Amara Mining plc Announces Exceptional Drilling Results from Yaoure Gold Project
Aug 13 14
Amara Mining plc announced exceptional diamond drill and reverse circulation results from its 2014 drilling programme at its Yaoure Gold Project in Cote d'Ivoire. DD Programme at Yaoure: 104 DD holes have been completed since 02 May 2014 and nine are in progress for a total advance by 08 August 2014 of 27,950 meters, out of 57,000 meters budgeted for the total DD programme. The results of the first 26 holes were reported, the next 29 in the announcement dated 06 August and the latest 15 holes, which focus on testing Yaoure Central, under and immediately east of the current pit. Results returned by 08 August 2014 for 70 DD holes (and 35 RC holes) will be used to compile the first of the two Mineral Resource updates in second half year of 2014. The majority of the DD holes drilled to this date have targeted 'information gaps' within the USD 950 pit design and have demonstrated the presence of mineralization in these gaps. This is expected to expand the Mineral Resource and reduce the strip ratio (currently 5.2:1 in the 8 million tone per annum scenario). A number of DD holes were drilled to reduce the drill spacing at Yaoure Central to 50 meters x 50 meters (previously 100 meters x 100 meters). They have improved the understanding of the structural controls, for example the importance of the N-S trending granodiorite body, and have increased Amara's confidence in the deposit. RC programme at Yaoure: The first phase of RC drilling, which comprised 26 RC holes (5,763 meters), was completed on 17 May 2014, focusing on the CMA zone. The second phase commenced on 26 June 2014 and continues to focus on the CMA zone, with a total advance by 08 August 2014 of 10,543 meters, out of 23,000 meters budgeted for the total RC programme. The results of the first five holes of the second phase were announced on 06 August 2014 and the latest four holes are reported in the Appendix. The results continue to confirm the continuity and high grade nature of the CMA zone, with good correlation between the latest RC holes and previous DD holes within 50 meters. The CMA zone may have the potential to be mined selectively at the start of Yaoure's mine life. While the Mineral Resource calculation work is ongoing, the drilling programme will continue at Yaoure until early October 2014 to provide further data for the second Mineral Resource update, which is expected in fourth quarter of 2014. It will focus on in-filling the USD 950 per ounce pit design, which is expected to convert a significant proportion of Yaoure's Inferred resources to the Indicated category and further increase Amara's confidence in the deposit. Amara delivered a Preliminary Economic Assessment for Yaoure in first quarter of 2014. It demonstrated that the project has the potential to be one of the top 10 gold mines in Africa by production and top 50 in the world. With average production of 325,000 ounces per annum over a 12 year mine life and all-in sustaining costs of USD 691 per ounce, the headline 8 Mtpa scenario delivers an IRR of 32% at a gold price of USD 1,250 per ounce and an NPV of USD 688 million. Yaoure is one of the few development projects in West Africa that remains resilient at low gold prices, with an IRR of 23% at USD 1,100 per ounce. The project is flexible and delivers similarly strong returns over a range of alternative throughput scenarios. The compelling economics are driven by the excellent existing infrastructure in Côte d'Ivoire, with low cost hydro-electric power from the Kossou dam (5 km from site) and a dual carriageway to within 40 km of site. With 80,000 meters of drilling planned in 2014, there is expected to be strong exploration upside potential on the current NI 43-101 compliant 6.3 million ounce resource base. The latest drilling results demonstrate the presence of significant high grade areas within the Yaoure deposit, with exceptional intercepts such as 17 meters at 7.35 g/t. They also underline the potential to increase the grade through in-fill drilling, as well as to expand the 6.3 million ounce resource base. Work has now commenced on the calculation of the first of the two Mineral Resource updates, which is due in September.
Amara Mining plc Announces Management Changes
Aug 11 14
Amara Mining plc announced that mining has ceased at its Kalsaka/Sega Gold Mine in Burkina Faso and the Directors have decided to put the operation into liquidation. As a consequence of the Company's transition from producer to developer status, Peter Spivey has tendered his resignation from his position as Chief Executive Officer, and this has been accepted by the Board becoming effective immediately. John McGloin has therefore been immediately appointed as Chief Executive Officer and will retain the position of Chairman.