TSX : AUE
AIM : AUE
TORONTO,
17 April 2014 /CNW/ - Aureus Mining
Inc. (TSX: AUE / AIM: AUE) ("Aureus" or the "Company") is pleased
to announce that it will engage in owner mining at its New Liberty
Gold Project ("New Liberty" or "the Project"), located within the
Southern Block of the Company's 100% owned Bea Mountain Mining
licence in Liberia. MonuRent (Liberia) Limited ("MonuRent") has been awarded
a contract (the "Contract") to provide and fully maintain a new
mining fleet in support of the owner mining operations over the
life of mine ("LOM") at New Liberty.
The Contract is for the provision of hire and maintenance of a
new mining fleet. Following a detailed evaluation and
adjudication process, Aureus has decided to perform owner mining
operations at New Liberty utilising a leased new mining fleet that
is fully maintained by MonuRent for the following reasons:
- MonuRent has provided a fleet over the past 18 months for the
clearing, civils and earthworks at New Liberty during the
construction and development phase under a separate contract –
overall fleet availability to date is 92%;
- MonuRent guarantees a minimum fleet availability of 85% and
assists with training of local operators;
- MonuRent has an established west African business and network
infrastructure, meaning that it has the capacity and ability to
maintain the mining fleet;
- MonuRent, in providing and maintaining the fleet, allows Aureus
to focus on its core strengths and activities in respect of the
mine planning and scheduling, removing the responsibility and
obligation to purchase and maintain the fleet over the LOM;
- Some of the fleet required for the pre-strip operations is
already at the New Liberty site; and
- Overall cost for owner mining scenario is less than the cost of
a contract mining approach. Final detailed scheduling is now
in progress for production planning.
The fleet rental model in mining is an established global
concept and is used extensively in Australia, North and South America and south east Asia.
Aureus will be responsible for the open pit mining, geology,
survey and planning and will provide the operators and other in-pit
personnel to undertake the mining and pumping activities.
Thinus Strydom, Aureus' General Manager, will be responsible for
managing the mining operations, having performed this role
previously at the Bisha, Loulo and Emperor mines. The
majority of the mining team are already working at New Liberty and
are currently in the planning phase for the pre-strip and the
subsequent mining operations.
MonuRent is responsible for the purchase of the new fleet and
the maintenance of the fleet over the LOM. MonuRent will
utilise its established infrastructure in west Africa to service its existing Liberian
business in Monrovia as well as
its business at New Liberty. MonuRent carries an extensive
parts and spares inventory across its business, which it will use
to service this Contract. MonuRent will also provide training
facilities for the fleet operators.
MonuRent is an international company with proven track record of
heavy equipment solutions and services across West Africa. It
was founded in 2010 with the vision of becoming the leading
equipment rental and operational outsourcing business in
Africa. MonuRent has a management team with extensive
experience in contract mining and heavy vehicle fleet maintenance
in civil, construction, operational and engineering
industries. MonuRent's current fleet of equipment consists of
over 350 units operating in Nigeria, Sierra
Leone, Ghana, Liberia and Botswana.
Commenting on the appointment of MonuRent, David Reading, President and Chief Executive
Officer of Aureus Mining, said:
"Utilising the services of MonuRent provides Aureus with a
proven, cost effective and derisked operating model that will
allow the Company to focus on the mine planning and
scheduling, its core strengths and activities.
MonuRent has been involved in the New Liberty project throughout
the construction and development stage, so is therefore well placed
to build on the success to date in respect of the operational
phase. We look forward to continuing to work with MonuRent
and reaping the benefits of this fruitful relationship.
Aureus remains on track for our first gold pour in Q1
2015."
About MonuRent
MonuRent is west Africa's
leading equipment and service provider. Established in 2010,
MonuRent has extensive experience across the African continent,
providing equipment rental and support services to its key client
base, which includes several of Africa's leading resource companies in some of
the most challenging environments on the continent. MonuRent
is experienced in delivering tailored solutions for clients in
remote locations, which includes equipment fleet rental, modular
operator training, power solutions, modulated buildings, logistics
and procurement services – this is all combined with technical
support and management services to ensure clients can deliver on
their operational goals. MonuRent's current fleet of
equipment consists of over 350 units operating in Nigeria, Sierra
Leone, Ghana, Liberia and Botswana. Working in partnership with
key clients, MonuRent's value proposition includes significant
industry expertise to assist during the evaluation, review and
execution phases of project. Having been involved from the
initial construction phases of the New Liberty project, MonuRent is
delighted to be extending its partnership with Aureus on this
landmark project.
About Aureus Mining Inc.
