TSX: ASO
AIM: ASO
TORONTO, Oct. 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 September 30,
2018 ("Q3" 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 47,177 ounces in the Quarter, bringing
year to date gold production to 175,496 ounces;
- The Company maintains full year 2018 production guidance of
220,000 -240,000 ounces;
- Ore mining rates have increased at both New Liberty and Youga
compared with the previous quarter;
- Total material moved consistent with the previous quarter
notwithstanding Q3 being the peak of the wet season in both
Burkina Faso and Liberia;
- New Liberty gold production of 27,456 ounces in the Quarter;
and
- Youga gold production of 19,721 ounces in the Quarter.
Serhan Umurhan, Chief Executive Officer of Avesoro,
commented: "I am pleased that the Company has been able
to maintain total material movement throughout the peak of the wet
seasons in both Liberia and
Burkina Faso, with Youga, in
particular, experiencing three times more rain this year than
during the same period in 2017. Moving into the fourth quarter of
the year we expect total material movement to increase and we
maintain our full year production guidance of 220,000 to 240,000
ounces of gold."
Table 1: Preliminary Group Production Results
Parameter
|
Unit
|
Q3-2018
|
Q2-2018
|
Variance
|
Year To
Date
|
Ore Mined
|
kt
|
629
|
596
|
6%
|
1,817
|
Waste
Mined
|
kt
|
9,146
|
9,242
|
-1%
|
25,700
|
Total Material
Movement
|
kt
|
9,775
|
9,838
|
-1%
|
27,517
|
Ore
Processed
|
kt
|
633
|
659
|
-4%
|
1,942
|
Gold
Production
|
Ounces
|
47,177
|
60,231
|
-22%
|
175,496
|
New Liberty
Mining operations performed consistently
during the Quarter compared with the previous quarter resulting in
total material movement of 5,634Kt. Process plant throughput for
the Quarter increased by 1% to 354kt, as a result of further
incremental improvements to the process plant flowsheet, resulting
in gold recovery of 90%, an increase of 3% on the previous quarter
and gold production of 27,456 ounces. However, reported gold
production in the Quarter is 8% less than in Q2 2018 due to a
change in the gold in circuit inventory.
Table 2: New Liberty Performance Metrics
Parameter
|
Unit
|
Q3-2018
|
Q2-2018
|
Variance
|
Q3-2017
|
Variance
|
Ore Mined
|
kt
|
396
|
375
|
6%
|
247
|
60%
|
Mined
Grade
|
g/t
|
2.86
|
2.70
|
6%
|
2.75
|
4%
|
Waste
Mined
|
kt
|
5,237
|
5,312
|
-1%
|
2,980
|
76%
|
Strip
Ratio
|
Waste: Ore
|
13.2
|
14.2
|
-7%
|
12.1
|
10%
|
Total Material
Movement
|
kt
|
5,634
|
5,688
|
-1%
|
3,227
|
75%
|
Ore
Processed
|
kt
|
354
|
352
|
1%
|
254
|
39%
|
Feed Grade
|
g/t
|
2.82
|
2.81
|
0%
|
2.59
|
9%
|
Recovery
|
%
|
90
|
87
|
3%
|
91
|
-1%
|
Gold
Production
|
Ounces
|
27,456
|
29,808
|
-8%
|
19,885
|
38%
|
Youga
Total material movement for the Quarter was
4,142kt, in line with the previous quarter despite the heavy rains
experienced during the Quarter. Gold production in the Quarter was
19,721 ounces, a reduction of 35% on Q2 2018, primarily due to a
23% lower mined grade due to a focus on the lower grade oxide ore
zone at the Gassore East pit and a reduction in ore tonnes mined
from Balogo which resulted in the plant feed grade being 29% lower
than the previous quarter. Process plant throughput also reduced by
9% during the Quarter to 279kt due to the impact of the heavy rains
experienced at Youga. Management expect that both plant feed grade
and ore throughput will increase throughout Q4 2018.
Table 3: Youga Performance Metrics
Parameter
|
Unit
|
Q3-2018
|
Q2-2018
|
Variance
|
Q3-2017
|
Variance
|
Ore
Mined1
|
kt
|
233
|
221
|
5%
|
159
|
47%
|
Mined
Grade1
|
g/t
|
2.76
|
3.59
|
-23%
|
5.89
|
-53%
|
Waste
Mined
|
kt
|
3,909
|
3,930
|
-1%
|
2,283
|
71%
|
Strip
Ratio
|
Waste: Ore
|
16.8
|
17.8
|
-6%
|
14.3
|
17%
|
Total Material
Movement
|
kt
|
4,142
|
4,150
|
0%
|
2,442
|
70%
|
Ore
Processed
|
kt
|
279
|
307
|
-9%
|
277
|
1%
|
Feed Grade
|
g/t
|
2.44
|
3.44
|
-29%
|
4.79
|
-49%
|
Recovery
|
%
|
90
|
90
|
0%
|
89
|
1%
|
Gold
Production
|
Ounces
|
19,721
|
30,423
|
-35%
|
38,126
|
-48%
|
1 Including 44 kt of ore at 4.53 g/t
from the Balogo satellite deposit in Q3 2018 (Q2 2018: 76kt at
4.78/t; Q3 2017: 55 kt at 12.82 g/t).
|
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.
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 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.