12th Mar 2014 10:03
LONDON (Alliance News) - Amara Mining PLC Wednesday announced the results of its preliminary economic assessment at the Yaoure Gold Project in Ivory Coast, confirming opportunity for strong returns.
The west Africa-focused gold mining company said it expects to produce an average annual 325,000 ounces over a 12-year initial life of mine at Yaoure from a single open pit mine scenario containing 4.2 million ounces.
Amara said its life-of-mine average total cash cost including royalties and refining is expected to be USD655 per ounce, and it expects a USD274 million plant and infrastructure capital cost for an eight million tonne per year plant.
The company said its assessment shows a rapid total payback period of 2.4 years with several optimisation opportunities to further improve economics, including selective mining of higher grade zones and equipment optimisation.
Amara also said it sees significant exploration upside opportunities at Yaoure, including the potential to increase its mineral resource by targeting information gaps in its pit shell to reduce its trip ratio and unlocking value by upgrading its inferred resources to the measured and indicated categories.
The assessment was predominantly based on a resource upgrade at the site announced in December, in which Yaoure's inferred mineral resource increased to 5.5 million ounces of gold at the Yaoure site, based on 133 million tonnes of ore at 1.29 grams per tonne, compared with its previous inferred resource of 2.2 million ounces of gold.
The company said in December that its indicated mineral resource at Yaoure increased to 800,000 ounces of gold, based on 20 million tonnes of ore at 1.20 grams per tonne, compared with a previous total indicated resource of 500,000 ounces.
Amara said at the time that, as a result, its total resource across its operations have seen a 71% increase to 3.7 million ounces measured and indicated, with 6.4 million ounces inferred.
"The initial results of the PEA have firmly identified Yaoure as one of Africa's most exciting gold development projects. It is one of a small group of gold projects that remain robust at gold prices below USD1,200 per ounce, which highlights Yaoure's attractiveness in the current volatile market conditions," Chief Executive Officer Peter Spivey said in a statement.
Amara Mining shares were up 9.6% to 15.75 pence, putting it among the top AIM movers Wednesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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