TIDMAMA
RNS Number : 2980Z
Amara Mining PLC
17 September 2015
17 September 2015 AIM:AMA
Amara Mining plc
("Amara" or "the Company")
2015 DRILLING PROGRAMME RESULTS AND PFS OPTIMISATION UPDATE
FOR
YAOURE GOLD PROJECT
Amara Mining plc, the AIM-listed West African focused gold
mining company, is pleased to announce the results of its 11,904
metre 2015 drilling campaign at its Yaoure Gold Project ("Yaoure")
in Côte d'Ivoire. The Company also announces an update on the
optimisation work following the completion of the Pre-Feasibility
Study ("PFS") for Yaoure, which was announced on 14 May 2015.
HIGHLIGHTS
-- 2015 drilling programme and ongoing optimisation studies have
demonstrated Yaoure's potential to become a large, low cost gold
mine
-- Amara's confidence has increased in the opportunity for a
starter pit in the northern area of the Yaoure Central zone. Key
benefits include:
o Reduction in the requirement for pre-stripping contributing to
a lower upfront capital cost
o Increased head grade and a smaller processing plant yielding
robust returns
o Lower operating costs
-- Drilling in the northern area of the Yaoure Central zone has
established the presence of near surface mineralisation.
Significant intercepts include:
o 14m at 3.1g/t from 53m and 5m at 39.6g/t from 163m in hole
YDD0444
o 14m at 2.4g/t from surface and 4m at 34.0g/t from 75m in hole
YDD0428
o 36m at 3.1g/t from surface in hole YDD0436
o 21m at 3.7g/t from 30m in hole YDD0434
o 23m at 3.4g/t from 43m and 2m at 13.7g/t from 118m in hole
YDD0455
-- Results from an extensive mapping and channel sampling
programme on the Yaoure Central pit floor better constrain the
major mineralised structures and further demonstrate strong
continuity of gold mineralisation in the northern area. Significant
results include:
o 8m at 9.7g/t in channel YRP0132
o 21m at 3.5g/t in channel YRP0119B
o 5m at 14.6g/t in channel YRP0114
-- High grade intercepts also reported from in-fill drilling in
the central, southern and far northern areas of the Yaoure Central
zone
-- Mineral Resource update expected to be delivered in Q4 2015
-- Final results of the PFS optimisation work to be published
thereafter, with Amara remaining well-funded to advance the
Bankable Feasibility Study ("BFS")
A drilling map and a selection of section diagrams are available
on the recently relaunched Amara website at
http://www.amaramining.com/operations/yaoure/maps-sections/
John McGloin, Chairman and Chief Executive Officer of Amara,
commented:
"Our drilling and optimisation work indicates that we can
significantly reduce the upfront capital cost, whilst improving
head grade, as we move Yaoure forwards to becoming a large, low
cost gold mine. The strong results received from the 2015 drilling
programme further increase our confidence in the Yaoure deposit.
They demonstrate the presence of a higher grade core within the
Yaoure Central zone, which, allied with the selectively mined ore
from the CMA zone, will increase the head grade of the ore going to
the processing plant. The presence of ore from surface in the
Yaoure Central zone also underlines the opportunity for a starter
pit in the northern area, which can be mined at a low strip ratio
and significantly reduces the need for pre-stripping. This is
expected to yield an even more compelling project with robust
financial returns and a lower capital requirement. I look forward
to delivering the Mineral Resource update and optimisation study
results in the coming months."
Overview of drilling in northern area of Yaoure Central zone
As part of the optimisation recommendations generated by the
PFS, Amara undertook an 11,904 metre diamond drill ("DD") programme
at Yaoure between April and August 2015. The drilling programme
targeted the Yaoure Central zone, which is a North-South trending
zone of mineralisation approximately 200 metres thick and dipping
at 30 degrees to the east.
The Yaoure Central zone can be viewed as four distinct areas:
the far northern area, the northern area, the central area and the
southern area. The objective of the 2015 drilling programme was to
better define the mineralisation in the northern area to determine
its suitability as a potential starter pit and to infill other
areas of the Mineral Resource.
Drilling results from the northern area are very encouraging,
with significant higher grade intercepts including 5m at 39.6g/t
from 163m and 4m at 34.0g/t from 75m.
Significant intercepts from the northern area of the Yaoure
Central zone
Borehole Section From (m) To (m) Interval Au (g/t)
ID mN (m)(1)
YDD0436 7250 0 36 36 3.1
YDD0444 7200 53 67 14 3.1
YDD0428 7250 75 79 4 34.0
YDD0434 7300 30 51 21 3.7
YDD0434 7300 60 65 5 6.0
YDD0455 7100 43 66 23 3.4
YDD0455 7100 118 120 2 13.7
YDD0452 7150 92 109 17 4.0
YDD0433 7300 64 103 39 0.9
YDD0435 7350 82 2 2 17.5
YDD0428 7250 0 14 14 2.3
---------- -------- --------- ------- --------- ---------
If these intercepts are aggregated, including all internal
waste, there is significant mineralisation from surface in a number
of holes including YDD0444 (168m at 1.6g/t from surface) and hole
YDD0428 (79m at 2.3g/t from surface). This demonstrates strong
potential for highly economic production in this northern area.
