LONDON (Alliance News) - Amara Mining PLC Friday said the first phase of results from its 2014 drilling programme at the Yaoure gold project in Ivory Coast have confirmed the high-grade nature of the site's CMA zone.
The West Africa-focused gold mining company said results from the first 19 holes which focused on the CMA zone, a mineralised shear zone which comprises 30% of the site's current 6.3 million ounce mineral resource, found a range of positive intercepts including a 31 metre space at 5.4 grams per tonne of gold from 184 metres depth in the YRC0682 hole and a 22 metre space at 9.1 grams per tonne of gold from 48 metres in depth at the YRC0688 site.
The drilling started in April and is expected to be completed in October with two mineral resource updates expected in the second half of the year. The first, during the third quarter, should expand its current resource base, and the company expects that its second update should upgrade its inferred resources within a USD950 per ounce pit design, which is expected in the fourth quarter.
"These strong initial results from the Yaoure in-fill drilling campaign confirm the high grade nature of the CMA zone and increase our confidence in the deposit," Executive Chairman John McGloin said in a statement. "I look forward to regularly reporting the drilling results from the ongoing programme and delivering the resulting mineral resource updates throughout the remainder of 2014."
The company said it remains fully-funded to deliver a pre-feasibility study for the site in the first quarter 2015, which will coincide with the end of production from the company's Sega/Kalsaka mine in Burkino Faso.
The news comes after Amara delivered a preliminary economic assessment for Yaoure in the first quarter 2014. It showed that the site has significant potential with average production of 325,000 ounces per year over a 12 year mine life and all-in sustaining costs of USD691 per ounce.
Amara Mining shares were trading down 0.1% at 17.48 pence on Friday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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