TIDMASO
RNS Number : 0033F
Avesoro Resources Inc.
10 July 2019
10 July 2019
Avesoro Resources Inc.
TSX: ASO
AIM: ASO
Q2 2019 PRODUCTION UPDATE
Avesoro Resources Inc. ("Avesoro" or the "Company"), the TSX and
AIM listed West African gold producer announces its preliminary
production results for the quarter ended June 30, 2019 ("Q2" or the
"Quarter") from its New Liberty Gold Mine ("New Liberty") in
Liberia, and Youga Gold Mine ("Youga") in Burkina Faso.
Operational Highlights
-- Consolidated gold production of 34,338 ounces in the Quarter,
bringing H1 2019 gold production to 79,435 ounces;
o New Liberty gold production of 18,822 ounces in the Quarter, a
27% decrease on Q1 2019;
o Youga gold production of 15,516 ounces in the Quarter, a 19%
decrease on Q1 2019;
-- Total material movement of 12.3Mt in the Quarter, a 7%
decrease on Q1 2019, consisting of 471kt of ore and 11.8Mt of waste
material;
-- Completed the operational aspects of the transition to
contractor open pit mining at both Youga and New Liberty.
Serhan Umurhan, Chief Executive Officer of Avesoro, commented:
"With the operational aspects of the transition to contractor
mining at both Youga and New Liberty now in place, I am confident
that the challenges experienced during Q2 have been overcome and
that total material movement and gold production will increase in
the second half of the year. As such, I am pleased to reiterate our
revised 2019 production guidance of 180,000 to 200,000 ounces of
gold.
At Youga, the temporary production stoppage caused by the
transition to contractor mining in June, and the on-going lower
than expected grade from the Gassore pit resulted in mill feed
grade deteriorating 23% to 1.5 g/t Au in the Quarter compared with
Q1 2019, leading to gold production of 15.5koz during the Quarter.
In order to remedy the grade issue, the Company engaged technical
experts CSA Global to undertake an operational review of the mining
and grade control practices at Youga. In response to CSA's
recommendations, we have employed additional technical staff to
manage mining production and grade control at Youga and I am
confident we will see a material improvement in the situation as a
result.
At New Liberty, Q2 gold production of 18.8koz was temporarily
adversely impacted by the transition to contractor mining in April.
I am pleased to report that production performance during May and
June returned to our budgeted levels and we are now well prepared
for the onset of the wet season during the third quarter of
2019."
Table 1: Preliminary Group Production Results
Parameter Unit Q2 2019 Q1 2019 Variance Q2 2018 Variance H1 2019
Ore Mined kt 471 609 -23% 596 -21% 1,080
-------- -------- -------- --------- -------- --------- --------
Waste Mined kt 11,818 12,592 -6% 9,242 28% 24,410
-------- -------- -------- --------- -------- --------- --------
Total Material
Movement kt 12,289 13,201 -7% 9,838 25% 25,490
-------- -------- -------- --------- -------- --------- --------
Ore Processed kt 600 628 -4% 659 -9% 1,228
-------- -------- -------- --------- -------- --------- --------
Gold Production Ounces 34,338 45,098 -24% 60,231 -43% 79,435
-------- -------- -------- --------- -------- --------- --------
New Liberty
As previously reported in the Company's June 10, 2019
announcement, during April a number of staff in the mining and
heavy mining equipment ("HME") maintenance teams chose to resign
rather than accept the alternate employment terms being offered by
the new mining contractor, Demir Kose Insaat Turizm Tasimacilik
Ithalat Ihracat Sanayi Ticeret AS ("DK"). As a consequence, mining
productivity was hampered during April and early May 2019,
resulting in total material movement during the Quarter reducing by
7% versus Q1 2019 to 7.85Mt. Despite the reduction in material
movement, operations remained focused on waste stripping to ensure
access to adequate ore faces throughout the upcoming wet season.
The strip ratio increased by 15% to 29.5:1 and total ore volumes
mined decreased by 19% to 257kt.
As a consequence of the lower volumes of ore mined during the
Quarter combined with a scheduled decrease of mined ore grade to
2.50 g/t Au, low grade stockpile material had to be blended into
the mill feed, resulting in a mill feed grade for the Quarter of
2.36 g/t Au. Process plant throughput also reduced by 13% to 268kt,
due to a shortfall of ROM ore, resulting in gold production of
18,882 ounces, a 27% decrease on production achieved during Q1
2019.
