Aureus Mining Inc. Acquisition of Sarama Resources Liberian licences (3271E)

TIDMAUE

RNS Number : 3271E

Aureus Mining Inc.

03 November 2015

3 November 2015

Aureus Mining Inc.

TSX : AUE

AIM : AUE

ACQUISITION OF SARAMA RESOURCES LIBERIAN LICENCES

Aureus Mining Inc., ("Aureus" or the "Company"), the TSX and AIM listed West African Gold Producer, is pleased to announce that the Company has agreed to acquire three exploration licences from Sarama Resources Ltd. ("Sarama"). These licences are contiguous to the Company's Bea Mountain Mining Licence and are located close to the New Liberty Gold Mine. Following the completion of the acquisition, Aureus will have 100% ownership of the licences and the Company's total land portfolio will increase to 1,683 Km(2) from 1,402Km(2)

Highlights:

-- Consolidation of highly prospective ground located contiguous to the Company's Bea Mountain Mining Licence. Following the acquisition of the three exploration licences totalling 281 km(2) , the Company's total landholding will stand at 1,683 km(2) .

-- Exploration work undertaken by Sarama defined a 15 kilometre long gold corridor highlighted by gold in soil anomalies and extensive artisanal mining, which on average are within a 15 kilometre radius of the New Liberty Gold Mine.

-- Sarama completed airborne geophysics, ground geochemistry and reconnaissance drilling (15 holes for 1,600 metres) on the licences and expended a total of US$ 1.8 million.

-- Gold mineralisation intersected by drilling includes intercepts of 3.9 g/t over 7.5m from 9.3m and 2.3 g/t over 5m from 28m.

-- The Company is purchasing Sarama Investments Liberia Limited, a wholly owned subsidiary of Sarama Resources, for a total consideration of 2,600,000 Aureus common shares. Sarama will retain an uncapped 1% net smelter return royalty on gold produced from the Cape Mount Permit. The acquisition is subject to a number of conditions precedent, including receipt of all required governmental and regulatory approvals.

-- The acquired gold corridor will be the focus of follow up exploration programmes once the Company achieves a cash flow positive position, with the objective of defining new gold deposits.

Commenting on the acquisition, David Reading, President and Chief Executive Officer of Aureus Mining, said:

"The acquisition of Sarama's licences corresponds with Aureus' strategy of building a long term and sustainable gold district in Liberia. This consolidates our ownership of quality ground, adding further exploration potential and allowing New Liberty to become the hub to accelerate our regional development. We look forward to continuing the exploration programme, which to date has produced some promising results."

A map of the Company's licence holding, that now includes the to be acquired Sarama Licences can be found at the link below:

http://aureus-mining.com/wp-content/uploads/2015/11/Regional_Geology_Aureus_Portfolio.png

A map showing the to be acquired licences (Cape Mount, Cape Mount West and Cape Mount East) with the soil corridor and its position relative to the New Liberty Gold Mine can be found at the link below:

http://aureus-mining.com/wp-content/uploads/2015/11/15_Km_Soil_Corridor.png

Past exploration and geology

Sarama conducted a US$ 1.8 million exploration programme over the licence areas starting with an airborne magnetic survey followed by regional soil sampling. This programme lead to the identification of the 15 km gold in soil anomaly that straddles the Cape Mount and Cape Mount East licences and that corresponds to the westerly extension of the Bea Mountain Greenstone Belt. This Belt is interpreted as being folded over the licence areas with the southern limb corresponding to the Silver Hills target, located in the Company's Bea Mountain Mining Licence. Subsequent trenching was undertaken in several locations along the gold corridor and demonstrated in situ mineralisation with best intercepts of 16m grading 1.7 g/t Au and 6m grading 2.3 g/t Au.

In 2014, Sarama undertook a 1,600 metre reconnaissance diamond drilling programme of 15 holes targeting the Bangoma, Saanor and Bomafa prospects. All three prospects are located in the Cape Mount license. Highlighted intersections as reported by Sarama on 8 September 2014 include:

o 3.9 g/t over 7.5 m in CMDD004 from 9.3 m

o 2.3 g/t over 5 m in CMDD007 from 28 m

o 2.5 g/t over 3 m in CMDD002 from 33 m

o 2.0 g/t over 4 m in CMDD011 from 36 m

o 1.7 g/t over 4.9 m in CMDD009 from 24.1 m

o 1.2 g/t over 6 m in CMDD006 from 7.8 m

o 1.2 g/t Au over 7 m in CMDD008 from 59 m

Gold mineralisation was intersected in all but one of the drill holes. Mineralisation is hosted within intrusives of dioritic composition and in ultramafics which are characterised respectively by brittle and ductile deformation. Alteration occurs principally as silica overprints and carbonate veinlets with some phlogopite and sericite assemblages in the ultramafics. Zones of continuous mineralisation could be highlighted at all three prospects.

