REG - Amara Mining PLC - Further encouraging Yaoure drilling results <Origin Href="QuoteRef">AMARA.L</Origin> <Origin Href="QuoteRef">FRES.L</Origin>

FresnilloAnnouncement

29/10/2014 10:31

RNS Number : 3518O
Amara Mining PLC
06 August 2014
6 August 2014 AIM:AMA
Amara Mining plc
("Amara" or "the Company")
FURTHER ENCOURAGING DRILLING RESULTS FROM YAOURE GOLD PROJECT, INCLUDING 31M AT 3.6G/T
Amara Mining plc, the AIM-listed West African-focused gold mining company,is pleased to announce further diamond drill ("DD") and reverse circulation ("RC") results from its 2014 in-fill drilling programme at its Yaoure Gold Project ("Yaoure") in Cte d'Ivoire. 
HIGHLIGHTS:
 Targeting of 'information gaps' continues to confirm presence of mineralisation, with a significant proportion of waste expected to be converted to mineralised material
 Latest 19 DD results from the Yaoure Central zone continue to confirm the continuity of the deposit and the moderate grade nature of the Yaoure Central zone, with localised high grade zones. Significant intercepts include:
o 16m at 2.04g/t from 12m in hole YDD0185
o 19m at 3.27g/t from 232m in hole YDD0187
o 31m at 3.58g/t from 192m in hole YDD0193
 Focus of DD programme transferred to the high grade CMA zone with results from nine holes received - significant intercepts include:
o 17m at 2.81g/t from 86m in hole YDD0201
o 17m at 3.09g/t from 66m in hole YDD0208
o 16m at 3.62g/t from 80m in hole YDD0211
 Second phase of RC drilling commenced in late June - first five results continue to confirm the high grade nature and continuity of the CMA zone. Significant intercepts include:
o 6m at 6.76g/t from 169m in hole YRC0699
o 15m at 2.19g/t from 197m in hole YRC0704
 Eight DD rigs and one RC rig now at site, expected to increase to nine DD rigs and one RC rig in the coming weeks
 On track to deliver two Mineral Resource updates in H2 2014 to expand the current resource base and to upgrade the Inferred resources within US$950 per ounce pit design to the Indicated category
 Fully-funded to deliver a Pre-Feasibility Study ("PFS") in Q1 2015
 Amara's assets remain unaffected by the Ebola virus
John McGloin, Executive Chairman of Amara, commented:
"The latest results from the boreholes drilled into the 'information gaps' within the Yaoure deposit further underline the potential to expand its 6.3 million ounce resource base and reduce the strip ratio (currently 5.2:1 in the 8Mtpa scenario), strengthening the project's compelling economics. With eight DD rigs and one RC rig now at site, Africa's largest drilling programme continues to ramp up and I look forward to delivering further drilling results and two Mineral Resource updates in H2 2014." 
DD programme at Yaoure
Eighty four DD holes have been completed and eight are in progress for a total advance since 2 May 2014 of 23,473 metres (to 28 July 2014). The results of the first 26 holes were reported in the announcement dated 8 July 2014 and the latest 28 results are reported in the Appendix.
The latest results continue to confirm that there is ore below the existing pit in the 'Western Information Gap' that had not previously been drilled due to lack of access caused by water in the pits (the pit has now been de-watered), which increases Amara's confidence in its ability to expand Yaoure's National Instrument ("NI") 43-101 compliant 6.3 million ounce Mineral Resource. The conversion of waste to mineralised material is also expected to have a positive impact on the project's strip ratio (currently 5.2:1 in the headline 8Mtpa scenario).
The majority (19) of the latest 28 DD holes were drilled in the central and southern areas of the Yaoure Central pit, five DD holes tested both the CMA Zone and the underlying Yaoure Central mineralisation, and four DD holes tested the CMA zone only. 
Significant intercepts returned from DD holes testing the central and southern areas of the Yaoure Central pit - the Western Information Gap1:
Borehole
Section
From (m)
To (m)
Interval (m)2
Au (g/t)
YDD0185
7000
12
28
16
2.04
YDD0185
7000
184
187
3
6.97
YDD0193
7100
158
163
5
11.71
YDD0193
7100
192
223
31
3.58
YDD0195
6800
99
109
10
2.46
YDD0202
6400
90
92
2
17.76
YDD0202
6400
108
111
3
8.38
YDD0209
6600
298
301
3
10.05
Significant intercepts returned from DD holes testing deeper Yaoure Central mineralisation between the 2 pits:
Borehole
Section
From (m)
To (m)
Interval (m)2
Au (g/t)
YDD0179
7300
337
342
5
7.50
YDD0187
7400
232
251
19
3.27
YDD0213
7100
195
211
16
1.52
Significant intercepts returned from the CMA zone:
Borehole
Section
From (m)
To (m)
Interval (m)2
Au (g/t)
YDD0179
7300
95
104
9
3.93
YDD0200
6300
40
56
16
1.84
YDD0201
7000
86
103
17
2.81
YDD0208
6900
66
83
17
3.09
YDD0211
6500
80
96
16
3.62
Notes
1. Information gap extends from 7100N to 6400N
2. Interval lengths are not true widths. Composite intersections are based on a minimum width of 2m and a cut-off of 0.40 g/t Au. Internal dilution of up to 2.00m at less than 0.40 g/t has been allowed for continuity.
