TIDMAUE
RNS Number : 4934T
Aureus Mining Inc.
30 March 2016
30 March 2016
Aureus Mining Inc.
TSX : AUE
AIM : AUE
FINANCIAL RESULTS FOR YEAR ENDED DECEMBER 31, 2015
AND 2015 OPERATIONAL REVIEW
Aureus Mining Inc. ("Aureus" or the "Company"), the TSX and AIM
listed West African gold producer, is pleased to announce its
audited annual financial results for the year ended December 31,
2015 and to provide an operational review for 2015.
During the 2015 financial year under review, the Company has
continued to build on the work of previous years and completed the
construction and commissioning of the New Liberty Gold Mine, the
first commercial gold mine in the Republic of Liberia, with
Commercial Production declared from March 1, 2016. Aureus would
like to thank its shareholders for their support and loyalty during
this difficult period in both the Company's history and wider gold
mining industry.
Financial Highlights
-- Year-end cash of US$ 7.1 million;
-- Revenues of US$ 19.2 million from gold sales of 17,172 ounces
capitalised as pre-production revenue;
-- Capital additions of US$ 77 million to New Liberty offset by
an impairment charge of US$ 50.4 million based on reduced gold
price assumption;
-- Carrying value of New Liberty US$ 221 million;
-- Equity of US$ 28.1 million raised and US$ 30 million of debt
drawn during the financial year; and
-- Post year end, negotiations continue with the Company's
lenders with regards to the Company's future debt repayment
schedule.
Operational Highlights
-- Mining operations at New Liberty commenced in January 2015,
with a successful completion of the first blast of 25,000 tonnes of
waste rock;
-- Cold and Hot Plant Commissioning commenced in April 2015 and completed in June 2015;
-- First gold was poured at the New Liberty Gold Mine during May
2015 in line with the Project schedule and budget;
-- New Liberty Process Plant achieved name plate capacity and
gold shipments commenced in July 2015;
-- Commercial Production declared effective March 1, 2016 with
operating recovery levels exceeding 90%.
-- Bea Mountain Class A Mining Licence extended to 478km(2) to
include the Leopard Rock gold target; and
-- Consolidation of 281km(2) of highly prospective exploration
ground contiguous to the Bea Mountain Class A Mining licence during
November 2015.
2015 Operational Review
During early 2015, the Republic of Liberia made significant
progress in the fight against the Ebola Virus Disease ("EVD"), with
the World Health Organisation ("WHO") declaring Liberia Ebola Free
on May 9, 2015 following a period of 42 continuous days elapsing
without a confirmed case of the Ebola virus in the country. During
this period, civil construction and mining operations progressed at
New Liberty with blasting operations commencing during January
2015.
During April 2015, cold and hot plant commissioning activities
commenced at New Liberty focusing on the front end infrastructure
of the processing plant, whilst piping and electrical installation
was completed in the remainder of the process plant.
During this period, the Company also successfully extended its
Bea Mountain Mining Licence in accordance with the Minerals and
Mining Law for Liberia to include the entire 13 kilometre gold
bearing structural corridor that stretches from the Gondoja target
to the Leopard Rock South target. This mineralised corridor
includes eight prospective targets, including the Ndablama target
and increased the Company's mining licence to a total of 478km(2)
.
The granting of the enlargement of the licence gives the Company
the right for the commercial development of the entire mineralised
gold corridor under the same parameters as detailed in Aureus'
Mineral Development Agreement ("MDA"), subject to the granting of
an Environmental Permit.
During May 2015, all steel erection and civil works at the
process plant were completed, whilst commissioning activities were
completed on the Front End Comminution Circuit, including both the
milling and gravity circuits, with commissioning work commencing on
the extraction circuits of the process plant including the Carbon
in Leach ("CIL"), elution and detox circuits.
A significant milestone for the Project was achieved at the end
of May 2015, with first gold being poured at the Project, in line
with the Project schedule. Following the first gold pour, work
continued on the commissioning of the process plant including the
final commissioning of CIL tanks and the installation of the
Vertimill.
During July 2015, the plant passed a 24-hour performance test
and reached its name-plate capacity, with the first shipment of
gold doré being transported from New Liberty to MKS PAMP in
Switzerland for refining. During the period between the plant
reaching nameplate capacity in mid-July 2015 and the end of August
2015, there were a further three gold doré shipments from New
Liberty, whilst plant commissioning activities continued to
progress towards commercial production levels.
Following Liberia being declared free of Ebola by the WHO for
the second time on September 3, 2015, there was a small resurgence
of cases of EVD within Monrovia during November 2015. On December
3, 2015, the last two Ebola patients in Liberia were discharged
from hospital following a second consecutive negative test for EVD.
Human-to-human transmission of Ebola was declared over in Liberia
42 days after this test on January 14, 2016.
