TSX: ASO
AIM: ASO
TORONTO, April 9, 2018
/CNW/ - 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%
|
Strip
Ratio
|
Waste: 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%
|
Strip
Ratio
|
Waste: 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.
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.
SOURCE Avesoro Resources Inc.