TIDMASO
RNS Number : 3671P
Avesoro Resources Inc.
10 October 2019
October 10, 2019
Avesoro Resources Inc.
TSX: ASO
AIM: ASO
Q3 2019 Production Update
Avesoro Resources Inc (the "Company" or "Avesoro") announces its
preliminary production results for the quarter ended September 30,
2019 ("Q3" or the "Quarter") from its New Liberty Gold Mine ("New
Liberty") in Liberia, and Youga Gold Mine ("Youga") in Burkina
Faso.
Operational Highlights
-- Consolidated gold production of 22,678 ounces in the Quarter,
bringing year to date ("YTD") 2019 gold production to 102,113
ounces;
o New Liberty gold production of 8,059 ounces in the Quarter, a
57% decrease on Q2 2019, due to heavy rainfall flooding the main
pit;
o Youga gold production of 14,619 ounces in the Quarter, a 6%
decrease on Q2 2019, as a result of a security incident which
hampered mining fleet availability;
-- Total material movement ("TMM") of 10.6Mt in the Quarter, a
14% decrease on Q2 2019, consisting of 440kt of ore and 10.1Mt of
waste material.
Serhan Umurhan, Chief Executive Officer of Avesoro, commented:
"Following the transition to contractor mining at New Liberty and
Youga earlier this year, both mines have experienced operational
issues that adversely affected our mining rates and gold production
performance in the Quarter.
However, I am confident that operational performance will
improve at both mines during Q4, with the end of the wet season
allowing New Liberty to materially enhance productivity in the near
term despite the recent pit-wall failure. Meanwhile, an additional
15 trucks, 6 excavators, a rock drill and further auxiliary
equipment will be available at Youga later this week at the mining
contractors cost, and we expect that this will result in an uplift
in production during Q4.
Given a number of operational uncertainties our full year
production guidance remains under review. The Company intends to
provide updated guidance once operational performance has
stabilised for a sustained period of time."
Table 1: Preliminary Group Production Results
Parameter Unit Q3 2019 Q2 2019 Variance Q2 2018 Variance YTD
Ore mined kt 440 471 -7% 629 -30% 1,520
-------- -------- -------- --------- -------- --------- --------
Waste mined kt 10,133 11,818 -14% 9,146 11% 34,553
-------- -------- -------- --------- -------- --------- --------
Total material
movement kt 10,574 12,289 -14% 9,775 8% 36,073
-------- -------- -------- --------- -------- --------- --------
Ore processed kt 416 600 -31% 633 -34% 1,643
-------- -------- -------- --------- -------- --------- --------
Gold production Ounces 22,678 34,338 -34% 47,177 -52% 102,113
-------- -------- -------- --------- -------- --------- --------
New Liberty
As previously reported in the Company's August 8, 2019
announcement, heavy rainfall in late July and August resulted in
the flooding of the main pit at New Liberty. As a consequence, ore
mining operations were suspended for most of August and September,
with the mining fleet focusing on waste stripping during this
time.
With mining productivity hampered, total ore mined during the
Quarter decreased by 58% to 107kt and total material movement
during the Quarter reduced by 12% to 6.87Mt versus Q2 2019 whilst
strip ratio increased to 63.4:1.
The shortfall in ore led to the suspension of milling operations
for much of August and September. Plant throughput reduced by 60%
to 106kt yielding gold production of 8,059 ounces, a 57% decrease
on production achieved during Q2 2019.
Table 2: New Liberty Performance Metrics
Parameter Unit Q3 2019 Q2 2019 Variance Q3 2018 Variance
Mined grade g/t 2.49 2.50 0% 2.86 -13%
----------- ------------ ------------ --------- ------------ ---------
Ore mined kt 107 257 -58% 396 -73%
----------- ------------ ------------ --------- ------------ ---------
Waste mined kt 6,766 7,593 -11% 5,237 29%
----------- ------------ ------------ --------- ------------ ---------
Strip ratio Waste:Ore 63.4 29.5 115% 13.2 380%
----------- ------------ ------------ --------- ------------ ---------
Total material
movement kt 6,873 7,850 -12% 5,634 22%
----------- ------------ ------------ --------- ------------ ---------
Feed grade g/t 2.51 2.36 6% 2.82 -11%
----------- ------------ ------------ --------- ------------ ---------
Ore processed kt 106 268 -60% 354 -70%
----------- ------------ ------------ --------- ------------ ---------
Recovery % 94% 92% 2% 90% 5%
----------- ------------ ------------ --------- ------------ ---------
Gold production ounces 8,059 18,822 -57% 27,456 -71%
----------- ------------ ------------ --------- ------------ ---------
Youga
As previously reported in the Company's announcements dated
August 8, and August 9, 2019, Youga experienced a security breach
resulting in severe damage to a number of haul trucks, excavators
and auxiliary equipment within the Heavy Mining Equipment ("HME")
fleet and the temporary suspension of both mining and processing
activities.
