TIDMAVM
RNS Number : 4810P
Avocet Mining PLC
25 October 2012
Group Mineral Resource Increases 23% to 7.70M oz.
Avocet Mining PLC ("Avocet" or "the Company"), a leading West
African gold mining and exploration company, today announces that
its total Mineral Resources have increased to 7.704 million ounces
across its operations. This represents an increase of 1.440 million
ounces or 23% over its previously stated total Mineral Resource of
6.260 million ounces as at December 2011. The revised Mineral
Resource estimates reflect completion of modelling of the drill
results from the 2011/2012 field seasons at the Company's
exploration projects in Burkina Faso and Guinea.
Burkina Faso
Avocet owns 90% of the Inata Gold Mine in north-east Burkina
Faso, with the Government of Burkina Faso owning the remaining 10%,
as well as 100% of the eight surrounding exploration licences. Over
the 2011/2012 field season 246 drill holes for 28,503 metres were
drilled and the results were included in the revised Mineral
Resource estimate.
The Mineral Resource within the Inata mining licence area is now
estimated at 3.985 million ounces, which represents an increase of
530,000 ounces, or 15%, over the previous estimate. With the
addition of Filio, which is located on an exploration licence
adjacent to the mine licence area, the Mineral Resource in the
immediate vicinity of Inata has grown to 4.126 million ounces,
which is an addition of 671,000 ounces or 20%. This overall
increase represents a 26% increase in total tonnes and a 5%
decrease in grade to 1.37 g/t Au.
The increase in Mineral Resources is largely attributable to the
expansion of the Minfo trend to the east where the Minfo East
deposit extends to include a maiden resource at Filio, as well as
the identification of additional ore intersections almost parallel
to the main orebody at Inata South. There are also a number of
parallel zones to the north of the Minfo trend. These zones all add
oxide material to the Mineral Resource.
Drilling has been ongoing at Filio since early 2011. The deposit
lies 5.5km south-east of the existing processing plant and it is
expected that it could be processed by the current Inata
facility.
The table below reports the Mineral Resource estimate for Inata
and Filio beneath the 30 September 2012 topographic surface and
above a 0.5 g/t Au cut-off grade. This estimate has been made and
reported in accordance with the Australasian code for the reporting
of Exploration Results, Mineral Resources and Ore Reserves (JORC
Code). The Mineral Resource has also been estimated and in
accordance with the principles of the Canadian NI 43-101.
Deposit Classification Metric Tonnes (million) Grade Gold
(Au g/t) (million oz.)
--------------- ------------------------ ------------------------ ---------- ---------------
Inata North Measured 9.38 1.73 0.522
Indicated 24.23 1.28 0.997
Measured and Indicated 33.61 1.41 1.519
Inferred 11.30 1.36 0.494
Total 44.91 1.39 2.013
---------------------------------------- ------------------------ ---------- ---------------
Inata Central Measured 5.50 1.70 0.301
Indicated 5.81 1.53 0.287
Measured and Indicated 11.32 1.62 0.588
Inferred 5.32 1.19 0.203
Total 16.64 1.48 0.791
---------------------------------------- ------------------------ ---------- ---------------
Inata South Measured 1.46 1.44 0.068
Indicated 3.84 1.31 0.161
Measured and Indicated 5.30 1.35 0.229
Inferred 4.02 1.17 0.151
Total 9.32 1.27 0.380
---------------------------------------- ------------------------ ---------- ---------------
Sayouba Measured 0.44 1.42 0.020
Indicated 2.26 1.12 0.081
Measured and Indicated 2.70 1.17 0.101
Inferred 0.78 1.10 0.028
Total 3.48 1.15 0.129
---------------------------------------- ------------------------ ---------- ---------------
Minfo Measured 1.95 1.85 0.116
Indicated 4.51 1.27 0.184
Measured and Indicated 6.46 1.44 0.300
Inferred 9.94 1.16 0.372
Total 16.40 1.27 0.672
---------------------------------------- ------------------------ ---------- ---------------
Filio Measured 0 0.00 0
Indicated 0.390 1.82 0.023
Measured and Indicated 0.390 1.82 0.023
Inferred 2.85 1.29 0.118
Total 3.24 1.36 0.141
---------------------------------------- ------------------------ ---------- ---------------
The Company owns 90% of Société des Mines de Bélahouro, owner of
the Inata Gold Mine and 100% of the eight exploration licences
within the Bélahouro region.
Note: rounding errors may occur.
In addition to the Mineral Resource of 3.985 million ounces of
Mineral Resource at Inata and 0.141 million ounces at Filio, an
Inferred Mineral Resource of 0.561 million ounces exists at Souma
where Avocet holds an exploration licence. Accordingly Avocet's
total Mineral Resource in Burkina Faso is now 4.687 million
ounces.
The Company is re-estimating its Mineral Reserves at Inata using
current cost levels and lower forecast metallurgical recoveries.
These factors are likely to negatively influence the estimate, with
the result that Mineral Reserves are expected to decrease from the
1.85 million ounces previously announced.
Guinea
Avocet owns 100% of a block of exploration licences in the
north-east of Guinea, collectively referred to as Tri-K. Tri-K
consists of three main areas namely Koulékoun, Kodiéranand
Kodiafaran. The Ministry of Mines and Geology in Guinea has
recently extended the Koulékoun licence until October 2013 by which
time Avocet intends to have completed its Feasibility Study on the
development of a mine at Koulékoun and Kodiéran.
Exploration drilling was undertaken at Koulékoun and Kodiéran
from December 2011 until June 2012 and the Mineral Resource
estimate is updated as follows:
Deposit Classification Metric tonnes Grade Gold
(million) (g/t Au) (million oz.)
