Avesoro Resources Inc. Q1 2018 PRODUCTION UPDATE (1911K)

TIDMASO

RNS Number : 1911K

Avesoro Resources Inc.

09 April 2018

9 April 2018

Avesoro Resources Inc.

TSX: ASO

AIM: ASO

Q1 2018 PRODUCTION UPDATE

Avesoro Resources Inc., ("Avesoro" or the "Company"), the TSX and AIM listed West African gold producer, is pleased to announce its preliminary production results for the quarter ended March 31, 2018 ("Q1" or the "Quarter") from its New Liberty Gold Mine ("New Liberty") in Liberia, and Youga and Balogo Gold Mines, ("Youga" and "Balogo") in Burkina Faso.

Highlights:

-- All time high gold production levels from the Liberia and Burkina Faso operations in the Quarter;

-- Total gold production in the Quarter of 68,088 ounces, in line with 2018 production guidance;

-- Record quarterly gold production of 27,870 ounces from New Liberty, an increase of 9% on the previous quarter;

-- Record quarterly gold production of 40,218 ounces from Youga and Balogo, an increase of 39% on the previous quarter, which also represented the highest quarterly production ever achieved by the Youga process plant since it was commissioned in February 2008; and

-- Further New Liberty plant optimisations completed during the Quarter including the commissioning of a tertiary crusher increasing the crushing circuit throughput by 17% to 140kt per month and installation of a second gravity concentrator.

Serhan Umurhan, Chief Executive Officer of Avesoro, commented: "Following a strong end to 2017, the continued operational performance throughout the first Quarter of 2018 has resulted in gold production of 68,088 ounces and leaves the Company on track to meet 2018 production guidance of 220,000 to 240,000 ounces of gold at an operating cash cost of between US$620 and US$660 per ounce.

Each of our mines performed in line with our expectations. New Liberty plant optimisations are now complete and combined with the recent additions to the mining fleet the Quarter delivered record quarterly gold production levels.

The Company also benefited from a full quarter of contribution from the Youga and Balogo mines acquired in December 2017, with record quarterly gold production achieved at the Burkina Faso operations in the first full quarter under the Company's ownership. The process plant at Youga also delivered its highest quarterly gold production ever seen during the ten years since it was commissioned in February 2008. Recoveries at Youga also improved compared with Q4 2017 and we expect this trend to continue with the addition of a new PSA Oxygen Plant in the coming weeks.

Together with our near mine exploration campaign, which is well underway across the three mines, and delivering encouraging results which suggest the potential to significantly increase mine lives, we continue to strive to increase shareholder returns and end Q1 in a position of strength."

Table 1: Preliminary Production Results

 
 Parameter          Unit      Q1-2018   Q4-2017   Variance 
-----------------  --------  --------  --------  --------- 
 Ore Mined          kt            591       564         5% 
-----------------  --------  --------  --------  --------- 
 Waste Mined        kt          7,312     4,396        66% 
-----------------  --------  --------  --------  --------- 
 Total Material 
  Movement          kt          7,904     4,961        59% 
-----------------  --------  --------  --------  --------- 
 Ore Processed      kt            650       621         5% 
-----------------  --------  --------  --------  --------- 
 Gold Production    Ounces     68,088    54,408        25% 
-----------------  --------  --------  --------  --------- 
 

Table 2: New Liberty Performance Indicators

 
 Parameter          Unit      Q1 2018   Q4 2017   Variance   Q1 2017   Variance 
-----------------  --------  --------  --------  ---------  --------  --------- 
 Ore Mined          kt            359       354         1%       351         2% 
-----------------  --------  --------  --------  ---------  --------  --------- 
 Mined Grade        g/t          3.01      2.53        19%      2.21        36% 
-----------------  --------  --------  --------  ---------  --------  --------- 
 Waste Mined        kt          4,677     2,445        91%     3,944        19% 
-----------------  --------  --------  --------  ---------  --------  --------- 
                    Waste: 
 Strip Ratio         Ore         13.0       6.9        89%      11.2        16% 
-----------------  --------  --------  --------  ---------  --------  --------- 
 Total Material 
  Movement          kt          5,036     2,800        80%     4,295        17% 
-----------------  --------  --------  --------  ---------  --------  --------- 
 Ore Processed      kt            344       315         9%       280        23% 
-----------------  --------  --------  --------  ---------  --------  --------- 
 Feed Grade         g/t          2.91      2.97        -2%      1.97        48% 
-----------------  --------  --------  --------  ---------  --------  --------- 
 Recovery           %              87        90        -3%        90        -3% 
-----------------  --------  --------  --------  ---------  --------  --------- 
 Gold Production    Ounces     27,870    25,563         9%    14,906        87% 
-----------------  --------  --------  --------  ---------  --------  --------- 
 

