TIDMAMA
RNS Number : 7970M
Amara Mining PLC
25 January 2016
25 January 2015 AIM: AMA
Amara Mining plc
("Amara" or "the Company")
MINERAL RESERVE UPDATE DELIVERS 22% MORE OUNCES AT 37% HIGHER
GRADE AT
YAOURE GOLD PROJECT
Amara Mining plc, the AIM-listed West African focused gold
mining company, is pleased to announce a Mineral Reserve update for
its Yaoure Gold Project ("Yaoure") in Côte d'Ivoire.
HIGHLIGHTS
-- Significantly stronger Mineral Reserve of 3.2 million ounces
(62.3Mt at 1.62g/t) at Yaoure, using a 0.5g/t cut-off grade,
further de-risking the project
o 1.1 million ounces in Proven category (18.1Mt at 1.82g/t)
o 2.2 million ounces in Probable category (44Mt at 1.54g/t)
-- 22% increase in contained ounces and 37% increase in head
grade of Mineral Reserve compared to previous Mineral Reserve
estimate announced on 14 May 2015 (70.4Mt at 1.18g/t for 2.7
million ounces)
-- Pre-Feasibility Study ("PFS") optimisation results expected later in Q1 2016
John McGloin, Chairman and Chief Executive Officer of Amara,
commented:
"Building on the updated Mineral Resource estimate announced in
November 2015, we have seen improvements to both tonnes and grade
translate into our updated Mineral Reserve. With increased ounces
and, most importantly, an improved grade, today's reserve estimate
further underscores Yaoure's potential to be a large scale, low
cost gold mine. I anticipate that it will deliver significantly
stronger economics, even in this lower gold price environment. I
look forward to announcing the results of the PFS optimisation work
later this quarter and bringing Yaoure one step closer to becoming
one of Africa's largest gold mines."
Mineral Reserve Update
In comparison to the previous estimate, the Mineral Reserve has
increased by 583,000 ounces (22%) and the head grade has increased
by 0.44g/t (37%) to 1.62g/t.
The Mineral Reserve estimate is based on the National Instrument
("NI") 43-101-compliant Mineral Resource estimate announced on 24
November 2015 and on capital and cost estimates generated in the
PFS announced on 14 May 2015. The Mineral Reserve is the portion of
the Measured and Indicated Mineral Resource that falls within a pit
design, which was based on an optimised pit shell corresponding to
a gold price of US$880 per ounce. Today's Mineral Reserve estimate
is shown in the following table:
Category Tonnes (Kt) Grade (g/t) Content (Koz)
---------- ------------ ------------ --------------
Proven 18,069 1.82 1,057
---------- ------------ ------------ --------------
Probable 44,214 1.54 2,189
---------- ------------ ------------ --------------
Total 62,282 1.62 3,246
---------- ------------ ------------ --------------
Notes to Mineral Reserve table
1. Canadian Institute of Mining and Metallurgy and Petroleum
("CIM") definitions were used for the Mineral Reserve.
2. The Mineral Reserve was estimated by the contents of a
resource block model within a pit design. This design was based on
an optimisation, in which only Measured and Indicated Resources
were enabled. The optimised shell selected corresponded to a gold
price of US$880/oz, using costs based on the PFS announced on 14
May 2015.
3. The Mineral Reserve is reported at a cut-off grade of 0.5 g/t
Au. This cut-off has been derived from the breakeven level
corresponding to a gold price of US$1,000/oz.
4. Dilution and ore loss have been applied by adding a dilution
skin of 0.5m laterally and 0.25m vertically to ore blocks
neighbouring waste in addition to dilution inherent in the
regularisation of the ore blocks to 6.25m x 6.25m x 5m. This
results in an overall dilution of 17% and a mining recovery of 94%
within the reserve.
5. The Mineral Reserves were estimated based on the NI 43-101
Mineral Resources, effective as of 24 November 2015.
6. A 90.2% metallurgical gold recovery was used.
Amara's Mineral Resource statement is included in Appendix
A.
Next Steps
Amara is continuing with optimisation work on the PFS, the
results of which are expected to be released later in Q1 2016.
Amara has been reviewing ways to reduce the upfront capital cost of
the project in light of the current capital constrained market
environment, with a range of lower throughput scenarios compared to
the original 6.5Mtpa PFS. Since publication of the PFS, quotations
received from suppliers have confirmed that the prices of many
consumables have declined significantly, which will have a further
positive impact on the overall project economics.