The drill holes which are reconnaissance stage holes have irregularly tested the targets, with gaps reaching up to 600 metres between holes at Bangoma. At Saanor and Bomafa only 100 metre strike lengths for each prospect were tested. Altogether the holes have effectively tested only 1 km of the identified 15 km anomalous soil corridor.

Deal

The Cape Mount, Cape Mount West and Cape Mount East licences are held by Sarama Resources Liberia Ltd. The Company has agreed to acquire Sarama Investments Liberia Limited, a wholly-owned subsidiary of Sarama, a company registered in the British Virgin Islands, for a total of 2,600,000 common shares of Aureus Mining Inc. Sarama will also retain an uncapped 1% net smelter return royalty ("Royalty") on gold produced from the Cape Mount Permit. The acquisition is subject to a number of conditions precedent, including receipt of all required governmental and regulatory approvals, including the approval of the Toronto Stock Exchange to the issue of the common Aureus shares. The shares issued to Sarama will be subject to the statutory four month hold period from the date of issue.

Exploration Programme

The Bangoma target, a centre of extensive artisanal activities, located 12 Km from the New Liberty Gold Mine was the focus of the Sarama exploration programme. Once the Company develops a cash flow positive position, Aureus will undertake exploration on the rest of the 15 km soil corridor, where most of the anomalies remain totally untested. The Company has already identified targets for follow-up work, which include zones showing continuous mineralisation. The Company will undertake further field work in 2015-2016, including geology and regolith mapping with some pitting and trenching, before conducting a full interpretation of the geological and structural settings of the whole 15 km corridor. This should result in the identification of priority targets for a drill testing campaign at a later date.

Contact Information

 
Aureus Mining Inc.             Buchanan 
 David Reading / Paul Thomson   Bobby Morse / Anna Michniewicz 
 Tel: [phone]       Tel: [phone] 
-----------------------------  ------------------------------- 
Numis Securities Limited       GMP Securities Europe 
 (Nominated Adviser and         LLP (Joint Broker) 
 Joint Broker)                  Richard Greenfield 
 John Prior / James Black       Tel: [phone] 
 / Paul Gillam 
 Tel: [phone] 
-----------------------------  ------------------------------- 
 

About Aureus Mining Inc.

The Company's assets include the New Liberty Gold Mine in Liberia (the "New Liberty Gold Mine," "New Liberty" or the "mine") which has an estimated proven and probable mineral reserve of 8.5 Mt with 924,000 ounces of gold grading 3.4 g/t and an estimated measured and indicated mineral resource of 9,796 Kt with 1,143,000 ounces of gold grading 3.63 g/t and an estimated inferred mineral resource of 5,730 Kt with 593,000 ounces of gold grading 3.2 g/t. A Definitive Feasibility Study ("DFS") has been completed, the first gold pour has taken place and work continues on commissioning the plant for full scale commercial production. The mine is expected to have an 8 year life and annual production of 119,000 ounces for the first 6 years of production. The foregoing mineral reserve and mineral resource estimates and additional information in connection therewith are set out in the Company's technical report dated March 25, 2015 and entitled "New Liberty Gold Project, Bea Mountain Mining Licence Southern Block, Liberia, West Africa, Definitive Project Plan."

The New Liberty Gold Mine is located within the Southern Block of the 100% owned Bea Mountain mining licence. This licence covers 478 km(2) and has a 25 year, renewable, mineral development agreement. The Bea Mountain mining license also hosts additional gold projects of Ndablama, Gondoja, Weaju and Leopard Rock which are the focus of exploration programs during 2015. Ndablama has an indicated mineral resource of 386,000 ounces of gold grading 1.6 g/t and inferred mineral resource of 515,000 ounces of gold grading 1.7g/t and Weaju has an inferred mineral resource of 178,000 ounces of gold grading 2.1 g/t. The Yambesei (759 km(2) ), Archaen West (112.6 km(2) ), Mabong (36.6 km(2) ) and Mafa West (15.6 km(2) ) licences will also be subject to preliminary reconnaissance geological work. The foregoing mineral resource estimates and additional information in connection therewith are set out in the Company's technical report dated December 1, 2014 and entitled "Ndablama and Weaju Gold Projects, Bea Mountain Mining Licence, Northern Block, Technical Report on Mineral Resources" ("Ndablama and Weaju Technical Report 2014").

The Company also has a gold exploration permit in Cameroon.

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