Adamus Resources Limited - Gold Ore Reserve Update



    
    /NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
    DISSEMINATION IN THE UNITED STATES/
    

    PERTH, Western Australia, April 16 /CNW/ - Emerging gold producer Adamus
Resources Limited (Adamus) (ASX and TSXV: ADU) is pleased to announce an
increase in Ore Reserve estimate to over 1 million ounces at its Southern
Ashanti Gold Project (SAGP or Project) in Ghana.

    
    Highlights

    -   Updated independent gold Ore Reserve estimate of 1.07 million oz
    -      31% increase in Proven / Probable Ore Reserve (253,000 oz Au
           increase)
    -      38% increase in ore tonnes to 16.015 million
    -   Includes initial Bokrobo Ore Reserve estimate of 115,000 oz @
        3.86 g/t
    -   Average Ore Reserve grade of 2 g/t has been maintained
    -   Increase in mine life mill throughput options now available

    Ore Reserve Increases by 31%
    ----------------------------

    An updated independent Ore Reserve estimate for the SAGP has defined an
Ore Reserve of 1.07 million ounces of gold. This surpasses the previously
released Ore Reserve estimate of 815,000 ounces of gold.

    Table 1: Summary of Southern Ashanti Gold Project Ore Reserve Estimate
    @USD$900/oz

    -------------------------------------------------------------------------
                                                                   Contained
    Category             Tonnage (Mt)        Grade Au (g/t)        Ounces Au
    -------------------------------------------------------------------------
    Proven Ore               13.52                 1.96              854,000
    -------------------------------------------------------------------------
    Probable Ore              3.02                 2.21              214,000
    -------------------------------------------------------------------------
    Total Ore                16.54                 2.01            1,068,000
    -------------------------------------------------------------------------

    Note: Mineral resource estimation calculated by Multiple Indicator
    Kriging methodologies as detailed in the Feasibility Study announcement
    dated 14 June 2007 and Technical Reports dated 31 October 2007 and
    21 August 2008 (Study Reports). The Ore Reserve estimation has been
    prepared by Mining Resources Pty Ltd using cost estimates derived from
    third party contractor and consultant quotations and based on a gold
    price of US$900/oz. All metallurgical recoveries for conventional CIL and
    CIP circuits are based on testwork as previously detailed in the Study
    Reports.
    

    Adamus CEO Mark Bojanjac said. "The Ore Reserve increase marks another
significant milestone in the accelerating development of the SAGP, again
highlighting the world class attributes of the Project."
    "With all permitting required to begin mining already granted, we are
well on the way to becoming a significant gold producer by year-end 2010."
    "The increase in Ore Reserves was partly attributable to a re-evaluation
of metallurgical testwork which demonstrated improved recoveries could be
expected in the oxide zones of the Salman deposits."
    "Improved metallurgy has allowed us to redesign the open pits to reduce
waste movement and to mine more oxide ore at a greater profit. In addition to
buoyant gold prices, the improved expected recoveries should generate higher
project cashflows, particularly in the first few years of the operation."
    "This should be a further boost to projected economics. The increase in
Ore Reserves is supported by the significant improvement in waste / ore ratios
and an increase in prevailing gold prices since our initial feasibility study.
We are now finalising a financial model showing improved projected economics,
including increased milling capacity. An increase in milling capacity to near
2 million tonnes per annum in the early years should significantly improve the
economics of the Project," Mr Bojanjac added.

    
    Table 2: Ore Reserve Upgrade Comparison

    -------------------------------------------------------------------------
                        April 2008              Current              Current
    Proven and Probable  Estimate              Estimate             Estimate
    Ore                 -----------------------------------------------------
                                   @ US$800 / oz               @ US$900 / oz
    -------------------------------------------------------------------------
    Tonnes (Mt)            12.02                 13.84                 16.54
    -------------------------------------------------------------------------
    Grade Au (g/t)          2.11                  2.19                  2.01
    -------------------------------------------------------------------------
    Contained Ounces
     Au (Moz)              0.815                 0.977                 1.068
    -------------------------------------------------------------------------

    "The estimated Ore Reserve has increased by 20% even at the previously
assumed gold price of US$800/oz. The estimated Ore Reserve has maintained a
grade of 2 g/t irrespective of the assumed gold price. In short, significantly
more tonnes are minable at about the same grade as before" said Mr Bojanjac.

    Further increases in Mineral Resources and Ore Reserve Conversion
    -----------------------------------------------------------------

    The updated Mineral Resource estimate for the SAGP comprises:

    -------------------------------------------------------------------------
    30.2Mt @ 1.80 g/t for      1,750,000 oz     gold (Measured and Indicated)
                                   And
    6.98Mt @ 1.62 g/t for        362,000 oz     gold (Inferred)
    -------------------------------------------------------------------------

    Notes: 1. The Measured and Indicated mineral resource estimate is
    inclusive of current Ore Reserves. 2. Au cut-off grade 0.8g/t. For
    further details on the key assumptions, parameters and methods used to
    estimate the mineral resource, please refer to Mineral Resource update
    announcement dated 19 February 2008 and the Study Reports.
    

