TIDMASO
RNS Number : 3130N
Avesoro Resources Inc.
17 January 2019
17 January 2019
Avesoro Resources Inc.
TSX: ASO
AIM: ASO
Q4 2018 PRODUCTION RESULTS AND
FULL YEAR PRODUCTION GUIDANCE ACHIEVED
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 December
31, 2018 ("Q4" or the "Quarter") of 44,962 ounces. The Company
achieved full year guidance with 220,458 ounces of gold produced
for the year ended December 31, 2018 ("FY 2018") from its New
Liberty Gold Mine ("New Liberty") in Liberia, and Youga Gold Mine
("Youga") in Burkina Faso.
Highlights:
-- FY 2018 gold production of 220,458 ounces, a 15% increase on
FY 2017 pro-forma group production; and
-- Gold production by asset, as follows:
o New Liberty gold production of 24,573 ounces in the Quarter
and 109,707 ounces in FY 2018, a 44% increase on FY 2017; and
o Youga gold production of 20,389 ounces in the Quarter and
110,751 ounces in FY 2018, a 4% reduction on FY 2017.
The Company intends to provide 2019 production guidance and an
updated Mineral Reserve and Resource estimate for New Liberty,
including the Ndablama satellite deposit, in March 2019.
Serhan Umurhan, Chief Executive Officer of Avesoro, commented:
"2018 represented a significant year for Avesoro and established
our position as a multi-asset producer. I am very pleased to
announce that we have achieved our full year production guidance
for 2018, which remained unchanged throughout the year. 2018 annual
production of 220,458 ounces also represents a 15% increase
compared with 2017 pro-forma production from the two mines. The
substantial increase in gold production at New Liberty of 44%
versus the prior year also underlines the strong performance of our
team as we continue to optimise operational performance and add
value at our mines.
Moving into 2019, I look forward to updating the market on the
results of the ongoing prefeasibility study at the New Liberty
underground project which is also expected to include the first
open pit reserves from the Ndablama satellite deposit towards the
end of the first quarter of 2019. The focus for this coming year
will be on the delivery of strong cash flow and further debt
reduction following the substantial reinvestment of cash generated
by operations that characterised 2018."
Table 1: Preliminary Full Year 2018 Production Results
Parameter Unit New New Variance Youga Youga Variance Group Group Variance
Liberty Liberty FY2018 FY2017(1) Results Results
FY2018 FY2017 FY2018 FY2017(1)
Ore Mined kt 1,352* 1,166 16% 969 870 11% 2,321 2,036 14%
-------- -------- -------- --------- -------- ---------- --------- -------- ---------- ---------
Waste
Mined kt 21,797* 12,935 69% 14,472 8,645 67% 36,269 21,580 68%
-------- -------- -------- --------- -------- ---------- --------- -------- ---------- ---------
Total
Material
Movement kt 23,149 14,102 64% 15,441 9,515 62% 38,590 23,617 63%
-------- -------- -------- --------- -------- ---------- --------- -------- ---------- ---------
Ore
Processed kt 1,411 1,144 23% 1,237 1,200 3% 2,648 2,344 13%
-------- -------- -------- --------- -------- ---------- --------- -------- ---------- ---------
Gold
Production Ounces 109,707 76,179 44% 110,751 115,894 -4% 220,458 192,073 15%
-------- -------- -------- --------- -------- ---------- --------- -------- ---------- ---------
Note: (1) Including the period prior to acquisition of Youga by
the Company on December 18, 2017.
*Including adjustments for year-end survey reconciliation.
New Liberty
Improvements in mining fleet availability and in-pit
efficiencies resulted in a 21% increase in total material movement
during the Quarter following the wet season in Q3 2018. Process
plant throughput for the Quarter increased by 2% to 362kt, however,
gold production for the Quarter reduced by 11% on the previous
quarter due to a decrease in plant feed grades.