Due to the security breach, the HME fleet capacity was reduced
for much of the Quarter, resulting in TMM of 3.7Mt, a reduction of
17% on the previous Quarter. Waste mined decreased by 20% to 3.37Mt
whilst ore mined increased by 56% to 333kt resulting in a waste to
ore stripping ratio of 10:1. Mined grade decreased by 4% on the
previous quarter to 2.15g/t as production from Gassore was
supplemented by low grade low-strip sections of the Zergore
pit.
Due to the fleet damage constraining mining activities, plant
throughout reduced by 7% to 310kt during the Quarter, resulting in
a gold production of 14,619 ounces.
Table 3: Youga Performance Metrics
Parameter Unit Q3 2019 Q2 2019 Variance Q3 2018 Variance
Mined grade g/t 2.15 2.24 -4% 2.76 -22%
----------- ------------ ------------ --------- ------------ ---------
Ore mined kt 333 214 56% 233 43%
----------- ------------ ------------ --------- ------------ ---------
Waste mined kt 3,367 4,225 -20% 3,909 -14%
----------- ------------ ------------ --------- ------------ ---------
Strip ratio Waste:Ore 10.1 19.8 -49% 16.8 -40%
----------- ------------ ------------ --------- ------------ ---------
Total material
movement kt 3,701 4,439 -17% 4,142 -11%
----------- ------------ ------------ --------- ------------ ---------
Feed grade g/t 1.61 1.59 1% 2.44 -34%
----------- ------------ ------------ --------- ------------ ---------
Ore processed kt 310 332 -7% 279 11%
----------- ------------ ------------ --------- ------------ ---------
Recovery % 91% 91% 0% 90% 1%
----------- ------------ ------------ --------- ------------ ---------
Gold production ounces 14,619 15,516 -6% 19,721 -26%
----------- ------------ ------------ --------- ------------ ---------
Contact Information
Avesoro Resources Inc.
Geoff Eyre / Nick Smith
Tel: +44(0) 20 3405 9160
Camarco finnCap
(IR / Financial PR) (Nominated Adviser and Joint Broker)
Gordon Poole / Nick Hennis Christopher Raggett / Scott Mathieson
/ Camille Gochez
Tel: +44(0) 20 3757 4980 Tel: +44(0) 20 7220 0500
Berenberg
(Joint Broker)
Matthew Armitt / Detlir Elezi
Tel: +44(0) 20 3207 7800
About Avesoro Resources Inc.
Avesoro Resources is a West Africa focused gold producer and
development company that operates two gold mines across West Africa
and is listed on the Toronto Stock Exchange ("TSX") and the AIM
market operated by the London Stock Exchange ("AIM"). The Company's
assets include the New Liberty Gold Mine in Liberia and the Youga
Gold Mine in Burkina Faso.
For more information, please visit www.avesoro.com
Market Abuse Regulation (MAR) Disclosure
Certain information communicated in this announcement was, prior
to its publication, inside information for the purposes of Article
7 of Regulation 596/2014.
Forward Looking Statements
Certain information contained in this press release constitutes
forward looking information or forward-looking statements within
the meaning of applicable securities laws. This information or
statements may relate to future events, facts, or circumstances or
the Company's future financial or operating performance or other
future events or circumstances. All information other than
historical fact is forward looking information and involves known
and unknown risks, uncertainties and other factors which may cause
the actual results or performance to be materially different from
any future results, performance, events or circumstances expressed
or implied by such forward-looking statements or information. Such
statements can be identified by the use of words such as
"anticipate", "plan", "continue", "estimate", "expect", "may",
"will", "would", "project", "should", "believe", "target",
"predict" and "potential". No assurance can be given that this
information will prove to be correct and such forward looking
information included in this press release should not be unduly
relied upon. Forward looking information and statements speak only
as of the date of this press release.