The focus of the DD campaign has recently transferred to the CMA North-Central zone, with five DD rigs and one RC rig currently in this area, whilst the results of the Yaoure Central drilling will continue to be reviewed. The numerous intersections that are being received, along with results from the previous drilling campaigns, will be incorporated into an improved geological model. 
RC programme at Yaoure
The first phase of RC drilling, which comprised 26 RC holes (5,763 metres), was completed on 17 May 2014, focusing on the CMA zone. Detailed examination of drill chips has shown the main CMA Zone is clearly defined. There is no evidence to indicate there has been down-hole sample contamination or smearing. All elevated gold values below the CMA zone are contained in well-defined stringer zones, as seen in the DD core (from the 2012/2013 drilling campaign) which can be correlated. Consequently Amara's exploration team are confident in the accuracy of the RC data. 
RC drilling in the CMA zone resumed on 26 June 2014 and by 28 July 2014, a total of 18 holes and 3,541 metres had been drilled. Four results from the second phase have been received and they are reported in the Appendix. The results continue to confirm the continuity and high grade nature of the CMA zone, increasing Amara's confidence in the deposit.
Significant intercepts from RC holes testing the high grade CMA zone:
Borehole ID
Section
From (m)
To (m)
Interval (m)1
Au (g/t)
YRC0699
6750
169
175
6
6.76
YRC0702
6650
128
136
8
2.76
YRC0702
6650
139
148
9
2.07
YRC0704
6650
197
212
15
2.19
Notes
1. Interval lengths are not true widths. Composite intersections are based on a minimum width of 2m and a cut-off of 0.40 g/t Au.Internal dilution of up to 2.00m at less than 0.40 g/t has been allowed for continuity.
A drilling map is available on Amara's website at http://www.amaramining.com/Operations/Yaoure on the page named 'Exploration', along with a series of section diagrams.
Amara is on track to deliver two Mineral Resource updates for Yaoure in H2 2014. The first update is expected to increase the current 4.2 million ounces within the US$950 per ounce pit design and the second is expected to upgrade the Inferred resources to the Indicated category. This will allow Amara to deliver a PFS for Yaoure in Q1 2015.
The Company's operations in West Africa remain unaffected by the Ebola virus. There have been no confirmed cases in Cte d'Ivoire and Burkina Faso and John McGloin visited Yaoure last week along with other senior management. There are travel restrictions and enhanced hygiene requirements in place in Sierra Leone, however at present this does not affect the Company's strategy for Baomahun as the project is in an evaluative phase.
Background on Yaoure Gold Project
Amara delivered a Preliminary Economic Assessment for Yaoure in Q1 2014. It demonstrated that the project has the potential to be one of the top 10 gold mines in Africa by production and top 50 in the world. With average production of 325,000 ounces per annum over a 12 year mine life and all-in sustaining costs of US$691 per ounce, the headline 8Mtpa scenario delivers an IRR of 32% at a gold price of US$1,250 per ounce and an NPV of US$688 million. Yaoure is one of the few development projects in West Africa that remains resilient at low gold prices, with an IRR of 23% at US$1,100 per ounce. The project is flexible and delivers similarly strong returns over a range of alternative throughput scenarios. The compelling economics are driven by the excellent existing infrastructure in Cte d'Ivoire, with low cost hydro-electric power from the Kossou dam (5km from site) and a dual carriageway to within 40km of site. With 80,000 metres of drilling planned in 2014, there is expected to be strong exploration upside potential on the current NI 43-101 compliant 6.3 million ounce resource base[i].
For more information please contact:
Amara Mining plc
John McGloin, Chairman and Chief Executive Officer
Pete Gardner, Finance Director
Katharine Sutton, Head of Investor Relations
+44 (0)20 7398 1420
Peel Hunt LLP
(Nominated Adviser & Joint Broker)
Matthew Armitt
Ross Allister
+44 (0)20 7418 8900
GMP Securities Europe LLP
(Joint Broker)
Richard Greenfield
Alexandra Carse
+44 (0)20 7647 2800
Farm Street Communications
(Media Relations)
Simon Robinson
+44 (0)7593 340 107
About Amara Mining plc
Amara is a gold developer with assets in West Africa. Amara is focused on unlocking the value in its development projects. At Yaoure in Cte d'Ivoire, this will be done by increasing the confidence in the existing Mineral Resource and economics at the project as the Company progresses it through to Pre-Feasibility Study and Bankable Feasibility Study. At Baomahun, this will be done by gaining an improved understanding of the exploration upside potential and underground opportunity. With its experience of bringing new mines into production and a project pipeline spanning three countries, Amara aims to further increase its production profile with highly prospective opportunities across all assets.
APPENDIX
Results of latest 28 DD holes
Borehole ID
Section
From (m)
To (m)
Interval (m)1
Au (g/t)
YDD0179
7300mN
25.50
39.00
13.502
0.57
YDD0179

