Aureus Mining Inc.: New Liberty Gold Mine - Update on the Recommencement of Processing Operations
TORONTO, June 23, 2016 - Aureus Mining Inc. ("Aureus" or the "Company"), the TSX and AIM listed West African gold producer, is pleased to announce the approval by the Ministry of Lands, Mines and Energy ("MLME") for the plant start up process at the New Liberty Gold Mine in Liberia.Highlights:
- Approval granted by the MLME for the commencement of the plant start up process;
- A larger gravity screen has been installed with the aim of optimising performance and increasing gravity gold recovery;
- The detoxification circuit has been upgraded and reagent dosing optimised;
- Operational changes have been made to the tailings storage facility ("TSF") which aims to increase tailings water retention time;
- A full ball mill reline and lifter upgrade has been undertaken prior to plant restart;
- The plant restart procedure includes the gradual ramp up in operations from low grade (< 2 g/t Au) ore and a controlled increase towards run of mine ("ROM") grade ore; and
- Mining operations continued throughout the plant stoppage with the current ROM ore stockpile balance of approximately 122,186 tonnes at a grade of 3.88 g/t Au;
During the suspension of processing operations, the Company undertook various modifications and optimisation activities within the process plant and detoxification circuit, with the assistance of technical specialists from Maelgwyn Mineral Services Africa ("MMSA") to ensure that the plant operates within its original design specifications. The Company also completed a full reline of the ball mill, fitting the mill with significantly heavier duty liners and also with improved lifters and grates. This reline was originally scheduled to be undertaken at the end of June 2016. Additionally the capacity of the oxygen plant has been increased to provide supplementary oxygen to both the carbon in leach ("CIL") and detoxification circuits.
Following the Company's announcement of 21 June, the Company now has adequate funding available to support working capital needs and preparations are underway for the commencement of the plant pre-start procedure, which will be initiated following the arrival of a consignment of additional reagents that the Company is working to expedite to site.
Mining operations continued throughout the plant suspension with the focus on catching up on waste stripping and exposing fresh ore for mining during the upcoming wet season. The current ROM ore stockpile is approximately 122,186 tonnes at a grade of 3.88 g/t Au.
The Company, in conjunction with its consultants, has undertaken a comprehensive review of its environmental and social action plans and environmental monitoring regimes to ensure full future compliance with the International Cyanide Management Code ("ICMC").
About Aureus Mining Inc.
The Company's assets include the New Liberty Gold Mine in Liberia (the "New Liberty Gold Mine," "New Liberty" or the "mine") which has an estimated proven and probable mineral reserve of 8.5 Mt with 924,000 ounces of gold grading 3.4 g/t and an estimated measured and indicated mineral resource of 9,796 Kt with 1,143,000 ounces of gold grading 3.63 g/t and an estimated inferred mineral resource of 5,730 Kt with 593,000 ounces of gold grading 3.2 g/t. A Definitive Feasibility Study ("DFS") has been completed, the first gold pour has taken place and commercial production has been declared. The foregoing mineral reserve and mineral resource estimates and additional information in connection therewith are set out in the Company's technical report dated March 25, 2015 and entitled "New Liberty Gold Project, Bea Mountain Mining Licence Southern Block, Liberia, West Africa, Definitive Project Plan."
The New Liberty Gold Mine is located within the Southern Block of the 100% owned Bea Mountain mining licence. This licence covers 478 km2 and has a 25 year, renewable, mineral development agreement. The Bea Mountain mining license also hosts additional gold projects of Ndablama, Gondoja, Weaju and Leopard Rock which are the focus of exploration programs during 2016. Ndablama has an indicated mineral resource of 386,000 ounces of gold grading 1.6 g/t and inferred mineral resource of 515,000 ounces of gold grading 1.7 g/t and Weaju has an inferred mineral resource of 178,000 ounces of gold grading 2.1 g/t. The Yambesei (759 km2), Archaen West (112.6 km2), Mabong (36.6 km2) and Mafa West (15.6 km2) licences will also be subject to preliminary reconnaissance geological work. The foregoing mineral resource estimates and additional information in connection therewith are set out in the Company's technical report dated December 1, 2014 and entitled "Ndablama and Weaju Gold Projects, Bea Mountain Mining Licence, Northern Block, Technical Report on Mineral Resources" ("Ndablama and Weaju Technical Report 2014").
