Amara Mining plc, the AIM-listed West African focused gold mining company, says it is pleased to announce an updated NI 43-101 compliant Mineral Resource estimate for its 100% owned Yaoure Gold Project ("Yaoure") in Côte d'Ivoire.
– Inferred Mineral Resource of 5.5 million ounces (133Mt at 1.29g/t) representing an increase of 3.3 million ounces (see notes 1 and 2).
– Indicated Mineral Resource of 0.8 million ounces (20Mt at 1.20g/t) representing an increase of 0.3 million ounces (see notes 1 and 3).
– Mineral Resource remains robust at a lower gold price and includes 0.4 million ounces of oxide material (9.4Mt at 1.33g/t) potentially amenable to low cost heap leach processing (see note 1).
– 71% increase in Amara's global Mineral Resources to 3.7 million ounces Measured and Indicated and 6.4 million ounces Inferred.
– Minimal discovery cost of US$3.50/oz (see note 4) versus average industry discovery cost in Africa of US$16/oz (see note 5).
– Metallurgical testwork has confirmed the simple, non-refractory nature of the gold mineralisation and its amenability to a range of processing options – results received in Q3 2013 also demonstrate robust recoveries for low grade samples.
– Location of Yaoure is highly advantageous due to close proximity to Kossou dam, which offers cheap hydro-electric power ("HEP") and abundant water, excellent roads and accommodation.
– Preliminary Economic Assessment ("PEA") is anticipated to be completed in Q1 2014, focused on a large scale, long life carbon-in-leach ("CIL") or flotation scenario and a short-term heap leach opportunity
Peter Spivey, Chief Executive Officer of Amara, commented:
"The delivery of the latest Mineral Resource update for Yaoure has confirmed the project as an important part of Amara's portfolio, representing our largest resource in West Africa and the largest deposit in Côte d'Ivoire. It has also increased the Company's global Mineral Resources by over 70% at a minimal discovery cost for the updated Yaoure resource of just US$3.50/oz. It is strategically important that the resource remains strong at lower gold prices, with a robust overall grade of 1.86g/t at a 1g/t cut-off. This demonstrates Yaoure's viability in the current challenging market conditions.
"The next milestone for the project is the completion of the PEA in Q1 2014, which will primarily explore the potential for large scale, long-term production from Yaoure's substantial sulphide resources. The PEA will also evaluate the potential for Amara to maintain its status as a heap leach producer beyond the Kalsaka/Sega minelife through the additional oxide resources defined at Yaoure, offering near-term cash flow. I am confident that it will further demonstrate the project's robust economics as a result of the large-scale, low strip ratio, simple metallurgical nature of the deposit and the excellent existing infrastructure in Côte d'Ivoire."
For full details, see attached report: