LONDON--(Marketwired - Jul 2, 2013) -
02 July 2013 LSE:AMA / TSX:AMZ Amara Mining plc ("Amara" or "the Company") BAOMAHUN FEASIBILITY STUDY CONFIRMS ROBUST FINANCIAL RETURNS 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. http://www.rns-pdf.londonstockexchange.com/rns/3468I_1-2013-7-1.pdf 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 END
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