VANCOUVER, BC, Jan. 23,
2023 /CNW/ - Aris Mining Corporation ("Aris Mining"
or the "Company") (TSX: ARIS) reports 2022 gold production of
235,379 ounces (oz) from its two operations in Colombia, the Segovia Operations and the
Marmato Upper Mine. The Q4 2022 results provided in this news
release are approximate figures and may differ from the final
results included in the 2022 annual audited statements and
MD&A, which the Company expects to release in mid-March
2023.
Aris Mining CEO Neil Woodyer
commented: "Our Segovia Operations delivered full year production
of 210,163 oz and met 2022 guidance of between 210,000 and 225,000
oz. Our Marmato Upper Mine produced 25,216 oz during 2022, while
the site advanced the Marmato Lower Mine expansion project in
parallel. Our significant achievements in 2022 also included
strengthening and expanding our business with the merger of GCM
Mining and Aris Gold and becoming
the operator of the Soto Norte joint venture.
"Looking ahead, we are focused on generating significant cash
flow from our current operations with 2023 gold production guidance
of between 230,000 and 270,000 ounces at an AISC/oz1 of
between $1,050 and $1,150, expanding our partnerships with artisanal
and small-scale miners in alignment with the vision of the
Colombian government, and implementing our growth plan from a
pipeline of high-quality projects. During 2023, we also plan
to invest US$19 million in
exploration programs focussed on increasing mineral reserves and
extending our life-of-mine plans."
2022 Highlights:
- On a full-year basis, achieved total gold production and sales
of 235,379 oz and 241,419 oz, respectively.
- In April 2022, Aris Gold, which subsequently combined with the
Company, established a joint venture and became the operator of the
Soto Norte Project in Colombia,
where environmental licensing is advancing to develop a new
underground gold, silver and copper mine.
- In September 2022, completed a
business combination with Aris Gold
to create Aris Mining as a leading Latin American-focused gold
producer.
- In November 2022, received
approval of the Marmato Plan de Trabajos y Obras or "PTO" by the
Agencia Nacional de Minería as a progressive step toward fully
permitting the Marmato Lower Mine expansion project.
- In November 2022, updated the
Marmato Expansion Preliminary Feasibility Study2 and
increased gold mineral reserves by 57%.
_______________________________________
|
1 AISC ($
per oz sold) is a non-IFRS financial measure and does not have any
standardized meaning prescribed under IFRS, and therefore may not
be comparable to other issuers. Please refer to the Non-IFRS
Measures section of the Company's most recently filed Management's
Discussion and Analysis for the three and nine months ended
September 30, 2022, which is incorporated by reference into this
press release, and is available on SEDAR at www.sedar.com, for full
details.
|
2 See
section Qualified Person and Technical Disclosure for a
reference to the Marmato Technical Report.
|
|
Table 1: 2022 Gold Production and Sales (oz) by
Quarter
Operation
|
Q1
2022
|
Q2
2022
|
Q3
2022
|
Q4
2022
|
Full year
2022*
|
Segovia
Operations
|
49,864
|
53,077
|
54,630
|
52,592
|
210,163
|
Marmato Upper
Mine
|
7,419
|
7,411
|
5,176
|
5,210
|
25,216
|
Total Gold
Production
|
57,283
|
60,488
|
59,806
|
57,802
|
235,379
|
Total Gold
Sales
|
61,343
|
61,583
|
59,336
|
59,157
|
241,419
|
* Marmato Upper Mine
production is presented on a full-year 2022 basis. The operation
was acquired on September 26, 2022 and is included in the
consolidated financial results of Aris Mining on a post-acquisition
basis.
|
2023 Key Objectives:
- Deliver 2023 consolidated gold production and cost guidance of
between 230,000 and 270,000 oz with all-in sustaining costs per
ounce (AISC/oz) of between $1,050 to
$1,150. See Table 2.
- Work to optimize and expand our partnerships with artisanal and
small-scale miners and continuing to align with the Colombian
government's focus on and goals of enabling all miners to operate
in a legal, safe and responsible manner that protects them and the
environment.
- Complete the process of amending the Marmato environmental
license with Corporación Autónoma Regional de Caldas (Corpocaldas)
to authorize the start of construction of the new Lower Mine.
Following construction of the new Lower Mine, the Marmato operation
is expected to deliver average production of 162,000 ounces per
year over a nearly 20-year mine life2.
- Complete the re-evaluation of the Toroparu Project in
Guyana including defining a new
development plan, if required.
