13 Aug 2014 07:00
13 August 2014 AIM:AMA
Amara Mining plc
("Amara" or "the Company")
EXCEPTIONAL DRILLING RESULTS FROM YAOURE GOLD PROJECT, INCLUDING 17M AT 7.35G/T
Amara Mining plc, the AIM-listed West African-focused gold mining company, is pleased to announce exceptional diamond drill ("DD") and reverse circulation ("RC") results from its 2014 drilling programme at its Yaoure Gold Project ("Yaoure") in Côte d'Ivoire.
HIGHLIGHTS:
· Latest 15 DD results include exceptional intercepts, demonstrating high grade areas within the Yaoure Central Zone and the presence of mineralisation in 'information gaps' - significant DD intercepts include:
o 17m at 7.35g/t from 180m in hole YDD0215*
o 42m at 3.20g/t from 249m in hole YDD0216G
o 2m at 45.80g/t from 184m in hole YDD0222
o 5m at 17.01g/t from 179m in hole YDD0229R
· Latest 4 RC drilling results continue to confirm the high grade nature and continuity of the CMA zone - significant RC intercepts include:
o 7m at 9.00g/t from 186m in hole YRC0705
o 11m at 4.54g/t from 220m in hole YRC0708
· All results announced to date will be used to calculate the first Mineral Resource update due in September 2014, which is expected to expand the current 6.3 million ounce resource base
· In-fill drilling continues and a second Mineral Resource update is anticipated in Q4 2014, which is expected to upgrade the majority of the Inferred resources within the US$950 per ounce pit design to the Indicated category
· Fully-funded to deliver a Pre-Feasibility Study ("PFS") in Q1 2015
*Aggregated composite intersection in which internal dilution of 3m at less than 0.4 g/t has been allowed for continuity and which includes 9m at 7.51g/t from 180m, 5m at 11.32g/t from 192m and 3m of waste rock (3m at 0.25 g/t)
John McGloin, Chairman and Chief Executive Officer of Amara, commented:
"The latest drilling results demonstrate the presence of significant high grade areas within the Yaoure deposit, with exceptional intercepts such as 17 metres at 7.35g/t. They also underline the potential to increase the grade through in-fill drilling, as well as to expand the 6.3 million ounce resource base. Work has now commenced on the calculation of the first of the two Mineral Resource updates, which is due in September, and I look forward to delivering further results over the coming weeks as the in-fill drilling programme continues."
DD Programme at Yaoure
104 DD holes have been completed since 02 May 2014 and nine are in progress for a total advance by 08 August 2014 of 27,950 metres, out of 57,000 metres budgeted for the total DD programme. The results of the first 26 holes were reported in the announcement dated 08 July 2014, the next 29 in the announcement dated 06 August and the latest 15 holes, which focus on testing Yaoure Central, under and immediately east of the current pit, are reported in the Appendix.
Significant intercepts returned from DD holes testing Yaoure Central:
Borehole ID | Section mN | From (m) | To (m) | Interval (m)1 | Au (g/t) |
YDD0214 | 6300 | 207 | 212 | 5 | 4.47 |
YDD0215 | 7250 | 180 | 197 | 17 | 7.35 |
YDD0216G | 6750 | 82 | 85 | 3 | 6.90 |
YDD0216G | 249 | 291 | 42 | 3.20 | |
YDD0219 | 7400 | 97 | 105 | 8 | 4.13 |
YDD0222 | 6600 | 184 | 186 | 2 | 45.80 |
YDD0222 | 195 | 201 | 6 | 3.81 | |
YDD0224 | 7450 | 1 | 6 | 5 | 6.03 |
YDD0224 | 114 | 118 | 4 | 15.72 | |
YDD0226 | 7150 | 131 | 148 | 17 | 1.83 |
YDD0226 | 156 | 167 | 11 | 2.29 | |
YDD0227 | 6850 | 290 | 298 | 8 | 4.63 |
YDD0229R | 7400 | 179 | 184 | 5 | 17.01 |
YDD0229R | 230 | 233 | 3 | 24.76 | |
YDD0230 | 7300 | 66 | 72 | 6 | 3.73 |
Notes
1. Interval lengths are not true widths. Composite intersections are based on a minimum width of 2m and a cut-off of 0.40 g/t Au. Internal dilution of up to 2.00m (3.00m in the case of YDD0215) at less than 0.40 g/t has been allowed for continuity.
Results returned by 08 August 2014 for 70 DD holes (and 35 RC holes) will be used to compile the first of the two Mineral Resource updates in H2 2014. The majority of the DD holes drilled to this date have targeted 'information gaps' within the US$950 pit design and have demonstrated the presence of mineralisation in these gaps. This is expected to expand the Mineral Resource and reduce the strip ratio (currently 5.2:1 in the 8 million tonne per annum scenario). A number of DD holes were drilled to reduce the drill spacing at Yaoure Central to 50 metres x 50 metres (previously 100 metres x 100 metres). They have improved the understanding of the structural controls, for example the importance of the N-S trending granodiorite body, and have increased Amara's confidence in the deposit.
