Amara Mining plc
AIM : AMA
TSX : AMZ

Amara Mining plc

October 16, 2012 07:00 ET

Amara Mining plc: Results of Preliminary Economic Assessment and Exploration Update for the Sega Gold Project

LONDON, UNITED KINGDOM--(Marketwire - Oct. 16, 2012) - Amara (AIM:AMA)(TSX:AMZ) ("Amara" or "the Company") (formerly Cluff Gold plc), the dual AIM and TSX-listed West African focused gold mining company, announces the results of the Preliminary Economic Assessment ("PEA") and an exploration update for its Sega Gold Project ("Sega") in Burkina Faso. A technical report supporting the results of the PEA will be filed on SEDAR within 45 days.

The PEA has confirmed the potential viability of mining oxide and transitional material at Sega, located 20km north of Kalsaka, and transporting it to Amara's existing heap leach operation at the Kalsaka Gold Mine ("Kalsaka") for processing. Maintaining cash flow is a key priority for the Company and, with Sega's resources located 20km north of Kalsaka, production is expected to continue in Burkina Faso to help fund Amara's development pipeline (Baomahun and Yaoure) and ensure that the Company maintains its status as a gold producer.

Highlights of the PEA:

  • An internal rate of return ("IRR") of 48%, with a post-tax net present value ("NPV") of US$49.5 million using a gold price of US$1,500 per ounce and a discount rate of 10%
  • Contained gold of 162,825 ounces over the 21 month initial mine life
  • Cash cost per ounce produced excluding royalties of US$821 per ounce
  • Mining licence expected to be received in Q1 2013 and mining at Sega anticipated to commence in H1 2013

Highlights of the exploration programme:

  • Drill results to date confirm potential for substantial upside to current Sega resources
  • Significant intercepts at the Touli prospect on the Sega licence area include:
    • 26m at 3.05g/t from 8m in hole SRB0232
    • 26m at 2.14g/t from 24m in hole SRC0119
    • 18m at 3.49g/t from 18m in hole SRB0290
  • Exploration continuing at Kalsaka, with encouraging results received at the Rondo, Zoungwa and ZR prospects

Peter Spivey, Chief Executive Officer of Amara, commented:

"The delivery of the Sega PEA is a key step in ensuring that cash flow is maintained at our producing mine Kalsaka. The resources at Sega, which are located within trucking distance of our existing plant, will significantly increase Kalsaka's mine life with limited capital investment required. In addition, the exploration results received from the Kalsaka-Sega complex have confirmed that there is significant upside resource potential. Amara is committed to its strategy of using its cashflow to develop its growth assets, providing flexibility to the Company as it grows into a mid-tier producer."

The PEA has been prepared by Richard Quarmby, Group Project Manager of Amara. It has also benefited from the input of three independent contractors: SENET, SRK and Digby Wells Environmental.

Management Conference Call

The management team of Amara will host a conference call for analysts and investors at 9:30am UK time today. Dial-in details are as follows:

Dial in number: +44 20 3427 1919
Participant PIN Code: 3172840

A second conference call will be hosted at 9:30am EDT/2:30pm UK time today for North American analysts and investors. Dial-in details are as follows:

USA +1 212 444 0412
Other parts of the world +44 20 3450 9987
Participant PIN Code: 9425939

Mine Plan

Amara prepared a mine plan based on the mineral resources delineated at Sega to date. Open pit optimisations were calculated assuming a gold price of US$1,300 per ounce. The PEA was based on the following parameters:

Gold price: US$1,500 per ounce
Diesel fuel price: US$1.54 per litre
Metallurgical recovery: 87% for oxide material / 70% for transitional material
Mining dilution: 5% at zero grade
Mining recovery: 95%

A gold price of US$1,500 per ounce was used to reflect the Company's short term gold price forecast. Sega is a brownfield extension of an existing plant and as its initial life of mine is 21 months, it would not be appropriate to employ a more conservative, long term gold price forecast as the project's resources will be exhausted before this point.

The PEA has confirmed that Amara will have access to material at Sega that is of a higher grade than the remaining reserves at Kalsaka. The following mined tonnages were estimated to be contained in the engineered open pit design:

Tonnes of gold bearing material: 2.5Mt
Head grade: 2.0g/t
Ounces: 162,825 contained gold
Tonnes of waste: 17.3Mt
Strip ratio: 6.8:1

The weighted average resource grade of the oxide and transitional material at Sega is similar to the Kalsaka reserves. However the Company's geological model shows that the grade of the material processed from Sega will be higher than that at Kalsaka due to the high grade core of the mineralisation, which can be selectively mined.

Processing

Detailed metallurgical testwork was undertaken by Orezone(i) prior to the acquisition of the project by Amara on 23 May 2012. It was conducted to a suitable standard for inclusion in a PEA and has been corroborated by Amara's internal testwork. The results indicate that the material is non-refractory and suggest an overall metallurgical recovery of 87% for oxide material and 70% for transitional material using a 12.5mm crush size and agglomeration using 0.45kg/t of cyanide and 10kg/t cement. This compares well to the Kalsaka material and therefore gives Amara confidence in its cost estimates.

Throughput of the Kalsaka processing plant is expected to be maintained at 1.6Mtpa.

Capital Costs and Infrastructure

Capital costs associated with the commencement of production from Sega are expected to be US$9.5 million. The capex required to bring Sega online is limited as the Sega material will be processed in the existing plant at Kalsaka and there is good existing infrastructure in place.

US$ million
Crushing Plant at Sega 2.38
Sega mining capital including haul road construction 2.25
Sega infrastructure costs 0.32
Pre-project PEA and Environmental and Social Impact Assessment (ESIA) 0.99
Other taxes 0.65
Execution of Resettlement Action Plan (RAP) 2.00
Contingency 0.86
Total 9.45

Operating Costs

The following operating costs are robust as they were estimated based on Amara's existing cost structures at Kalsaka and incorporated into the financial analysis:

Life of Mine Operating Costs US$/oz US$/t*
Mining** 376 2.59
Haulage from the crushed ore stockpile to Kalsaka 106 5.72
Processing 226 12.18
G&A 114 6.14
Total 821 -
*mining costs are given as US$/t mined. All other costs are given as US$/t processed
**includes haulage to the central Sega crushing facility

Material from Sega, which is located 20km north of Kalsaka, will be trucked to the existing Kalsaka plant. Trucking costs are estimated to be US$5.72 per tonne hauled (US$0.286 per tonne hauled per kilometre). Due to the higher grade of the Sega material, cash costs per Sega ounce are expected to be lower than the cash costs of Kalsaka ounces despite these additional transport costs.

Project Economics and Financial Analysis

Amara has produced a cash flow model for Sega based upon the geological, metallurgical and engineering work completed to date. The base case was developed using a short-term gold price of US$1,500 per ounce and includes applicable royalties, which currently include a 5% government royalty and a net smelter royalty of 1%, which is held by Royal Gold Inc. This latter royalty will be reduced from 3% to 1% in return for an upfront payment of US$2 million, which is not included in the initial capex of US$9.5 million.

Sega is expected to produce total post-tax cash flow of US$59.1 million and calculated sensitivities show the robust nature of the projected economics to operating assumptions.

NPV Sensitivity (post-tax) (US$000)

Gold price Undiscounted cashflow 10%
1,300 37,810 30,704
1,400 48,452 40,087
1,500 59,094 49,471
1,600 69,736 58,774
1,700 80,377 68,061
1,800 91,019 77,347

Next Steps

Amara will lodge the necessary documents with the Burkina Faso Government in late October 2012, as agreed, to allow them adequate time to review the technical details in order to grant an environmental licence and a mining licence and enable the trucking of ore to commence in H1 2013. Full details of the PEA in the form of a National Instrument 43-101 technical report will also be filed on SEDAR within the next 45 days.

The Company has received verbal authorisation from the Government to begin the infrastructure work associated with Sega in advance of the final mining licence being granted, which is testament to the Government's desire to see production commence at the project. This work includes a dedicated haul road between Sega and Kalsaka, the installation of crushing facilities at Sega and an upgrade to the power and transmission plants. Construction is due to commence before the end of the year.

Following a visit to Sega, Digby Wells Environmental was appointed to conduct an Environmental and Social Impact Assessment ("ESIA") in April 2012. With the help of local consultants including BECOREM in Burkina Faso, Digby Wells Environmental has made significant progress towards completing the specialist studies and also in sensitising the project's stakeholders to the potential effects. A draft ESIA report, including a provisional resettlement action plan, is expected to be issued at the end of October 2012. Work is underway on physically demarcating the affected areas and once this is completed, Amara will undertake a public consultation on the ESIA.

Exploration Update

Exploration at the Kalsaka-Sega complex is a primary focus for Amara. Drilling results received to date give confidence that there is further upside potential to Sega's current resources, with particularly encouraging intercepts logged at the Touli prospect. This upside potential is expected to ensure that production continues uninterrupted at the Kalsaka-Sega complex as the Company continues to develop its portfolio of growth assets.

At 30 September 2012, 18,881 metres of RC drilling and 16,583 metres of RAB drilling have been conducted by the Company on the 313km2 Sega licence area since the project was acquired. In addition in Q1, before Sega was transferred to Amara, Orezone Gold Corporation ("Orezone") conducted a 10,000 metre drilling programme on the Sega license area. The drilling covered 11 targets and the most significant intercepts recorded were at the Touli, Sampella, Bangassila, Tiba3Sud and KNW prospects. Further RC drilling was then conducted at Touli, Sampella and Bangassilla.

Significant intercepts from Touli include:

  • 23m at 1.35g/t from surface in hole SRC0017
  • 26m at 2.14g/t from 24m in hole SRC0119
  • 26m at 3.05g/t from 8m in hole SRB0232
  • 18m at 3.49g/t from 18m in hole SRB0290

Significant intercepts from the other prospects include:

  • 5m at 3.48g/t from 96m in hole SRC0052 at Sampella
  • 4m at 2.07g/t from 99m in hole SRC0083 at Bangassila

RAB drilling was also conducted at Touli as part of the exploration campaign, and 4,592m of RAB sterilization drilling was undertaken at Bakou and Gambo. Further RC drilling commenced at KNW in late Q3 and, together with drilling at Tiba3Sud, will be completed after the harvest in early November.

