The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from CNW Group

Development update for New Liberty Gold Project - early works construction has commenced

Thursday, January 31, 2013

Development update for New Liberty Gold Project - early works construction has commenced07:00 EST Thursday, January 31, 2013TSX : AUEAIM : AUETORONTO, Jan. 31, 2013 /CNW/ - Aureus Mining Inc. ("Aureus" or the "Company") is pleased to provide an update for the early works construction and development program at the New Liberty Gold Project in Liberia ("New Liberty" or the "Project").  The key workstreams are:Marvoe Creek Diversion Channel, measuring 2.6km, has been cleared, with excavation and berm construction to commence in February 201320km stretch of laterite road to New Liberty has been regradedDetailed airborne topography survey has been completedAdditional housing, office space and maintenance areas currently under constructionFollowing the completion of the Project's feasibility study, in order to meet the schedule of first gold production in December 2014, the Company's operations team has been focused upon project optimisation studies and the commencement of early works to run alongside the optimisation of the Project's definitive feasibility study.International Construction and Engineering ("ICE"), an international company with strong experience in Liberia and South Africa, has been appointed to perform the civil and earthworks component of the development of New Liberty.The following work, critical to the successful development of New Liberty, is currently underway:The Marvoe Creek Diversion Channel has been cleared, with excavation and berm construction to commence in February 2013. Pictures are included on the Company's website via the following links:http://aureus-mining.com/wp-content/uploads/2013/01/Marvoe-Creek-1.jpghttp://aureus-mining.com/wp-content/uploads/2013/01/Marvoe-Creek-2.jpgThe 20km stretch of laterite road to New Liberty has been regraded. Installation of five 100-ton bridges will take place in February, ready for safe transportation of plant and equipment to New Liberty to meet construction schedule. Pictures are included on the Company's website via the following links:http://aureus-mining.com/wp-content/uploads/2013/01/Road-Upgrade-1.jpghttp://aureus-mining.com/wp-content/uploads/2013/01/Road-Upgrade-2.jpgAirborne Light Detection and Ranging (LiDAR) topography survey completed at both New Liberty and Weaju. Interpretation has given a detailed topographical model and high resolution imagery for the project sites:http://aureus-mining.com/wp-content/uploads/2013/01/LiDAR-1.jpg Additional housing, office space and maintenance areas currently under construction. Pictures are included on the Company's website via the following links:http://aureus-mining.com/wp-content/uploads/2013/01/Construction-1.jpghttp://aureus-mining.com/wp-content/uploads/2013/01/Construction-2.jpgICE will perform the earthworks and civil construction for the New Liberty process plant site as well as the construction of the Tailings Storage Facility, which are scheduled to commence in the second half of 2013Commenting on the development of New Liberty, David Reading, Chief Executive Officer of Aureus, stated:"We are delighted to have ICE, who has extensive country specific experience, assisting us with the development of New Liberty. We are making excellent progress on the Marvoe Creek diversion and have completed the work on the 20km road to site that will allow the infrastructure to be safely transported. We are meeting our timetable and milestone targets to deliver Liberia's first commercial gold mine and have a first gold pour by the end of December 2014."Commenting on the appointment of ICE, Chief Executive Officer of ICE, Joseph Crane, stated:''It is an honour to be working with the Aureus team on this exciting project to build Liberia's first commercial gold mine. Our executive team has over 20 years of building and construction experience in Liberia, with the bulk of our workforce coming from the local community, Grand Cape Mount County and throughout Liberia.  We are committed to building this project safely with a strong emphasis on protecting the environment and providing employment, management and business opportunities to the local population.  ICE will provide an on-time delivery to Aureus and will meet the budget and technical requirements to produce the first gold pour by the end of December 2014.''About Aureus Mining Inc.The Company's assets include the New Liberty gold deposit in Liberia (the "New Liberty Gold Project" or the "Project"), which has an estimated proven and probable reserve of 910,000 ounces of gold grading 3.3 g/t and an estimated measured and indicated mineral resource of 1,143,000 ounces of gold grading 3.6 g/t and an estimated inferred mineral resource of 593,000 ounces of gold grading 3.2 g/t. A feasibility study has been completed on the Project and construction has commenced with initial earthworks. The Project is expected to have an eight and a half year mine life and annual production of 120,000 ounces for the first five years of production.  