TIDMASO
RNS Number : 1793B
Avesoro Resources Inc.
19 September 2018
19 September 2018
Avesoro Resources Inc.
TSX: ASO
AIM: ASO
AVESORO UPGRADES
NEW LIBERTY MINERAL RESOURCES
Avesoro Resources Inc., ("Avesoro" or the "Company"), the TSX
and AIM listed West African gold producer, is pleased to announce
that it has successfully increased the Measured and Indicated
Mineral Resource at its New Liberty Gold Mine ("New Liberty") in
Liberia to more than 1.1Moz.
Highlights:
-- Total open-pittable and underground Measured and Indicated
("M&I") Mineral Resources have increased by 12% to 11.5Mt
containing 1,105,000 ounces of gold grading 3.0 g/t Au;
-- Open-pittable M&I Mineral Resources have increased by
2.4Mt (+28%) for an increase of 150,000 ounces of gold (+17 %) to
11Mt containing 1,055,000 ounces of gold grading 2.97 g/t Au;
-- Infill drilling has confirmed continuity of previously
Inferred Mineral Resources below the current production pit
shell;
-- 33,000 metre 83-hole underground diamond drill program now
commenced targeting the upgrade of 409koz of Inferred Mineral
Resources located below the previously reported Proven and Probable
Mineral Reserve to higher levels of confidence;
-- Management is now examining open pit and underground mining
options to determine the most economically optimal way of
exploiting the improved resources, including a Pre-Feasibility
Study ("PFS") level underground mining study; and
-- 4,200 metre 22-hole diamond infill drilling ongoing at the
Ndablama deposit, while a PFS level study has commenced to
determine the economic viability of transporting material to New
Liberty for processing.
Serhan Umurhan, Chief Executive Officer of Avesoro, commented:
"The completion of the infill drilling campaign at New Liberty has
improved the confidence in the estimated tonnes and grade of a
portion of Inferred material located below the current designed pit
floor and within a US$1,300/oz pit shell. The intercepts
encountered during the drill campaign have either met or exceeded
our expectations and we have been able to successfully convert
241koz ounces of Inferred material into the Indicated Mineral
Resource category.
This significant improvement in the confidence level of
resources at New Liberty has led us to look at options for how best
to maximise the project economics at the mine. These options
include the possible transitioning from the current open pit only
mine plan to a smaller open pit combined with an underground
operation.
We are now commencing PFS level geotechnical and hydrological
studies to confirm the assumptions used in our internal study and
anticipate that we will have a full PFS level underground mining
study completed during Q1 2019.
In addition to evaluating underground mining of the existing
Indicated Mineral Resources, we have also mobilised 6 diamond drill
rigs and commenced an underground focused drill programme of 33,000
metres and 83 holes targeting the plunging high-grade ore shoots,
focused on the higher grade, higher margin underground ounces with
a view to converting further resources into the Indicated category
in support of an underground mining scenario."
New Liberty Infill Drilling Program
As previously announced, an infill drilling programme was
completed at New Liberty in H1 2018, with the objective of
upgrading a portion of the existing Inferred resources located
below the current planned open-pit floor but within a US$1,300/oz
pit shell, to the Indicated Mineral Resource category. The program
comprised of 55 inclined diamond drill holes averaging 350 metres
in length and totalling 19,500 metres. This program has resulted in
the conversion of a substantial proportion of existing Inferred
Resources to the Indicated Mineral Resource category. An updated
Mineral Reserve for New Liberty is pending the results of the
recently commissioned PFS which will evaluate both open pit and
underground exploitation options.
New Liberty Upgraded Mineral Resource - June 30, 2018
The updated Mineral Resource estimate for the New Liberty Gold
Mine was produced by CSA Global (UK) Ltd and has been prepared in
accordance with the Canadian Institute of Mining, Metallurgy and
Petroleum (CIM) "Estimation of Mineral Resources and Mineral
Reserves Best Practice Guidelines". The effective date of this
Mineral Resource estimate is June 30, 2018, with a comparison over
the previous estimate provided in Table 2 below.