Significant intercepts from KNW include:

  • 6m @ 2.22 g/t from 63m in hole SRC0144
  • 11m @ 2.89 g/t from 25m in hole SRC0145

Please note that SRBs are RAB holes, and SRCs are RC holes. A significant intercept has a minimum width of 2m, a minimum grade of 0.4 g/t and a maximum internal dilution of 2m.

The full results of the 10,000 metre drilling programme conducted by Orezone are included in Appendix 1. The results of the RC drilling that Amara has conducted at Touli, Sampella, KNW and Bangassila are included in Appendix 2. The results of the RAB drilling conducted at Touli, Bakou and Gambo are included in Appendix 3.

In addition, exploration work is ongoing at Kalsaka, focusing on areas east of the existing K-zone pits along the K-zone shear structure. In-fill drilling at a line spacing of 50m has confirmed the continuity of mineralisation between the Rondo and Zoungwa prospects (known as the Z-R prospect) over a strike length of 900m. Amara believes there is further upside potential at Kalsaka, which the Company plans to mine once operations at Sega conclude. Resource estimations for these areas are expected to be completed during Q4 2012.

Mineral Resources at Sega(ii)

Indicated Tonnes
('000t)
Grade
(g/t)
Contained Au
(Ounces)
Ox-LAT Contact 17 1.52 829
Oxide 3,279 1.67 175,630
Transitional 1,594 1.58 81,113
Total Oxide and Transitional 4,890 1.64 257,572
Sulphide 3,399 1.76 192,794
Total Indicated 8,289 1.69 450,366
Inferred Tonnes
('000t)
Grade
(g/t)
Contained Au
(Ounces)
Ox-LAT Contact 9 1.75 505
Oxide 740 1.50 35,764
Transitional 422 1.47 19,989
Total Oxide and Transitional 1,171 1.49 56,258
Sulphide 1,737 1.63 91,086
Total Inferred 2,908 1.58 147,344
Note: Resources presented in the above table are accurate as at 11 January 2010 (see note (i) below) and have not changed as a result of the drilling programme described in this announcement. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Qualified Person

Richard Quarmby is a "Qualified Person" within the definition of National Instrument 43-101 and has verified the data disclosed in this release and reviewed and approved the information contained within this announcement. Mr Quarmby is the Group Project Manager.

The delineation of the Sega resources and the 10,000 metre drilling programme were executed under the supervision of Pascal Marquis, SVP Exploration for Orezone, who is a Qualified Person as defined by National Instrument 43-101 and who has reviewed and approved the relevant technical information in this release. Orezone completed the 10,000 m reverse circulation drilling program and the rotary sample division of all the samples that were then handed over to Cluff who supervised the sample preparation and the analytical work reported here.

Peter Brown is a "Qualified Person" within the definition of National Instrument 43-101 and has verified the data disclosed in this release with regards to the exploration conducted at Sega for Amara, including sampling, analytical and test data underlying the information contained herein, and reviewed and approved the information contained within this announcement. Mr Brown (MIMMM) is the Group Exploration Manager.

About Amara Mining plc

Amara (formerly Cluff Gold) is a gold developer-producer with assets in West Africa. The Company generates significant cash flow through its Kalsaka gold mine in Burkina Faso, where the production profile has been enhanced by the recent acquisition of the neighbouring Sega project. Amara remains focused on its objective of becoming a mid-tier producer through the development of its Baomahun project in Sierra Leone and its Yaoure project in Côte d'Ivoire. With its experience of bringing new mines into production and a project pipeline spanning Burkina Faso, Côte d'Ivoire and Mali, Amara aims to further increase its production profile with its highly prospective exploration work across all assets.

This report includes certain "forward-looking information" within the meaning of applicable Canadian securities legislation.

All statements other than statements of historical fact included in this report, including, without limitation, the positioning of the Company for future success, statements regarding exploration, production estimates and future objectives of Amara, are forward-looking information that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Amara's expectations include, among others, risks related to international operations, timing of receipt of mining licence, the actual results of current exploration and drilling activities, the reduction of the net smelter returns royalty on Sega, the results of the Baomahun feasibility study, changes in project parameters as plans continue to be refined as well as the future price of gold. Although Amara has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Amara does not undertake to update any forward-looking statements that are included herein, except in accordance with applicable securities laws.

Non IFRS Measures - Cash cost per ounce is a financial measure used by many investors to compare mining companies on the basis of operating results and asset value. It is not a measure of financial performance, nor does it have a standardized meaning prescribed by IFRS, and it may not be comparable to similar measures presented by other companies. Investors are cautioned that cash cost per ounce should not be construed as an alternative to other financial measures determined in accordance with IFRS as an indicator of Amara's performance. This measure has been described and presented in this document in order to provide shareholders and potential investors with additional information regarding the Company's operational performance.

The mineral resources for Sega were estimated by Orezone in 2010. The 2010 resource estimate was updated from the resource estimate prepared by Met-Chem in February 2009 and included 12,471 m of new infill definition drilling, for a total of 104,752 m of core and reverse circulation drilling compiled up to December 2009. The resources are contained in thirteen separate block models, and for the most part are restricted to a vertical depth of 150 m.