RC programme at Yaoure
The first phase of RC drilling, which comprised 26 RC holes (5,763 metres), was completed on 17 May 2014, focusing on the CMA zone. The second phase commenced on 26 June 2014 and continues to focus on the CMA zone, with a total advance by 08 August 2014 of 10,543 metres, out of 23,000 metres budgeted for the total RC programme. The results of the first five holes of the second phase were announced on 06 August 2014 and the latest four holes are reported in the Appendix.
The results continue to confirm the continuity and high grade nature of the CMA zone, with good correlation between the latest RC holes and previous DD holes within 50 metres. The CMA zone may have the potential to be mined selectively at the start of Yaoure's minelife.
Significant intercepts from RC holes testing the high grade CMA zone:
Borehole ID | Section mN | From (m) | To (m) | Interval (m)1 | Au (g/t) |
YRC0705 | 7000 | 186 | 193 | 7 | 9.00 |
YRC0706 | 7000 | 243 | 252 | 9 | 2.82 |
YRC0708 | 7050 | 220 | 231 | 11 | 4.54 |
YRC0710 | 6550 | 154 | 164 | 10 | 2.93 |
Notes
1. Interval lengths are not true widths. Composite intersections are based on a minimum width of 2m and a cut-off of 0.40 g/t Au. Internal dilution of up to 2.00m at less than 0.40 g/t has been allowed for continuity.
While the Mineral Resource calculation work is ongoing, the drilling programme will continue at Yaoure until early October 2014 to provide further data for the second Mineral Resource update, which is expected in Q4 2014. It will focus on in-filling the US$950 per ounce pit design, which is expected to convert a significant proportion of Yaoure's Inferred resources to the Indicated category and further increase Amara's confidence in the deposit.
Background on Yaoure Gold Project
Amara delivered a Preliminary Economic Assessment for Yaoure in Q1 2014. It demonstrated that the project has the potential to be one of the top 10 gold mines in Africa by production and top 50 in the world. With average production of 325,000 ounces per annum over a 12 year mine life and all-in sustaining costs of US$691 per ounce, the headline 8Mtpa scenario delivers an IRR of 32% at a gold price of US$1,250 per ounce and an NPV of US$688 million. Yaoure is one of the few development projects in West Africa that remains resilient at low gold prices, with an IRR of 23% at US$1,100 per ounce. The project is flexible and delivers similarly strong returns over a range of alternative throughput scenarios. The compelling economics are driven by the excellent existing infrastructure in Côte d'Ivoire, with low cost hydro-electric power from the Kossou dam (5km from site) and a dual carriageway to within 40km of site. With 80,000 metres of drilling planned in 2014, there is expected to be strong exploration upside potential on the current NI 43-101 compliant 6.3 million ounce resource base[i].
For more information please contact:
Amara Mining plc John McGloin, Chairman and Chief Executive Officer Pete Gardner, Finance Director Katharine Sutton, Head of Investor Relations
| +44 (0)20 7398 1420 |
Peel Hunt LLP (Nominated Adviser & Joint Broker) Matthew Armitt Ross Allister
| +44 (0)20 7418 8900 |
GMP Securities Europe LLP (Joint Broker) Richard Greenfield Alexandra Carse
| +44 (0)20 7647 2800
|
Farm Street Communications (Media Relations) Simon Robinson | +44 (0)7593 340 107
|
About Amara Mining plc
Amara is a gold developer with assets in West Africa. Amara is focused on unlocking the value in its development projects. At Yaoure in Côte d'Ivoire, this will be done by increasing the confidence in the existing Mineral Resource and economics at the project as the Company progresses it through to Pre-Feasibility Study and Bankable Feasibility Study. At Baomahun, this will be done by gaining an improved understanding of the exploration upside potential and underground opportunity. With its experience of bringing new mines into production and a project pipeline spanning three countries, Amara aims to further increase its production profile with highly prospective opportunities across all assets.
