Aureus Mining Inc. - Further drill results from New Liberty gold project
31 metres grading 9.6 g/t intersected in area between Kinjor and Marvoe
Deeper drilling into the Latiff zone returns 12 metres at 6.4 g/t
TSX : AUE
AIM : AUE
TORONTO, April 3, 2012 /CNW/ - Aureus Mining Inc. ("Aureus" or the "Company") announces the results of a further 40 diamond drill holes at the New Liberty gold project within the Company's 100% owned Bea Mountain Mining License in Liberia. The forty hole (9,143m) drilling programme was designed to test previously undrilled areas and potential depth extensions to the New Liberty deposit, as well as completion of further definition drilling within the current resource area.
Highlights of the drilling results are:
- Drilling within the gap between the Kinjor and Marvoe areas, at depths of 50 to 200 metres below surface in a previously untested area of the ore body, returned high-grade and/or wide intercepts of:
- 9.6 g/t over 31 metres
- 8.6 g/t over 6 metres
- 6.1 g/t over 13 metres
- 3.5 g/t over 10 metres
- 1.5 g/t over 34 metres - including 2.9 g/t over 9 metres
- 1.5 g/t over 30 metres
- 1.4 g/t over 44 metres - including 2.2 g/t over 19 metres
- Deeper drilling in the Latiff zone at depths of approximately 200 metres below surface returned high-grade intercepts of:
- 6.4 g/t over 12 metres
- 4.0 g/t over 14 metres
- 3.8 g/t over 7 metres
- 3.7 g/t over 5 metres
- This drilling programme also returned encouraging intercepts of 3.8 g/t over 9 metres, 1.6 g/t over 14 metres and 1.5 g/t over 20 metres from the Marvoe area. These intercepts locate below the previously optimized open pit reserve for New Liberty
- All of the results of the 40 drill hole programme will be incorporated into a new, NI 43-101 compliant, resource estimate which will be published as part of the definitive feasibility study during this quarter. The updated resource will also be incorporated into a reserve update for the New Liberty open pit to be published at the same time
Commenting on the results, David Reading, Chief Executive Officer of Aureus, said:
"The latest infill drilling programme has demonstrated that there is no gap in the mineralised system between the Kinjor and Marvoe areas. In addition to this potential increase to the resource, the deeper drilling in the Latiff zone shows the considerable potential for an underground mining project after the open pit reserve has been mined out. The definitive feasibility study will be published as soon as these results have been incorporated into new resource and reserve estimates."
New Liberty Project - new drilling results highlight opportunities for additional resources
Resources and Reserves for New Liberty were announced on 2 February 2012. The Mineral Resource estimate was undertaken by Australian Mining Consultants ("AMC") in accordance with the requirements of the National Instrument 43-101 ("NI 43-101"). The total Resource estimate of 1.57 million ounces of gold grading 3.58 g/t is comprised of 672,000 tonnes grading 4.74 g/t (for 102,000 ounces) in the Measured category, 8,666,000 tonnes grading 3.53 g/t (for 984,000 ounces) in the Indicated category, and 4,310,000 tonnes grading 3.5 g/t (for 483,000 ounces) in the Inferred category. The resource estimate incorporates all the results from 374 holes for 57,830 meters and was calculated on the basis of a 1.0 g/t cut-off grade. Based on completion of a NI 43-101 compliant technical study, which includes the Resource statement, an open pit mine plan, operating and capital cost estimations, and an economic analysis; a maiden Reserve of 873,000 ounces of gold at a diluted grade of 3.1 g/t was outlined.
The 40 holes announced in this release cover 9,143 metres of drilling that was completed subsequent to the February Resource and Reserve statements. The principal objectives of this new drilling programme were threefold and include:
- Drilling of a previously untested zone, locating at 50 to 200 metres below surface, in between Kinjor and Marvoe and referred to as the "gap area"
- Deeper drilling in the Latiff zone to confirm the continuity of gold mineralisation
- Additional definition drilling within the previously defined resources which included holes sited just below the fully optimized open pit as defined by the Reserves
The results of this programme are considered by the Company to be positive and confirm the continuity of the ore body within the gap area (KGD427-431 and KGD402) as well as continuation of good grades at depth within the Latiff zone (KGD408, 413, 419 and KGD426). Drilling at the base of the previous infill drilling in the Marvoe area also returned encouraging intercepts (KGD436 and 437). These results have improved the company's understanding of the deposit and the continuity of gold mineralisation with depth. This information is currently being incorporated into a new Resource estimate which will be announced along with an updated Reserve estimate and the full results of the definitive feasibility study during the current quarter.
The results of all 40 holes are outlined below.
