LONDON (Alliance News) - Amara Mining PLC Monday said its indicated resource at its Yaoure gold project in the Ivory Coast has increased in size and at a higher grade.
The company reported its indicated ounces have grown two-and-a-half times its original size, with 43% of 6.3 million ounces contained within the USD1,500 per ounce pit-shell now within the indicated category, said Amara in a statement.
The indicated resource now stands at 62 million tonnes at 1.36 grammes per tonne of gold for 2.7 million ounces.
The mineral resource estimate is based upon the initial drill results from the 2014 drill campaign; 70 diamond drill holes and 35 reverse circulation holes comprising of 26,686 metres of drilling.
"As a result of the closer spaced drilling, the mineral resource estimate delivers a 248% increase in indicated resources within the USD1,500 per ounce pit shell to 2.7 million ounces. The head grade also increases to 1.36 grammes per tonne, a 14% increase in comparison to the December 2013 mineral resource estimate," said Amara.
"Most encouragingly the USD800 and USD950 per ounce pit shells...deliver an increase in both head grade and gold content. Over 50% of the ounces within these economic pit shells are in the indicated category, giving Amara greater confidence in the deposit," it added.
The 83,000 metre drilling programme is now over 75% complete and is on track to conclude in mid-October 2014, with the second mineral resource update expected in December 2014, said the company.
Amara said it is fully-funded to deliver a pre-feasibility study for Yaoure in the first-quarter of 2015, with work underway on all elements of the study, including an extensive metallurgical test work programme focused on confirming Yaoure's recovery rate, reagent consumptions and comminution requirements, with results expected in the fourth-quarter of 2014.
Amara saw its shares rise 3.0% to 20.08 pence per share Monday morning.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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