Update on New Liberty Gold Mine

Transcription

1 Update on New Liberty Gold Mine RNS Number : 6635A 09 June June 2016 TSX : AUE AIM : AUE NEW LIBERTY GOLD MINE UPDATE ON THE RECOMMENCEMENT OF PROCESSING OPERATIONS ("Aureus" or the "Company"), the TSX and AIM listed West African gold producer, is pleased to announce that it has made significant progress towards the recommencement of gold processing opera ons at the New Liberty Mine. The Company highlights the following: The Environmental Protec on Agency of Liberia ("EPA") has granted the Company permission to discharge from its Tailings Storage Facility ("TSF") and issued a permit for future discharges in compliance with the Interna onal Cyanide Management Code ("ICMC") limits; A detailed start up plan has been submi ed to Ministry of Lands, Mines and Energy ("MLME") for formal approval, outlining a controlled start up of the gold processing plant; The Company has received a le er from the MLME sta ng their commitment to working with the Company to recommence opera ons and suppor ng the detailed start up plan the Company has submi ed for its review; Modifica ons to the gold processing plant and detoxifica on circuit are nearing comple on; The recommencement of gold processing opera ons is currently targeted for mid June 2016 following the comple on of gravity circuit screen replacement works and a full mill reline; 1/6

2 Mining opera ons have con nued with a current run of mine ("ROM") ore stockpile balance of approximately 105,694 tonnes at a grade of 4.02 g/t Au; and The Company is in advanced discussions to secure addi onal funding in the short term from a poten al strategic partner. During the temporary suspension of processing opera ons, the Company has been focused upon the comple on of various modifica ons to the process plant and detoxifica on circuit, with the assistance of technical specialists from Maelgwyn Mineral Services Africa ("MMSA"). These modifica ons are nearing comple on and have all been undertaken in accordance with the ICMC and various opera onal reviews have been carried out on site by interna onal consultants including TSF experts Knight Piésold Consul ng (UK) ("Knight Piésold"). Prior to the recommencement of processing opera ons, the Company intends to complete a full reline of the New Liberty ball mill, which was previously scheduled to be undertaken at the end of June This reline involves the mill being fi ed with more heavy duty liners than originally supplied and improved li ers and grates. The Company has received a le er from the MLME sta ng their commitment to working together with the Company to recommence opera ons at New Liberty and suppor ng the detailed start up plan the Company has submi ed for review. Following the comple on of the on going modifica ons to the process plant, and subsequent sign off by both MMSA and representa ves of the MLME, the Company expects the MLME to grant formal approval to commence with a controlled start up of the gold processing plant. The detailed start up plan submi ed by the Company includes a gradual ramp up in opera ons with waste and low grade ore towards name plate capacity at ROM grade ore, and including scheduled periods of plant down me to allow for performance tes ng and addi onal modifica ons to be made within the process plant. It is an cipated that this controlled start up process will be ini ated with the support of staff from MMSA, and in full coopera on with both the EPA and MLME. A further announcement will be communicated following receipt of the MLME's approval to commence start up of the process plant. The Company believes that following extensive consulta on and technical studies by interna onal experts, the plant modifica ons currently being undertaken and the enhanced monitoring programme and compliance regime it has ini ated at New Liberty will enable it to operate in compliance with its opera ng licence and social commitments as well as its commitment to compliance with the ICMC. Inves ga ons to date have shown that cyanide discharge exceedances of ICMC compliance guidelines and the environmental laws of Liberia have been recorded on the TSF and at environmental compliance monitoring points downstream of the TSF periodically between mid December 2015 and March Full disclosure of the historic exceedances has been made to the EPA. These exceedances can be a ributed to opera onal issues at the plant, including complica ons with the oxygen plant, the detoxifica on circuit and on site laboratory resul ng in a lack of stable opera ng condi ons. Processing opera ons were suspended as previously reported by the Company on 10 May Inves ga ons led by interna onal experts are ongoing with the aim of understanding the impact of these discharges on the river ecosystem and downstream water users, and defining appropriate rehabilita on ac ons. The Company has provided addi onal water wells within the village of Jikando, the closest se lement to New Liberty situated five kilometres downstream, and is ensuring there is no impact on the residents' livelihoods while assessments to the 2/6