Table 3: Youga and Balogo Performance Indicators

 
 Parameter             Unit      Q1 2018   Q4 2017   Variance   Q1 2017   Variance 
--------------------  --------  --------  --------  ---------  --------  --------- 
 Total Ore Mined       kt            232       210        10%       281       -17% 
--------------------  --------  --------  --------  ---------  --------  --------- 
 Ore Mined (Youga)     kt            198       156        27%       278       -29% 
--------------------  --------  --------  --------  ---------  --------  --------- 
 Mined Grade 
  (Youga)              g/t          2.06      2.53       -19%      2.04         1% 
--------------------  --------  --------  --------  ---------  --------  --------- 
 Ore Mined (Balogo)    kt             35        55       -36%         3      1067% 
--------------------  --------  --------  --------  ---------  --------  --------- 
 Mined Grade 
  (Balogo)             g/t         17.94     15.27        18%      6.45       178% 
--------------------  --------  --------  --------  ---------  --------  --------- 
 Total Waste 
  Mined                kt          2,635     1,951        35%     1,883        40% 
--------------------  --------  --------  --------  ---------  --------  --------- 
 Waste Mined 
  (Youga)              kt          1,549       807        92%     1,745       -11% 
--------------------  --------  --------  --------  ---------  --------  --------- 
 Waste Mined 
  (Balogo)             kt          1,086     1,144        -5%       138       687% 
--------------------  --------  --------  --------  ---------  --------  --------- 
                       Waste: 
 Strip Ratio            Ore         11.3       9.3        22%       6.7        69% 
--------------------  --------  --------  --------  ---------  --------  --------- 
 Total Material 
  Movement             kt          2,867     2,161        33%     2,164        33% 
--------------------  --------  --------  --------  ---------  --------  --------- 
 Ore Processed         kt            306       306         0%       318        -4% 
--------------------  --------  --------  --------  ---------  --------  --------- 
 Feed Grade            g/t          4.53      3.30        37%      1.84       146% 
--------------------  --------  --------  --------  ---------  --------  --------- 
 Recovery              %              90        89         1%        90         1% 
--------------------  --------  --------  --------  ---------  --------  --------- 
 Gold Production       Ounces     40,218    28,845        39%    16,900       138% 
--------------------  --------  --------  --------  ---------  --------  --------- 
 

New Liberty

Total material movement for the Quarter was 5,036kt, an 80% increase on the previous quarter. Waste mined increased by 91% totalling 4,677kt as a result of the commissioning of the additional mining equipment delivered to site during Q4 2017 and Q1 2018. Process plant throughput for the Quarter was 344kt, a 9% increase on the previous quarter and in line with our 2018 annual forecast and a direct result of the improvements made to the comminution circuit, including the commissioning of an additional crusher and upgrades to the ball mill liner and grate system, allowing an increase in throughput. The installation of a second gravity concentrator at the end of the Quarter is also expected to increase the recovery of gravity gold and reduce the level of reagent usage within the carbon in leach ("CIL") circuit.

Youga and Balogo

Total material movement for the Quarter was 2,867kt, a 33% increase on the previous quarter. Process plant throughput for the Quarter remained stable at 306kt and in line with our 2018 annual forecast, resulting in gold production of 40,218 ounces. Post Quarter end the Company is planning to add a PSA Oxygen Plant to the Youga Process Plant, with the aims of increasing gold recoveries by approximately 4% in sulphide ore and 2% in oxide ore during the coming months.

Contact Information

 
   Avesoro Resources Inc. 
    Geoff Eyre / Nick Smith 
    Tel: [phone] 
   Camarco                       finnCap 
    (IR / Financial PR)           (Nominated Adviser and 
    Gordon Poole / Nick Hennis    Joint Broker) 
    Tel: [phone]      Christopher Raggett / Scott 
                                  Mathieson / Emily Morris 
                                  Tel: [phone] 
 Berenberg                       Hannam & Partners (Advisory) 
  (Joint Broker)                  LLP 
  Matthew Armitt / Charlotte      (Joint Broker) 
  Sutcliffe                       Rupert Fane / Ingo Hofmaier 
  Tel: [phone]        / Ernest Bell 
                                  Tel: [phone] 
 

About Avesoro Resources Inc.