The Company also has a gold exploration permit in Cameroon.
Qualified Persons
The Company's Qualified Person 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 has reviewed and approves this press release.
Forward Looking Statements
Certain information contained in this Announcement constitutes forward looking information. This information may relate to future events or the Company's future performance. All information other than information of historical fact is forward looking information. The use of any of the words "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "should", "believe", "predict" and "potential" and similar expressions are intended to identify forward looking information. This information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward looking information. No assurance can be given that this information will prove to be correct and such forward looking information included in this Announcement should not be unduly relied upon. This information speaks only as of the date of this Announcement. Such forward looking information includes, among other things, statements or information relating to: the terms of Tranche 2 of the Offering and the completion and the anticipated timing thereof; the Admission and commencement of dealing in the Shares; and the continued listing of the Shares on the TSX and AIM.
With respect to forward looking information contained in this Announcement, assumptions have been made regarding, among other things: the approval of the TSX in connection with the Offering, the Admission of the Shares on AIM, general business, economic and mining industry conditions; interest rates and foreign exchange rates; the supply and demand for commodities and precious and base metals and the level and volatility of the prices of gold; the obtaining of waivers and amendments from the Company's creditors in respect of its debt repayment obligations; the business of the Company including the political environments and legal and regulatory frameworks in Liberia with respect to, among other things, the ability of the Company to obtain, maintain, renew and/or extend required permits, licences, authorizations and/or approvals from the appropriate regulatory authorities and the ability of the Company to continue to obtain qualified staff and equipment in a timely and cost-efficient manner to meet its demand.
Actual results could differ materially from those anticipated in the forward looking information contained in this news release as a result of the risk factors, including: the risk that if Tranche 2 of the Offering is not completed, the waiver and standstill agreement will terminate; the risk that the TSX will not clear the Required PIFs; risks normally incidental to exploration and development of mineral properties; the inability to obtain required waivers and amendments from the Company's creditors in respect of its debt repayment obligations and consequential risks of default thereon; risks related to operating in West Africa; health risks associated with the mining workforce in West Africa; risks related to the Company's title to its mineral properties; adverse changes in commodity prices; risks related to current global financial conditions; the inability of the Company to obtain, maintain, renew and/or extend required licences, permits, authorizations and/or approvals from the appropriate regulatory authorities and other risks relating to the legal and regulatory frameworks in Liberia, including adverse changes in applicable laws; competitive conditions in the mineral exploration and mining industry; risks related to obtaining insurance or adequate levels of insurance for the Company's operations; risks related to environmental regulations; uncertainties in the interpretation of results from drilling; risks related to the legal systems in Liberia; risks related to the tax residency of the Company; changes in exchange and interest rates; risks related to the activities of artisanal miners; actions of third parties that the Company is reliant upon; lack of availability at a reasonable cost or at all, of plants, equipment or labour, including required equipment, explosives and other necessary material not being delivered in the expected time frame, or at all; the inability to attract and retain key management and personnel; political risks; and future unforeseen liabilities and other factors.
The forward looking information included in this Announcement is expressly qualified by this cautionary statement and is made as of the date of this Announcement. The Company does not undertake any obligation to publicly update or revise any forward looking information except as required by applicable securities laws.
SOURCE Aureus Mining Inc.
Contact
Aureus Mining Inc.
David Reading / Paul Thomson
Tel: +44(0) 20 7010 7690
Buchanan, Bobby Morse / Anna Michniewicz
Tel: +44(0) 20 7466 5000
Numis Securities Limited, (Aureus Nominated Adviser and Broker)
James Black / Paul Gillam
Tel: +44(0) 20 7260 1000
RBC Capital Markets, (Aureus Financial Advisor)
Richard Horrocks-Taylor / Richard Hughes
Tel: +44(0) 20 7653 4000