Aureus Mining Inc. - Results for Q3 2011

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:

Corporate highlights

  • 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.

Financial highlights

  • 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 substantially completed.

  • 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.

Exploration highlights

  • 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 Q4 2011.

  • 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 Cameroon."

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.

Qualified Person
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 misleading.

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.

Forward-Looking Information
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.

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

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Aureus Mining Inc.

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