Aureus Mining

Aureus Mining Inc. is a gold exploration and development company listed on TSX and AIM (AUE). It is focussed in highly prospective and under-explored areas of Liberia and Cameroon. The Company’s principal strategic objectives are to be a gold producer in 2013, expand the resource base through high-impact exploration and develop towards being a mid-tier gold producer.

Section of orebody outcropping at New Liberty, Liberia

New Liberty in Liberia is Aureus Mining’s most advanced project and is expected to begin production in Q4 2013. The NI 43-101 compliant resource is currently 1.57moz at a grade of 3.6g/t, with 102koz at 4.74g/t Measured, 984koz at 3.53g/t Indicated and 483koz at 3.5og/t Inferred. The Company released its maiden reserve estimate of 873koz at 3.1g/t in February 2012, with cash costs expected of $632/oz and low initial capex of $113m, the project economics look very robust. The full definitive feasibility study is due at the end of March 2012 and construction is expected commence in Q4 2012.

New Liberty sits within the large, 457km2, 25-year, renewable Bea Mountain Mining licence, which along with the adjacent 89km2Archaen exploration licence, is highly prospective and under-explored. Aureus Mining has extensive multi-phased exploration programmes currently running, from target generative work to focussed drilling programmes on well-defined targets. This ensures that the pipeline of projects behind New Liberty remains healthy.

Aureus Mining also has two gold-bearing licences in Cameroon, which cover a total of 787.5km2. The Batouri and Ntem licences host multiple gold in soil anomalies and extensive artisanal mining activity. Target generative work is in progress at both licences. 

Liberia

Liberia has had a democratically elected Government since 2006, with Africa’s first female Head of State, Madame Ellen Johnson-Sirleaf, re-elected in 2011. A part of the Government’s strategy for rebuilding infrastructure in the Country and revenues has been to attract foreign direct investment, mainly in the natural resources sector. It has done this by reducing corruption and by creating an attractive fiscal regime. This has been successful, with a total of $18bn of investment pledged to date, from companies that include: BHP Billiton (iron ore), Arcelor Mittal (iron ore), Vedanta (iron ore), Chevron (oil and gas), Sime Darby (palm oil) and Firestone (rubber). In addition to this private sector recognition of progress in Liberia, there has also been recognition from the international community with the President (Johnson-Sirleaf) receiving the Nobel Peace Prize in 2011.

In this environment, Aureus Mining has negotiated its favourable Mineral Development Agreement, which includes the fiscal terms of a 3% royalty, a 25% corporate tax rate and a free carried interest for the Government of 10% (once capital invested in the project has been repaid).

Archaean rocks in Liberia are prospective and under-explored. Aureus led by a strong board of directors with 100+ years of experience finding and developing many projects in West Africa.

New Liberty, Liberia

New Liberty in Liberia is Aureus Mining’s most advanced project and is expected to begin production in Q4 2013. The NI 43-101 compliant resource is currently 1.57moz at a grade of 3.6g/t, with 102koz at 4.74g/t Measured, 984koz at 3.53g/t Indicated and 483koz at 3.5og/t Inferred. The Company released its maiden reserve estimate of 873koz at 3.1g/t in February 2012, with cash costs expected of $632/oz and initial capex of $113m, the project economics look very robust. The full definitive feasibility study is due at the end of March 2012 and construction is expected commence in Q4 2012.

The February 2012 maiden reserve announcement and technical update showed a robust project with a high pre-tax NPV of $260m and an IRR of 62%, using a conservative average gold price of $1,350/oz. The project benefits from its high grade and simple metallurgy, with almost half of the gold expected to be extracted through gravity. Theseallow for an inexpensive processing plant and the low initial capex of $113m. It alsoshowed a project significantly de-risked, with the drilling doubled since the December 2010 Preliminary Economic Assessment, now totalling over 55,000m. 

New Liberty has excellent infrastructure links. The projected is situated 100km by road from the deep water port at Monrovia. 80km of the road is high quality tarmac and the remaining 20km is laterite road maintained by the Company. All bridges along the route are sufficiently strong for delivery of all plant and equipment.

The Definitive Feasibility Study is to be delivered at the end of March 2012. Once this has been published, the Company will then push ahead with the financing of the project, where there is already a short-list of eight banks and a core of supportive shareholders for the debt and equity components of the funding. With financing secured, civil construction is expected to begin in Q4 2012 and the process plant construction in Q2 2013. Commissioning is due for Q4 2013, with the first full year of production being 2014.

New Liberty Reserves

Exploration, Liberia

Between the Bea Mountain mining licence and the Archaen exploration licence, Aureus has 546km2 in Liberia, in prospective and under-explored Archaean rocks. The Company has extensive multi-phased exploration programmes over the whole of this licence. These range from target generative work to focussed drilling programmes on well-defined targets and brownfield exploration around New Liberty. This ensures that the pipeline of projects behind New Liberty remains healthy.

Bea Mountain and Archaen Project areas in Liberia, soil anomalies overlaid

Drilling campaigns are planned for targets near New Liberty, Leopard Rock, Ndablama, Gondoja and Weaju in 2012. The Company expects to be able to communicate any exploration successes to the market throughout 2012. The Company has also developed a systematic approach for exploration in what appears to be a gold district, which is hoped to generate new targets in the two licence areas. This approach includes using airborne geophysics, ground geophysics and gold in soil anomalies. 

Ground geophysics in progress at brownfield targets near New Liberty

Soil anomalies trace continuity from Leopard Rock through to Gondoja North

Exploration, Cameroon

Aureus Mining also has two gold-bearing licences in Cameroon, which cover a total of 787.5km2. The Batouri and Ntem licences host multiple gold in soil anomalies and extensive artisanal mining activity. Target generative work is in progress at both licences. 

Batouri licence area of 296.45km2 with multiple gold in soil anomalies

Ntem project of 491.0km2. Airborne geophysics over whole licence and 20% covered with soil geochemistry

Updated from company website 23rd February 2012