Table 2: New Liberty Performance Metrics
Parameter Unit Q4-2018 Q3-2018 Variance Q4-2017 Variance
-------- --------
Ore Mined kt 347 396 -12% 354 -2%
-------- -------- -------- --------- -------- ---------
Mined Grade g/t 2.77 2.86 -3% 2.53 9%
-------- -------- -------- --------- -------- ---------
Waste Mined kt 6,445 5,237 23% 2,445 164%
-------- -------- -------- --------- -------- ---------
Waste:
Strip Ratio Ore 18.6 13.2 41% 6.9 169%
-------- -------- -------- --------- -------- ---------
Total Material
Movement kt 6,792 5,634 21% 2,800 143%
-------- -------- -------- --------- -------- ---------
Ore Processed kt 362 354 2% 315 15%
-------- -------- -------- --------- -------- ---------
Feed Grade g/t 2.44 2.82 -13% 2.97 -18%
-------- -------- -------- --------- -------- ---------
Recovery % 89 90 -1% 90 -1%
-------- -------- -------- --------- -------- ---------
Gold Production Ounces 24,573 27,456 -11% 25,563 -4%
-------- -------- -------- --------- -------- ---------
Youga
Total material movement for the Quarter was 4,281kt, an increase
of 3% on the previous quarter. Mined grade and plant feed grades
were adversely impacted during the Quarter by unplanned ore
dilution experienced during mining in the Gassore pit by -5% and
-16% respectively. However, this was compensated for by an increase
of 24% in plant throughput, with the plant throughput returning to
normalised levels following a reduction during Q3 caused by the
impact of unusually heavy rains. Gold production in the Quarter
totalled 20,389 ounces, an increase of 3% on Q3 2018.
Table 3: Youga Performance Metrics
Parameter Unit Q4-2018 Q3-2018 Variance Q4-2017 Variance
Ore Mined(1) kt 282 233 21% 210 34%
-------- -------- -------- --------- -------- ---------
Mined Grade(1) g/t 2.62 2.76 -5% 5.84 -55%
-------- -------- -------- --------- -------- ---------
Waste Mined kt 3,998 3,909 2% 1,951 105%
-------- -------- -------- --------- -------- ---------
Waste:
Strip Ratio Ore 14.2 16.8 -16% 9.3 52%
-------- -------- -------- --------- -------- ---------
Total Material
Movement kt 4,281 4,142 3% 2,161 98%
-------- -------- -------- --------- -------- ---------
Ore Processed kt 345 279 24% 306 13%
-------- -------- -------- --------- -------- ---------
Feed Grade g/t 2.04 2.44 -16% 3.30 -38%
-------- -------- -------- --------- -------- ---------
Recovery % 90 90 0% 89 1%
-------- -------- -------- --------- -------- ---------
Gold Production Ounces 20,389 19,721 3% 28,845 -29%
-------- -------- -------- --------- -------- ---------
(1) Including 21kt of ore at 4.81 g/t from the Balogo satellite
deposit in Q4 2018 (Q3 2018: 44kt at 4.53 g/t;).
Outlook
The Company intends to provide 2019 production and cost guidance
and updated Mineral Reserve and Resource estimates for the New
Liberty underground project, including the Ndablama satellite
deposit, during March 2019.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
Contact Information
Avesoro Resources Inc.
Geoff Eyre / Nick Smith
Tel: +44(0) 20 3405 9160
Camarco finnCap
(IR / Financial PR) (Nominated Adviser and Joint Broker)
Gordon Poole / Nick Hennis Christopher Raggett / Scott Mathieson
/ Camille Gochez
Tel: +44(0) 20 3757 4980 Tel: +44(0) 20 7220 0500
Berenberg Hannam & Partners (Advisory) LLP
(Joint Broker) (Joint Broker)
Matthew Armitt / Sara MacGrath Rupert Fane / Ingo Hofmaier / Ernest
/ Detlir Elezi Bell
Tel: +44(0) 20 3207 7800
Tel: +44(0) 20 7907 8500
About Avesoro Resources Inc.
Avesoro Resources is a West Africa focused gold producer and
development company that operates two 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 ("New Liberty")
and the Youga Gold Mine in Burkina Faso ("Youga").
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 11.5Mt with
1,105,000 ounces of gold grading 3.0g/t and an estimated Inferred
Mineral Resource of 3.7Mt with 424,000 ounces of gold grading
3.6g/t. The Company has prepared 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 has an estimated Proven and Probable Mineral Reserve of
11.2Mt with 660,100 ounces of gold grading 1.84g/t and a combined
estimated Measured and Indicated Mineral Resource of 16.64Mt with
924,200 ounces of gold grading 1.73g/t and an Inferred Mineral
Resource of 13Mt with 685,000 ounces of gold grading 1.70g/t. The
foregoing Mineral Reserve and Mineral Resource estimates and
additional information in connection therewith, prepared in
accordance with CIM guidelines, is set out in an NI 43-101
compliant Technical Report dated July 31, 2018 and entitled
"Mineral Resource and Mineral Reserve Update for the Youga Gold
Mine, Burkina Faso" and is available on SEDAR at www.sedar.com.
For more information, please visit www.avesoro.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 this press
release. Mr. Pryor has verified the underlying technical data
disclosed in this press release.
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 speak only
as of the date of this press release.
Forward looking statements or information in this press release
include, among other things, statements regarding the provision of
2019 production and cost guidance, and updated Mineral Reserve and
Resource estimates for the New Liberty underground project in March
2019.
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.
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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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