty infill drilling completed and assay results now received
-- Intercepts show mineralisation grade and thickness in-line
with the existing 275koz Inferred Resources block model
Latest results include:
-- K544 3m at 11.8g/t Au from 253m
-- K544 2m at 4.69g/t Au from 274m
-- K545 9m at 3.96g/t Au from 273m
-- K546 9m at 2.67g/t Au from 293m
Serhan Umurhan, Chief Executive Officer of Avesoro Resources,
commented "I am pleased to report the completion of our infill
drilling programme at New Liberty where we have encountered further
excellent drill results. This is further proof of the Company's
continued positive momentum towards our aim of converting 1Moz of
Resources into Reserves across our portfolio from the Company's
2018 drilling campaign.
I look forward to updating the market in Q3 2018 with an
increased Resource and Reserve estimate at New Liberty resulting
from the infill drilling programme. I expect this to have a
significant positive effect on the mine life and create further
shareholder value.
We also expect to be able to release positive updated Resource
and Reserve estimates later this quarter for the Youga and Balogo
Gold Mines, reflecting the progress made during 2017 to extend the
mine lives at both assets in Burkina Faso."
OUTLOOK
The fully funded 171,000 metres diamond drilling programme for
2018 is ongoing with 32,000 metres and 139,000 metres being drilled
in Liberia and Burkina Faso respectively. In Liberia the focus has
now moved from New Liberty to the Ndablama target. In Burkina Faso
drilling continues at Youga including along strike at Gassore and
at Balogo where the plan is to expand the existing pit and
undertake resource drilling at several along strike satellite
discoveries.
The Company's target of converting 1Moz from Resource to Reserve
is predicated on achieving positive results from only 50,000m of
the 171,000m programme 2018 and 52,000m of drilling completed in
2017 with the balance of the 2018 drill meters representing
additional upside potential.
Avesoro plans to publish an updated CIM compliant Mineral
Resource and Reserve estimate during Q2 2018 for Burkina Faso
(Youga and Balogo Gold Mines) and in Q3 2018 for New Liberty. The
forthcoming Youga and Balogo is expected to reflect modest Resource
expansion at both Balogo and A2NE pit (Youga), and a maiden
Resource at Gassore (Youga). It is expected to represent
approximately 10-15% of management's 1Moz additional Mineral
Reserve conversion target for 2018.
LIBERIA - NEW LIBERTY INFILL PROGRAMME
-- The New Liberty infill programme was carried out by Avesoro's
related party drilling company at an average cost of US$60 per
metre.
-- It consisted of 55 inclined diamond drill holes averaging 350 metres length.
-- The programme was completed in Q1 2018 and an updated Mineral
Resource and Reserve statement is expected during Q3 2018.
Background
Since Q4 2017, drilling in Liberia has been focused on upgrading
275koz of existing Inferred Resources to the Indicated category at
New Liberty which has the effect of increasing the tonnage of
mineralisation that can potentially be converted into a Mineral
Reserve.
Fig.1 New Liberty Pits and Infill Zones
(to see image please click here)
http://www.rns-pdf.londonstockexchange.com/rns/3588O_-2018-5-17.pdf
The target zone sits between the Kinjor and Marvoe pits within
and below the existing designed pit shell but within a US$1300/oz
pit shell. The red shapes below represent the targeted pierce
points for the programme with previously drilled holes shown in
blue.
Fig.2 New Liberty Infill Drill Holes
(to see image please click here)
http://www.rns-pdf.londonstockexchange.com/rns/3588O_-2018-5-17.pdf
Assay Results
Samples from the New Liberty Infill Programme were assayed at
ALS Johannesburg and all assay results have now been received. The
table below shows results of the drilling programme including
recent assay results received.