Avesoro Resources is a West Africa focused gold producer and development company that operates three 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 (the "New Liberty Gold Mine" or "New Liberty") and the Youga and Balogo Gold mines in Burkina Faso ("Youga" and "Balogo").

New Liberty has an estimated proven and probable mineral reserve of 7.4Mt with 717,000 ounces of gold grading 3.03g/t and an estimated measured and indicated mineral resource of 9.6Mt with 985,000 ounces of gold grading 3.2g/t and an estimated inferred mineral resource of 6.4Mt with 620,000 ounces of gold grading 3.0g/t. The foregoing Mineral Reserve and Mineral Resource estimates and additional information in connection therewith is set out in an NI 43-101 compliant Technical Report dated November 1, 2017 and entitled "New Liberty Gold Mine, Bea Mountain Mining Licence Southern Block, Liberia, West Africa" and is available on SEDAR at www.sedar.com.

Youga and Balogo have a combined estimated proven and probable mineral reserve of 9.3Mt with 513,000 ounces of gold grading 1.7g/t and a combined estimated indicated mineral resource of 16.05Mt with 801,600 ounces of gold grading 1.55g/t and a combined inferred mineral resource of 13Mt with 655,000 ounces of gold grading 1.57g/t. The foregoing Mineral Reserve and Mineral Resource estimates and additional information in connection therewith is set out in two NI 43-101 compliant Technical Reports, dated June 16, 2017 entitled "Mineral Resource and Mineral Reserve Update for the Balogo Project" and dated June 19, 2017 and entitled "Mineral Resource and Mineral Reserve Update for the Youga and Ouaré Projects" and are available on SEDAR at www.sedar.com.

For more information, please visit www.avesoro.com.

Ndablama has an estimated indicated mineral resource of 7.6Mt with 386,000 ounces of gold grading 1.6 g/t and inferred mineral resource of 9.6Mt with 515,000 ounces of gold grading 1.7 g/t. Weaju has an inferred mineral resource of 2.7Mt with178,000 ounces of gold grading 2.1 g/t. The foregoing Mineral Resource estimates and additional information in connection therewith is set out in an NI 43-101 compliant Technical Report dated December 1, 2014 and entitled "Ndablama and Weaju Gold Projects, Bea Mountain Mining Licence Northern Block, Liberia, West Africa" and is available on SEDAR at www.sedar.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 the scientific and technical disclosures contained in this announcement.

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 speaks only as of the date of this press release.

Forward looking statements or information in this press release include, among other things, statements regarding 2018 production guidance of 220,000 to 240,000 ounces of gold at a cash cost of US$620 and US$660 per ounce, and the addition of a new PSA Oxygen plant at Youga.

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 qualified staff 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 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.

This press release also contains Mineral Resource and Mineral Reserve estimates. Information relating to Mineral Resource and Mineral Reserve contained in this press release is considered forward looking information in nature, as such estimates are estimates only, and that involve the implied assessment of the amount of minerals that may be economically extracted in a given area based on certain judgments and assumptions made by qualified persons, including the future economic viability of the deposit based on, among other things, future estimates of commodity prices. Such estimates are expressions of judgment and opinion based on the knowledge, mining experience, analysis of drilling results and industry practices of the qualified persons making the estimate. Valid estimates made at a given time may significantly change when new information becomes available, and may have to change as a result of numerous factors, including changes in the prevailing price of gold. By their nature, Mineral Resource and Mineral Reserve estimates are imprecise and depend, to a certain extent, upon statistical inferences which may ultimately prove unreliable. If such Mineral Resource and Mineral Reserve estimates are inaccurate or are reduced in the future (including through changes in grade or tonnage), this could have a material adverse impact on the Company and its operating and financial performance. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Due to the uncertainty that may be attached to inferred mineral resources, it cannot be assumed that all or any part of an inferred mineral resource will be upgraded to an indicated or measured mineral resource as a result of continued exploration.

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 company news service from the London Stock Exchange

END

UPDFKFDKCBKDCQK

(END) Dow Jones Newswires

April 09, 2018 03:25 ET (07:25 GMT)