In making the forward looking information or statements
contained in this press release, assumptions have been made
regarding, among other things: general business, economic and
mining industry conditions; interest rates and foreign exchange
rates; the continuing accuracy of Mineral Resource and Reserve
estimates; geological and metallurgical conditions (including with
respect to the size, grade and recoverability of Mineral Resources
and Reserves) and cost estimates on which the Mineral Resource and
Reserve estimates are based; the supply and demand for commodities
and precious and base metals and the level and volatility of the
prices of gold; market competition; the ability of the Company to
raise sufficient funds from capital markets and/or debt to meet its
future obligations and planned activities and that unforeseen
events do not impact the ability of the Company to use existing
funds to fund future plans and projects as currently contemplated;
the stability and predictability of the political environments and
legal and regulatory frameworks including with respect to, among
other things, the ability of the Company to obtain, maintain, renew
and/or extend required permits, licences, authorizations and/or
approvals from the appropriate regulatory authorities; that
contractual counterparties perform as agreed; and the ability of
the Company to continue to obtain and retain qualified staff
(including employees and contractors) and equipment in a timely and
cost-efficient manner to meet its demand.
Actual results could differ materially from those anticipated in
the forward-looking information or statements contained in this
press release as a result of risks and uncertainties (both foreseen
and unforeseen) and should not be read as guarantees of future
performance or results and will not necessarily be accurate
indicators of whether or not such results will be achieved. These
risks and uncertainties include customary completion risks for
transactions similar to the Takeover Bid, and it is specifically
noted that AJL has not yet formally commenced the Takeover Bid and
there is no guarantee that AJL will do so, or that if commenced it
will be completed on the terms set out in this press release or at
all. Other risks are those normally incidental to exploration and
development of mineral projects and the conduct of mining
operations (including exploration failure, cost overruns or
increases, and operational difficulties resulting from plant or
equipment failure, among others); the inability of the Company to
obtain required financing when needed and/or on acceptable terms or
at all; risks related to operating in West Africa, including
potentially more limited infrastructure and/or less developed legal
and regulatory regimes; health risks associated with the mining
workforce in West Africa; risks related to the Company's title to
its mineral properties; the risk of adverse changes in commodity
prices; the risk that the Company's exploration for and development
of mineral deposits may not be successful; the inability of the
Company to obtain, maintain, renew and/or extend required licences,
permits, authorizations and/or approvals from the appropriate
regulatory authorities and other risks relating to the legal and
regulatory frameworks in jurisdictions where the Company operates,
including adverse or arbitrary changes in applicable laws or
regulations or in their enforcement; competitive conditions in the
mineral exploration and mining industry; risks related to obtaining
insurance or adequate levels of insurance for the Company's
operations; that Mineral Resource and Reserve estimates are only
estimates and actual metal produced may be less than estimated in a
Mineral Resource or Reserve estimate; the risk that the Company
will be unable to delineate additional Mineral Resources; risks
related to environmental regulations and cost of compliance, as
well as costs associated with possible breaches of such
regulations; uncertainties in the interpretation of results from
drilling; risks related to the tax residency of the Company; the
possibility that future exploration, development or mining results
will not be consistent with expectations; the risk of delays in
construction resulting from, among others, the failure to obtain
materials in a timely manner or on a delayed schedule; inflation
pressures which may increase the cost of production or of
consumables beyond what is estimated in studies and forecasts;
changes in exchange and interest rates; risks related to the
activities of artisanal miners, whose activities could delay or
hinder exploration or mining operations; the risk that third
parties to contracts may not perform as contracted or may breach
their agreements; the risk that plant, equipment or labour may not
be available at a reasonable cost or at all, or cease to be
available or resign, or in the case of labour, may undertake strike
or other labour actions; the inability to attract and retain key
management and personnel; and the risk of political uncertainty,
terrorism, civil strife, or war in the jurisdictions in which the
Company operates, or in neighbouring jurisdictions which could
impact on the Company's exploration, development and operating
activities.
Although the forward-looking statements contained in this press
release are based upon what management believes are reasonable
assumptions, the Company cannot provide assurance that actual
results or performance will be consistent with these
forward-looking statements. The forward looking information and
statements included in this press release are expressly qualified
by this cautionary statement and are made only as of the date of
this press release. The Company does not undertake any obligation
to publicly update or revise any forward looking information except
as required by applicable securities laws.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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