TSX : AUE
AIM : AUE
TORONTO, March 16, 2012 /CNW/ - Aureus Mining Inc. ("Aureus" or the "Company") is pleased to announce the filing on SEDAR (www.sedar.com) of its National Instrument 43-101 ("NI 43-101") compliant technical study ("Technical Report") following the publication of its maiden reserve for its 100% owned New Liberty Project in Liberia on 2 February 2012.
- Reserve of 873,000 ounces grading 3.1 g/t within an optimized open pit with an eight year mine life and operating cash costs of US$632 per ounce of gold;
- An average annual production of approximately 123,000 ounces for the first four years at a head grade of 3.7 g/t. Total recovered gold of 812,000 ounces;
- Pre Tax NPV of US$260 million and IRR of 62% based on an average long term gold price of US$ 1,350/oz and an 8% discount rate. The payback of the initial capital cost is under two years;
- Initial capital costs of US$113.1 million include the 1.1Mt per annum plant, all infrastructure and pre-strip mining costs;
- Mineral Resources have been updated to 1.6 million ounces grading 3.6 g/t Au, which includes approximately 1.1 million ounces in the Measured and Indicated categories and 0.5 million ounces in the Inferred category; and
- Definitive Feasibility Study to be completed in Q2 2012.
Commenting on the release of the technical report, David Reading, Chief Executive Officer of Aureus Mining, said:
"Since Aureus was created in April 2011, the Company has made excellent progress at New Liberty and throughout the licence area. The work that has been carried out so far, including the publication of our maiden reserve and the filing of this Technical Report, is a testament to the quality and strength of the team that we have on site."
"It is with deep regret and sadness that we note the passing of Dr. Richard Latiff following a long medical condition. This is a fitting time to recognise the important contribution Richard made to the New Liberty project from its early exploration through to the conclusion of feasibility studies. He will be greatly missed."
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 on February 2, 2012, derisking and building on the robust preliminary economic assessment ("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 production of 123,000 ounces per year modelled for the first four years.
The New Liberty Gold Project is located 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, Silver Hills and Gondoja, which are the focus of exploration programs during 2012.
The Company also has gold assets within exploration properties in Cameroon.
This press release includes certain forward-looking statements. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding the future plans and objectives of the Company, are forward-looking statements that involve various known and unknown risks and uncertainties as well as other factors. Such forward-looking statements are subject to a number of risks and uncertainties that may cause actual results or events to differ materially from current expectations, including delays in obtaining or failure to obtain required regulatory approvals. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Any forward-looking statements speak only as of the date hereof and, except as may be required by applicable law, Aureus disclaim any obligation to update or modify such forward-looking statements, either as a result of new information, future events or for any other reason.
Neither the TSX Exchange nor its Regulation Services Provider (as that term is defined in the TSX) accepts responsibility for the adequacy or accuracy of this release.
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