Table 1: Updated Mineral Resource Estimate.
Category Cut-off Tonnes Mt Au Grade g/t Au Koz
Measured Mineral Resources 0.70 g/t (OP) 0.8 2.33 60
--------------------- -------------- ----------------- --------
1.90 g/t (UG) 0.0 2.43 0.4
---------------------------------------------------------------- -------------- ----------------- --------
Indicated Mineral Resources 0.70 g/t (OP) 10.2 3.02 995
--------------------- -------------- ----------------- --------
1.90 g/t (UG) 0.5 3.33 49
---------------------------------------------------------------- -------------- ----------------- --------
Measured and Indicated
Mineral Resources 0.70 g/t (OP) 11.0 2.97 1,055
--------------------- -------------- ----------------- --------
1.90 g/t (UG) 0.5 3.32 50
---------------------------------------------------------------- -------------- ----------------- --------
Inferred Mineral Resources 0.70 g/t (OP) 1.3 3.7 158
--------------------- -------------- ----------------- --------
1.90 g/t (UG) 2.4 3.5 266
---------------------------------------------------------------- -------------- ----------------- --------
Notes:
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.
Reporting cut-off is 0.70 g/t Au for Open Pit and 1.90 g/t Au for Underground Mining.
The MRE has been depleted for mining up to 30 June 2018. The effective date of the Mineral
Resource is 30 June 2018.
Figures have been rounded to the appropriate level of precision for the reporting of Mineral
Resources.
Due to rounding, some columns or rows may not compute exactly as shown.
The Mineral Resources are stated as in situ dry tonnes. All figures are in metric tonnes.
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.
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.
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.
Mineral Resources have been reported inclusive of Mineral Reserves, where applicable.
Table 2: Comparison to Previous 2017 Mineral Resource
Estimate
Model Measured Indicated M&I Inferred
Mt Au g/t Koz Mt Au g/t Koz Mt Au g/t Koz Mt Au g/t Koz
MRE 2017 OP 0.1 3.6 15 8.5 3.3 890 8.6 3.3 905 3.6 2.8 325
MRE 2018 OP 0.8 2.3 60 10.2 3.0 995 11.0 3.0 1,055 1.3 3.7 158
----------------- ----- ------- ----- ----- ------- ----- ----- ------- ------ ----- ------- -----
% Difference OP 700% -35% 299% 20% -8% 12% 28% -10% 17% -63% 33% -51%
----------------- ----- ------- ----- ----- ------- ----- ----- ------- ------ ----- ------- -----
MRE 2017 UG 0.6 3.3 65 0.6 3.3 65 2.8 3.3 295
MRE 2018 UG 0.5 3.3 49 0.5 3.3 50 2.4 3.5 266
----------------- ----- ------- ----- ----- ------- ----- ----- ------- ------ ----- ------- -----
% Difference UG -23% 0% -24% -22% 1% -24% -16% 6% -10%
----------------- ----- ------- ----- ----- ------- ----- ----- ------- ------ ----- ------- -----
Notes:
MRE 2017 reported at 0.80 g/t Au Open Pit, and 2.00 g/t Au
Underground Mining; MRE 2018 reported at 0.70 g/t Au Open Pit, and
1.90 g/t Au Underground Mining
Due to rounding, some columns or rows may not compute exactly as
shown
New Liberty Further Studies
The Company is currently evaluating the optimal approach for the
future mining and exploitation of the New Liberty ore body in order
to deliver strong positive cash flows. The Company is now
considering modifying its current open-pit mining plan to reduce
future waste cut backs from the life of mine plan, resulting in the
transition from an open-pit mining operation to a combined open-pit
and underground mining operation.