Fig.3 Results Table
Length Grade
From (m) To (m) (m) (g/t)
--------- ------- -------
K496 243 250 7 3.07
K497 176 202 26 8.49
K498 293 321 28 1.46
K499 194 197 3 6.88
K500 215 225 10 3.94
K501 255 297 42 3.17
K502 304 357 53 2.27
K503 240 270 30 3.17
K504 341 345 4 3.09
K504 357 363 6 2.73
K504 374 380 6 6.96
K505 282 283 1 2.21
K506 234 249 15 1.94
K507 304 317 13 7.33
K507 328 333 5 3.54
K508 331 352 21 3.59
K508 366 372 6 3.12
K509 277 300 23 0.73
K510 361 383 22 4.5
K510 407 427 20 2.06
K511 213 217 4 3.62
K512 279 280 1 1.6
K513 342 349 7 6.19
K514 339 355 16 2.58
K515 387 393 6 0.86
K516 350 361 11 7.27
K517 293 298 5 4.5
K517 325 333 8 3.91
K517 338 340 2 4.29
K517 361 364 3 8.22
K518 328 332 4 2.06
K519 360 371 11 2.54
K520 357 359 2 4.15
--------- ------- ------- -------
Length Grade
From (m) To (m) (m) (g/t)
--------- ------- -------
K523 327 328 1 2.86
K524 366 374 8 6.28
K525 341 355 14 4.16
K526 33 39 6 2.3
K527 147 154 7 1.79
K527 182 200 18 1.62
K528 124 127 3 2.24
K529 235 261 26 4.11
K530 208 217 9 2.5
K531 81 95 14 2.82
K531 103 112 9 4.1
K532 238 239 1 2.2
K533 159 162 3 1.28
K534 190 192 2 3.47
K535 110 133 23 3.97
K536 195 200 5 2.24
K537 155 171 16 2.27
K538 161 163 2 3.26
K539 214 227 13 0.7
K540 251 262 11 0.94
K541 234 235 1 1.82
K542 159 162 3 2.58
K543 205 207 2 2.35
K544 253 256 3 11.81
K544 274 276 2 4.69
K545 273 282 9 3.96
K546 293 302 9 2.96
K547 365 366 1 6.53
K547 375 383 8 2.86
K548 315 319 4 10.92
K549 324 332 8 1.67
K550 - - - -
K551 798 806 8 0.67
--------- ------- ------- -------
Note: It is estimated that true width is approximately 90% of
the drilled width stated above. Hole K550 failed QA/QC is currently
being re-assayed
(to see image please click here)
http://www.rns-pdf.londonstockexchange.com/rns/3588O_-2018-5-17.pdf
Drill Results Versus Block Model
Preliminary analysis indicates that the drill results are
consistent with the existing Inferred Resource block model, both in
terms of grade and thickness. It is apparent that some zones of
mineralisation are thicker than the Inferred model, while other
zones are thinner. A wireframe model is required to reach any
definitive conclusions. Most importantly all 55 holes contain gold
mineralisation where expected and demonstrate excellent continuity
of the orebody at depth.
The Company's expectation is to convert a significant proportion
of the 3.5Mt of Inferred Resources to the Indicated category and
add significantly to the Mineral Reserve.
Fig.4 Inferred Block Model and New Drill Traces
(to see image please click here)
http://www.rns-pdf.londonstockexchange.com/rns/3588O_-2018-5-17.pdf
New Liberty Inferred Resource and Pit Shells
The cross section above shows the existing pit-shell (with
benches) and the deeper US$1300/oz pit shell. Of the existing 3.5Mt
Inferred Resource (2.8g/t Au containing 315koz of gold), 3.0Mt and
275koz sits within the US$1300/oz pit shell.
LIBERIA - NDABLAMA AND SILVER HILLS
The Liberia exploration focus for the remainder of 2018 is at
Ndablama and Silver Hills. At Ndablama a 15,000m infill drilling
programme is well progressed with 4 diamond drill rigs onsite. The
objective is to delineate an Indicated Resource of approximately
400koz.
The last previous drilling activity at Ndablama, was in 2013 and
2014 which established an Indicated Mineral Resource of 7.6Mt with
386,000 ounces of gold grading 1.6 g/t Au and Inferred Mineral
Resource of 9.6Mt with 515,000 ounces of gold grading 1.7 g/t
Au.
Two additional new rigs have arrived in Liberia and are
currently en-route to Silver Hills. Silver Hills had been
relatively inaccessible however access roads and drill pads have
now been developed. A combined 17,000m programme is planned at
Silver Hills and on the Matambo Corridor (Cape Mount licenses), the
latter acquired from Sarama Resources during Q4 2015.
Ndablama Trucking Study
Preliminary trucking studies are underway and the most likely
Ndablama development scenario will involve trucking material to New
Liberty.
