TSX: ASO
AIM: ASO
TORONTO, July 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
June 30, 2018 ("Q2" or the "Quarter")
from its New Liberty Gold Mine ("New Liberty") in Liberia, and Youga Gold Mine, ("Youga") in
Burkina Faso.
Highlights:
- Total gold production of 60,231 ounces in the Quarter, bringing
year to date ("YTD") gold production to 128,319 ounces, in line
with full year 2018 production guidance of 220,000 – 240,000;
- Mining rates have increased at both New Liberty and Youga, with
total material moved increasing by 13% and 45% respectively quarter
on quarter, as a result of the commissioning of further heavy
mining equipment;
- New Liberty gold production of 29,808 ounces in the Quarter,
with increased material movement benefiting from the additional
mining equipment and in line with the mine plan; and
- Youga gold production of 30,423 ounces in the Quarter, a
reduction from Q1 2018, due to a scheduled decrease in the mined
grade at the Balogo satellite deposit.
Serhan Umurhan, Chief Executive Officer of Avesoro,
commented: "I am pleased with the operational
performance at both New Liberty and Youga during the first half of
2018 which has resulted in year to date production of 128,319
ounces. Already this year we have substantially outperformed the
Company's prior year total annual gold production of 76,179 ounces
and we remain on track to meet our 2018 production guidance of
220,000 – 240,000 ounces of gold.
Following the successful Mineral Resource and Reserve upgrade
for Youga published earlier in the Quarter, our extensive drilling
campaigns continue to progress at pace in both Liberia and Burkina
Faso. I look forward to further updating the market on
the results of our Mineral Resource upgrade work at New Liberty and
the exciting exploration work we are undertaking at the Ndablama
deposit, located 40km east of New Liberty."
Table 1: Preliminary Production Results
Parameter
|
Unit
|
Q2-2018
|
Q1-2018
|
Variance
|
YTD
|
Ore Mined
|
kt
|
596
|
591
|
1%
|
1,188
|
Waste
Mined
|
kt
|
9,242
|
7,312
|
26%
|
16,555
|
Total Material
Movement
|
kt
|
9,838
|
7,904
|
24%
|
17,742
|
Ore
Processed
|
kt
|
659
|
650
|
1%
|
1,309
|
Gold
Production
|
Ounces
|
60,231
|
68,088
|
-12%
|
128,319
|
Table 2: New Liberty Performance Indicators
Parameter
|
Unit
|
Q2-2018
|
Q1-2018
|
Variance
|
Q2-2017
|
Variance
|
Ore Mined
|
kt
|
375
|
359
|
4%
|
214
|
75%
|
Mined
Grade
|
g/t
|
2.70
|
3.01
|
-10%
|
2.64
|
2%
|
Waste
Mined
|
kt
|
5,312
|
4,677
|
14%
|
3,565
|
49%
|
Strip
Ratio
|
Waste: Ore
|
14.2
|
13.0
|
9%
|
16.7
|
-15%
|
Total Material
Movement
|
kt
|
5,688
|
5,036
|
13%
|
3,779
|
51%
|
Ore
Processed
|
kt
|
352
|
344
|
2%
|
295
|
19%
|
Feed Grade
|
g/t
|
2.81
|
2.91
|
-3%
|
2.00
|
41%
|
Recovery
|
%
|
87
|
87
|
0%
|
88
|
-1%
|
Gold
Production
|
Ounces
|
29,808
|
27,870
|
7%
|
15,825
|
88%
|
New Liberty
Mining operations during the Quarter
benefited from the commissioning of the remaining mining equipment
delivered to site during Q1 2018 and commissioned during Q2 2018
and resulted in a 13% increase on the previous quarter in total
material movement to 5,688kt and waste mined totalling 5,312kt.
Process plant throughput for the Quarter increased by 2% to 352kt,
as a result of further incremental improvements to the process
plant flowsheet, resulting in gold production of 29,808 ounces.
Table 3: Youga Performance Indicators
Parameter
|
Unit
|
Q2-2018
|
Q1-2018
|
Variance
|
Q2-2017
|
Variance
|
Ore
Mined1
|
kt
|
221
|
233
|
-5%
|
220
|
0%
|
Mined
Grade1
|
g/t
|
3.59
|
4.46
|
-20%
|
4.07
|
-12%
|
Waste
Mined
|
kt
|
3,930
|
2,635
|
49%
|
2,528
|
55%
|
Strip
Ratio
|
Waste: Ore
|
17.8
|
11.3
|
58%
|
11.5
|
55%
|
Total Material
Movement
|
kt
|
4,150
|
2,868
|
45%
|
2,748
|
51%
|
Ore
Processed
|
kt
|
307
|
306
|
0%
|
299
|
3%
|
Feed Grade
|
g/t
|
3.44
|
4.53
|
-24%
|
3.64
|
-6%
|
Recovery
|
%
|
90
|
90
|
0%
|
92
|
-2%
|
Gold
Production
|
Ounces
|
30,423
|
40,218
|
-24%
|
32,023
|
-5%
|
1
Including 76kt of ore at 4.78 g/t from the Balogo satellite deposit
in Q2 2018 (Q1 2018: 35kt at 17.94g/t; Q2 2017: 57kt at
9.93g/t)
|
Youga
Total material movement for the Quarter was
4,150kt, a 45% increase on the previous quarter due to an increase
in heavy mining equipment at Youga. Process plant throughput for
the Quarter remained stable at 307kt and in line with our 2018
annual forecast, resulting in gold production of 30,423 ounces.
During the Quarter, a PSA Oxygen Plant was commissioned at
the Youga process with the aim of increasing gold recovery. A
scheduled electrical motor change and mill feed chute relining was
also undertaken in the Quarter. During Q3 2018, a new 34kva
transformer will be installed at Youga, in addition to an emergency
plant feed chute to aid production flexibility during the wet
season.
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 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,
prepared in accordance with CIM guidelines, 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 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. An
independent NI 43-101 technical report with respect to the Youga
Gold Mine will be filed on SEDAR within 45 days of the updated
Youga Mineral Reserve and Resource statement announced on
June 19, 2018.
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 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, statements regarding full year 2018
production guidance of 220,000 to 240,000 ounces of gold.
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.
SOURCE Avesoro Resources Inc.