In June, additional new HME, consisting of 12 dump trucks, six
excavators and five loaders were delivered to site by DK; this is
expected to increase material movement from Q3 2019 onwards.
During the Quarter, construction continued on Phase 2 of the
Tailings Storage Facility ("TSF") development, with the remaining
construction expected to be completed during Q3 2019.
Table 2: New Liberty Performance Metrics
Parameter Unit Q2 2019 Q1 2019 Variance Q2 2018 Variance
Ore Mined kt 257 317 -19% 375 -31%
----------- -------- -------- --------- -------- ---------
Mined grade g/t 2.50 3.26 -23% 2.70 -7%
----------- -------- -------- --------- -------- ---------
Waste Mined kt 7,593 8,120 -6% 5,312 43%
----------- -------- -------- --------- -------- ---------
Strip Ratio Waste:Ore 29.5 25.6 15% 14.2 109%
----------- -------- -------- --------- -------- ---------
Total Material
Movement kt 7,850 8,437 -7% 5,688 38%
----------- -------- -------- --------- -------- ---------
Feed grade g/t 2.36 3.00 -21% 2.81 -16%
----------- -------- -------- --------- -------- ---------
Ore Processed kt 268 308 -13% 352 -24%
----------- -------- -------- --------- -------- ---------
Recovery % 92% 90% 2% 87% 5%
----------- -------- -------- --------- -------- ---------
Gold Production Ounces 18,822 25,855 -27% 29,808 -37%
----------- -------- -------- --------- -------- ---------
Youga
Due to the previously reported stoppage in mining activities
during June 2019 following a transition to contractor mining, total
material movement was 4,439kt in Q2, a decrease of 7% on the
previous quarter. Waste mined decreased by 6% to 4,225kt whilst ore
mined decreased by 27% to 214kt, resulting in a waste to ore
stripping ratio of 19.8:1.
During the period, mining focused predominantly on the Gassore
pit adjacent to the Youga process plant, where mined grades
continued to be below forecast. Following a review of both grade
control and mining practices undertaken by CSA Global the Company
made the decision to bolster its on-site technical team by hiring
of additional technical staff to manage mining production and grade
control.
Due to the temporary stoppage in mining activities some
emergency low grade ore stockpiles were blended into the plant feed
during June, reducing overall Q2 run of mill grade to 1.59 g/t Au,
a reduction of 23% versus Q1 2019. An increase in plant throughout
of 4% to 332kt during the Quarter helped to offset the grade impact
however gold production reduced by 19% versus Q1 2019 levels to
15,516 ounces.
Table 3: Youga Performance Metrics
Parameter Unit Q2 2019 Q1 2019 Variance Q2 2018 Variance
Ore Mined kt 214 292 -27% 221 -3%
----------- --------------- --------------- --------- --------------- ---------
Mined grade g/t 2.24 2.67 -16% 3.59 -38%
----------- --------------- --------------- --------- --------------- ---------
Waste Mined kt 4,225 4,472 -6% 3,930 8%
----------- --------------- --------------- --------- --------------- ---------
Strip Ratio Waste:Ore 19.8 15.3 29% 17.8 11%
----------- --------------- --------------- --------- --------------- ---------
Total Material
Movement kt 4,439 4,764 -7% 4,150 7%
----------- --------------- --------------- --------- --------------- ---------
Feed grade g/t 1.59 2.07 -23% 3.44 -54%
----------- --------------- --------------- --------- --------------- ---------
Ore Processed kt 332 320 4% 307 8%
----------- --------------- --------------- --------- --------------- ---------
Recovery % 91% 90% 1% 90% 2%
----------- --------------- --------------- --------- --------------- ---------
Gold Production Ounces 15,516 19,243 -19% 30,423 -49%
----------- --------------- --------------- --------- --------------- ---------
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
Contact Information
Avesoro Resources Inc.