During November 2015, in accordance with the Company's strategy
of building a long term and sustainable gold district in Liberia,
the Company entered into an agreement to acquire three highly
prospective exploration licences totalling 281km(2) from Sarama
Resources Ltd. ("Sarama"). The licences were located contiguous to
the Company's Bea Mountain Mining Licence and close to the New
Liberty Gold Mine. Prior to the acquisition agreement, Sarama had
conducted a US$ 1.8 million exploration programme over the licences
including an airborne magnetic survey and regional soil sampling
programme, which lead to the identification of a 15 km gold in soil
anomaly that straddles the Cape Mount and Cape Mount East licences
and corresponds to the westerly extension of the Bea Mountain
Greenstone Belt. Sarama also undertook a 15 hole 1,600 metre drill
programme with gold mineralisation being intercepted in all but one
of the 15 drill holes.
The Company experienced unexpected commissioning issues and
equipment failures within the process plant during the latter
stages of 2015, resulting in gold production of 17,172 during 2015.
Optimisation activities continued to focus upon improving plant
performance, in particular within the gravity and CIL circuits of
the process plant, to within its original design specifications
during late 2015 and early 2016, and resulted in improvements in
overall gold recovery levels throughout January and February 2016.
As a direct result of the operational improvements made within the
process plant, gold recovery levels steadily increased from
approximately 73% in mid-January 2016 to reach a stable level of
90% by the end of February 2016.
Commercial Production was declared at New Liberty, effective
March 1, 2016, with gold production in excess of 9,000 ounces
during the month of February 2016, and gold recovery levels
continuing to remain in excess of 90% throughout operations during
March.
Commenting on 2015 operations, David Reading, President and
Chief Executive Officer of Aureus Mining, said:
"2015 was a difficult period for the mining industry and the
Company, however it was also a transformational period for the
Company as we made a successful transition from gold developer to
producer. Although the commissioning stage of the Project brought
some unexpected challenges, I am proud that we were able to
successfully navigate through them, and declare commercial
production at New Liberty.
"The near term focus of the Company is to complete the new mine
plan and finalise a debt repayment schedule with our lenders,
whilst ensuring that mining progresses to schedule throughout the
wet season to facilitate the availability of sufficient ore stock
for continued plant operations.
"I would like to extend my thanks to our shareholders and
lenders for their continuing support as we now look forward to
delivering profitable ounces from the New Liberty Gold Mine in
accordance with our longer term business plan."
Financial Statements and Management's Discussion and
Analysis
The Financial Statements and the accompanying Management's
Discussion and Analysis ("MD&A") for the year ended December
31, 2015 are available for review at the Company's website,
www.aureus-mining.com, and on www.sedar.com, and should be read in
conjunction with this press release.
Contact Information
Aureus Mining Inc. Buchanan
David Reading / Paul Thomson Bobby Morse / Anna Michniewicz
Tel: +44(0) 20 7010 7690 Tel: +44(0) 20 7466 5000
Numis Securities Limited RBC Capital Markets
(Nominated Adviser) (Financial Advisor)
John Prior / James Black Richard Horrocks-Taylor
/ Paul Gillam / Richard Hughes
Tel: +44(0) 20 7260 1000 Tel: +44(0) 20 7653 4000
About Aureus Mining Inc.
(MORE TO FOLLOW) Dow Jones Newswires
March 30, 2016 02:01 ET (06:01 GMT)
The Company's assets include the New Liberty Gold Mine in
Liberia (the "New Liberty Gold Mine," "New Liberty" or the "mine")
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 ("DFS") has been completed, the first
gold pour has taken place and work continues on commissioning the
plant for full scale commercial production. The mine is expected to
have an 8 year life and annual production of 119,000 ounces for the
first 6 years of production. The foregoing mineral reserve and
mineral resource estimates and additional information in connection
therewith are set out in the Company's technical report dated March
25, 2015 and entitled "New Liberty Gold Project, Bea Mountain
Mining Licence Southern Block, Liberia, West Africa, Definitive
Project Plan."
The New Liberty Gold Mine is located within the Southern Block
of the 100% owned Bea Mountain mining licence. This licence covers
478 km(2) and has a 25 year, renewable, mineral development
agreement. The Bea Mountain mining license also hosts additional
gold projects of Ndablama, Gondoja, Weaju and Leopard Rock which
are the focus of exploration programs during 2016. Ndablama has an
indicated mineral resource of 386,000 ounces of gold grading 1.6
g/t and inferred mineral resource of 515,000 ounces of gold grading
1.7 g/t and Weaju has an inferred mineral resource of 178,000
ounces of gold grading 2.1 g/t. The Yambesei (759 km(2) ), Archaen
West (112.6 km(2) ), Mabong (36.6 km(2) ) and Mafa West (15.6 km(2)
) 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 December 1, 2014 and entitled
"Ndablama and Weaju Gold Projects, Bea Mountain Mining Licence,
Northern Block, Technical Report on Mineral Resources" ("Ndablama
and Weaju Technical Report 2014").