The full set of DD results is included in the Appendix.
Potential to increase head grade and reduce upfront capital
cost
The drilling results and initial optimisation work have
increased Amara's confidence in the potential for a starter pit in
the northern area of the Yaoure Central zone where mineralisation
is present from surface. This is expected to deliver the following
benefits:
-- Significant reduction in the requirement for pre-stripping -
the mine plan in the PFS envisages that mining would start in the
CMA zone, which would require 15Mt of pre-stripping at a capital
cost of US$33 million. By commencing mining in the ore at surface
in the Yaoure Central zone, the pre-strip would significantly
decrease and this would assist in reducing the upfront capital cost
of the project
-- Increased head grade and smaller processing plant - by
combining the more continuous, higher grade mineralisation from the
northern area of the Yaoure Central zone with the selectively mined
ore from the CMA zone, Amara expects to be able to increase the
head grade of the ore going to the processing plant. This in turn
suggests the opportunity for a smaller processing plant that would
still deliver robust levels of production and strong financial
returns, but at a lower upfront capital cost and with a faster
payback period
-- Lower operating costs - the PFS mine plan takes ore from all
areas of the Yaoure Central zone, however the 2015 drilling
programme has demonstrated the strongest continuity and highest
grades in the northern area, where strong intercepts are reported
from surface. By focusing the initial mine plan on this area,
operating costs would be reduced. This also supports the use of a
smaller mining fleet, further reducing the upfront capital cost
Furthermore the potential would still exist to expand the
processing plant in the future, funded by the cash flow from early
production, to ensure that Yaoure's long-term value is fully
realised.
Overview of channel sampling programme in Yaoure Central
zone
In conjunction with the drilling programme and following the
de-watering of the previously mined Yaoure Central pit, Amara
conducted 4,659 metres of channel sampling in the Yaoure Central
zone.
The channel sampling results further demonstrate the strong
continuity of the gold mineralisation within the structures in the
northern area of the Yaoure Central zone.
Significant results from channel sampling
Channel ID Interval (m) Au (g/t)
YRP0132 8 9.7
YRP0119B 21 3.5
YRP0114 5 14.6
YRP0008B 12 5.3
YRP0025T3 4 13.3
YRP0156 7 7.5
YRP0118C 9 5.5
YRP0127 3 16.1
YRP0122B 12 4.0
YRP0015 6 7.7
YRP0060B 5 8.7
YRP0036 13 3.2
YRP0109 12 3.4
YRP0090 13 2.9
YRP0012 11 3.0
YRP0128 5 6.6
YRP0057 5 5.7
------------ ------------- ---------
Although the structural controls on mineralisation are
relatively complex in the Yaoure Central zone in comparison to the
more continuous CMA zone, the geological structures can be viewed,
mapped and sampled in the bottom of the pit. This reduces the
exploration risk for Yaoure as the structures visible at surface
can be traced and drilled at depth. It also increases Amara's
confidence in the geological model for Yaoure as the Company moves
the project along the value curve.
The full set of channel sampling results is included in the
press release on the Amara website.
Results from other areas of Yaoure Central zone
Drilling was also conducted in the far northern, central and
southern areas of the Yaoure Central zone. Some strong intercepts
were reported but overall drilling has shown less continuity than
in the northern area. Amara chose not to complete its planned
drilling in this area and instead focus on the more continuously
mineralised northern area.
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While these other areas are unlikely to be mined initially as
Amara focuses on a smaller, more robust first phase, these areas
could help to feed an expanded plant later in the mine's life or
extend the project's mine life.
Significant intercepts from central, far northern and southern
areas of Yaoure Central zone
Borehole Area Section From To (m) Interval Au (g/t)
ID mN (m) (m) (1)
YDD0460 Central 7050 67 83 16 8.3
YDD0415 Central 6950 87 101 14 2.7
YDD0447 Central 6800 48 57 9 14.5
YDD0464 Central 6800 82 93 11 2.7
YDD0459 Central 6750 28 34 6 4.8
YDD0462 Far Northern 7500 178 180 2 13.8
YDD0418 Southern 6700 151 164 13 2.0
---------- -------------- -------- ----- ------- --------- ---------
Next steps
Amara is continuing to work on the optimisation opportunities
generated by the PFS, which include further reducing the upfront
capital requirement and increasing the head grade going to the
processing plant. The Company's objective is to demonstrate the
potential for a large-scale, low-cost gold mine with robust
financial returns that is financeable in a lower gold price
environment.
Amara expects to announce a Mineral Resource update for Yaoure
in Q4 2015 with the optimisation work concluding thereafter.
Following the completion of this work, Amara will commence work on
a BFS for Yaoure, which is expected to be delivered during
2016.
Notes to tables
1. Interval lengths are not true widths. Composite intersections
are based on a minimum width of 2m and a cut-off of 0.40 g/t Au.