3 downstream river ecosystem con nue. Contact Informa on David Reading / Paul Thomson Tel: +44(0) Numis Securi es Limited (Nominated Adviser) John Prior / James Black / Paul Gillam Tel: +44(0) Buchanan Bobby Morse / Anna Michniewicz Tel: +44(0) RBC Capital Markets (Financial Advisor) Richard Horrocks Taylor / Richard Hughes Tel: +44(0) About 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 es mated proven and probable mineral reserve of 8.5 Mt with 924,000 ounces of gold grading 3.4 g/t and an es mated measured and indicated mineral resource of 9,796 Kt with 1,143,000 ounces of gold grading 3.63 g/t and an es mated inferred mineral resource of 5,730 Kt with 593,000 ounces of gold grading 3.2 g/t. A Defini ve Feasibility Study ("DFS") has been completed, the first gold pour has taken place and commercial produc on has been declared. The foregoing mineral reserve and mineral resource es mates and addi onal informa on in connec on therewith are set out in the Company's technical report dated March 25, 2015 and en tled "New Liberty Gold Project, Bea Mountain Mining Licence Southern Block, Liberia, West Africa, Defini ve 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 addi onal gold projects of Ndablama, Gondoja, Weaju and Leopard Rock which are the focus of explora on programs during 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 km 2 ), Archaen West (112.6 km 2 ), Mabong (36.6 km 2 ) and Mafa West (15.6 km 2 ) licences will also be subject to preliminary reconnaissance geological work. The foregoing mineral resource es mates and addi onal informa on in connec on therewith are set out in the Company's technical report dated December 1, 2014 and en tled "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 explora on 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 Ins tute of Materials, Minerals and Mining. David Reading is the President and CEO of Aureus Mining Inc. and has reviewed and approves this press release. 3/6

4 Forward Looking Statements Certain informa on contained in this Announcement cons tutes forward looking informa on. This informa on may relate to future events or the Company's future performance. All informa on other than informa on of historical fact is forward looking informa on. The use of any of the words "an cipate", "plan", "con nue", "es mate", "expect", "may", "will", "project", "should", "believe", "predict" and "poten al" and similar expressions are intended to iden fy forward looking informa on. This informa on involves known and unknown risks, uncertain es and other factors that may cause actual results or events to differ materially from those an cipated in such forward looking informa on. No assurance can be given that this informa on will prove to be correct and such forward looking informa on included in this Announcement should not be unduly relied upon. This informa on speaks only as of the date of this Announcement. Such forward looking informa on includes, among other things, statements or informa on rela ng to: plans to recommence processing opera ons, to conduct various environmental and social studies, to construct remedia on facili es and to modify the process plant and detoxifica on circuit, the Company's ability to successfully complete the foregoing, the con nua on of commercial produc on at the New Liberty Gold Mine and the proposed plans rela ng thereto regarding opera ons, es mates rela ng to tonnage, grades, waste ra os, recovery rates and future gold produc on, expecta ons regarding throughput gold produc on, mill treatment and plant feed, expecta ons regarding the engagement of external contractors, as well as the other forecasts, es mates and expecta ons rela ng to the New Liberty Gold Mine included in this Announcement; the future market price of commodi es; produc on targets; metables; the con nued lis ng of the common shares of the Company on the TSX and AIM. With respect to forward looking informa on contained in this Announcement, assump ons have been made regarding, among other things: general business, economic and mining industry condi ons; that Aureus will be able to advance and complete its planned remedia on, rehabilita on and restora on ac vi es within expected meframes; that there will be no significant delay or other material impact on the expected meframes for comple on of the planned remedia on and restora on of the New Liberty Gold Mine and the recommencement of processing opera ons; that any required permits, approvals and arrangements to proceed with planned remedia on and restora on and the resump on of processing opera ons will be obtained in a mely manner; that there will be no interrup ons that will materially delay Aureus' progress with any remedia on plans; that Aureus will have access to any addi onal capital if required to fund such ac vi es and other opera ons;, the ability of the Company to obtain, maintain, renew and/or extend required permits, licences, authoriza ons and/or approvals from the appropriate regulatory authori es; interest rates and foreign exchange rates the parameters and assump ons employed in the New Liberty Technical Report, (including but not limited to, those rela ng to future mining and opera ng costs, processing and recovery rates, net present values and internal rates of return, ming for the commencement of produc on, tax and royalty rates, future gold prices, metallurgical rates, opera ons and management, grades); the supply and demand for commodi es and precious and base metals and the level and vola lity of the prices of gold; the ability of the Company to raise sufficient funds from capital markets and/or debt to meet its future obliga ons and planned ac vi es; the obtaining of waivers and amendments from the Company's creditors in respect of its debt repayment obliga ons; the business of the Company including the poli cal environments and legal and regulatory frameworks in and the ability of the Company to con nue to obtain qualified staff and equipment in a mely and costefficient manner to meet its demand. Assump ons used in the prepara on of such informa on, although considered reasonable by Aureus at the me of prepara on, may prove to be incorrect. Actual results could differ materially from those an cipated in the forward looking informa on contained in this Announcement as a result of the risk factors, including: uncertainty regarding the outcome of any sample tes ng and analysis to be conducted on the area affected by the overflow from the TSF; risks rela ng to 4/6