The Company also has a gold exploration permit in Cameroon.
Qualified Persons
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 has
reviewed and approves this press release.
Forward Looking Statements
Certain information contained in this Announcement constitutes
forward looking information. This information may relate to future
events or the Company's future performance. All information other
than information of historical fact is forward looking information.
The use of any of the words "anticipate", "plan", "continue",
"estimate", "expect", "may", "will", "project", "should",
"believe", "predict" and "potential" and similar expressions are
intended to identify forward looking information. This information
involves known and unknown risks, uncertainties and other factors
that may cause actual results or events to differ materially from
those anticipated in such forward looking information. No assurance
can be given that this information will prove to be correct and
such forward looking information included in this Announcement
should not be unduly relied upon. This information speaks only as
of the date of this Announcement. Such forward looking information
includes, among other things, statements or information relating
to: the application of proposed financing proceeds to strengthening
the Company's balance sheet and reduction of accounts payable, the
Company's ability to meet future debt repayment obligations and to
obtain waivers and amendments in respect thereof, the Company's New
Liberty Gold Mine in Liberia (the "New Liberty Gold Mine"), the
continuation of commercial production at the New Liberty Gold Mine
and the proposed plans relating thereto regarding operations, the
provision of additional mining equipment and explosives and their
impact on the mining rate, estimates relating to tonnage, grades,
waste ratios, recovery rates and future gold production,
life-of-mine estimates, expectations regarding throughput gold
production, mill treatment and plant feed, estimates of capital and
operating costs and start-up costs, anticipated sources of funding,
expectations regarding the engagement of external contractors,
estimates of revenues and pay-back periods, expectations regarding
operating parameters, as well as the other forecasts, estimates and
expectations relating to the New Liberty Gold Mine included in this
Announcement; the future market price of commodities; production
targets; timetables; the continued listing of the common shares of
the Company on the TSX and AIM.
With respect to forward looking information contained in this
Announcement, assumptions have been made regarding, among other
things: general business, economic and mining industry conditions;
interest rates and foreign exchange rates; the impact of proposed
provision of additional equipment and explosives on the mining
rate; the parameters and assumptions employed in the New Liberty
Technical Report, (including but not limited to, those relating to
future mining and operating costs, processing and recovery rates,
net present values and internal rates of return, timing for the
commencement of production, tax and royalty rates, future gold
prices, metallurgical rates, operations and management, grades);
the supply and demand for commodities and precious and base metals
and the level and volatility of the prices of gold; the ability of
the Company to raise sufficient funds from capital markets and/or
debt to meet its future obligations and planned activities; the
obtaining of waivers and amendments from the Company's creditors in
respect of its debt repayment obligations; the business of the
Company including the political environments and legal and
regulatory frameworks in Liberia 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 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 contained in this Announcement as a
result of the risk factors, including: risks normally incidental to
exploration and development of mineral properties; the inability of
the Company to obtain required financing, when needed and/or on
acceptable terms or at all; the inability to obtain required
waivers and amendments from the Company's creditors in respect of
its debt repayment obligations and consequential risks of default
thereon; risks related to operating in West Africa; health risks
associated with the mining workforce in West Africa; risks related
to the Company's title to its mineral properties; adverse changes
in commodity prices; risks related to current global financial
conditions; risks 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 Liberia, including adverse
changes in applicable laws; competitive conditions in the mineral
exploration and mining industry; risks related to obtaining
insurance or adequate levels of insurance for the Company's
operations; uncertainty of mineral resource and reserve estimates;
the inability of the Company to delineate additional mineral
resources; risks related to environmental regulations;
uncertainties in the interpretation of results from drilling;
uncertainties in the estimates and assumptions used, and risks in
the methodologies employed, in the New Liberty Technical Report and
that the completion of additional work at the New Liberty Gold Mine
could result in changes to the forecasts, estimates and
expectations contained in the New Liberty Technical Report; risks
related to the legal systems in Liberia; risks related to the tax
residency of the Company; the possibility that future exploration,
development or mining results will not be consistent with
expectations; inflation; changes in exchange and interest rates;
risks related to the activities of artisanal miners; actions of
third parties that the Company is reliant upon; lack of
availability at a reasonable cost or at all, of plants, equipment
or labour, including required equipment, explosives and other
necessary material not being delivered in the expected time frame,
or at all; the inability to attract and retain key management and
personnel; political risks; the inability to enforce judgments
against the Company's directors and officers; and future unforeseen
liabilities and other factors.
The forward looking information included in this Announcement is
expressly qualified by this cautionary statement and is made as of
the date of this Announcement. The Company does not undertake any
obligation to publicly update or revise any forward looking
information except as required by applicable securities laws.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR WGUCAWUPQUAU
(END) Dow Jones Newswires
March 30, 2016 02:01 ET (06:01 GMT)
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