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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.
Vast Resources to divest itself of its Zambian assets
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
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).
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.
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.
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
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.”