The RC drilling programmes at Sega were undertaken by independent drilling contractors. All the Company's drill hole collar positions were pegged using a Garmin GPS unit and re-surveyed after drilling. The drill collars after survey were checked by an onsite geologist. Each 1.0m RC chipping passing through a cyclone is collected in a plastic bag and reduced in a multistage splitter to get a split of between 2kg and 4kg. Sampling was done under the supervision of the site geologist. Duplicate samples were collected at every 20th sample point and one blank inserted at every 20th point. Every fiftieth sample is a Certified Reference Material from Geostats. Samples were submitted to the in-house laboratory, dried, crushed and pulverised to 85-90% passing 106μm and analysed by bulk leach extractable gold assays for twelve hours.

The RAB drilling programme at Sega was undertaken by an independent drilling contractor. All the drill holes collar positions were pegged using a Garmin GPS unit and re-surveyed after drilling. The drill collars after survey were checked by an onsite geologist. Each 1.0m RAB chipping passing through a cyclone is collected in a plastic bag and 2m-composites are reduced in a multistage splitter to get a split of between 2kg and 4kg. Sampling was done under the supervision of the site geologist. Duplicate samples were collected at every 20th sample point and one blank inserted at every 20th point. Every fiftieth sample is a Certified Reference Material from Geostats. Samples were submitted to the in-house laboratory, dried, crushed and pulverised to 85-90% passing 106μm and analysed by bulk leach extractable gold assays for twelve hours.

RAB and RC check assays will also be submitted to external commercial laboratories in Burkina Faso as part of the Company's quality control procedures.

Appendix 1: Results of 10,000m drilling programme conducted by Orezone

Please note that SRBs are RAB holes, and SRCs are RC holes. A significant intercept has a minimum width of 2m, a minimum grade of 0.4 g/t and a maximum internal dilution of 2m.