APPENDIX
Results of latest 15 DD holes
Borehole ID | Section mN | From (m) | To (m) | Interval (m)1 | Au (g/t) |
YDD0214 | 6300 | 30.00 | 32.00 | 2 | 1.40 |
YDD0214 | 52.00 | 56.00 | 4 | 0.80 | |
YDD0214 | 133.00 | 138.00 | 5 | 3.71 | |
YDD0214 | 141.00 | 146.00 | 5 | 0.43 | |
YDD0214 | 156.00 | 159.00 | 3 | 0.64 | |
YDD0214 | 207.00 | 212.00 | 5 | 4.47 | |
YDD0215 | 7250 | 1.00 | 8.00 | 7 | 0.432 |
YDD0215 | 28.00 | 31.00 | 3 | 1.582 | |
YDD0215 | 82.00 | 84.00 | 2 | 0.95 | |
YDD0215 | 105.00 | 107.00 | 2 | 2.26 | |
YDD0215 | 110.00 | 115.00 | 5 | 1.97 | |
YDD0215 | 180.00 | 197.00 | 17 | 7.353 | |
YDD0215 | 180.00 | 189.00 | 9 | 7.51 | |
YDD0215 | 192.00 | 197.00 | 5 | 11.32 | |
YDD0215 | 238.00 | 240.00 | 2 | 0.91 | |
YDD0215 | 331.00 | 345.00 | 14 | 0.672 | |
YDD0216G4 | 6750 | 82.00 | 85.00 | 3 | 6.90 |
YDD0216G | 233.00 | 235.00 | 2 | 0.82 | |
YDD0216G | 249.00 | 291.00 | 42 | 3.205 | |
YDD0216G | 303.00 | 312.00 | 9 | 1.28 | |
YDD0216G | 316.00 | 319.00 | 3 | 4.02 | |
YDD0217 | 6900 | 80.00 | 82.00 | 2 | 2.04 |
YDD0217 | 259.00 | 264.00 | 5 | 0.65 | |
YDD0217 | 271.00 | 292.00 | 21 | 0.80 | |
YDD0218 | 6300 | 202.00 | 203.00 | 1 | 1.096 |
YDD0219 | 7400 | 0.00 | 7.00 | 7 | 0.68 |
YDD0219 | 36.00 | 39.00 | 3 | 1.26 | |
YDD0219 | 97.00 | 105.00 | 8 | 4.132 | |
YDD0219 | 197.00 | 199.00 | 2 | 6.012 | |
YDD0219 | 241.00 | 246.00 | 5 | 1.37 | |
YDD0219 | 249.00 | 252.00 | 3 | 1.46 | |
YDD0220 | 7200 | 0.00 | 5.00 | 5 | 1.37 |
YDD0220 | 145.00 | 148.00 | 3 | 0.61 | |
YDD0220 | 158.00 | 160.00 | 2 | 5.74 | |
YDD0220 | 163.00 | 166.00 | 3 | 2.70 | |
YDD0220 | 186.00 | 188.00 | 2 | 0.90 | |
YDD0220 | 225.00 | 227.00 | 2 | 1.50 | |
YDD0220 | 247.00 | 252.00 | 5 | 0.56 | |
YDD0220 | 276.00 | 282.00 | 6 | 0.96 | |
YDD0221 | 7450 | 91.00 | 107.00 | 16 | 1.22 |
YDD0221 | 121.00 | 123.00 | 2 | 0.73 | |
YDD0221 | 143.00 | 147.00 | 4 | 0.41 | |
YDD0221 | 163.00 | 166.00 | 3 | 0.59 | |
YDD0221 | 177.00 | 181.00 | 4 | 0.89 | |
YDD0221 | 205.00 | 217.00 | 12 | 0.88 | |
YDD0221 | 7450 | 232.00 | 234.00 | 2 | 0.61 |
YDD0221 | 241.00 | 245.00 | 4 | 0.52 | |
YDD0221 | 249.00 | 251.00 | 2 | 1.56 | |
YDD0221 | 255.00 | 262.00 | 7 | 1.02 | |
YDD0221 | 279.00 | 292.00 | 13 | 1.32 | |
YDD0222 | 6600 | 63.00 | 65.00 | 2 | 0.97 |
YDD0222 | 69.00 | 71.00 | 2 | 0.73 | |
YDD0222 | 129.00 | 131.00 | 2 | 0.48 | |
YDD0222 | 145.00 | 148.00 | 3 | 1.10 | |
YDD0222 | 184.00 | 186.00 | 2 | 45.80 | |
YDD0222 | 190.00 | 192.00 | 1 | 1.54 | |
YDD0222 | 195.00 | 201.00 | 6 | 3.81 | |
YDD0222 | 227.00 | 229.00 | 2 | 0.42 | |
YDD0223G4 | 7150 | 92.00 | 94.00 | 2 | 0.79 |
YDD0223G | 210.00 | 212.00 | 2 | 2.07 | |
YDD0223G | 231.00 | 235.00 | 4 | 0.80 | |
YDD0223G | 247.00 | 251.00 | 4 | 1.07 | |
YDD0223G | 278.00 | 280.00 | 2 | 2.63 | |
YDD0223G | 299.00 | 301.90 | 2.9 | 0.88 | |
YDD0224 | 7450 | 1.00 | 6.00 | 5 | 6.03 |
YDD0224 | 36.00 | 44.00 | 8 | 0.55 | |
YDD0224 | 68.00 | 72.00 | 4 | 2.18 | |
YDD0224 | 114.00 | 118.00 | 4 | 15.72 | |
YDD0224 | 172.00 | 175.00 | 3 | 0.91 | |
YDD0224 | 184.00 | 186.00 | 2 | 3.69 | |
