20 Jan 2014 07:00
20 January 2014 AIM:AMA
Amara Mining plc
("Amara" or "the Company")
2013 PRODUCTION RESULTS FOR KALSAKA/SEGA GOLD MINE
Amara Mining plc, the AIM-listed West African focused gold mining company, is pleased to announce the production results for its Kalsaka/Sega Gold Mine ("Kalsaka/Sega") in Burkina Faso.
Highlights
· Full year production of 42,348 ounces at Kalsaka/Sega
· 86% increase in production to 14,926 ounces in Q4 2013 compared to previous quarter (Q3: 8,008 ounces) as higher grade material from Sega is realised
· Robust financial position - cash and liquid assets of US$20.0 million at year end
· 2014 production guidance from Kalsaka/Sega of 60,000-70,000 ounces
Peter Spivey, Chief Executive Officer of Amara, commented:
"2013 was a challenging year for the gold sector and it's testament to our exploration, operational and corporate teams that we delivered all three of our key targets: the successful integration of Kalsaka and Sega, the completion of the Baomahun Feasibility Study and the delivery of a Mineral Resource update (six million ounces) for Yaoure. We are pleased to begin the New Year by announcing that our revised FY2013 production guidance has been exceeded, despite the lower grades we encountered as Kalsaka reached the end of its life and the delay in commencing production from Sega, and we look ahead to continued stronger production in 2014 as a result of the higher grade Sega material."
Kalsaka/Sega Production
Q4 2013 | FY 2013 | ||
Ore mined | (Kt) | 443 | 1,228 |
Waste mined | (Kt) | 1,354 | 5,615 |
Ore processed | (Kt) | 375 | 1,359 |
Average ore head grade | (g/t) | 1.77 | 1.29 |
Gold production | (oz) | 14,926 | 42,348 |
Average realised price sold | (US$/oz) | 1,194 | 1,339 |
As anticipated, Q4 2013 was the strongest quarter of the year for Kalsaka/Sega as the higher grade material from Sega was realised. The average headgrade of the Sega material stacked was 1.77g/t and this is expected to increase as Amara continues to access higher grade areas. Amara expects to generate robust cashflow in 2014 and full year production guidance for Kalsaka/Sega is 60,000-70,000 ounces.
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This report includes certain "forward-looking information" within the meaning of applicable Canadian securities legislation.
All statements other than statements of historical fact included in this report, including, without limitation, the positioning of the Company for future success, statements regarding exploration, production estimates, anticipated timing of the PEA for Yaoure, and future objectives of Amara, are forward-looking information that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Amara's expectations include, among others, risks related to international operations, timing of receipt of mining licence, the actual results of current exploration and drilling activities, the reduction of the net smelter returns royalty on Sega, changes in project parameters as plans continue to be refined as well as the future price of gold. Although Amara has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Amara does not undertake to update any forward-looking statements that are included herein, except in accordance with applicable securities laws.