Geoff Eyre / Nick Smith
Tel: +44(0) 20 3405 9160
Camarco finnCap
(IR / Financial PR) (Nominated Adviser and Joint Broker)
Gordon Poole / Nick Hennis Christopher Raggett / Scott Mathieson
/ Camille Gochez
Tel: +44(0) 20 3757 4980 Tel: +44(0) 20 7220 0500
Berenberg Hannam & Partners
(Joint Broker) (Joint Broker)
Matthew Armitt / Detlir Elezi Rupert Fane / Ingo Hofmaier / Ernest
Tel: +44(0) 20 3207 7800 Bell
Tel: +44(0) 20 7907 8500
About Avesoro Resources Inc.
Avesoro Resources is a West Africa focused gold producer and
development company that operates two gold mines across West Africa
and is listed on the Toronto Stock Exchange ("TSX") and the AIM
market operated by the London Stock Exchange ("AIM"). The Company's
assets include the New Liberty Gold Mine in Liberia ("New Liberty")
and the Youga Gold Mine in Burkina Faso ("Youga").
New Liberty has an estimated Proven and Probable Mineral Reserve
of 17Mt with 1,365,000 ounces of gold grading 2.49g/t and an
estimated Measured and Indicated Mineral Resource of 20.47Mt with
1,748,200 ounces of gold grading 2.66g/t and an estimated Inferred
Mineral Resource of 3.0Mt with 271,000 ounces of gold grading
2.8g/t. A supporting Technical Report summarising the PFS, prepared
in accordance with CIM guidelines, is set out in an NI 43-101
compliant Technical Report dated January 31, 2019 and entitled "NI
43-101 Pre-Feasibility Report, Mineral Resource and Mineral Reserve
Update for the New Liberty Gold Mine, Liberia" and is available on
SEDAR at www.sedar.com.
Youga has an estimated Proven and Probable Mineral Reserve of
14.7Mt with 814,900 ounces of gold grading 1.72g/t and a combined
estimated Measured and Indicated Mineral Resource of 22.16Mt with
1,189,100 ounces of gold grading 1.67g/t and an Inferred Mineral
Resource of 7.6Mt with 377,000 ounces of gold grading 1.5g/t. A
Technical Report dated 20 June 2019 prepared in accordance with the
requirements of National Instrument 43-101 and entitled " NI 43-101
Technical Report Mineral Resource and Mineral Reserve Update for
the Youga Gold Mine, Burkina Faso" is available on SEDAR at
www.sedar.com and on the Company's corporate website
www.avesoro.com.
For more information, please visit www.avesoro.com
Qualified Persons
The Company's Qualified Person is Mark J. Pryor, who holds a BSc
(Hons) in Geology & Mineralogy from Aberdeen University, United
Kingdom and is a Fellow of the Geological Society of London, a
Fellow of the Society of Economic Geologists and a registered
Professional Natural Scientist (Pr. Sci.Nat) of the South African
Council for Natural Scientific Professions. Mark Pryor is an
independent technical consultant with over 25 years of global
experience in exploration, mining and mine development and is a
"Qualified Person" as defined in National Instrument 43 -101
"Standards of Disclosure for Mineral Projects" of the Canadian
Securities Administrators and has reviewed and approved this press
release. Mr. Pryor has verified the underlying technical data
disclosed in this press release.
Forward Looking Statements
Certain information contained in this press release constitutes
forward looking information or forward-looking statements within
the meaning of applicable securities laws. This information or
statements may relate to future events, facts, or circumstances or
the Company's future financial or operating performance or other
future events or circumstances. All information other than
historical fact is forward looking information and involves known
and unknown risks, uncertainties and other factors which may cause
the actual results or performance to be materially different from
any future results, performance, events or circumstances expressed
or implied by such forward-looking statements or information. Such
statements can be identified by the use of words such as
"anticipate", "plan", "continue", "estimate", "expect", "may",
"will", "would", "project", "should", "believe", "target",
"predict" and "potential". No assurance can be given that this
information will prove to be correct and such forward looking
information included in this press release should not be unduly
relied upon. Forward looking information and statements speak only
as of the date of this press release.
Forward looking statements or information in this press release
include statements regarding the 2019 production guidance of
180,000 to 200,000 ounces of gold.