The Company has financed the Project's equity funding requirement and is in advanced discussions with interested parties to fund the balance.The New Liberty Gold Project is located within the Bea Mountain mining licence, which covers 457 km² and has a 25 year, renewable, mineral development agreement. The Bea Mountain mining license also hosts the proximal gold targets of Ndablama, Gondoja and Weaju, which are the focus of exploration programs during 2013. The contiguous Archaen Gold exploration licence, which covers 89 km², is also a focus of exploration for 2013, with Leopard Rock being the main target.The Company also has gold exploration permits in Cameroon.Forward-looking StatementsThis press release contains certain forward-looking information. All information, other than information regarding historical fact, that addresses activities, events or developments that Aureus Mining believes, expects or anticipates will or may occur in the future is forward-looking information. Forward-looking information contained in this press release includes, but may not be limited to, the future plans and objectives of Aureus Mining and their anticipated future growth, mineral resource estimates and the anticipated exploration and development activities of Aureus Mining. The foregoing and any other forward-looking information contained in this press release reflects the current expectations, assumptions or beliefs of Aureus Mining based on information currently available to Aureus Mining. With respect to the forward-looking information contained in this press release, Aureus Mining has made assumptions regarding, among other things: general business, economic and mining industry conditions; and it has also been assumed that no material adverse change in the price of precious and/or base metals occurs, no unusual geological or technical problems occur and no significant events occur outside of the normal course of Aureus Mining's respective business.Such forward-looking information is subject to a number of risks and uncertainties that may cause actual results or events to differ materially from current expectations, including: risks normally incidental to exploration and development of mineral properties; uncertainties in the interpretation of results from drilling and test work; the possibility that future exploration, development or mining results will not be consistent with expectations; uncertainty of mineral resources estimates; adverse changes in precious and/or base metal prices; and future unforeseen liabilities and other factors including, but not limited to, those listed under "Risk Factors" in the Preliminary Prospectus of Aureus Mining Inc. dated April 20, 2011, a copy of which is available on SEDAR at www.sedar.com, and in the Aureus Mining Admission Document, a copy of which is available at www.aureus-mining.com.Any mineral resource figures referred to in this press release are estimates and no assurances can be given that the indicated levels of minerals will be produced. Such estimates are expressions of judgment based on knowledge, mining experience, analysis of drilling results and industry practices. Valid estimates made at a given time may significantly change when new information becomes available. While Aureus Mining believes that the mineral resource estimates in respect of their respective properties are well established, by their nature mineral resource estimates are imprecise and depend, to a certain extent, upon statistical inferences which may ultimately prove unreliable. If such mineral resource estimates are inaccurate or are reduced in the future, this could have a material adverse impact on Aureus Mining, as applicable. Due to the uncertainty that may be attached to inferred mineral resources, it cannot be assumed that all or any part of an inferred mineral resource will be upgraded to an indicated or measured mineral resource as a result of continued exploration.Forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable law, Aureus Mining disclaims any obligation to update or modify such forward-looking information, either as a result of new information, future events or for any other reason.SOURCE: Aureus Mining Inc.For further information: Contact Information Aureus Mining Inc. David Reading / Jeremy Cave Tel: +44(0) 20 7010 7690Buchanan Bobby Morse / Gordon Poole Tel: +44 (0) 20 7466 5000RBC Capital Markets (Nominated Adviser and Joint Broker) Martin Eales / Richard Hughes Tel: +44(0) 20 7653 4000GMP Securities Europe LLP (Joint Broker) Richard Greenfield / Alexandra Carse Tel: +44(0) 20 7647 2800