Amara Mining plc

AIM : AMA
TSX : AMZ


Amara Mining plc

December 03, 2012 07:00 ET

Further Drilling Results From Yaoure Gold Project

LONDON, UNITED KINGDOM--(Marketwire - Dec. 3, 2012) - Amara Mining plc (formerly Cluff Gold plc)(AIM:AMA)(TSX:AMZ), the dual AIM and TSX-listed West African focused gold mining company, is pleased to announce further significant sulphide drilling results from its Yaoure Project in Côte d'Ivoire.

HIGHLIGHTS:

  • Drill results to date continue to confirm the potential for a large, moderate-grade sulphide deposit underlying the previously mined oxide resources at Yaoure
  • All of the 90 holes reported to date have encountered mineralisation
  • Significant intercepts include:
    • 38.1m at 3.67g/t from 102.9m in hole YDD0068
    • 8.0m at 9.47g/t from 69.0m and 43.2m at 1.78 g/t from 144.9m* in hole YDD0073
    • 29.0m at 3.24g/t from 196.0m in hole YDD0079
  • Inferred mineral resource update targeted for Q1 2013
  • Exploration campaign planned for 2013 to continue step-out drilling and further understand the prospectivity of the area

*Aggregate intersections. A number of composite intersections have been aggregated on the basis that the aggregate intersection forms a single geological zone with a minimum grade of 0.4g/t. Internal waste below this grade with a greater width than 2m is included in the calculation of the weighted average grade of the aggregate intersection.

Peter Spivey, Chief Executive Officer of Amara, commented:

"These latest drilling results from Yaoure continue to confirm our belief in the project's potential. We expect the remaining assays in the coming days and we intend to update our sulphide resources in Q1 2013. By using our cashflow from Kalsaka to fund our exploration at Yaoure and at the Baomahun project in Sierra Leone, Amara is differentiating itself from other junior mining companies and delivering on its strategy to become a mid-tier producer."

Drilling Programme

The diamond drilling programme at Yaoure concluded in early November 2012, with a total of 23 holes (1,967 metres) drilled in 2011 and a further 83 holes (29,988 metres) drilled in 2012. To date, all of the 90 holes reported, including those reported today, have encountered mineralisation; the results of the latest 32 holes are reported in the Appendix. A version of this announcement including sections and a drilling map is available on the Company's website at http://www.amaramining.com/News/Latest-Press-Releases.

In line with the previously reported drilling results, these latest results continue to confirm the potential for a large-scale sulphide deposit underlying the previously mined oxide resources at Yaoure. Amara's focus is on the wider, moderate-grade, shallow-dipping zones of mineralisation where continuity is being established. It is expected that the thinner, higher grade sub-vertical cross-cutting veins with frequent visible gold will enhance the overall grade of the orebody.

Amara has now drilled out an area with an across-strike width of 1km targeting both the Yaoure Central and CMA mineralisation on drill fence lines with an average spacing of approximately 160m by 160m. Every hole drilled to date in the current drilling programme at Yaoure, for which assays have been received, has intersected mineralisation, suggesting that the extent of the orebody has not yet been defined. Mineralisation occurs as sulphides associated with an array of thin quartz veins, silicification and minor carbonate alteration.

Yaoure Central consists of multiple higher grade zones, with widths typically up to 15m, within a 200m (150-250m) thick low-grade body, dipping at approximately 30 degrees to the east. Significant new intercepts from Yaoure Central, listed from north to south, include:

  • 7.4m at 5.91g/t from 25.7m in hole YDD0064
  • 7.0m at 6.50g/t from 107.2m in hole YDD0067
  • 8.0m at 9.47g/t from 69.0m and 43.2m at 1.78 g/t from 144.9m* in hole YDD0073
  • 8.0m at 8.46g/t from 75.0m in hole YDD0084

*Aggregate intersections.

Assays are pending for holes that are expected to extend the body southwards and northwards at Yaoure Central. In some of the deepest holes (YDD0056, YDD0068, YDD0078 and YDD0079), the Yaoure Central mineralisation appears to continue down-dip for at least 700m to a vertical depth in excess of 400m, but with reduced continuity as mineralisation is not found in all deep holes.

