TSX : AUE
AIM : AUE
TORONTO, Nov. 14, 2011 /CNW/ - Aureus Mining Inc. (TSX: AUE / AIM: AUE)
("Aureus Mining" or the "Company") is pleased to announce its results
for the third quarter ended September 30, 2011. The following
activities are highlighted during the quarter:
At the end of the period the Company acquired the Archaean Gold
exploration license in Liberia, Leopard Rock, which hosts the south
eastern extension to the gold bearing rocks associated with the
Ndablama prospect. Following the acquisition of this licence, Aureus
has increased its total landholding in Liberia by almost 20 per cent to
546km2 in a highly prospective gold belt.
Cash and cash equivalents of US$37.9 million at the end of the period.
Total assets of US$83.9 million at the end of the period.
The Company remains debt-free.
New Liberty Feasibility highlights
Feasibility drilling completed with all assay results received and
published for 28,397 metres (190 holes drilled). These results confirm
high grades and continuity of the main zone over 1.75km. Please refer
to www.aureus-mining.com for full assay results, plans and sections.
Wireframe modelling has now been completed for the ore body; the model
and relevant drill hole data being analysed by resource consultants,
Australian Mining Consultants ("AMC"). A new NI 43-101 resource
estimate update of the New Liberty deposit is expected in Q4 2011.
Ground studies for all infrastructural (tailings storage facility,
plant, creek diversion and rock dump) and open pit design have been
Key feasibility staff including a Metallurgical Manager, Environmental
Manager, Chief Mining Engineer and a Surveyor have all been appointed.
Environmental and Social Impact Assessment ("ESIA") baseline studies
have been completed and a project brief approved by the Liberian
Environmental Protection Agency.
Phase one Metallurgical test work is now complete with results expected
soon. Phase two test work programmes have commenced with a primary
focus on optimising floatation recoveries.
The Company anticipates that the mining reserves and final cost and
design parameters for the definitive feasibility study will be
announced in Q1 2012.
A potential eastern extension to New Liberty has been outlined by
magnetic and metal factor anomalies which define a corridor traceable
for 2.5km due east of the last drill intersection.
A drilling programme designed to extend the known gold mineralisation
eastwards is currently in progress with 15 holes totalling 3,000m
completed to date with results pending. Further drilling is in progress
within this target area.
Ground geophysical surveying involving Induced Polarization testing is
in progress over a magnetic target which is analogous to New Liberty
and is located 1km south west of the known deposit.
Encouraging trench and channel sample results have been received on the
Leopard Rock target within the new Archaean Gold license and include 7m
at 4.0 g/t, 11m at 6.4 g/t, 15m at 2.6 g/t and 20m at 1.6 g/t. A
diamond drilling programme of 21 holes (3,000 metres) will commence in
Key exploration field staff have been appointed in Cameroon in
preparation for commencement of field exploration work in January 2012.
Commenting on the results, David Reading, President and Chief Executive
Officer of Aureus Mining, said:
"The Company has enjoyed significant progress over the last six months,
including the doubling of drill intercepts within the deposit, and is
now close to completing the definitive feasibility study in Q1 2012.
This will underpin our development strategy and timeline for the
high-grade New Liberty deposit. In addition, during this quarter we
have accelerated the drilling of potential extensions to the existing
ore body to the east and west as well as advancing other targets within
the mine licence area.
In the New Year, we look forward to releasing our maiden reserve and a
summary of the main results of the DFS at New Liberty and to continue
our focussed and target-generative exploration in Liberia and
The financial statements along with the accompanying Management's
Discussion and Analysis are available for review at the Company's
website, www.aureus-mining.com, as well as being available on www.sedar.com, and should be read in conjunction with this press release.
The Company's Qualified Person responsible for preparing this release 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 consents to the inclusion in the announcement of the
matters based on their information in the form and context in which it
appears and confirms that this information is accurate and not false or
Assay and sampling information are taken from the Company's database as
prepared on New Liberty site by the project geologists. Drill core is
split on site and sent under custody to the Alex Stewart-OMAC sample
preparation facility in Monrovia where pulps are prepared and
dispatched to the OMAC laboratory in Ireland for analysis by fire assay
with an atomic absorption finish.
Quality control and quality assurance procedures include the regular and
methodical implementation of field duplicates, blank samples, standards
and laboratory repeats as well as regular and specific programmes of
re-assaying and umpire laboratory assaying.
About Aureus Mining
The Company's assets include the New Liberty gold deposit in Liberia
(the "New Liberty Gold Project"), which has an estimated Indicated
Mineral Resource of 751,000 ounces of gold grading 4.17 g/t (contained
in 5,599,000 tonnes) and an estimated Inferred Mineral Resource of
762,000 ounces of gold grading 3.40 g/t (contained in 7,040,000
tonnes). A preliminary economic assessment ("PEA") of the New Liberty
Gold Project filed in December 2010 outlined a robust open pit gold
mine with a pre-tax NPV of US$234 million based on an $1100/oz. gold
price and a 10% discount rate. The PEA outlined an 8.5 year mine life
with approximate production of 100,000 ounces per year in the first
five years. The New Liberty Gold Project is being advanced through to a
definitive feasibility study.
The New Liberty Gold Project locates within the Bea Mountain mining
license which covers 457km² and has a 25 year, renewable, mineral
development agreement. The Bea Mountain mining license also hosts the
proximal gold targets of Ndablama, Weaju, Gondoja and Silver Hills,
which are the focus of on-going exploration programs.
The Company also has gold assets within exploration properties in Sierra
Leone and 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
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
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.
SOURCE Aureus Mining Inc.
For further information:
| Aureus Mining Inc. |
David Reading / Jeremy Cave
Tel: +44(0) 20 7257 2930
| || || Buchanan |
Bobby Morse / James Strong
Tel: +44(0) 20 7466 5000
| || || || |
| Evolution Securities Limited |
Nomad: Jeremy Ellis / Neil Elliot
Joint Broker: Tim Redfern
Tel: +44(0) 20 7071 4300
| || || RBC Capital Markets |
Martin Eales / Richard Hughes
Tel: +44(0) 20 7653 4000