95.00
104.00
9.00
3.93
YDD0179

165.00
167.00
2.00
1.46
YDD0179

241.00
244.00
3.00
1.98
YDD0179

253.00
258.00
5.00
0.85
YDD0179

337.00
342.00
5.00
7.50
YDD0179

380.00
382.00
2.00
0.72






YDD0181
6750mN
91.00
94.00
3.00
1.54






YDD0185
7000mN
12.00
28.00
16.00
2.04
YDD0185

35.00
41.00
6.00
2.26
YDD0185

56.00
61.00
5.00
3.77
YDD0185

68.00
75.00
7.00
0.47
YDD0185

78.00
83.00
5.00
1.44
YDD0185

88.00
95.00
7.00
0.50
YDD0185

170.00
174.00
4.00
0.61
YDD0185

184.00
187.00
3.00
6.97
YDD0185

201.00
210.00
9.00
1.06






YDD0187
7400mN
57.20
60.20
3.00
1.08
YDD0187

126.00
130.00
4.00
0.40
YDD0187

135.00
139.00
4.00
1.37
YDD0187

232.00
251.00
19.00
3.27
YDD0187

258.00
270.00
12.00
0.98
YDD0187

275.00
282.00
7.00
1.26






YDD0189
7100mN
23.00
25.00
2.00
2.76
YDD0189

66.00
78.00
12.00
1.43
YDD0189

85.00
87.00
2.00
1.03
YDD0189

123.00
127.00
4.00
0.95
YDD0189

138.00
140.00
2.00
1.52
YDD0189

151.00
159.00
8.00
2.36
YDD0189

233.00
235.00
2.00
3.34






YDD0190
6900mN
35.00
38.00
3.00
0.80
YDD0190

74.00
80.00
6.00
0.42
YDD0190

103.00
107.00
4.00
1.17
YDD0190

115.00
117.00
2.00
0.85
YDD0190

144.00
154.00
10.00
0.79
YDD0190

171.00
176.00
5.00
0.62






YDD0191
6850mN
29.00
34.00
5.00
0.84
YDD0191

44.00
46.00
2.00
3.30
YDD0191

63.00
65.00
2.00
0.77
YDD0191

70.00
73.00
3.00
1.70
YDD0191

84.00
88.00
4.00
1.66
YDD0191

103.00
107.00
4.00
0.41
YDD0191

118.00
124.00
6.00
0.59
YDD0191

159.00
161.00
2.00
1.10






YDD0192
7050mN
34.00
40.00
6.00
0.63
YDD0192

43.00
46.00
3.00
0.80
YDD0192

83.00
90.00
7.00
1.47
YDD0192

142.00
144.00
2.00
0.49
YDD0192

169.00
171.00
2.00
1.58
YDD0192

177.00
179.00
2.00
1.07
YDD0192

205.00
208.00
3.00
1.51
YDD0192

212.00
216.00
4.00
3.46






YDD0193
7100mN
26.00
28.00
2.00
1.68
YDD0193

56.00
62.00
6.00
0.99
YDD0193

72.00
77.00
5.00
0.78
YDD0193

111.00
113.00
2.00
0.55
YDD0193

158.00
163.00
5.00
11.71
YDD0193

192.00
223.00
31.00
3.58
YDD0193

237.00
242.00
5.00
1.74






YDD0194
7200mN
5.00
9.00
4.002
0.56
YDD0194

22.00
30.00
8.002
0.99
YDD0194

97.00
103.00
6.00
0.42
YDD0194

169.00
172.00
3.00
0.66
YDD0194

175.00
177.00
2.00
0.43
YDD0194

191.00
197.00
6.00
0.76
YDD0194

223.00
226.00
3.00
1.31
YDD0194

239.00
243.00
4.00
2.29
YDD0194

247.00
254.00
7.00
1.45
YDD0194

303.00
305.00
2.00
2.13
YDD0194

326.00
328.00
2.00
1.07
YDD0194

344.00
353.00
9.00
1.40






YDD0195
6800mN
3.00
6.60
3.60
0.60
YDD0195

14.00
16.00
2.00
0.51
YDD0195

21.00
25.00
4.00
0.72
YDD0195

61.00
66.00
5.00
0.59
YDD0195

99.00
109.00
10.00
2.46
YDD0195

147.00
151.00
4.00
0.55
YDD0195