Hole_ID From To Interval Au_ppm Prospect UTME UTMN
TBC1025 20 25 5 0.41 Tiba2 611824.442 1482038.78
TBC1025 28 31 3 5.09 Tiba2 611824.442 1482038.78
TBC1025 67 71 4 1.00 Tiba2 611824.442 1482038.78
TBC1026 16 20 4 0.72 Tiba2 611833.807 1482015.6
TBC1026 58 60 2 0.70 Tiba2 611833.807 1482015.6
TBC1027 1 3 2 0.89 Tiba2 611867.43 1482065.85
TBC1027 31 33 2 0.58 Tiba2 611867.43 1482065.85
TBC1027 36 55 19 0.81 Tiba2 611867.43 1482065.85
TBC1027 76 78 2 1.88 Tiba2 611867.43 1482065.85
TBC1028 4 8 4 0.44 Tiba2 611876.795 1482042.67
TBC1028 10 12 2 1.36 Tiba2 611876.795 1482042.67
TBC1028 24 29 5 1.11 Tiba2 611876.795 1482042.67
TBC1029 9 15 6 1.26 Tiba2 611886.16 1482019.49
TBC1029 23 26 3 0.56 Tiba2 611886.16 1482019.49
TBC1029 30 34 4 1.35 Tiba2 611886.16 1482019.49
TBC1029 44 50 6 0.57 Tiba2 611886.16 1482019.49
TBC1032 4 6 2 0.56 Tiba2 611930.646 1482042.86
TBC1032 44 48 4 0.69 Tiba2 611930.646 1482042.86
TBC1033 54 56 2 1.40 Tiba2 611959.024 1482106.09
TBC1040 54 60 6 1.32 Tiba3-Sud 612517.499 1482198.15
TBC1044 30 33 3 0.58 Tiba3-Sud 612811.68 1482285.56
TBC1047 12 14 2 0.59 Tiba3-Sud 612869.306 1482367.44
TBC1055 18 21 3 0.44 Tiba3-Sud 613039.618 1482361.28
TBC1057 10 13 3 1.14 Tiba3-Sud 613014.669 1482222.15
TBC1058 38 40 2 4.37 Tiba3-Sud 613034.369 1482206.75
TBC1061 38 47 9 1.28 Tiba3-Sud 613028.752 1482084.24
TBC1062 16 23 7 1.28 Tiba3-Sud 613009.051 1482099.63
TBC1063 5 7 2 0.79 Tiba3-Sud 613003.586 1482167.35
TBC1063 52 54 2 0.83 Tiba3-Sud 613003.586 1482167.35
TBC1065 27 32 5 0.58 Tiba3-Sud 613138.538 1482315.72
TBC1065 49 52 3 0.51 Tiba3-Sud 613138.538 1482315.72
TBC1066 5 8 3 0.83 Tiba3-Sud 613118.838 1482331.11
TBC1071 53 55 2 6.84 Tiba3-Sud 613130.391 1482480.71
TBC1071 62 65 3 0.45 Tiba3-Sud 613130.391 1482480.71
TBC1073 3 5 2 0.44 Tiba3-Sud 613199.049 1482553.97
TBC1073 6 13 7 0.63 Tiba3-Sud 613199.049 1482553.97
TBC1079 10 15 5 1.49 Sampella 616349.577 1483247.81
TBC1080 24 30 6 0.94 Sampella 616410.378 1483242.5
TBC1081 52 59 7 2.47 Sampella 616453.68 1483267.5
TBC1082 41 43 2 6.65 Sampella 616504.481 1483279.51
TBC1083 31 34 3 0.79 Sampella 616542.782 1483313.17
TBC1088 57 59 2 1.17 Déré 614487.386 1480989.26
TBC1091 81 83 2 0.70 Déré 614340.887 1481069.18
TBC1094 26 29 3 6.21 Touli 612100 1479300
TBC1094 32 36 4 0.79 Touli 612100 1479300
TBC1094 43 50 7 1.22 Touli 612100 1479300
TBC1094 59 62 3 1.33 Touli 612100 1479300
TBC1095 31 34 3 2.78 Touli 612100 1479250
TBC1095 40 44 4 0.70 Touli 612100 1479250
TBC1095 59 67 8 1.32 Touli 612100 1479250
TBC1097 35 37 2 0.74 Kamense 611017.627 1479121.97
TBC1098 20 22 2 3.03 KNW 610638 1478500
TBC1100 11 13 2 0.49 KNW 610508 1478500
TBC1100 16 22 6 1.68 KNW 610508 1478500
TBC1106 2 12 10 2.88 KNW 610631 1478450
TBC1108 11 13 2 0.75 KNW 610600 1478400
TBC1110 20 22 2 0.96 KNW 610525 1478375
TBC1110 26 30 4 0.58 KNW 610525 1478375
TBC1112 24 30 6 3.00 KNW 610625 1478375
TBC1113 57 64 7 2.40 KNW 610645 1478345
TBC1119 7 11 4 2.78 KNW 610240 1478250
TBC1129 26 29 3 0.52 KNW 610533 1477900
TBC1135 4 8 4 1.63 KNW 610538 1477750
TBC1135 12 15 3 0.97 KNW 610538 1477750
TBC1136 14 19 5 0.82 KNW 610569 1477700
TBC1146 29 31 2 0.80 KNW 611018 1477500
TBC1146 35 37 2 0.86 KNW 611018 1477500
TBC1147 24 26 2 3.31 KNW 611044 1477450
TBC1151 1 7 6 0.89 KNW 611044 1477400
TBC1151 31 35 4 0.45 KNW 611044 1477400
TBC1158 7 9 2 0.61 KNW 610942 1477200
TBC1159 31 33 2 0.54 KNW 611003 1477150
TBC1161 7 15 8 1.30 KNW 610911 1477150
TBC1162 12 15 3 1.03 KNW 610886 1477150
TBC1163 14 18 4 0.45 KNW 610919 1477045
TBC1163 24 32 8 0.59 KNW 610919 1477045
TBC1167 5 11 6 0.45 KNW 610880 1477300
TBC1167 35 38 3 0.61 KNW 610880 1477300
TBC1168 22 24 2 0.72 KNW 610905 1477300
TBC1168 28 30 2 0.70 KNW 610905 1477300
TBC1169 22 24 2 0.83 KNW 610899 1477350
TBC1170 16 18 2 11.99 KNW 610874 1477350
TBC1170 27 29 2 0.57 KNW 610874 1477350
TBC1172 2 6 4 0.53 KNW 610893 1477400
TBC1172 13 15 2 0.72 KNW 610893 1477400
TBC1178 1 4 3 1.33 KNW 610500 1478000
TBC1178 15 19 4 1.24 KNW 610500 1478000
TBC1179 21 24 3 0.53 KNW 610531 1478050
TBC1179 30 34 4 0.47 KNW 610531 1478050
TBC1180 4 9 5 0.82 KNW 610510 1478100
TBC1182 27 29 2 0.75 KNW 610556 1478050
TBC1184 14 19 5 0.73 KNW 610500 1478150
TBC1185 19 26 7 0.51 KNW 610292 1478100
TBC1186 16 18 2 0.70 KNW 610212 1478100
TBC1188 13 15 2 1.29 KNW 610235 1478200
TBC1189 46 52 6 2.34 G2SW 606750 1476520
TBC1203 71 79 8 7.75 Bangassila 606848.523 1479949.06

Appendix 2: Results of the RC drilling conducted by Amara at the Touli, Sampella, KNW and Bangassila prospect

Please note that SRBs are RAB holes, and SRCs are RC holes. A significant intercept has a minimum width of 2m, a minimum grade of 0.4 g/t and a maximum internal dilution of 2m.