    More gold recovery from within Existing Pit Designs

    Improving the gold recovery of the oxide mineralisation has allowed for a
significant decrease in the lower cut-off of in-pit material and this allows
more tonnes of ore to be mined; increasing available ounces while decreasing
stripping ratios and therefore costs. The improvement in tonnes and costs
should positively contribute to the already strong Project economics,
particularly in the first few years of the operation.

    More gold added from Satellite Deposits

    The calculation of the Bokrobo Ore Reserve marks the first of the SAGP
satellite Mineral Resources to be upgraded and included in the overall Project
economics. The Bokrobo deposit, which is located adjacent to a current bitumen
road just south of the Anwia deposit, was extensively drilled in 2008 and a
significant upgrade in Mineral Resources has recently been calculated. The
initial Ore Reserve from Bokrobo only incorporates near surface mineralisation
at this stage. Deeper granite hosted mineralisation has not been included as
detailed metallurgical testwork has not yet been completed on this ore type,
although excellent, Anwia-level recoveries are expected.
    "This is our first Ore Reserve calculation from Bokrobo and we expect the
area will improve significantly with more drilling and further metallurgical
testwork. The average grade of the deposit at 3.64 g/t is also excellent and
this will provide for lower cost ounces," Mr Bojanjac said.
    At present, 95% of the mineralisation in the current Ore Reserve is
contained within the free milling zones found near surface.
    The majority of the pits along the Salman Trend are less than 80 metres
deep and the vast majority of drilling is less than 100m from surface. Most
Salman Trend mineralisation remains open and untested at depth.

    See view Figure 1 - Ore Reserve & Mineral Resource Location Diagram -
follow the link: http://files.newswire.ca/706/Figure_1.pdf

    About Adamus

    Adamus Resources Limited is a Perth-based mineral exploration company,
listed on Australian Securities Exchange (ASX), TSX Venture Exchange (TSX-V)
and Frankfurt Stock Exchange Open Market (FSE).
    The Company's primary focus is on exploring, realising and expanding the
economic potential of the Southern Ashanti Gold Project in Ghana, West Africa.
The Project encompasses approximately 644km(2) of tenure in the Ashanti Gold
Belt - host to over 100moz of gold and the Project boasts excellent access to
port and road infrastructure. Ghana is a stable West African country with a
long history of mining and some of the world's largest gold mining operations.
Gold production is vital to the national economy. Members of the Adamus Board
and management team have proven records in mineral exploration, project
development, mining operations and project financing.

    
    Kind regards

    (signed)

    Mark Bojanjac
    Managing Director/CEO
    

    Information in this announcement pertaining to ore reserves was compiled
by Glenn Williamson an employee of Mining Resources Pty Ltd, who is a Member
of The Australasian Institute of Mining and Metallurgy. He qualifies as a
"Qualified Person" under Canadian National Instrument 43-101 - Standards of
Disclosure for Mineral Projects. Glenn Williamson has sufficient experience
which is relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking to qualify as a
"Competent Person" as defined in the JORC Code. Glenn Williamson consents to
the inclusion in the announcement of the matters based on this information in
the form and context in which it appears.
    Information in this announcement pertaining to mineral resources was
compiled by Nic Johnson, an employee of Hellman & Schofield Pty Ltd, who is a
Member of The Australian Institute of Geoscientists and has more than 5 years
experience in estimation of recoverable resources in gold deposits. He
qualifies as a "Qualified Person" under Canadian National Instrument 43-101 -
Standards of Disclosure for Mineral Projects. Nic Johnson has sufficient
experience which is relevant to the style of mineralisation and type of
deposit under consideration and to the activity which he is undertaking to
qualify as a "Competent Person" as defined in the JORC Code. Nic Johnson
consents to the inclusion in the announcement of the matters based on this
information in the form and context in which it appears.

    
    The TSX-V and ASX does not accept responsibility for the adequacy or
    accuracy of this release. No stock exchange, securities commission or
    other regulatory authority has approved or disapproved the information
    contained herein.
    

    Caution Regarding Forward Looking Statements. Statements regarding
Adamus' plans with respect to its mineral properties are forward-looking
statements. There can be no assurance that Adamus' plans for development of
its mineral properties will proceed as currently expected. There can also be
no assurance that Adamus will be able to confirm the presence of additional
mineral deposits, that any mineralization will prove to be economic or that a
mine will successfully be developed on any of Adamus' mineral properties.
Circumstances or management's estimates or opinions could change. The reader
is cautioned not to place undue reliance on forward-looking statements.

    
    The TSXV does not accept responsibility for the adequacy or accuracy of
    this release. No stock exchange, securities commission or other
    regulatory authority has approved or disapproved the information
    contained herein.
    





For further information:

For further information: Mark Bojanjac, Managing Director/CEO, +61 8
9322 5943; Mark Connelly, Executive Director/COO, +61 8 9322 5943; Media
contact: Brian Thornton, Farrington National, +61 2 9332 4448

Organization Profile

ADAMUS RESOURCES LIMITED

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890