Table 1: New Liberty Diamond drill results
The location of the drill intercepts in plan and longitudinal sections, highlighting the location of the deeper Latiff zone and gap area holes, as well as representative sections of the gap area, can be viewed in figures one to nine, by visiting the following links:
The estimates of mineral Resources were calculated in accordance with NI 43-101 and carried out by Chris G Arnold BSc (Hons), MSc, MAusIMM (CP) of independent consultants AMC. The Reserve Study was prepared by Mr M Staples of AMC, a Qualified Person, for the purposes of the study, under the standards set forth by National Instrument 43-101 "Standards of Disclosure for Mineral Project", of the Canadian Securities Administrators ("NI 43-101"), and he has also reviewed and approved the contents of this news release, as applicable
About Aureus Mining
The Company's assets include the New Liberty gold deposit in Liberia (the "New Liberty Gold Project"), which has an estimated Reserve of 873,000 ounces of gold grading 3.1 g/t and an estimated Measured and Indicated Mineral Resource of 1,086,000 ounces of gold grading 3.6 g/t and an estimated Inferred Mineral Resource of 483,000 ounces of gold grading 3.5 g/t. A technical update for the New Liberty gold project was released in February 2012, de-risking and building on the robust PEA, filed in December 2010. This update outlined an improved pre-tax NPV of US$260 million based on a US$ 1,350 / oz. gold price and a discount rate of 8 %, with an eight year mine life and annual production of 123,000 ounces for the first four years.
The New Liberty Gold Project is located within the Bea Mountain mining license which covers 457 km² and has a 25 year, renewable, mineral development agreement. The Bea Mountain mining license also hosts the proximal gold targets of Ndablama, Gondoja and Weaju, which are the focus of exploration programs during 2012.
The Company also has gold assets within exploration properties in Cameroon.
This press release contains certain forward-looking information. All information, other than information regarding historical fact, that addresses activities, events or developments that Aureus Mining believes, expects or anticipates will or may occur in the future is forward-looking information. Forward-looking information contained in this press release includes, but may not be limited to, the future plans and objectives of Aureus Mining and their anticipated future growth, mineral resource estimates and the anticipated exploration and development activities of Aureus Mining. The foregoing and any other forward-looking information contained in this press release reflects the current expectations, assumptions or beliefs of Aureus Mining based on information currently available to Aureus Mining. With respect to the forward-looking information contained in this press release, Aureus Mining has made assumptions regarding, among other things: general business, economic and mining industry conditions; and it has also been assumed that no material adverse change in the price of precious and/or base metals occurs, no unusual geological or technical problems occur and no significant events occur outside of the normal course of Aureus Mining's respective business.
Such forward-looking information is subject to a number of risks and uncertainties that may cause actual results or events to differ materially from current expectations, including: risks normally incidental to exploration and development of mineral properties; uncertainties in the interpretation of results from drilling and test work; the possibility that future exploration, development or mining results will not be consistent with expectations; uncertainty of mineral resources estimates; adverse changes in precious and/or base metal prices; and future unforeseen liabilities and other factors including, but not limited to, those listed under "Risk Factors" in the Preliminary Prospectus of Aureus Mining Inc. dated April 20, 2011, a copy of which is available on SEDAR at www.sedar.com, and in the Aureus Mining Admission Document, a copy of which is available at www.aureus-mining.com
Any mineral resource figures referred to in this press release are estimates and no assurances can be given that the indicated levels of minerals will be produced. Such estimates are expressions of judgment based on knowledge, mining experience, analysis of drilling results and industry practices. Valid estimates made at a given time may significantly change when new information becomes available. While Aureus Mining believes that the mineral resource estimates in respect of their respective properties are well established, by their nature mineral resource estimates are imprecise and depend, to a certain extent, upon statistical inferences which may ultimately prove unreliable. If such mineral resource estimates are inaccurate or are reduced in the future, this could have a material adverse impact on Aureus Mining, as applicable. Due to the uncertainty that may be attached to inferred mineral resources, it cannot be assumed that all or any part of an inferred mineral resource will be upgraded to an indicated or measured mineral resource as a result of continued exploration.
Forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable law, Aureus Mining disclaims any obligation to update or modify such forward-looking information, either as a result of new information, future events or for any other reason.
For further information:
Aureus Mining Inc.
David Reading / Jeremy Cave
Tel: +44(0) 20 7257 2930
Bobby Morse / James Strong
Tel: +44(0) 20 7466 5000
RBC Capital Markets (Nominated Advisor and Joint Broker)
Martin Eales / Richard Hughes
Tel: +44(0) 20 7653 4000
GMP Securities Europe LLP (Joint Broker)
Richard Greenfield / Alexandra Carse
Tel: +44(0) 20 7647 2800