BHID FROM TO Interval AU Permit Prospect Dril_Type UTME UTMN
SRC0061 51 55 4 1.47 TIBA Bangassila RC 606732 1479852
SRC0062 14 16 2 2.01 TIBA Bangassila RC 606777 1479886
SRC0064 1 5 4 0.55 TIBA Bangassila RC 606791 1479933
SRC0064 50 53 3 0.65 TIBA Bangassila RC 606791 1479933
SRC0064 56 60 4 0.81 TIBA Bangassila RC 606791 1479933
SRC0065 15 17 2 1.74 TIBA Bangassila RC 606808 1479915
SRC0065 27 29 2 1.62 TIBA Bangassila RC 606808 1479915
SRC0065 37 40 3 0.59 TIBA Bangassila RC 606808 1479915
SRC0066 38 41 3 0.62 TIBA Bangassila RC 606839 1479977
SRC0066 58 61 3 2.13 TIBA Bangassila RC 606839 1479977
SRC0080 72 74 2 0.82 TIBA Bangassila RC 606750 1479833
SRC0082 89 92 3 0.62 TIBA Bangassila RC 606795 1479866
SRC0082 114 118 4 1.03 TIBA Bangassila RC 606795 1479866
SRC0083 99 103 4 2.07 TIBA Bangassila RC 606842 1479880
SRC0083 110 114 4 0.82 TIBA Bangassila RC 606842 1479880
SRC0083 121 124 3 0.89 TIBA Bangassila RC 606842 1479880
SRC0084 79 81 2 1.03 TIBA Bangassila RC 606826 1479899
SRC0085 64 70 6 0.41 TIBA Bangassila RC 606772 1479953
SRC0085 72 76 4 0.90 TIBA Bangassila RC 606772 1479953
SRC0090 105 109 4 0.74 TIBA Bangassila RC 606865 1479929
SRC0093 126 129 3 0.93 TIBA Bangassila RC 606668 1479706
SRC0109 28 31 3 0.63 TIBA Bangassila RC 606812 1479986
SRC0141 54 60 6 0.64 TIBA KNW RC 610526 1478550
SRC0142 30 33 3 1.62 TIBA KNW RC 610506 1478551
SRC0144 52 54 2 0.52 TIBA KNW RC 610662 1478450
SRC0144 63 69 6 2.22 TIBA KNW RC 610662 1478450
SRC0144 72 77 5 0.51 TIBA KNW RC 610662 1478450
SRC0145 25 36 11 2.89 TIBA KNW RC 610645 1478451
SRC0150 35 40 5 0.82 TIBA KNW RC 610913 1477350
SRC0150 67 69 2 0.53 TIBA KNW RC 610913 1477350
SRC0151 11 14 3 0.46 TIBA KNW RC 610889 1477350
SRC0151 16 19 3 1.14 TIBA KNW RC 610889 1477350
SRC0033 82 91 9 1.74 TIBA Sampella RC 616440 1483290
SRC0046 68 71 3 0.70 TIBA Sampella RC 616384 1483276
SRC0046 75 80 5 0.50 TIBA Sampella RC 616384 1483276
SRC0052 66 68 2 0.70 TIBA Sampella RC 616338 1483269
SRC0052 96 101 5 3.48 TIBA Sampella RC 616338 1483269
SRC0008 56 60 4 1.02 TIBA Touli RC 611950 1479242
SRC0010 1 7 6 0.92 TIBA Touli RC 612000 1479332
SRC0010 10 15 5 0.86 TIBA Touli RC 612000 1479332
SRC0010 18 23 5 3.16 TIBA Touli RC 612000 1479332
SRC0014 90 92 2 0.47 TIBA Touli RC 612053 1479287
SRC0014 105 109 4 0.99 TIBA Touli RC 612053 1479287
SRC0015 37 42 5 0.73 TIBA Touli RC 612052 1479240
SRC0015 47 50 3 0.51 TIBA Touli RC 612052 1479240
SRC0016 78 85 7 0.71 TIBA Touli RC 612100 1479332
SRC0016 151 153 2 0.87 TIBA Touli RC 612100 1479332
SRC0017 1 24 23 1.35 TIBA Touli RC 612150 1479332
SRC0017 37 39 2 0.75 TIBA Touli RC 612150 1479332
SRC0017 47 60 13 1.20 TIBA Touli RC 612150 1479332