The north-south trending CMA North-Central mineralisation is a discrete continuous orebody with an average width of 17m, typically 140m above the Yaoure Central mineralisation, and dipping at between 24 and 30 degrees to the east. Significant new intercepts from CMA North-Central, listed from north to south, include:

  • 29.0m at 3.24g/t from 196.0m in hole YD0079
  • 38.1m at 3.67g/t from 102.9m* in hole YDD0068
  • 8.0m at 4.85g/t from 291.0m in hole YDD0100
  • 16.0m at 1.98g/t from 311.0m* in hole YDD0095

*Aggregate intersections.

Timing for Inferred Mineral Resource Update

Amara expects to announce a significant increase on the existing Yaoure Central resource (249,000 ounces - 4.9Mt at 1.6g/t(i)) in Q1 2013. Samples for all the remaining 16 holes are at the assay laboratories and the results of these final assays will be reported prior to the resource update, once their compliance to the Company's Quality Assurance and Quality Control practices has been confirmed.

Strategy for Yaoure Gold Project

Alongside the exploration drilling, work is underway on a thorough metallurgical test programme to understand the leaching kinetics of the mineralised material at Yaoure. Results from this are expected to be released alongside the updated resource in Q1 2013. Initial metallurgical testwork indicated the non-refractory nature of the gold mineralisation.

Amara's strategy for 2013 at Yaoure is to continue step-out drilling with the intention of understanding the full extent of the mineralisation associated with the Yaoure Central and CMA pits. The Company will also endeavour to gain a more thorough knowledge of the regional prospectivity by following up on targets identified in Q2 2012 by an aeromagnetic survey and remote sensing interpretation. Work will be conducted through additional soil geochemistry and mapping, together with first pass regional drilling programmes.

In addition, Amara intends to begin assessing the economic potential of the updated resource early in 2013. The potential for low cost power from the nearby 150 MW Kossou hydroelectric plant provides a strong competitive advantage for the economics at Yaoure.

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, drilling results, resource calculations and potential future production at Yaoure, and future capital plans and objectives of Amara Mining, 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 Mining's expectations include, among others, the Company's ability to delineate sufficient sulphide resources for the development of a CIL/CIP operation, risks related to international operations, the actual results of current exploration and drilling activities, changes in project parameters as plans continue to be refined as well as future price of gold. Although Amara Mining 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 Mining does not undertake to update any forward-looking statements that are included herein, except in accordance with applicable securities laws.

The diamond drilling programme at Yaoure was undertaken by two independent drilling contractors. Drill cores for assaying were taken at a maximum of two metre intervals, typically one metre, and were cut with a diamond saw with one-half of the core placed in sealed bags. The core samples were sent to the Interteksample preparation facility in Yamoussoukro, Côte d'Ivoire, prior to fire assay, mainly at Intertek Minerals Ltd in Accra, Ghana, but also at the SGS laboratory in Tarkwa, Ghana). In addition, two batches of samples (two holes) were sent to Bureau Veritas in Abidjan, Côte d'Ivoire, for sample preparation and fire assay. The core samples were crushed down to minus 2 mm, with half the sample then being pulverised down to 85% passing 75 microns, prior to analysis for gold by fire assay using a 50 g sample. As part of the Company's QA/QC procedures, internationally recognised standards, duplicates and blanks were inserted.The laboratories used are independent of the Company.

Peter Brown is a "Qualified Person" within the definition of National Instrument 43-101 and has verified the data disclosed in this release, including sampling, analytical and test data underlying the information contained herein, and reviewed and approved the information contained within this announcement. Dr Brown (MIMMM) is the Group Exploration Manager.