The Company's assets include the New Liberty gold deposit in
Liberia (the "New Liberty Gold
Project," "New Liberty" or the "Project"), which has an estimated
proven and probable mineral reserve of 8.5 Mt with 924,000 ounces
of gold grading 3.4 g/t and an estimated measured and indicated
mineral resource of 9,796 Kt with 1,143,000 ounces of gold grading
3.63 g/t and an estimated inferred mineral resource of 5,730 Kt
with 593,000 ounces of gold grading 3.2 g/t. A Definitive
Feasibility Study has been completed on the Project and
construction has commenced with earthworks. The Project is
expected to have an 8 year mine life and annual production of
119,000 ounces for the first 6 years of production. The
Company has financed the Project's equity and debt funding
requirement. The foregoing mineral reserve and mineral
resource estimates and additional information in connection
therewith are set out in the Company's technical report dated
July 3, 2013 and entitled "New
Liberty Gold Project, Liberia,
West Africa, Updated Technical
Report."
The New Liberty Gold Project is located within the Southern
Block of the 100% owned Bea Mountain mining licence. This licence
covers 457 km² and has a 25 year, renewable, mineral development
agreement. The Northern Block of the Bea Mountain mining
license also hosts additional gold projects of Ndablama, Gondoja
and Weaju, which are the focus of exploration programs during
2013. Ndablama has an inferred mineral resource of 6,829 Kt
with 451,000 ounces of gold grading 2.1 g/t and Weaju has an
inferred mineral resource of 2,680 Kt with 178,000 ounces of gold
grading 2.1 g/t. The Archaen Gold exploration licence, which
covers 89 km², is also a focus of exploration for 2013, with
Leopard Rock being the main target. The Yambesei (759
km2), Archaen West (112.6 km2), Mabong (36.6
km2) and Mafa West (15.6 km2) licences will
also be subject to preliminary reconnaissance geological
work. The foregoing mineral resource estimates and additional
information in connection therewith are set out in the Company's
technical report dated November 11, 2013 and entitled
"Ndablama and Weaju Gold Projects, Bea Mountain Mining Licence,
Northern Block, Technical Report on Mineral Resources."
The Company also has gold exploration permits in Cameroon.
Qualified Persons
The estimates of mineral Resources for the DFS were calculated
in accordance with NI 43-101 and carried out by Chris G Arnold BSc
(Hons), MSc, MAusIMM (CP) of independent consultants AMC. The
Reserve Study for the DFS was prepared by Mr M Staples of AMC, a
Qualified Person, for the purposes of the study, under the
standards set forth by National Instrument 43-101 "Standards of
Disclosure for Mineral Project", of the Canadian Securities
Administrators ("NI 43-101″).
The Company's Qualified Person is David
Reading, who holds a MSc in Economic Geology from
University of Waterloo, Canada and is a
Fellow of the Institute of Materials, Minerals and Mining.
David Reading is the President and
CEO of Aureus Mining Inc. and approves this press release.
Forward Looking Statements
Certain information in this news release relating to Aureus
Mining is forward-looking and related to anticipated events and
strategies. When used in this context, words such as "will",
"anticipate", "believe", "plan", "intend", "target" and "expect" or
similar words suggest future outcomes. By their nature, such
statements are subject to significant risks and uncertainties that
may cause actual results or events to differ materially from
current expectations, including: risks normally incidental to
exploration and development of mineral properties; uncertainties in
the interpretation of results from drilling and test work; the
possibility that future exploration, development or mining results
will not be consistent with expectations; regulatory and government
decisions; the possibility that future drawdowns under the project
finance loan facilities may not be available; construction of the
New Liberty Gold Project being delayed and/ or over budget;
economic conditions; availability and cost of financing; estimates
of capital and operating costs and start-up costs; plans regarding
construction activities; and future unforeseen liabilities and
other factors including, but not limited to, those listed under
"Risk Factors" in the Company's Annual Information Form, a copy of
which is available on SEDAR at www.sedar.com, and in the Aureus
Mining Admission Document, a copy of which is available at
www.aureus-mining.com . Readers are cautioned not to place
undue reliance on forward-looking statements as actual results
could differ materially from the plans, expectations, estimates or
intentions expressed in the forward-looking statements.
Forward-looking information speaks only as of the date on
which it is made and, except as may be required by applicable law,
Aureus Mining disclaims any obligation to update or modify such
forward-looking information, either as a result of new information,
future events or for any other reason.
Any mineral resource and mineral reserve figures referred to in
this press release are estimates and no assurances can be given
that the indicated levels of minerals will be produced. Such
estimates are expressions of judgment based on knowledge, mining
experience, analysis of drilling results and industry practices.
Valid estimates made at a given time may significantly change
when new information becomes available. While the Company
believes that the mineral resource and mineral reserve estimates in
respect of its properties are well established, 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, this could have a material adverse impact on the Company.
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. Mineral resources that are not mineral reserves
do not have demonstrated economic viability.
SOURCE Aureus Mining Inc.