SRC0017 79 84 5 1.45 TIBA Touli RC 612150 1479332
SRC0017 136 141 5 0.51 TIBA Touli RC 612150 1479332
SRC0017 151 154 3 0.45 TIBA Touli RC 612150 1479332
SRC0018 16 21 5 0.53 TIBA Touli RC 612152 1479286
SRC0018 24 26 2 1.29 TIBA Touli RC 612152 1479286
SRC0019 39 41 2 0.54 TIBA Touli RC 612152 1479241
SRC0032 8 13 5 0.91 TIBA Touli RC 612103 1479287
SRC0032 16 19 3 5.87 TIBA Touli RC 612103 1479287
SRC0032 25 39 14 0.81 TIBA Touli RC 612103 1479287
SRC0103 10 18 8 0.80 TIBA Touli RC 611989 1479367
SRC0103 63 71 8 1.28 TIBA Touli RC 611989 1479367
SRC0104 45 48 3 1.72 TIBA Touli RC 611997 1479399
SRC0104 62 70 8 0.91 TIBA Touli RC 611997 1479399
SRC0105 13 15 2 0.57 TIBA Touli RC 612150 1479364
SRC0105 22 29 7 0.77 TIBA Touli RC 612150 1479364
SRC0105 32 44 12 0.49 TIBA Touli RC 612150 1479364
SRC0105 48 52 4 0.74 TIBA Touli RC 612150 1479364
SRC0105 66 71 5 0.66 TIBA Touli RC 612150 1479364
SRC0105 93 95 2 0.53 TIBA Touli RC 612150 1479364
SRC0105 100 102 2 2.99 TIBA Touli RC 612150 1479364
SRC0106 56 63 7 0.67 TIBA Touli RC 612150 1479397
SRC0106 74 78 4 1.66 TIBA Touli RC 612150 1479397
SRC0112 90 92 2 1.90 TIBA Touli RC 611996 1479437
SRC0112 106 110 4 1.24 TIBA Touli RC 611996 1479437
SRC0113 69 71 2 1.04 TIBA Touli RC 611944 1479443
SRC0113 76 83 7 1.44 TIBA Touli RC 611944 1479443
SRC0113 100 109 9 1.02 TIBA Touli RC 611944 1479443
SRC0114 8 19 11 1.65 TIBA Touli RC 611946 1479396
SRC0114 33 35 2 1.22 TIBA Touli RC 611946 1479396
SRC0114 52 55 3 1.32 TIBA Touli RC 611946 1479396
SRC0115 57 61 4 2.10 TIBA Touli RC 611898 1479435
SRC0116 12 17 5 1.49 TIBA Touli RC 611900 1479396
SRC0118 47 54 7 0.85 TIBA Touli RC 611275 1479676
SRC0118 57 61 4 1.07 TIBA Touli RC 611275 1479676
SRC0118 71 73 2 2.58 TIBA Touli RC 611275 1479676
SRC0119 12 21 9 1.50 TIBA Touli RC 611274 1479610
SRC0119 24 50 26 2.14 TIBA Touli RC 611274 1479610
SRC0124 64 66 2 1.77 TIBA Touli RC 611471 1479710
SRC0124 90 92 2 0.83 TIBA Touli RC 611471 1479710
SRC0126 15 17 2 0.67 TIBA Touli RC 612203 1479397
SRC0127 86 91 5 1.30 TIBA Touli RC 612198 1479438
SRC0127 121 123 2 3.99 TIBA Touli RC 612198 1479438
SRC0128 16 19 3 0.80 TIBA Touli RC 612249 1479440
SRC0128 34 37 3 0.82 TIBA Touli RC 612249 1479440
SRC0128 58 60 2 1.14 TIBA Touli RC 612249 1479440
SRC0128 63 72 9 0.48 TIBA Touli RC 612249 1479440
SRC0129 27 29 2 4.31 TIBA Touli RC 612246 1479397
SRC0132 111 127 16 0.79 TIBA Touli RC 612150 1479436
SRC0132 134 141 7 0.72 TIBA Touli RC 612150 1479436
SRC0155 127 130 3 1.16 TIBA Touli RC 611669 1479747
SRC0156 36 38 2 0.46 TIBA Touli RC 611463 1479609
SRC0156 69 71 2 0.44 TIBA Touli RC 611463 1479609
SRC0158 44 46 2 1.82 TIBA Touli RC 611369 1479643

