2nd Dec 2010 07:00
2 December 2010
African Barrick Gold plc
High Grade success at North Mara - initial underground indicated resource
declared under Gokona and Nyabigena pits
Following completion of the North Mara underground project scoping study earlier this year, African Barrick Gold plc (the "Company" or "ABG") is pleased to announce the initial mineral resource at the project, indicating the potential to develop a substantial underground operation at the Gokona and Nyabigena deposits with an attractive grade profile. This has the potential to both improve the production profile at North Mara as well as extend the life-of-mine.
A high-grade initial underground indicated resource of 370Koz @ 8.29g/t Au beneath the planned final Gokona and Nyabigena open pits has been delineated and validated following an earlier scoping study. In addition, a significant resource drill-out programme is scheduled to commence early in 2011 aimed at expanding the total underground resource to greater than 1Moz.
This resource announcement confirms the encouraging progress on assessing the upside potential of North Mara and is part of the overall Company strategy of realising the optionality of its existing portfolio of high quality assets. Combined with the ongoing turnaround at Buzwagi, this positions ABG with a strong growth profile over the medium term and near term improvement in 2011.
The Gokona/Nyabigena Underground Feasibility Study is on track for completion by mid-2011 and the current step-out exploration drill programmes continue to target extensions of Gokona Deeps with the objective of identifying further high grade mineralization.
Based on several phases of exploration drilling below the Gokona and Nyabigena open pits, a 370Koz underground indicated resource has been estimated as a first step in evaluating the economic potential of developing an underground operation at North Mara (shown in figure 1 below).
Table 1 - Gokona and Nyabigena Underground Indicated Resource
Deposit Tonnes (Mt) Au (g/t) Ounces (Moz) Gokona 1.15 8.43 0.31 Nyabigena 0.23 7.62 0.06 Total 1.38 8.29 0.37
Figure 1 - Gokona and Nyabigena Long Section showing current planned pit designs and potential underground areas
For picture see www.africanbarrickgold.com
Exploration drill programmes are ongoing at Gokona to investigate extensions of these underground deposits and to test for additional high-grade shoots, particularly between Gokona West and Gokona East Deeps lodes. The exploration drilling is close to completion, and an extensive (62,000m) infill drill programme at Gokona (refer to figure 2 below) will commence early in 2011 to better delineate mineralization with the aim of expanding the total underground resource to in excess of 1Moz. In addition, these programmes will also be used to improve the level of confidence in the economic viability of the project.
Figure 2 - Gokona and Nyanbigena schematic long section showing drilling used in resource calculations and 2011 infill area.
For picture see www.africanbarrickgold.com
Based on the drill results available, the current feasibility study, which is combined with the pre-feasibility work, will assess the economic viability of an underground operation at North Mara and the results of this are expected during Q2 2011. Part of the analysis undertaken will be to assess the economic impact of mining existing deeper portions of the open pit ore reserves at Gokona through underground operations rather than open pit.
In addition to the underground targets at North Mara, significant additional exploration work is being undertaken elsewhere on the property with a view to further expanding the resource base. The Gokona corridor will remain the focus of exploration drill programmes at North Mara throughout 2011 with more than 10,000m planned in reverse circulation scout drilling.
Commenting on the news, CEO Greg Hawkins said: "This initial underground resource at North Mara underpins our confidence in the prospectivity of the region and its potential to deliver significant incremental ounces to our future production profile, thereby extending the current life-of-mine for this property. Through both the underground drill programme as well as additional drilling along the Gokona Corridor we are dedicating substantial resources to ensuring that we optimize the value of North Mara. We believe that this will help underpin the Company's growth ambitions as will the positive progress at our other organic growth projects, including the Nyanzaga Project as well as Golden Ridge, where our aim remains to declare an initial resource before the end of the year."
ENQUIRIES
For further information contact:
African Barrick Gold plc Greg Hawkins, CEO
Andrew Wray, Head of IR & Corp Devt +44 (0)207 129 7155
Finsbury +44 (0)20 7251 3801 Andrew Mitchell Charles Chichester
This announcement is for information purposes only and does not constitute an invitation or offer to underwrite, subscribe for or otherwise acquire or dispose of any securities of ABG in any jurisdiction.
This announcement includes "forward-looking statements" that express or imply expectations of future events or results. Forward-looking statements are statements that are not historical facts. These statements include, without limitation, financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future production, operations, costs, products and services, and statements regarding future performance. Forward-looking statements are generally identified by the words "plans," "expect," "anticipates," "believes," "intends," "estimates" and other similar expressions.
All forward-looking statements involve a number of risks, uncertainties and other factors, many of which are beyond the control of ABG, which could cause actual results and developments to differ materially from those expressed in, or implied by, the forward-looking statements. Factors that could cause or contribute to differences between the actual results, performance and achievements of ABG include, but are not limited to, political, economic and business conditions, industry trends, competition, fluctuations in the spot and forward price of gold or certain other commodity prices, changes in regulation, currency fluctuations (including the US dollar, South African rand and Tanzanian shilling exchange rates), ABG's ability to successfully integrate future acquisitions, ABG's ability to recover its reserves or develop new reserves, including its ability to convert its resources into reserves and its mineral potential into resources or reserves, and to timely and successfully process its mineral reserves, risk of trespass, theft and vandalism, changes in its business strategy as well as risks and hazards associated with the business of mineral exploration, development, mining and production. Although ABG's management believes that the expectations reflected in such forward-looking statements are reasonable, ABG cannot give assurances that such statements will prove to be correct. Accordingly, investors should not place reliance on forward-looking statements in this announcement. Any forward-looking statements in this announcement only reflect information available at the time of preparation. Subject to the requirements of the Disclosure and Transparency Rules and the Listing Rules or applicable law, ABG explicitly disclaims any obligation or undertaking publicly to release the result of any revisions to any forward-looking statements in this announcement that may occur due to any change in ABG's expectations or to reflect events or circumstances after the date of this announcement. Nothing in this announcement should be construed as a profit forecast or estimate.
The Mineral Resource Estimation and Exploration results disclosed by this announcement have been reviewed, verified (including estimation methodology, sampling, analytical and test data) and compiled by ABG's geological team, in accordance with National Instrument 43-101.
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