28th Aug 2014 14:12
LONDON (Alliance News) - Amara Mining PLC Thursday narrowed its pretax loss in the first-half and said that it is on track to deliver two mineral resource updates in the second-half as well as a pre-feasibility study for its Yaoure Gold Project in Côte d'Ivoire in 2015.
The West Africa-focused gold mining company said its pretax loss narrowed to USD3.9 million from a USD4.5 million loss the previous year.
Revenue for the period was down at USD19.1 million from USD21.1 million in 2013.
An 80,000 metre drilling campaign is currently underway at Amara's Yaoure project following delivery of a "compelling" Preliminary Economic Assessment the first quarter and a USD30.5 million placing and open offer.
Amara said results of the first 70 diamond drill holes at Yaoure have now been received and that targeting 'information gaps' in the Central zone has confirmed the presence of mineralisation, with a significant proportion of waste expected to be converted to mineralised material, it said. The company has also received the first 35 reverse circulation holes at Yaoure, "confirming high grade nature and strong continuity of CMA zone."
At Yaoure, as of August 8 the company said 104 diamond drill holes had been completed and nine are in progress for a total advance of 27,950 metres since May 2, 2014, out of 57,000 metres budgeted for the total diamond drill programme.
Amara said results returned by August 8, for 70 diamond drill holes and 35 reverse circulation holes will be used to compile the first of the two Mineral Resource updates in the second-half.
"The results to date from the Yaoure Central zone confirm that there is ore below the existing pit, which had not previously been drilled due to lack of access caused by water in the pits (the pit has now been de-watered). This increases Amara's confidence in its ability to expand Yaoure's National Instrument 43-101 compliant 6.3 million ounce Mineral Resource," said the company in a statement.
In its half-year report the company said that mining at its Kalsaka/Sega gold mine, based in Burkino Faso, has been completed with the operation put into liquidation as it focuses on the Yaoure gold project in Côte d'Ivoire moving forward. Amara said this does not represent a material change to the its strategy for Kalsaka/Sega.
Production at the Burkino Faso site came in at 31,030 ounces for the first-half.
"The first half of 2014 has been a transformational period for Amara, with Yaoure now recognised as one of the most exciting gold development projects in West Africa and the company fully-funded to deliver a PFS in Q1 2015. The results of the 80,000 metre drilling campaign continue to increase our confidence in the deposit and I look forward to completing two Mineral Resource updates in H2 2014," said Chairman and Chief Executive Officer of Amara, John McGloin.
"While mining at Kalsaka/Sega has now been completed, the value within Amara remains intact and we are well-positioned to deliver strong value for our shareholders as we continue to advance Yaoure along the development pipeline," McGloin added.
Shares in Amara Mining were trading 5.53% higher at 25.19 pence per share.
By JoshuaWarner; [email protected]; @JoshAlliance
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