YDD0224 | 240.00 | 249.00 | 9 | 2.09 | |
YDD0226 | 7150 | 131.00 | 148.00 | 17 | 1.83 |
YDD0226 | 156.00 | 167.00 | 11 | 2.29 | |
YDD0226 | 170.00 | 172.00 | 2 | 2.33 | |
YDD0226 | 175.00 | 179.00 | 4 | 0.57 | |
YDD0226 | 197.00 | 201.00 | 4 | 2.00 | |
YDD0226 | 236.00 | 239.00 | 3 | 1.02 | |
YDD0226 | 247.00 | 252.00 | 5 | 0.82 | |
YDD0227 | 6850 | 0.00 | 2.00 | 2 | 1.08 |
YDD0227 | 82.00 | 88.00 | 6 | 2.04 | |
YDD0227 | 231.00 | 233.00 | 2 | 2.08 | |
YDD0227 | 239.00 | 247.00 | 8 | 1.82 | |
YDD0227 | 290.00 | 298.00 | 8 | 4.63 | |
YDD0229R | 7400 | 0.00 | 2.00 | 2 | 0.41 |
YDD0229R | 35.00 | 38.00 | 3 | 1.19 | |
YDD0229R | 179.00 | 184.00 | 5 | 17.01 | |
YDD0229R | 187.00 | 189.00 | 2 | 1.64 | |
YDD0229R | 230.00 | 233.00 | 3 | 24.76 | |
YDD0229R | 237.00 | 241.00 | 4 | 0.72 | |
YDD0230 | 7300 | 36.00 | 40.00 | 4 | 0.77 |
YDD0230 | 66.00 | 72.00 | 6 | 3.73 | |
YDD0230 | 108.00 | 112.00 | 4 | 0.52 | |
YDD0230 | 181.00 | 184.00 | 3 | 0.87 | |
YDD0230 | 219.00 | 223.00 | 4 | 0.53 | |
YDD0230 | 308.00 | 313.00 | 5 | 1.88 |
Results of latest 4 RC holes
Borehole ID | Section mN | From (m) | To (m) | Interval (m)1 | Au (g/t) |
YRC0705 | 7000 | 186.00 | 193.00 | 7 | 9.00 |
YRC0706 | 7000 | 134.00 | 136.00 | 2 | 0.82 |
YRC0706 | 243.00 | 252.00 | 9 | 2.82 | |
YRC0708 | 7050 | 28.00 | 32.00 | 4 | 0.52 |
YRC0708 | 110.00 | 112.00 | 2 | 0.41 | |
YRC0708 | 209.00 | 213.00 | 4 | 0.64 | |
YRC0708 | 220.00 | 231.00 | 11 | 4.54 | |
YRC0710 | 6550 | 136.00 | 140.00 | 4 | 1.28 |
YRC0710 | 154.00 | 164.00 | 10 | 2.93 |
Notes
1. Interval lengths are not true widths. Composite intersections are based on a minimum width of 2m and a cut-off of 0.40 g/t Au. Internal dilution of up to 2.00m at less than 0.40
2. Awaiting check assay
3. Aggregated composite intersection in which internal dilution of 3 metres at less than 0.4 g/t has been allowed for continuity.
4. G denotes geotechnical hole
5. Steep cross-cutting oblique ESE-WNW striking structure
6. YDD0218 - no intersection greater than 2m. Best intersection in hole shown for completeness
Peter Brown is a "Qualified Person" within the definition of National Instrument 43-101 and has reviewed and approved the information contained within this announcement. Dr Brown (MIMMM) is the Group Exploration Manager.
The RC and DD drilling programmes at Yaoure are being undertaken by two independent drilling contractors. Typically samples for assaying were taken at one metre intervals. Sample preparation was carried out at the Company's facility at Yaoure, prior to fire assay at Actlabs in Ouagadougou, Burkina Faso. The samples were crushed down to minus 2mm and then pulverised down to 90% passing 75 microns, prior to analysis for gold by 50g fire assay. As part of the Company's QA/QC procedures, internationally recognised standards, duplicates and blanks were inserted. Check assays are being carried out at ALS Geochemistry in Johannesburg, South Africa. The laboratories used are independent of the Company.
[i] Effective date of Yaoure's Mineral Resource estimate is 11 December 2013.