Appendix: Yaoure Drilling Results
UTM UTM Elevation Azimuth Inclination EOH
BHID From m To m Interval m AU East North UTM RL
1
Diamond drill holes targeting Yaoure Central mineralisation
YDD0064 25.73 33.11 7.38 5.91 3 220760 777535 291 90 -60 285.15
60.52 64.55 4.03 0.41
85.20 92.20 7.00 0.53
122.65 125.05 2.40 1.24
219.18 221.21 2.03 0.89
227.23 229.23 2.00 1.23
YDD0067 17.82 22.36 4.54 1.51 220885 777284 223 90 -45 179.53
107.15 114.15 7.00 6.50
YDD0069 9.00 12.00 3.00 2.59 220740 777685 207 270 -60 196.12
30.00 33.00 3.00 6.39 3
37.00 40.00 3.00 1.28
51.23 55.25 4.02 0.75
91.00 95.00 4.00 2.56
140.00 142.00 2.00 0.96
189.00 191.00 2.00 1.00
YDD0070 86.00 91.00 5.00 1.30 220609 777785 223 270 -60 292.69
116.80 120.00 3.20 2.65
183.90 187.40 3.50 1.60
234.00 238.00 4.00 0.70
YDD0073 69.00 77.00 8.00 9.47 220934 776686 268 270 -60 261.03
144.85 188.00 43.15 1.78 2
including 161.00 174.00 13.00 4.94
and 181.00 188.00 7.00 0.81
218.00 222.00 4.00 1.60
YDD0076 83.00 91.00 8.00 1.27 5 221194 776687 280 270 -60 202.05
YDD0084 21.00 25.20 4.20 12.44 220989 776486 282 270 -60 335.28
31.00 33.00 2.00 0.87
41.00 45.00 4.00 0.69
75.00 83.00 8.00 8.46
95.00 101.00 6.00 0.60
111.00 116.00 5.00 0.54
237.00 239.00 2.00 1.48 4
285.00 291.00 6.00 0.68
294.00 299.00 5.00 0.74
YDD0085 0.00 2.30 2.30 0.66 221133 776887 267 270 -72 365.58
144.00 147.00 3.00 2.13
176.00 183.00 7.00 0.94
271.00 283.00 12.00 3.54
289.00 292.00 3.00 0.73
340.00 342.00 2.00 0.93
YDD0086 17.26 25.00 7.74 0.42 221133 776685 277 270 -60 473.26
222.00 226.00 4.00 0.42
235.00 239.00 4.00 1.18
243.00 247.00 4.00 1.25
363.00 376.00 13.00 3.47 3
391.00 396.50 5.50 1.48
428.00 433.00 5.00 1.57
447.00 451.00 4.00 0.50
YDD0087 220560 777485 225 270 -45 310.48
140.00 142.00 2.00 0.99
156.00 162.00 6.00 2.43 4
YDD0090 140.00 145.00 5.00 2.91 221157 777087 269 270 -70 396.38
155.00 159.00 4.00 9.62
201.00 203.00 2.00 4.04
261.00 270.00 9.00 6.87
315.00 326.00 11.00 1.43
YDD0093 311.00 313.00 2.00 0.77 221073 777785 237 270 -60 489.10
317.00 327.00 10.00 1.33
352.20 362.00 9.80 3.88 3
403.30 412.55 9.25 1.26 2
including 403.30 407.00 3.70 0.53
and 409.50 412.55 3.05 3.14
461.00 463.00 2.00 4.07
YDD098 3.00 6.00 3.00 0.62 221088 777287 253 270 -76 375.76
177.00 181.00 4.00 0.50
253.00 259.00 6.00 0.68
268.00 271.00 3.00 1.73
275.00 278.00 3.00 3.40
298.00 300.00 2.00 0.49
309.00 312.00 3.00 0.52
330.00 340.00 10.00 2.48
Deepened diamond drill holes targeting Yaoure Central mineralisation
YDD0032 deepened 220926 777386 241 270 -60 321.13
255.000 264.000 9.00 1.13
278.000 281.000 3.00 1.69
290.000 292.600 2.60 1.42
YDD0044 deepened 220987 777486 242 270 -60 310.82
231.00 238.00 7.00 3.36
253.00 260.00 7.00 2.21
291.00 294.47 3.47 0.45
301.00 304.00 3.00 0.52
YDD0047 deepened 221025 777686 238 270 -60 325.50
315.00 317.00 2.00 0.53
YDD0065 deepened 221413 776838 296 270 -60 496.33
303.00 305.00 2.00 1.77
348.00 393.00 45.00 3.24 2
including 348.00 366.00 18.00 4.71
and 369.00 393.00 24.00 2.52
411.00 415.00 4.00 2.26
485.00 489.00 4.00 1.11
Diamond Drill Holes targeting CMA North & Central mineralisation and Yaoure Central mineralisation below
YDD0066 32.15 39.00 6.85 0.47 221503 776588 298 270 -60 410.77
131.41 143.36 11.95 0.60
227.42 288.25 60.83 0.57 2
including 227.42 230.37 2.95 1.38
and 237.37 240.37 3.00 0.45
and 243.25 247.25 4.00 0.89
and 262.85 264.85 2.00 1.26
and 269.85 279.25 9.40 1.69
and 282.25 284.25 2.00 1.01
357.40 360.00 2.60 0.49
YDD0068 22.75 25.46 2.71 0.80 221361 777388 254 270 -60 488.67
102.88 141.02 38.14 3.67 2