- Advance the Soto Norte Project environmental licensing process
with the submission of a new environmental assessment study to
Autoridad Nacional de Licencias Ambientales (ANLA) in mid-2023, and
complete the licensing process during 2024.
- Implement targeted exploration programs at both Segovia and
Marmato that prioritize expansion of mineral resources and
conversion to mineral reserves with planned expenditures of
US$19 million in 2023.
-
- At the Segovia Operations, a robust exploration drilling budget
of $17 million is planned that
includes a total of 84,500 metres (m), including 29,000 m focussed on increasing the mineral
reserves and life of mine plan at its four producing mines,
39,000 m on resource extension at the
producing mines, and 16,500 m on
strategic high priority vein targets located adjacent to the
current mining operations.
- At the Marmato Mine, a focused exploration drilling budget of
US$2 million is planned that includes
7,500 m of drilling to optimize
mining of the currently defined vein structures.
Table 2: 2023 Guidance
Operation
|
Segovia
Operations
|
Marmato Upper
Mine
|
Consolidated
|
Gold Production
(oz)
|
200,000 –
230,000
|
30,000 –
40,000
|
230,000 –
270,000
|
Cash Cost
(US$/oz)(1)
|
$650 - $750
|
$1,100 –
$1,200
|
$700 – $800
|
AISC
(US$/oz)(1)
|
$950 –
$1,050
|
$1,650 -
$1,750
|
$1,050 to
$1,150
|
Exploration (US$
million) (2)
|
$17
|
$2
|
$19
|
(1) Non-IFRS
financial measures, see Cautionary Notes.
|
(2) Approximately
US$6 million of the US$17 million exploration drilling program
planned at Segovia is considered "sustaining" in nature and is
included in the AISC/oz cost guidance range.
|
|
About Aris Mining
Aris Mining is a Canadian company led by an executive team with
a track record of creating value through building globally relevant
mining companies. In Colombia,
Aris Mining operates several high-grade underground mines at its
Segovia Operations and the Marmato Mine, which together produced
235,000 ounces of gold in 2022. Aris Mining also operates the Soto
Norte joint venture, where environmental licensing is advancing to
develop a new underground gold, silver and copper mine. In
Guyana, Aris Mining is advancing
the Toroparu Project, a gold/copper project. Aris Mining plans to
pursue acquisition and other growth opportunities to unlock value
creation from scale and diversification.
Aris Mining promotes the formalization of small-scale mining as
this process enables all miners to operate in a legal, safe and
responsible manner that protects them and the environment.
Additional information on Aris Mining can be found at
www.aris-mining.com and www.sedar.com.
Cautionary Notes
This news release contains "forward-looking information" or
forward-looking statements" within the meaning of Canadian
securities legislation. All statements included herein, other than
statements of historical fact, including, without limitation
statements relating to advancement towards the launch of the
Marmato Lower Mine expansion project, the 2023 gold production
guidance, planned 2023 investments in exploration programs and the
objectives thereof, the Company's focus with respect to its
operations and implementation of its growth plan, the 2023 key
objectives and the Company's plans and strategies. Generally, the
forward-looking information and forward looking statements can be
identified by the use of forward looking terminology such as
"plans", "expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", "will continue" or "believes", or variations
of such words and phrases or state that certain actions, events or
results "may", "could", "would", "might" or "will be taken",
"occur" or "be achieved". Statements concerning mineral resource
estimates may also be deemed to constitute forward looking
information to the extent that they involve estimates of the
mineralization that will be encountered. The material factors or
assumptions used to develop forward looking information or
statements are disclosed throughout this presentation.
Forward looking information and forward looking statements,
while based on management's best estimates and assumptions, are
subject to known and unknown risks, uncertainties and other factors
that may cause the actual results, level of activity, performance
or achievements of Aris Mining to be materially different from
those expressed or implied by such forward-looking information or
forward looking statements, including but not limited to: the
success of business integration, the ability of the Company's
management team to successfully integrate with the current
operations, the Company's ability to generate sufficient cash flow
from operations and capital markets to meet its future obligations,
no significant disruption affecting operations, whether due to
labour disruptions, supply disruptions, power disruptions, damage
to equipment or otherwise, the viability, economically and
otherwise, of developing the Toroparu Project, risks related to
international operations, risks related to general economic
conditions, actual results of current exploration activities;
changes in project parameters as plans continue to be refined;
fluctuations in prices of metals including gold; the ability to
convert mineral resources to mineral reserves; fluctuations in
foreign currency exchange rates or interest rates and stock market
volatility, increases in market prices of mining consumables, risks
associated with holding derivative instruments (such as credit
risks, market liquidity risk and mark-to-market risk), possible
variations in mineral reserves, grade or recovery rates; failure of
plant, equipment or processes to operate as anticipated; changes in
national and local government legislation, taxation, controls,
regulations, regulations and political or economic developments in
Canada or Colombia, accidents and operations, labour
disputes, title disputes, claims and limitations on insurance
coverage and other risks of the mining industry; delays in
obtaining governmental approvals including obtaining required
environmental and other licenses, or in the completion of
development or construction activities, changes in national and
local government regulation of mining operations, tax rules and
regulations, and political and economic developments in countries
in which the Company operates, as well as those factors discussed
in the section entitled "Risk Factors" in Aris Mining's most recent
AIF available on SEDAR at www.sedar.com.