158.00
163.00
5.00
0.86
YDD0195

187.00
189.00
2.00
4.47
YDD0195

196.00
200.10
4.10
4.12






YDD0196
6300mN
0.00
2.00
2.002
0.69
YDD0196

27.00
29.00
2.00
0.82






YDD0197
6400mN
0.00
9.00
9.00
1.61
YDD0197

56.00
60.00
4.00
0.89
YDD0197

94.00
97.00
3.00
1.36
YDD0197

116.00
118.00
2.00
3.00
YDD0197

133.00
135.00
2.00
0.51
YDD0197

143.00
146.00
3.00
0.45
YDD0197

173.00
176.00
3.00
0.91






YDD0198
6700mN
12.00
15.00
3.00
0.94
YDD0198

19.00
21.00
2.00
0.81
YDD0198

35.00
37.00
2.00
0.86
YDD0198

46.00
49.00
3.00
0.56






YDD0199
7000mN
0.00
2.00
2.00
0.53
YDD0199

15.00
21.00
6.00
1.50
YDD0199

44.00
50.00
6.00
0.86
YDD0199

54.00
59.00
5.00
1.46
YDD0199

64.00
74.00
10.00
1.20
YDD0199

92.00
106.00
14.00
0.74
YDD0199

121.00
126.00
5.00
0.97
YDD0199

253.00
260.00
7.00
0.94
YDD0199

272.00
274.00
2.00
1.11






YDD0200
6300mN
14.00
18.00
4.002
1.17
YDD0200

24.00
28.00
4.00
0.67
YDD0200

40.00
56.00
16.00
1.84
YDD0200

151.00
155.00
4.00
0.44
YDD0200

186.00
190.00
4.00
0.57
YDD0200

272.00
275.00
3.00
0.57






YDD0201
7000mN
4.00
13.00
9.002
0.43
YDD0201

21.00
23.00
2.00
0.54
YDD0201

86.00
103.00
17.00
2.81
YDD0201

181.00
184.00
3.00
0.42
YDD0201

283.00
289.00
6.00
3.16
YDD0201

386.00
388.00
2.00
8.70
YDD0201

401.00
408.00
7.00
0.82






YDD0202
6400mN
0.00
3.00
3.00
0.71
YDD0202

90.00
92.00
2.00
17.76
YDD0202

108.00
111.00
3.00
8.38






YDD0204
7100mN
1.00
6.00
5.00
1.03
YDD0204

10.00
13.00
3.00
0.51
YDD0204

62.00
64.00
2.00
3.84
YDD0204

139.00
141.00
2.00
0.48
YDD0204

207.00
210.00
3.00
0.45
YDD0204

212.00
218.00
6.00
0.48
YDD0204

279.00
284.00
5.00
2.16
YDD0204

287.00
291.00
4.00
0.73






YDD0205
6600mN
22.00
24.00
2.00
0.68
YDD0205

177.00
181.00
4.00
1.44
YDD0205

184.00
186.00
2.00
0.59
YDD0205

197.00
201.00
4.00
0.63
YDD0205

217.00
224.00
7.00
1.36
YDD0205

234.00
251.00
17.00
0.64






YDD0206
6600mN
20.00
27.00
7.00
0.41
YDD0206

39.00
41.00
2.00
1.70
YDD0206

132.00
134.00
2.00
0.883
YDD0206

197.00
199.00
2.00
2.96
YDD0206

282.00
284.00
2.00
2.14






YDD0207
6400mN
0.00
2.00
2.002
0.74
YDD0207

88.00
99.00
11.00
1.40
YDD0207

168.00
171.00
3.00
0.84
YDD0207

175.00
180.00
5.00
1.36
YDD0207

265.00
267.00
2.00
1.36






YDD0208
6900mN
30.00
38.00
8.002
0.49
YDD0208

66.00
83.00
17.00
3.09
YDD0208

277.00
280.00
3.00
0.91
YDD0208

323.00
326.00
3.00
0.61
YDD0208

365.00
372.00
7.00
0.99






YDD0209
6600mN
20.00
24.00
4.00
0.58
YDD0209

35.00
41.00
6.00
1.84
YDD0209

102.00
104.00
2.00
0.463
YDD0209

123.00
125.00
2.00
0.803
YDD0209

221.00
225.00
4.00
2.57
YDD0209

259.00
