TIDMASO
RNS Number : 4540B
Avesoro Resources Inc.
10 January 2018
10 January 2018
Avesoro Resources Inc.
TSX: ASO
AIM: ASO
Q4 Production results and Full Year Production
Avesoro Resources Inc., ("Avesoro" or the "Company"), the TSX
and AIM listed West African gold producer, is pleased to announce
production of 54,407 ounces of gold for the fourth quarter (the
"Quarter" or "Q4") and 192,072 ounces of gold for the full year,
across the three mines now owned by the Company.
New Liberty Gold Mine, Liberia ("New Liberty")
Fourth quarter 2017 production from New Liberty was 25,563
ounces of gold, a 29% increase on the previous quarter and in line
with guidance provided at the time of the Q3 production update. The
strong Quarter resulted in record full year production from the
mine of 76,179 ounces of gold, towards the upper end of our
guidance range and representing a 20% increase on 2016 production
levels.
Youga and Balogo Gold Mines, Burkina Faso ("Youga" and
"Balogo")
Youga and Balogo, which were acquired by the Company on 18
December 2017, produced 28,845 ounces of gold in the Quarter,
resulting in strong full year total production of 115,893 ounces of
gold, ahead of Company forecasts.
Table 1: Group Full Year 2017 Production Statistics
Parameter Unit New Liberty Youga and Full Year 2017
Balogo(1) Group Results
------------------ -------- ------------ ----------- ---------------
Ore Mined kt 1,166 870 2,036
------------------ -------- ------------ ----------- ---------------
Waste Mined kt 12,935 8,645 21,580
------------------ -------- ------------ ----------- ---------------
Total Material
Movement kt 14,102 9,515 23,617
------------------ -------- ------------ ----------- ---------------
Ore Processed kt 1,144 1,200 2,344
------------------ -------- ------------ ----------- ---------------
Gold Production Ounces 76,179 115,894 192,073
------------------ -------- ------------ ----------- ---------------
Note: (1) Including the period prior to acquisition by the
Company.
Serhan Umurhan, Chief Executive Officer of Avesoro,
commented:
"We are pleased to report a strong Quarter and combined total
production for 2017 of 192,072 ounces of gold from the three mines
now owned by the Company. At New Liberty, the year has been
focussed on the now completed turnaround resulting in the Company
meeting its revised guidance for the year. I would like to
acknowledge the dedication and hard work of the New Liberty team
throughout 2017, that enabled us to achieve record annual gold
production. Q4 2017 was New Liberty's strongest quarterly
performance to date, driven by improved mining performance and
increased plant throughput.
The acquisition of Youga and Balogo in December 2017 adds two
low cost operating mines to our portfolio capable of generating
significant free cash flow for the Company. I am particularly
pleased that we were able to complete this transaction during 2017
and take an important step towards realising our stated plan of
becoming a premier mid-tier African gold producer.
We start 2018 with a solid foundation from which to further
increase our gold production levels and reduce operating costs. We
now look forward to delivering an even stronger performance in 2018
and will provide an update on 2018 production guidance in due
course."
Key Production Statistics
Table 2: New Liberty - Key Production Statistics
Parameter Unit Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q3 - Q4
2017 Variance
-------------- ----------- -------- -------- -------- -------- ---------------
Ore
Mined kt 351 214 247 354 43%
-------------- ----------- -------- -------- -------- -------- ---------------
Waste
Mined kt 3,944 3,565 2,981 2,445 -18%
-------------- ----------- -------- -------- -------- -------- ---------------
Strip
Ratio Waste:Ore 11.2 16.7 12.1 6.9 -43%
-------------- ----------- -------- -------- -------- -------- ---------------
Total
Material
Movement kt 4,295 3,779 3,228 2,800 -13%
-------------- ----------- -------- -------- -------- -------- ---------------
Plant
Utilisation % 92 89 72 85 18%
-------------- ----------- -------- -------- -------- -------- ---------------
Ore
Processed kt 280 295 254 315 24%
-------------- ----------- -------- -------- -------- -------- ---------------
Recovery % 90 88 91 90 -1%
-------------- ----------- -------- -------- -------- -------- ---------------
Gold
Production Ounces 14,906 15,825 19,885 25,563 29%
-------------- ----------- -------- -------- -------- -------- ---------------
Table 3: Youga and Balogo - Key Production Statistics
Parameter Unit Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q3 -
Q4 2017
Variance
-------------- ----------- -------- -------- -------- -------- ----------
Ore
Mined kt 281 220 159 210 32%
-------------- ----------- -------- -------- -------- -------- ----------
Waste
Mined kt 1,883 2,528 2,283 1,951 -15%
-------------- ----------- -------- -------- -------- -------- ----------
Strip
Ratio Waste:Ore 6.7 11.5 14.4 9.3 -35%
-------------- ----------- -------- -------- -------- -------- ----------
Total
Material
Movement kt 2,164 2,748 2,442 2,161 -12%
-------------- ----------- -------- -------- -------- -------- ----------
Plant
Utilisation % 98 98 97 98 1%
-------------- ----------- -------- -------- -------- -------- ----------
Ore
Processed kt 318 299 277 306 11%
-------------- ----------- -------- -------- -------- -------- ----------
Recovery % 90 92 89 89 -1%
-------------- ----------- -------- -------- -------- -------- ----------
Gold
Production Ounces 16,900 32,023 38,126 28,845 -24%
-------------- ----------- -------- -------- -------- -------- ----------
Contact Information
Avesoro Resources Inc. Camarco
Geoff Eyre / Nick Smith Gordon Poole / Nick
Tel: +44(0) 20 3874 4740 Hennis
Tel: +44(0) 20 3757
4980
-------------------------- -----------------------------
Numis Securities Limited Hannam & Partners (Advisory)
(Nominated Adviser and LLP
Joint Broker) (Joint Broker)
John Prior / James Black Rupert Fane / Ingo Hofmaier
/ Paul Gillam / Ernest Bell
Tel: +44(0) 20 7260 1000 Tel: +44(0) 20 7907
8500
-------------------------- -----------------------------
About Avesoro Resources Inc.
Avesoro Resources is a West Africa focused gold producer and
development company that operates three 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 (the
"New Liberty Gold Mine" or "New Liberty") and the Youga and Balogo
Gold mines in Burkina Faso ("Youga" and "Balogo").
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 is set
out in an NI 43-101 compliant Technical Report dated 1 November
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 and Balogo have a combined estimated proven and probable
mineral reserve of 9.3Mt with 513,000 ounces of gold grading 1.7g/t
and a combined estimated indicated mineral resource of 16.05Mt with
801,600 ounces of gold grading 1.55g/t and a combined inferred
mineral resource of 13Mt with 655,000 ounces of gold grading
1.57g/t. The foregoing Mineral Reserve and Mineral Resource
estimates and additional information in connection therewith is set
out in two NI 43-101 compliant Technical Reports, dated 16 June
2017 entitled "Mineral Resource and Mineral Reserve Update for the
Balogo Project" and dated 19 June 2017 and entitled "Mineral
Resource and Mineral Reserve Update for the Youga and Ouaré
Projects" and are 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 the
scientific and technical disclosures contained in this
announcement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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