--------------- ----------------------- ------------- --------- --------------
Koulékoun Measured
Indicated 31.40 1.38 1.392
Measured and Indicated 31.40 1.38 1.392
Inferred 21.39 1.11 0.760
Subtotal 52.79 1.27 2.152
--------------------------------------- ------------- --------- --------------
Kodiéran Measured
Indicated
Measured and Indicated
Inferred 18.50 1.45 0.865
Subtotal 18.50 1.45 0.865
--------------------------------------- ------------- --------- --------------
Total Measured
Indicated 31.40 1.38 1.392
Measured and Indicated 31.40 1.38 1.392
Inferred 39.89 1.27 1.625
Total 71.29 1.32 3.017
--------------------------------------- ------------- --------- --------------
This estimate has been made and reported in accordance with the
JORC Code. The Mineral Resource has also been estimated and in
accordance with the principles of the Canadian NI 43-101.
Overall the Tri-K resource has grown by 773,000 ounces or 34% to
3.017 million ounces. Of this increase 319,000 ounces were at
Koulékoun, where the Mineral Resource has grown by 17%. The Mineral
Resource has also been upgraded by infill drilling across the
northeast trending structure that bisects the deposit. Of the total
Mineral Resource at Koulékoun, 65% is now in the Indicated
category. In total 271 holes for 23,380 metres were drilled at
Koulékoun in the 2011/ 2012 field season that contributed to this
revised estimate. The average grade for the Koulékoun deposit is
1.27g/t Au which is in line with the previous estimated grade of
1.29 g/t Au. The cut-off for this Mineral Resource estimation has
remained at 0.5 g/t Au. Weathering of the ore body at Koulékoun
extends to a depth of approximately 80 metres. There is a very
narrow transition zone and the remainder of the ore body is fresh
rock.
In Kodiéran, the Mineral Resource has increased 110% to 865,000
ounces with deposit growth both along the strike of the ore body
and at depth. In total 264 holes for 25,470 metres were drilled at
Kodiéran in the 2011/2012 field season that contributed to this
revised estimate. Drilling results indicate that weathering of the
deposit at Kodiéran extends down to between 100 and 150 metre
depths and that accordingly 57% of the Mineral Resource is oxide or
transition.
Drilling at Kodiéran is at 50 metre intervals. According to best
practice, the Mineral Resource is therefore categorised as
Inferred, although the geological continuity along strike is very
good. Infill drilling will commence as part of the Feasibility
Study scheduled to start shortly. The average grade at Kodiéran has
declined from 1.76g/t Au to 1.45g/t Au as volumes of lower grade
ore on the periphery of the ore body have been included in the
Mineral Resource model. The cut off for this Mineral Resource
estimation has remained at 0.5g/t Au.
The information in this announcement pertaining to the Mineral
Resource is based on information compiled by Mr. John Milovanovic
(FAusIMM), Chief Resource Geologist for Avocet and Mr. David
Williams (MAusIMM, MAIG), Principal Consultant, CSA Global Pty Ltd.
Mr. Milovanovic and Mr. Williams have experience relevant to the
style of mineralisation and type of deposit under consideration and
qualify as Competent Persons as defined by the JORC Code , and Mr.
Milovanovic and Mr. Williams as Qualified Persons as defined by the
Canadian National Instrument 43-101 (NI43-101), for the reporting
of Exploration Results, Mineral Resources and Mineral Reserves. Mr.
Williams and Mr. Milovanovic consent to the inclusion of the
technical information in this announcement in the form and context
in which it appears.
FOR FURTHER INFORMATION PLEASE CONTACT
Avocet Mining Pelham Bell J.P. Morgan Arctic SEB Enskilda
PLC Pottinger Cazenove Securities Financial
Financial Lead Broker Financial Adviser &
PR Consultants Adviser Market Maker
& Market
Maker
============== ================ ========================== ============ =================
David Cather, Daniel Thole Michael Wentworth-Stanley Arne Wenger Fredrik Cappelen
CEO Joanna Boon Neil Passmore Petter
Mike Norris, Bakken
FD
Angela Parr,
IR
============== ================ ========================== ============ =================
+44 20 7766 +44 20 7861 +44 20 7588 +47 2101
7676 3232 2828 3100 +47 2100 8500
NOTES TO EDITORS
Avocet Mining is a gold mining and exploration company listed on
the London Stock Exchange (Ticker: AVM.L) and the Oslo Børs
(Ticker: AVM.OL). The Company's principal activities are gold
mining and exploration in West Africa.
In Burkina Faso the Company owns 90% of the Inata Gold Mine. The
deposit at Inata currently comprises a Mineral Resource of 3.985
million ounces and a Mineral Reserve of 1.85 million ounces. The
Inata Gold Mine poured its first gold in December 2009 and produced
167,000 ounces of gold in 2011 and is expected to produce 135,000 -
140,000 ounces of gold in 2012.
Other assets in Burkina Faso include eight exploration permits
surrounding the Inata Gold Mine in the broader Bélahouro region.
The most advanced of these projects are Souma, some 20 kilometres
from the Inata Gold Mine, and Filio, adjacent to the mine licence
area, where Mineral Resources of 0.56 million ounces and 0.141
million ounces respectively exist.
In Guinea, Avocet owns twelve exploration licences in the north
east of the country. Mineral Resource development has been ongoing
since 2005 and the project at Tri-K is the most advanced. Within
the Tri-K project, Koulékoun has a Mineral Resource of 2.152
million ounces and Kodiéran of 0.865 million ounces.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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