5 the mely receipt of necessary approvals and consents to proceed with the proposed remedia on plan and with the recommencement of processing opera ons; risks rela ng to the ming, costs and liabili es rela ng to the proposed modifica ons and new facili es; uncertainty as to actual ming of comple on of any remedia on and restora on ac vi es and the recommencement of processing opera ons at the New Liberty Gold Mine; risks rela ng to the impact of the overflow from the TSF on Aureus' reputa on; the quantum of any claims, fines or penal es that may become payable by Aureus and the risk that current sources of funds are insufficient to fund any such liabili es; risks that Aureus will be unsuccessful in defending against any legal claims or poten al li ga on; risk of costs arising from any unforeseen longer term environmental consequences of the overflow from the TSF at the New Liberty Gold Mine risks normally incidental to explora on and development of mineral proper es; the inability of the Company to obtain required financing, when needed and/or on acceptable terms or at all; the inability to obtain required waivers and amendments from the Company's creditors in respect of its debt repayment obliga ons and consequen al risks of default thereon; risks related to opera ng in West Africa; health risks associated with the mining workforce in West Africa; risks related to the Company's tle to its mineral proper es; adverse changes in commodity prices; risks related to current global financial condi ons; risks that the Company's explora on for and development of mineral deposits may not be successful; the inability of the Company to obtain, maintain, renew and/or extend required licences, permits, authoriza ons and/or approvals from the appropriate regulatory authori es and other risks rela ng to the legal and regulatory frameworks in Liberia, including adverse changes in applicable laws; compe ve condi ons in the mineral explora on and mining industry; risks related to obtaining insurance or adequate levels of insurance for the Company's opera ons; uncertainty of mineral resource and reserve es mates; the inability of the Company to delineate addi onal mineral resources; risks related to environmental regula ons; uncertain es in the interpreta on of results from drilling; uncertain es in the es mates and assump ons used, and risks in the methodologies employed, in the New Liberty Technical Report and that the comple on of addi onal work at the New Liberty Gold Mine could result in changes to the forecasts, es mates and expecta ons contained in the New Liberty Technical Report; risks related to the legal systems in Liberia; risks related to the tax residency of the Company; the possibility that future explora on, development or mining results will not be consistent with expecta ons; infla on; changes in exchange and interest rates; risks related to the ac vi es of ar sanal miners; ac ons of third par es 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 me frame, or at all; the inability to a ract and retain key management and personnel; poli cal risks; the inability to enforce judgments against the Company's directors and officers; and future unforeseen liabili es and other factors. The forward looking informa on included in this Announcement is expressly qualified by this cau onary statement and is made as of the date of this Announcement. The Company does not undertake any obliga on to publicly update or revise any forward looking informa on except as required by applicable securi es laws. 5/6

6 This information is provided by RNS The company news service from the London Stock Exchange END MSCEAKKPEDAKEFF 6/6