SOURCE: Amara Mining plc

July 02, 2013 07:00 ET

Amara Mining PLC - Baomahun Feasibility Study

LONDON--(Marketwired - Jul 2, 2013) -

02 July 2013                                         LSE:AMA / TSX:AMZ

                          Amara Mining plc
                     ("Amara" or "the Company")


Amara Mining plc, the dual AIM and TSX-listed West African focused gold
mining company, is pleased to announce the results of its Feasibility
Study ("FS") for its 100% owned Baomahun Gold Project in Sierra Leone
("Baomahun" or "the Project").

- The FS outlines a robust and economically viable project
- The Project is expected to generate a post-tax Internal Rate of
Return ("IRR") of 22% and a post-tax NPV of US$127 million at a
discount rate of 8% and a gold price of US$1,350/oz
- Life of mine ("LOM") average total cash costs of US$799 per ounce
(inc. royalty and refining)
- Maiden Mineral Reserve defined for Baomahun of 1.21 million ounces
(23.3Mt at 1.62g/t) at a gold price of US$1,100oz
- Amara intends to immediately investigate the recommendations
generated by the FS to optimise capital intensity, initial capital
outlay and payback period

The FS is based upon an open pit operation with a mine life of 11.5
years and a processing capacity of 2 million tonnes per annum ("Mtpa")
through a conventional carbon-in-leach ("CIL") plant. Average
production is expected to be 148,550 ounces per annum over the first
six years at 2.53g/t head grade, with production of 203,970 ounces at
3.90g/t in the first year generating strong cash flow.

Click on, or paste the following link into your web browser, to view
the associated PDF document. 

For more information please contact:

Amara Mining plc                                +44 (0)20 7398 1420
John McGloin, Chairman
Peter Spivey, Chief Executive Officer
Pete Gardner, Finance Director
Katharine Sutton, Head of Investor Relations

Canaccord Genuity Limited                       +44 (0)20 7523 8000
(Nominated Adviser & Broker, London)
Andrew Chubb
Tim Redfern
Joe Weaving

Pelham Bell Pottinger                           +44 (0)20 7861 3232
(Financial Public Relations)
Charlie Vivian
James Macfarlane

                    This information is provided by RNS
          The company news service from the London Stock Exchange


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