In making the forward looking information or statements
contained in this press release, assumptions have been made
regarding, among other things: general business, economic and
mining industry conditions; interest rates and foreign exchange
rates; the continuing accuracy of Mineral Resource and Reserve
estimates; geological and metallurgical conditions (including with
respect to the size, grade and recoverability of Mineral Resources
and Reserves) and cost estimates on which the Mineral Resource and
Reserve estimates are based; the supply and demand for commodities
and precious and base metals and the level and volatility of the
prices of gold; market competition; the ability of the Company to
raise sufficient funds from capital markets and/or debt to meet its
future obligations and planned activities and that unforeseen
events do not impact the ability of the Company to use existing
funds to fund future plans and projects as currently contemplated;
the stability and predictability of the political environments and
legal and regulatory frameworks including with respect to, among
other things, the ability of the Company to obtain, maintain, renew
and/or extend required permits, licences, authorizations and/or
approvals from the appropriate regulatory authorities; that
contractual counterparties perform as agreed; and the ability of
the Company to continue to obtain and retain qualified staff
(including employees and contractors) and equipment in a timely and
cost-efficient manner to meet its demand.
Actual results could differ materially from those anticipated in
the forward-looking information or statements contained in this
press release as a result of risks and uncertainties (both foreseen
and unforeseen) and should not be read as guarantees of future
performance or results and will not necessarily be accurate
indicators of whether or not such results will be achieved. These
risks and uncertainties include the risks normally incidental to
exploration and development of mineral projects and the conduct of
mining operations (including exploration failure, cost overruns or
increases, and operational difficulties resulting from plant or
equipment failure, among others); the inability of the Company to
obtain required financing when needed and/or on acceptable terms or
at all; risks related to operating in West Africa, including
potentially more limited infrastructure and/or less developed legal
and regulatory regimes; health risks associated with the mining
workforce in West Africa; risks related to the Company's title to
its mineral properties; the risk of adverse changes in commodity
prices; the risk that the Company's exploration for and development
of mineral deposits may not be successful; the inability of the
Company to obtain, maintain, renew and/or extend required licences,
permits, authorizations and/or approvals from the appropriate
regulatory authorities and other risks relating to the legal and
regulatory frameworks in jurisdictions where the Company operates,
including adverse or arbitrary changes in applicable laws or
regulations or in their enforcement; competitive conditions in the
mineral exploration and mining industry; risks related to obtaining
insurance or adequate levels of insurance for the Company's
operations; that Mineral Resource and Reserve estimates are only
estimates and actual metal produced may be less than estimated in a
Mineral Resource or Reserve estimate; the risk that the Company
will be unable to delineate additional Mineral Resources; risks
related to environmental regulations and cost of compliance, as
well as costs associated with possible breaches of such
regulations; uncertainties in the interpretation of results from
drilling; risks related to the tax residency of the Company; the
possibility that future exploration, development or mining results
will not be consistent with expectations; the risk of delays in
construction resulting from, among others, the failure to obtain
materials in a timely manner or on a delayed schedule; inflation
pressures which may increase the cost of production or of
consumables beyond what is estimated in studies and forecasts;
changes in exchange and interest rates; risks related to the
activities of artisanal miners, whose activities could delay or
hinder exploration or mining operations; the risk that third
parties to contracts may not perform as contracted or may breach
their agreements; the risk that plant, equipment or labour may not
be available at a reasonable cost or at all, or cease to be
available or resign, or in the case of labour, may undertake strike
or other labour actions; the inability to attract and retain key
management and personnel; and the risk of political uncertainty,
terrorism, civil strife, or war in the jurisdictions in which the
Company operates, or in neighbouring jurisdictions which could
impact on the Company's exploration, development and operating
activities.
Although the forward-looking statements contained in this press
release are based upon what management believes are reasonable
assumptions, the Company cannot provide assurance that actual
results or performance will be consistent with these
forward-looking statements. The forward looking information and
statements included in this press release are expressly qualified
by this cautionary statement and are made only as of the date of
this press release. The Company does not undertake any obligation
to publicly update or revise any forward looking information except
as required by applicable securities laws.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
DRLSSDFMUFUSEDW
(END) Dow Jones Newswires
July 10, 2019 02:00 ET (06:00 GMT)
Avesoro Resources (LSE:ASO)
Gráfico Histórico do Ativo
De Out 2024 até Nov 2024
Avesoro Resources (LSE:ASO)
Gráfico Histórico do Ativo
De Nov 2023 até Nov 2024