Internal dilution of up to 2.00m at less than 0.40 g/t has been
allowed for continuity
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
Alex Carse 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.
The 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
Results of 62 DD holes
Borehole FROM TO m Interval Grade Location of hole
ID m m(1) Au g/t in Yaoure Central
YDD0410 5 19 14 1.04 Southern
YDD0410 26 37 11 0.97
YDD0410 59 61 2 2.12
YDD0410 67 70 3 0.52
YDD0410 87 90 3 0.56
YDD0410 104 106 2 0.91
YDD0410 199 206 7 0.87
YDD0411 58 66 8 0.75 Southern
YDD0411 86 88 2 0.62
YDD0411 116 119 3 3.65
YDD0411 127 129 2 1.84
YDD0411 188 190 2 6.60
YDD0412 7 9 2 3.70 Southern
YDD0412 106 121 15 1.23
YDD0413 0 2 2 0.84 Southern
YDD0413 39 41 2 1.99
YDD0413 47 49 2 1.03
YDD0413 60 62 2 1.52
YDD0413 66 70 4 1.38
YDD0413 96 98 2 1.05
YDD0413 133 135 2 6.37
YDD0413 151 155 4 1.22
YDD0413 170 179 9 2.05
YDD0414 0 3 3 0.63 Southern
YDD0414 12 14 2 0.60
YDD0414 78 81 3 5.42
YDD0415 28 31 3 1.50 Central
YDD0415 46 49 3 1.71
YDD0415 59 67 8 0.40
YDD0415 87 101 14 2.70
YDD0415 145 154 9 1.29
YDD0415 161 168 7 0.92
YDD0415 172.8 181 8.2 0.96
YDD0415 188 191 3 7.06
YDD0415 194 202 8 1.15
YDD0415 213 216 3 1.03
YDD0415 225 227 2 0.56
YDD0416 14 17 3 5.28 Central
YDD0416 186 200 14 0.81
YDD0417 58 62 4 1.98 Central
YDD0417 99 104 5 0.71
YDD0417 107 111 4 0.56
YDD0417 128 133 5 0.62
YDD0417 150 152 2 0.92
YDD0418 53 57 4 1.37 Southern
YDD0418 97 100 3 3.19
YDD0418 124 126 2 1.16
YDD0418 151 164 13 1.98
YDD0418 199 203 4 1.44
YDD0418 208 219 11 1.60
YDD0418 225 227 2 3.40
YDD0419 0 2 2 0.85 Southern
YDD0419 21 26 5 1.62
YDD0419 97 102 5 0.99
YDD0419 134 139 5 1.09
YDD0419 174 177 3 0.91
YDD0420 129 132 3 1.14 Southern
YDD0420 147 151 4 0.59
YDD0420 158 160 2 1.35
YDD0421 63 68 5 2.08 CMA South
YDD0421 105 107 2 0.76
YDD0422 44 48 4 0.48 CMA South
YDD0422 54 61 7 4.17
YDD0423 34 38 4 0.47 Central
YDD0423 107 115 8 2.25
YDD0423 133 136 3 0.58
YDD0424 1 3 2 0.67 Far Northern
YDD0424 14 16 2 10.40
YDD0424 48 50 2 0.46
YDD0424 67 70 3 0.66
YDD0425 101 103 2 0.83 Central
YDD0425 107 116 9 2.34
YDD0425 124 126 2 0.82
YDD0425 134 137 3 1.07
YDD0425 157 160 3 6.36
YDD0426 11 16 5 1.67 Northern
YDD0426 37 40 3 0.51
YDD0426 117 119 2 2.93
YDD0428 0 14 14 2.39 Northern
YDD0428 31 33 2 0.68
YDD0428 39 43 4 1.09
YDD0428 50 56 6 0.58
YDD0428 65 67 2 2.70
YDD0428 75 79 4 34.00
YDD0428 97 106 9 0.73
YDD0428 148 159 11 0.71
YDD0428 178 182 4 0.40
YDD0428 189 194 5 1.00
YDD0428 232 242 10 2.09
YDD0430 43 45 2 11.89 Southern
YDD0431 4 13 9 0.66 Northern
YDD0431 31 44 13 0.63
YDD0431 53 55 2 0.85
YDD0431 96 98 2 1.18
YDD0431 109 118 9 0.74
YDD0431 128 143 15 1.20
YDD0431 154 156 2 1.52
YDD0431 165 167 2 1.27
YDD0431 171 175 4 0.55
YDD0431 249 254 5 1.14
YDD0432 16 20 4 2.97 Northern
YDD0432 37 39 2 2.22
YDD0432 110 124 14 0.67
YDD0432 164 166 2 2.00
YDD0432 191 198 7 1.16
YDD0432 213 220 7 2.62
YDD0432 230 236 6 0.68
YDD0432 261 269 8 1.24
YDD0433 5 11 6 1.61 Northern
YDD0433 14 25 11 1.25
YDD0433 34 56 22 0.69
YDD0433 64 103 39 0.91
YDD0433 114 116 2 7.78
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