Although Aris Mining has attempted to identify important factors
that could cause actual results to differ materially from those
contained in forward-looking information and forward-looking
statements, there may be other factors that cause results not to be
as anticipated, estimated or intended. There can be no assurance
that such information or statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such information or statements. The Company has and
continues to disclose in its Management's Discussion and Analysis
and other publicly filed documents, changes to material factors or
assumptions underlying the forward-looking information and
forward-looking statements and to the validity of the information,
in the period the changes occur. The forward-looking statements and
forward-looking information are made as of the date hereof and Aris
Mining disclaims any obligation to update any such factors or to
publicly announce the result of any revisions to any of the
forward-looking statements or forward-looking information contained
herein to reflect future results. Accordingly, readers should not
place undue reliance on forward-looking statements and
information.
Qualified Person and Technical
Disclosure
Scientific and technical information concerning Marmato is
summarized, derived, or extracted from the Marmato Technical Report
entitled "Technical Report for the Marmato Gold Mine, Caldas
Department, Colombia,
Pre-Feasibility Study of the Lower Mine Expansion Project" dated
November 23, 2022 with an effective
date of June 30, 2022. The Marmato
Technical Report was prepared by Ben
Parsons, MAusIMM (CP), Anton
Chan, Peng, Brian Prosser, PE, SME-RM, Joanna Poeck, PE,
SME-RM, Eric J. Olin, SME-RM,
MAusIMM, Fredy Henriquez, SME-RM,
ISRM, David Hoekstra, PE, NCEES, SME-RM, Mark Allan Willow, CEM, SME-RM, Vladimir Ugorets, MMSA, Colleen Crystal, PE, GE,
Kevin Gunesch, PE, Tommaso Roberto
Raponi, PEng, David Bird, PG,
SME-RM, each of whom is independent of Aris Mining, and by
Pamela De Mark, P.Geo, who is not
independent of Aris Mining, and each of whom is a "Qualified
Person" as such term is defined in NI 43-101. The Marmato technical
report has been filed with the Canadian securities regulatory
authorities and is available for review on Aris Mining's website at
www.aris-mining.com and on the profile of Aris Mining Corporation
on SEDAR at www.sedar.com.
The technical information in this news release was reviewed and
approved by Pamela De Mark, P.Geo,
Senior Vice President, Technical Services of Aris Mining, who is a
Qualified Person as defined by NI 43-101.
Non-IFRS Measures
Cash costs ($ per oz sold) and AISC ($ per oz sold)
are non-IFRS financial measures and non-IFRS ratios in this
press release. These measures do not have any standardized meaning
prescribed under IFRS, and therefore may not be comparable to other
issuers. Please refer to the Non-IFRS Measures section of
the Company's most recently filed Management's Discussion and
Analysis which is available on SEDAR at www.sedar.com for full
details on these measures, which is incorporated by reference into
this press release.
Aris Mining changed the method of calculating cash costs in the
third quarter of 2022 and all historical information was adjusted.
Total cash costs now exclude royalties and include the appropriate
mine-level general and administrative costs. General and
administrative costs associated with the corporate office
(Canada) and the arbitration
proceedings with the International Centre for Settlement of
Investment Disputes in respect of its claim against the Republic of
Colombia are excluded from the
calculation. Management considers that royalties are not
controllable by the operations team and as such exclude them from
their controllable costs – these costs are included in AISC above.
Conversely, mine-level general and administrative costs are
controllable by the operations team and as such are included in
total cash costs.
Aris Mining changed the method of calculating AISC in the third
quarter 2022 and all historical information was adjusted. AISC now
excludes all non-mine-level general and administrative costs,
environmental penalties and non-mine-level lease payments.
Management considers that these costs are not controllable by the
operations teams.
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SOURCE Aris Mining Corporation