including 102.88 115.62 12.74 2.19 3
and 118.52 141.02 22.50 4.88 3
156.90 159.20 2.30 1.64
292.89 300.60 7.71 0.55
312.25 314.25 2.00 2.20
458.90 483.50 24.60 1.58 2
including 458.90 461.70 2.80 4.57 3
and 470.74 475.74 5.00 4.21 3
and 478.74 483.50 4.76 0.47
YDD0074 149.00 154.00 5.00 1.22 221692 776689 342 270 -60 405.72
194.00 199.00 5.00 1.12
268.00 273.00 5.00 0.81
YDD0075 97.00 102.00 5.00 1.68 221383 776988 301 270 -60 479.66
240.00 242.00 2.00 0.64
389.00 391.00 2.00 1.33
426.00 429.00 3.00 1.81
446.00 448.00 2.00 0.49
465.00 467.00 2.00 3.83
YDD0078 68.00 70.00 2.00 2.49 221561 777289 266 270 -60 573.24
141.75 143.75 2.00 13.07 3
211.00 219.00 8.00 3.20 3
303.00 307.00 4.00 1.24
387.70 391.00 3.30 1.66
402.00 409.00 7.00 2.86
440.00 446.00 6.00 0.60
454.00 460.00 6.00 0.59
473.00 478.00 5.00 0.54
YDD0079 151.00 153.00 2.00 2.25 221535 777489 259 270 -60 480.00
181.00 188.00 7.00 1.10
196.00 225.00 29.00 3.24 3
310.70 316.00 5.30 0.94
328.30 333.15 4.85 0.40
341.00 343.00 2.00 0.59
365.00 367.00 2.00 2.06
374.90 384.00 9.10 1.44
YDD0081 35.70 104.00 68.30 1.52 2 221582 777089 305 270 -60 546.30
including 35.70 39.00 3.30 1.75
and 44.00 49.00 5.00 6.25 3
and 55.00 61.00 6.00 0.64
and 65.00 104.00 39.00 1.58
128.00 130.25 2.25 1.38
172.00 174.00 2.00 0.44
218.75 232.20 13.45 2.03 2
including 218.75 226.00 7.25 3.12
and 229.00 232.20 3.20 1.34
401.00 403.00 2.00 0.56
YDD0082 198.00 203.00 5.00 1.39 221583 776889 315 270 -60 486.30
429.00 436.00 7.00 0.58
442.00 446.00 4.00 2.15
YDD0083 74.00 78.00 4.00 0.87 221334 777688 254 270 -60 502.00
208.00 213.00 5.00 1.73
250.00 255.00 5.00 1.49
322.00 375.00 53.00 1.17 2
including 322.00 324.00 2.00 1.76
and 329.00 333.00 4.00 0.51
and 339.00 342.60 3.60 1.48
and 350.00 369.88 19.88 2.20 3
YDD00094 16.50 20.50 4.00 1.37 221736 777488 270 270 -60 470.070
222.00 224.00 2.00 1.81
297.00 300.23 3.23 3.39
331.00 333.00 2.00 1.20
355.00 359.00 4.00 1.09
463.00 465.00 2.00 0.92
YDD0095 311.00 327.00 16.00 1.98 2 221781 777088 304 270 -60 433.26
including 311.00 313.00 2.00 7.96
and 317.00 327.00 10.00 1.56
YDD0096 154.00 156.00 2.00 0.69 221780 776887 355 270 -60 452.46
313.00 315.00 2.00 3.18
324.00 331.00 7.00 0.90
403.00 405.35 2.35 0.55
418.00 421.00 3.00 0.69
427.00 429.00 2.00 1.01
YDD0100 123.00 126.00 3.00 0.93 221761 777288 281 270 -60 426.81
291.00 299.00 8.00 4.85
398.30 407.00 8.70 2.18
YDD101 6.50 10.50 4.00 1.15 221601 777687 259 270 -60 650.56
30.00 32.00 2.00 2.29
92.00 94.00 2.00 1.32
147.00 150.00 3.00 5.20
274.00 294.00 20.00 2.39 2
including 274.00 277.00 3.00 3.58 4
and 283.00 294.00 11.00 3.33
354.00 358.00 4.00 2.68
548.00 550.00 2.00 1.17
608.00 614.00 6.00 2.42
621.00 625.00 4.00 0.54
Diamond drill holes targeting CMA South mineralisation
YDD0071 12.00 14.00 2.00 0.51 221325 776428 275 325 -60 354.72
YDD0088 203.00 207.00 4.00 0.51 4 221295 776006 253 325 -60 389.20
215.00 218.00 3.00 3.49 4
YDD0092 136.00 138.00 2.00 1.76 221236 776246 264 325 -60 312.90
149.00 170.40 21.40 0.85 2
including 149.00 156.13 7.13 1.53
and 162.00 170.40 8.40 0.75
285.00 287.00 2.00 0.50
300.70 307.30 6.60 0.87 2
including 300.70 303.30 2.60 1.53
YDD0097 113.000 117.000 4.00 0.74 220932 775820 285 325 -60 230.49
130.000 132.000 2.00 2.42
149.350 152.000 2.65 0.68
Diamond drill hole targeting new SE-trending zone extending from the southern end of the CMA Central pit
YDD0072 0.00 4.50 4.50 0.45 221503 776588 298 220 -60 284.71
22.00 31.50 9.50 0.94
140.00 145.00 5.00 0.72
172.00 178.00 6.00 0.67
182.00 187.00 5.00 0.65
244.00 246.00 2.00 1.83
266.00 275.00 9.00 0.68