265.00
6.00
0.48
YDD0209

277.00
287.00
10.00
0.52
YDD0209

298.00
301.00
3.00
10.50






YDD0210
6400mN
66.00
71.00
5.00
0.53
YDD0210

164.00
166.00
2.00
0.97
YDD0210

196.00
198.00
2.00
1.89
YDD0210

216.00
224.00
8.00
1.84
YDD0210

245.00
247.00
2.00
1.95
YDD0210

311.00
314.00
3.00
1.11






YDD0211
6500mN
17.00
20.00
3.002
1.16
YDD0211

31.00
35.00
4.002
0.43
YDD0211

41.00
54.00
13.002
1.08
YDD0211

80.00
96.00
16.00
3.62
YDD0211

120.00
122.00
2.00
0.86
YDD0211

224.00
229.00
5.00
1.36






YDD0212
6700mN
146.00
153.00
7.00
0.50
YDD0212

294.00
296.00
2.00
1.15






YDD0213
7100mN
3.00
5.00
2.00
1.06
YDD0213

59.00
62.00
3.00
0.58
YDD0213

182.00
184.00
2.00
0.79
YDD0213

195.00
211.00
16.00
1.52
YDD0213

287.00
292.00
5.00
0.67
YDD0213

339.00
345.00
6.00
0.64
Results of latest 5 RC holes
Borehole ID
Section
From (m)
To (m)
Interval (m)1
Au (g/t)
YRC0699
6750
169
175
6
6.76
YRC0699

192
195
3
3.26






YRC0700
6750
102
111
9
2.04
YRC0700

158
160
2
5.19






YRC0701
6700
168
177
9
1.37
YRC0701

192
198
6
0.47
YRC0701

207
209
2
2.96












YRC0702
6650
30
32
2
0.47
YRC0702

128
136
8
2.76
YRC0702

139
148
9
2.07
YRC0702

171
176
5
1.51






YRC0704
6650
197
212
15
2.19
Notes
1. Interval lengths are not true widths. Composite intersections are based on a minimum width of 2m and a cut-off of 0.40 g/t Au.Internal dilution of up to 2.00m at less than 0.40 g/t has been allowed for continuity.
2. Borehole drilled into mine waste dump above CMA zone
3. Awaiting check assay
Peter Brown is a "Qualified Person" within the definition of National Instrument 43-101 and has reviewed and approved the information contained within this announcement. Dr Brown (MIMMM) is the Group Exploration Manager.
The RC and DD drilling programmes at Yaoure are being undertaken by two independent drilling contractors. Typically samples for assaying were taken at one metre intervals. Sample preparation was carried out at the Company's facility at Yaoure, prior to fire assay at Actlabs in Ouagadougou, Burkina Faso. The samples were crushed down to minus 2mm and then pulverised down to 90% passing 75 microns, prior to analysis for gold by 50g fire assay. As part of the Company's QA/QC procedures, internationally recognised standards, duplicates and blanks were inserted. Check assays are being carried out at ALS Geochemistry in Johannesburg, South Africa. The laboratories used are independent of the Company.

i Effective date of Yaoure's Mineral Resource estimate is 11 December 2013.

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