6 Jun 2011 07:00
For Immediate Release June 6, 2011
Aureus Mining Inc.
TSX : AUE
AIM : AUE
NEWS RELEASE
Appointment of DRA Mineral Projects (Pty) Ltd
·; DRA Mineral Projects (Pty) Ltd ("DRA") appointed as plant design engineers for the New Liberty Gold Project's definitive feasibility study
·; DRA to undertake detailed metallurgical test work and process design studies - 500 kg of core shipped to South Africa to complete floatation, recovery and grind size optimization
·; Golders Associates Ghana Ltd ("Golders") and Australian Mining Consultants ("AMC") appointed as other key consultants for feasibility technical team
·; Infill Drilling programme continues at New Liberty - two rigs on site now and a further two will arrive by the end of June. To date 29 holes completed for 6139 metres
·; Geotechnical drilling - 15 holes from a 23 hole programme completed to date.
·; Definitive feasibility study on track to complete in Q4 2011
·; Environmental impact assessment also due to complete in Q4 2011 - various baseline studies already completed
Commenting on the appointment David Reading, Chief Executive Officer of Aureus said: "We are delighted that DRA are working with us on the engineering design of the New Liberty process plant as they bring a wealth of knowledge in the construction of gold processing plants in Africa. With the appointment of DRA, Golders and AMC our consultant team for the definitive feasibility study is now complete and we remain on track for completion by end of Q4 2011."
Aureus Mining Inc. ("Aureus" or the "Company") announces that it has appointed DRA Mineral Projects (Pty) Ltd of South Africa ("DRA") to undertake the metallurgical test work and process design studies as part of the New Liberty Gold Project definitive feasibility study. DRA will undertake detailed metallurgical test work to definitive feasibility level and then complete all design work and cost estimation studies for the operation of the process plant. This work has commenced with the shipment of over 500 kg of drill core to South Africa in order to undertake detailed test work on floatation, recovery and optimization of the grind size required in the milling process.
DRA will also be investigating the viability of incorporating a floatation recovery process within the process plant in their feasibility work. If successful, this would be a significant factor in the process design resulting in a smaller plant and a reduction in grinding requirements and a lowering of capital and operating costs. Results for this test work are expected to be available in Q3 2011.
The Company has retained the services of Golder Associates Ghana Ltd ("Golders") for the environmental and social impact assessment ("ESIA") and Australian Mining Consultants (UK) Ltd ("AMC") for the 43-101 resource classification and open pit and mining optimization studies.
The definitive feasibility study will be co-ordinated and compiled by the Company under the supervision of its Chief Operating Officer, Dr Martin White and is expected to be completed by the end of 2011.
The Company is continuing with the infill diamond drilling programme at the New Liberty deposit and to date 6,139 metres (26 holes) of a 20,000m (156 holes) programme have been completed. With an optimal hole spacing of between 30 and 40 metres the programme is designed to evaluate the total contained gold resources over a 1.75km strike length and down to a depth of 200 metres below surface. The Company is operating with two rigs however by the end of June the drilling contractor will have four rigs at New Liberty in order to complete this programme. Results from the first twenty holes are expected in June.
Geotechnical drilling is being undertaken by AMC in order to assess the slope stability within the open pit and to date 15 holes from a planned 23 hole programme have been completed.
Progress has been made on the ESIA and to date Golders have completed ecological, surface water, air quality and socio-economic base line studies within the area covering New Liberty proposed mining infrastructure. The ESIA study is on track for completion by Q3 2011.
The Company is also carrying out an investigation into alternative power supply options to the project in order to achieve the best project economics. The use of a bio-mass power generation system using wood chips supplied from rubber plantation regeneration projects within Liberia offers a potential alternative to diesel fuel power generation. Both options will be investigated as part of the definitive feasibility study.
About Aureus Mining Inc.
The Company's assets include the New Liberty gold deposit in Liberia (the "New Liberty Gold Project"), which has an estimated Indicated Mineral Resource of 751,000 ounces of gold grading 4.17 g/t (contained in 5,599,000 tonnes) and an estimated Inferred Mineral Resource of 762,000 ounces of gold grading 3.40 g/t (contained in 7,040,000 tonnes). A preliminary economic assessment ("PEA") of the New Liberty Gold Project filed in December 2010 outlined a robust open pit gold mine with a pre-tax NPV of US$234 million based on an $1100/oz. gold price and a 10% discount rate. The PEA outlined an 8.5 year mine life with approximate production of 100 000 ounces per year in the first five years. The New Liberty Gold Project is being advanced through to a definitive feasibility study.
The New Liberty Gold Project locates within the Bea Mountain mining license which covers 457 km2 and has a 25 year, renewable, mineral development agreement. The Bea Mountain mining license also hosts the proximal gold targets of Ndablama, Weaju, Silver Hills and Gondoja which are the focus of exploration programs during 2011.
The company also has gold assets within exploration properties in Sierra Leone and Cameroon.
Contact Information
Aureus Mining Inc. David Reading, CEO Tel: +44 (0) 20 7257 2930
| Buchanan Bobby Morse / Katharine Sutton Tel: +44 (0) 20 7466 5000 |
Evolution Securities Limited Jeremy Ellis / Neil Elliot Tel: +44 (0) 20 7071 4300
| RBC Capital Markets Martin Eales Tel: +44 (0) 20 7653 4000 |
Qualified Person
The Company's Qualified Person responsible for preparing this release is David Reading, who holds a MSc in Economic Geology from University of Waterloo, Canada and is a Fellow of the Institute of Materials, Minerals and Mining. David Reading is the President and CEO of Aureus Mining Inc. and consents to the inclusion in the announcement of the matters based on their information in the form and context in which it appears and confirms that this information is accurate and not false or misleading.