As at 30 November 2012, assays were outstanding for 16 completed holes plus 9 deepened holes. It is not anticipated that results from these outstanding holes will differ significantly from those announced herein. Two holes from 2011, holes YD0007 and YD0009, did not meet the 2m criteria, although they did intercept some mineralisation, with intercepts of 1.0m at 4.81g/t and 1.3m at 1.60g/t respectively.

(1) Interval lengths are not true widths. Composite intersections are based on a minimum width of 2m and a cut-off of 0.4 g/t gold. Internal dilution of up to 2.00m at less than 0.4 g/t has been allowed for continuity
(2) Aggregated composite intersections in which internal dilution of greater than 2.00m at less than 0.4 g/t has been allowed for continuity
(3) All samples with visible gold or returning >10 g/t are being re-assayed by 500g Metallic Screen Fire Assay (MSFA). Where a MSFA is available, this has been used in the calculation of the intersection rather than the original 50g Fire Assay, regardless of whether the MSFA is higher or lower than the original 50g Fire Assay.
(4) Awaiting check assay
(5) Hole abandoned before intersecting target.

(i)Encompassed within the 169,000oz (3.4Mt at 1.6g/t) in measured mineral resources and 123,000oz (2.2Mt at 1.7g/t) in indicated mineral resources set out in the Company's 2010 Annual Report. See also the technical report titled, "Technical Review of the Angovia Gold Mine, Mount Yaoure, Côte d'Ivoire" dated 16 October 2008 and filed on SEDAR

Contact Information

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

    CanaccordGenuity Limited
    (Nominated Adviser & Broker, London)
    Rob Collins
    Sebastian Jones
    Joe Weaving
    +44 (0)20 7523 8350

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