Over the next two months, the Company plans to complete a
further 83 diamond drill hole 33,000 metre underground infill
drilling program with aims to convert a further portion of the
409koz of underground Inferred Mineral Resources located below the
previously reported Proven and Probable Mineral Reserve into the
Indicated Mineral Resource category.
Concurrently, the Company has commenced a PFS level study,
including both geotechnical and hydrological studies to evaluate
these scenarios. This PFS will take up to six-months to complete
and will draw on both in-house mining expertise and also
underground mining consultants from CSA Global. After completing
this PFS level underground mining study, the Company expects to
report new open-pittable and underground Mineral Reserves for the
New Liberty Gold Mine.
Update on Ndablama Exploration and PFS
Further to the completion in July 2018 of its 16,200 metre
75-hole diamond infill drilling programme at the Ndablama deposit,
located 45km northeast of New Liberty, the Company has recently
embarked on a further 22-hole, 4,200 metre program with 11 holes
completed to date.
The Ndablama infill drilling is designed to upgrade the
classification of Inferred Resources to the Measured or Indicated
categories, after which mine planning and optimisation studies can
be undertaken. The results received thus far provide additional
confidence in the existing Ndablama Mineral Resource estimate, and
as a result, the Company has commenced a PFS level trucking study
to determine the economic viability of transporting the material to
New Liberty for processing.
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
(IR / Financial PR) (Nominated Adviser and Joint Broker)
Gordon Poole / Nick Hennis Christopher Raggett / Scott Mathieson
/ Camille Gochez
Tel: +44(0) 20 3757 4980 Tel: +44(0) 20 7220 0500
Berenberg Hannam & Partners (Advisory) LLP
(Joint Broker) (Joint Broker)
Matthew Armitt / Sara MacGrath Rupert Fane / Ingo Hofmaier / Ernest
/ James Brooks 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 two 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 ("New Liberty")
and the Youga Gold Mine in Burkina Faso ("Youga").
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 11.5Mt with
1,105,000 ounces of gold grading 3.0g/t and an estimated Inferred
Mineral Resource of 3.7Mt with 424,000 ounces of gold grading
3.6g/t. The Company has prepared 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 has an estimated Proven and Probable Mineral Reserve of
11.2Mt with 660,100 ounces of gold grading 1.84g/t and a combined
estimated Measured and Indicated Mineral Resource of 16.64Mt with
924,200 ounces of gold grading 1.73g/t and an Inferred Mineral
Resource of 13Mt with 685,000 ounces of gold grading 1.70g/t. The
foregoing Mineral Reserve and Mineral Resource estimates and
additional information in connection therewith, prepared in
accordance with CIM guidelines, is set out in an NI 43-101
compliant Technical Report dated July 31, 2018 and entitled
"Mineral Resource and Mineral Reserve Update for the Youga Gold
Mine, Burkina Faso" and is available on SEDAR at www.sedar.com.
For more information, please visit www.avesoro.com
Qualified Persons
The information in this announcement relating to the Mineral
Resource Estimate for the New Liberty Gold Mine has been prepared
by Dr. Belinda van Lente, who is a registered Professional Natural
Scientist (Pr.Sci.Nat) of the South African Council for Natural
Scientific Professions. Dr. van Lente is a full-time employee of
CSA Global (UK) Ltd and has sufficient experience which is relevant
to the style of mineralisation and type of deposit under
consideration and to the activity which she has undertaken to
qualify as a "Qualified Person" as defined in National Instrument
43-101 "Standards of Disclosure for Mineral Projects" of the
Canadian Securities Administrators. Dr. van Lente has reviewed and
approved this announcement and consents to the inclusion in the
announcement of the matters based on her information, in the form
and context in which this appears.
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 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 speak only
as of the date of this press release.
Forward looking statements or information in this press release
include, among other things, the transition of mining from open-pit
to open-pit and underground operations at New Liberty; the upgrade
the classification of Inferred material to the Measured or
Indicated categories at the Ndablama deposit and completion of a
PFS level underground mining study during Q1 2019.
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.
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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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