Modern Mining March 2015

MINING News

In its report on the December quarter, Aureus Mining Inc, listed on the TSX and AIM, says that construction has continued to progress on its New Liberty Gold Mine (NLGM) in Liberia despite the challenges of operating throughout the Ebola out- break. The first gold pour at New Liberty is expected by the end of May 2015. New Liberty on target to pour first gold in May All significant areas of civil works have now been completed and handed over to the structural steel, mechanical, plate work and piping (SMPP) contractor for steelworks and further commissioning. The primary and secondary crushers and ball mill are now fully installed and await- ing power for directional testing with work

focusing on the completion of the con- veyor systems. According to Aureus, the Marvoe Creek diversion and Kinjor and Larjor village relocations were completed in mid-2014, allowing the commencement of mining operations in October 2014, with the first blast of 25 000 tonnes of waste rock suc- cessfully completed in January 2015. A new updated mine plan aligned to the current gold price environment has been developed to further de-risk the project. The plan increases opera- tional flexibility through the creation of two starter pits, providing increased face length and stockpile management and giving greater confidence that production targets will be met. Expected all-in sustaining cash costs are reduced by 7 % to US$789/oz and the post- tax project NPV of expected cash flows from commencement of commercial production increase to US$328 million. An additional 28 000 ounces of gold is expected to be produced in the first year of production through the mining of an additional starter pit, which brings the total Year 1 target pro- duction to 122 000 ounces of gold. Although New Liberty is expected to be producing gold by the end of May this year, further plant optimisation and final commissioning is only expected to occur in June and July, leading to steady state production at the end of July 2015.  Zambia requires a considerable investment by the company, not only in money but in senior management time. It is our opinion that, notwithstanding the potential of our Zambian assets, the immediate resources required to achieve a successful operation in Zambia would be better utilised on min- ing and short term cash generation in the areas of our ongoing focus. “I am therefore very pleased that we have achieved, on the one hand, an out- right sale and release from future liabilities in relation to our Zambian copper assets and, on the other hand, an earn-in agree- ment on our Nkombwa Hill assets where we retain a significant interest but with no further investment required and no mate- rial demands on management time.” 

Mining equipment working in New Liberty’s Larjor pit. Although Aureus is undertaking the mining itself, the min- ing fleet has been supplied and is being maintained by MonuRent (photo: Aureus Mining).

Vast Resources to divest itself of its Zambian assets

Roy Pitchford, Chief Executive Officer, commented: “Over recent months our attention has turned toward high value brownfield assets with the ability to generate material cash flow in the near term. With these criteria in mind, the Baita Bihor polymetallic mine in Romania and the Pickstone-Peerless gold project in Zimbabwe have been prioritised for accelerated development. Subject to the conclusion of satisfactory due dili- gence and the subsequent acquisition of an interest in Baita Bihor, the Board is targeting commercial production from both Baita Bihor and Pickstone-Peerless by H2 2015. “With this strategy in mind, it has become evident to us that success in

AIM-listed Vast Resources plc (previously African Consolidated Resources) reports that – as part of the transition of its focus from exploration to mining and to near term cash generation – it has, subject to due diligence, agreed to divest its non- core Zambian assets. It has agreed to sell its subsidiary, African Consolidated Resources (Zambia) Limited, and the company’s remaining directly owned Zambian copper inter- ests, which include its contract to acquire the Kalengwa mine for US$1,1 million. It has also entered into an earn-in arrange- ment for the continued exploration of the Nkombwa Hills project for rare earths and phosphates under the operational man- agement of a new earn-in partner.

12  MODERN MINING  March 2015