Appendix 3: Results of the RAB drilling conducted by Amara at the Touli, Bakou and Gambo prospects

Please note that SRBs are RAB holes, and SRCs are RC holes. A significant intercept has a minimum width of 2m, a minimum grade of 0.4 g/t and a maximum internal dilution of 2m.

BHID FROM TO Interval AU Permit Prospect Dril_Type UTME UTMN
SRB0003 18 20 2 0.43 TIBA Bakou RAB 609122 1477446
SRB0005 6 8 2 1.24 TIBA Bakou RAB 609125 1477413
SRB0007 2 8 6 1.95 TIBA Bakou RAB 609127 1477383
SRB0008 2 6 4 0.69 TIBA Bakou RAB 609126 1477361
SRB0008 12 14 2 0.66 TIBA Bakou RAB 609126 1477361
SRB0010 0 2 2 3.72 TIBA Bakou RAB 609133 1477321
SRB0011 16 18 2 0.44 TIBA Bakou RAB 609133 1477299
SRB0029 28 34 6 1.20 TIBA Bakou RAB 609313 1477471
SRB0036 14 16 2 1.42 TIBA Bakou RAB 609141 1477438
SRB0040 42 50 8 0.90 TIBA Bakou RAB 609317 1477366
SRB0043 10 12 2 0.93 TIBA Bakou RAB 609215 1477349
SRB0046 18 20 2 0.60 TIBA Bakou RAB 609163 1477341
SRB0048 26 28 2 0.96 TIBA Bakou RAB 609128 1477337
SRB0051 12 16 4 0.60 TIBA Bakou RAB 609084 1477327
SRB0054 38 40 2 0.58 TIBA Bakou RAB 609346 1477268
SRB0054 50 54 4 0.64 TIBA Bakou RAB 609346 1477268
SRB0055 46 48 2 0.47 TIBA Bakou RAB 609292 1477255
SRB0058 16 18 2 1.03 TIBA Bakou RAB 609220 1477246
SRB0059 0 2 2 0.69 TIBA Bakou RAB 609200 1477245
SRB0061 0 2 2 0.44 TIBA Bakou RAB 609163 1477241
SRB0063 0 2 2 0.44 TIBA Bakou RAB 609122 1477236
SRB0064 30 32 2 0.55 TIBA Bakou RAB 609105 1477231
SRB0073 26 30 4 1.97 TIBA Bakou RAB 609178 1477144
SRB0074 24 26 2 0.96 TIBA Bakou RAB 609152 1477138
SRB0075 0 2 2 0.61 TIBA Bakou RAB 609128 1477137
SRB0087 0 2 2 0.43 TIBA Bakou RAB 609065 1476937
SRB0089 36 38 2 2.77 TIBA Bakou RAB 609123 1476944
SRB0091 20 22 2 0.60 TIBA Bakou RAB 609333 1477060
SRB0107 16 18 2 0.54 TIBA Bakou RAB 609200 1476950
SRB0152 14 16 2 1.13 TIBA Gambo RAB 607843 1476077
SRB0155 18 20 2 0.55 TIBA Gambo RAB 607808 1476169
SRB0122 20 22 2 0.92 TIBA Touli RAB 612500 1479500
SRB0123 24 26 2 0.50 TIBA Touli RAB 612503 1479460
SRB0158 10 12 2 0.92 TIBA Touli RAB 612300 1479500
SRB0159 32 34 2 0.60 TIBA Touli RAB 612303 1479465
SRB0159 44 48 4 2.16 TIBA Touli RAB 612303 1479465
SRB0167 32 36 4 0.46 TIBA Touli RAB 612773 1479047
SRB0182 10 12 2 0.55 TIBA Touli RAB 611910 1479396
SRB0182 26 28 2 0.43 TIBA Touli RAB 611910 1479396
SRB0183 8 16 8 0.51 TIBA Touli RAB 611915 1479376
SRB0184 44 46 2 0.43 TIBA Touli RAB 611924 1479321
SRB0209 16 18 2 0.44 TIBA Touli RAB 611381 1479012
SRB0215 4 10 6 0.63 TIBA Touli RAB 611142 1479176
SRB0230 14 16 2 1.15 TIBA Touli RAB 611275 1479658
SRB0230 30 34 4 1.03 TIBA Touli RAB 611275 1479658
SRB0230 42 51 9 2.88 TIBA Touli RAB 611275 1479658
SRB0231 38 51 13 1.15 TIBA Touli RAB 611279 1479631
SRB0232 8 34 26 3.05 TIBA Touli RAB 611286 1479595
SRB0233 16 26 10 2.17 TIBA Touli RAB 611291 1479561
SRB0271 2 4 2 0.61 TIBA Touli RAB 612050 1479902
SRB0288 44 46 2 0.44 TIBA Touli RAB 611849 1479820
SRB0289 36 50 14 1.16 TIBA Touli RAB 611850 1479785
SRB0290 8 26 18 3.49 TIBA Touli RAB 611850 1479750
SRB0290 48 51 3 0.81 TIBA Touli RAB 611850 1479750
SRB0297 2 4 2 0.50 TIBA Touli RAB 611675 1479982
SRB0298 2 4 2 0.41 TIBA Touli RAB 611674 1479928
SRB0300 18 20 2 0.49 TIBA Touli RAB 611674 1479828
SRB0301 20 24 4 2.16 TIBA Touli RAB 611675 1479775
SRB0310 52 54 2 0.43 TIBA Touli RAB 611475 1479751

(i) As per Orezone's press release titled Orezone Confirms Positive Metallurgical Results for Sega Gold Deposit, dated 11 April 2011

(ii) Mineral resources estimates effective as of January 11, 2010. Stated cut-off grade of 0.5g/t Au. Further details of Sega's mineral resources are contained in the technical report entitled: Technical Report on the Mineral Resource of the Sega Gold Project, dated January 11, 2010, filed by Orezone Gold Corporation and available on SEDAR. This technical report was reviewed by Peter Brown, a "Qualified Person" on behalf of Amara. To the best of Amara's knowledge, information and belief, there is no new material scientific or technical information that would make the disclosure of the mineral resources inaccurate or misleading.

NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE CONTENT OF THIS PRESS RELEASE

Contact Information

  • Amara Mining plc
    John McGloin
    Chairman
    +44 (0)20 7398 1420

    Amara Mining plc
    Peter Spivey
    Chief Executive Officer
    +44 (0)20 7398 1420

    Amara Mining plc
    Pete Gardner
    Finance Director
    +44 (0)20 7398 1420

    Amara Mining plc
    Katharine Sutton
    Head of Investor Relations
    +44 (0)20 7398 1420

    Canaccord Genuity Limited
    (Nominated Adviser & Broker, London)
    John Prior
    +44 (0)20 7523 8350

    Canaccord Genuity Limited
    (Nominated Adviser & Broker, London)
    Sebastian Jones
    +44 (0)20 7523 8350

    Canaccord Genuity Limited
    (Nominated Adviser & Broker, London)
    Joe Weaving
    +44 (0)20 7523 8350

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

    Pelham Bell Pottinger
    (Financial Public Relations)
    Daniel Thole
    +44 (0)20 7861 3232

    Pelham Bell Pottinger
    (Financial Public Relations)
    James MacFarlane
    +44 (0)20 7861 3232