Other Targets
Targets not in this year's Liberia programme include multiple
areas located on a 13km gold corridor along strike of the Ndablama
area (e.g. Leopard Rock and Gondoja). The map below shows the main
areas of interest in Liberia, highlighting the drilling targets for
2018.
It is also worth noting that the Ndablama, Silver Hills, Leopard
Rock, Gondoja and Weaju targets all sit within the Bea Mountain
Mineral Development Agreement ("MDA") which sets the legal,
operational and fiscal parameters that the New Liberty Gold Mine
operates under, providing for an existing permitting framework for
development of these targets.
Fig. 5 Liberia License Map
(to see image please click here)
http://www.rns-pdf.londonstockexchange.com/rns/3588O_-2018-5-17.pdf
AVESORO EXPLORATION OVERVIEW
2018 Drilling
Avesoro is undertaking a fully funded 171,000 metres diamond
drill programme, 139,000m will be drilled in Burkina Faso and
32,000m in Liberia. Drilling is restricted to potentially
commercial ounces, targeting shallow or high-grade zones, guided by
project specific cut-off grades.
Fourteen drill rigs are currently either operating or en route
to drill locations, and this will increase to 24 rigs during H2
2018. Diamond drilling costs are expected to average US$60/metre,
in line with Avesoro's costs in 2017.
Burkina Faso Programme
At Youga the 2018 exploration programme is for 45,500 metres of
diamond core drilling, some of which will test the strike extension
of Gassore. Youga drilling also includes along strike to the
southeast of the A2NE pit. At Balogo the 2018 drilling is 29,000
metres of diamond core drilling. The main targets are down dip in
the main Balogo pit (Netiana) and nearby along strike discoveries
such as Panga, Cobra Hill and Balogo Hill, following encouraging
prospective results in 2017. At Ouaré the 2018 diamond drilling
programme is for 65,000 metres.
Fig.6 2018 Drilling Overview
(to see image please click here)
http://www.rns-pdf.londonstockexchange.com/rns/3588O_-2018-5-17.pdf
Fig.7 Planned Split of 2018 Drilling
(to see image please click here)
http://www.rns-pdf.londonstockexchange.com/rns/3588O_-2018-5-17.pdf
Fig.8 Management's 1Moz Reserve Conversion Target, by
Project
(to see image please click here)
http://www.rns-pdf.londonstockexchange.com/rns/3588O_-2018-5-17.pdf
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
Contact Information
Avesoro Resources Inc.
Geoff Eyre / Nick Smith
Tel: +44(0) 20 3405 9160
Camarco finnCap
(Financial PR / IR) (Nominated Adviser and Joint Broker)
Gordon Poole / Nick Hennis Christopher Raggett / Scott Mathieson
Tel: +44(0) 20 3757 4980 / Emily Morris
Tel: +44(0) 20 7220 0500
Berenberg Hannam & Partners (Advisory) LLP
(Joint Broker) (Joint Broker)
Matthew Armitt / Sara MacGrath Rupert Fane / Ingo Hofmaier /
/ Charlotte Sutcliffe Ernest Bell
Tel: +44(0) 20 3207 7800 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.
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.
The foregoing technical reports include relevant information
regarding the effective dates and the assumptions, parameters and
methods of the Mineral Resource and Reserve estimates at New
Liberty, Youga and Balogo cited in this press release, as well as
information regarding data verification, exploration procedures,
quality control and quality assurance, and other matters relevant
to the scientific and technical disclosure contained in this press
release.
For more information, please visit www.avesoro.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 this press
release. Mr. Pryor has verified the underlying technical data
disclosed in this press release.
Forward Looking Statements
Certain information contained in this press release constitutes
forward looking information or forward looking statements with 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 the company's
goal of converting 1Moz of Mineral Resources into Mineral Reserves;
the completion of 171,000 metres of drilling in 2018; the
publishing of updated Mineral Resource and Mineral Reserve
estimates at Youga and Balogo in Q2 2018 and at New Liberty in Q3
2018; the publishing of a maiden Mineral Resource at Gassore;
expected cost per metre of drilling of $65; and an increase in the
number of drill rigs operating to 24 rights before the end of H1
2018.
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; that exploration and drilling results
justify further drilling and exploration activities; 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, drill rig 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 or Reserves; 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 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
DRLFKODQPBKKKPD
(END) Dow Jones Newswires
May 17, 2018 02:01 ET (06:01 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