Following the announcement of the PFS optimisation results,
Amara will select which scenario to move forward towards a Bankable
Feasibility Study for Yaoure.
For more information please contact:
Amara Mining plc
John McGloin, Chairman & Chief Executive
Officer
Pete Gardner, Finance Director
Katharine Sutton, Head of Investor +44 (0)20 7398
Relations 1420
Peel Hunt LLP
(Nominated Adviser & Broker)
Matthew Armitt +44 (0)20 7418
Ross Allister 8900
CTF Communications
(Media Relations) +44 (0) 20 3540
James MacFarlane 6455
About Amara Mining plc
Amara is a gold explorer/developer with assets in West Africa.
The Group is focused on unlocking the value in its development
projects. At Yaoure in Côte d'Ivoire, this will be done by
increasing the confidence in the existing Mineral Resource and
economics at the project as Amara progresses it through to Bankable
Feasibility Study. At Baomahun, this will be achieved by gaining an
improved understanding of the underground mining opportunity. Amara
aims to further increase its production profile with highly
prospective opportunities across both assets.
Mario Rossi is a "Qualified Person" within the definition of
National Instrument 43-101 and is responsible for the estimation of
the Yaoure Mineral Resource. He has reviewed and approved the
relevant technical information relating to the resource estimates
in this release. Mr Rossi (Fellow AusIMM, Member CIM, Member SME)
is Principal Geostatistician of GeoSystems International, Inc.
Adam Wheeler is a "Qualified Person" within the definition of
National Instrument 43-101 and is responsible for pit optimisation
aspects of the Yaoure Mineral Resource and Mineral Reserve. He has
reviewed and approved the relevant technical information relating
to the resource and reserve estimates in this release. Mr. Wheeler
(Fellow IOM(3) , C.Eng) is an Independent Mining Consultant.
Appendix A
Yaoure Mineral Resource estimate within a US$1,500 per ounce pit
shell with a cut-off of 0.5g/t as of 24 November 2015
Resource Category Tonnes (Mt) Grade (g/t) Content
(Koz)
------------------- ------------ ------------ --------
Measured 18.6 1.86 1,114
------------------- ------------ ------------ --------
Indicated 85.5 1.47 4,042
------------------- ------------ ------------ --------
Measured and
Indicated 104.1 1.54 5,155
------------------- ------------ ------------ --------
Inferred 47.7 1.41 2,156
------------------- ------------ ------------ --------
Notes
1. The effective date of the Yaoure Mineral Resource estimate is
24 November 2015, prepared by Mario E Rossi, GeoSystems
International, Inc.
2. The gold price used in the Mineral Resource estimate is
US$1,500 per ounce, assuming an open pit mining scenario,
processing via tank leaching. Recoveries have been assumed at 90%.
Pit Optimisation was completed by A. Wheeler for all prices shown
here and parameters otherwise as derived in the 2015 PFS.
3. Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.
4. There are no known environmental, permitting, legal, title,
taxation, socio-economic, marketing, and political or other
relevant issues that may materially affect the resource
estimates.
5. Totals and average grades are subject to rounding to the
appropriate precision and some columns or rows may not compute
exactly as shown.
6. The stated resources include dilution in the block model that
relates to the level of selectivity envisioned in an open pit
operation, with the block model regularised to a block size of
6.25m x 6.25m x 5m.
7. Numbers may not add correctly due to rounding.
Glossary
A "Mineral Resource" is a concentration or occurrence of solid
material of economic interest in or on the Earth's crust in such
form, grade or quality and quantity that there are reasonable
prospects for eventual economic extraction. The location, quantity,
grade or quality, continuity and other geological characteristics
of a Mineral Resource are known, estimated or interpreted from
specific geological evidence and knowledge, including sampling.
An "Inferred Mineral Resource" is that part of a Mineral
Resource for which quantity and grade or quality are estimated on
the basis of limited geological evidence and sampling. Geological
evidence is sufficient to imply but not verify geological and grade
or quality continuity. An Inferred Mineral Resource has a lower
level of confidence than that applying to an Indicated Mineral
Resource and must not be converted to a Mineral Reserve. It is
reasonably expected that the majority of Inferred Mineral Resources
could be upgraded to Indicated Mineral Resources with continued
exploration.
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