LONDON, UNITED KINGDOM--(Marketwire - Jan 22, 2013) - Amara Mining plc (AMA.L)(AMZ.TO), the dual AIM and TSX-listed West African focused gold mining company, is pleased to announce the production results for its Kalsaka Gold Mine ("Kalsaka") in Burkina Faso.
- Robust operational results in 2012 - production of 53,544 ounces at Kalsaka despite challenging conditions (total Group production for 2012: 54,925 ounces)
- Continued strong cash generation - cash and liquid assets of US$36.2 million at year end (31 December 2011: US$32.9 million)
- Trucking of material at neighbouring Sega Gold Project ("Sega") is expected to commence in mid-2013
- 2013 production guidance from Kalsaka/Sega of 50,000-60,000 ounces
Peter Spivey, Chief Executive Officer of Amara, commented:
"2012 was a defining year for Amara, with transformation across the Company. We are pleased to begin the New Year by announcing that our revised FY2012 production guidance has been met, despite challenging conditions in Burkina Faso, and we look ahead to uninterrupted production in 2013 as the Sega project comes online. With a resource update expected for Yaoure in Q1 and the feasibility study for Baomahun anticipated later in H1, we will move closer to our goal of becoming a mid-tier producer."
|Average ore head grade||(g/t)||1.23||1.45||(15%)|
|Average realised price sold||(US$/oz)||1,666||1,588||5%|
Kalsaka generated strong cashflow in 2012 and coupled with the US$20 million unhedged debt facility from Samsung C&T Corporation, Amara ended the year with a record US$36.2 million in cash and liquid assets. This represents a 10% increase on 2011 (US$32.9 million) and a 59% increase on 2010 (US$22.7 million).
Although annual gold production was weaker than in 2011, reflecting Kalsaka''s approach to the end of its minelife and an unusually heavy wet season in Burkina Faso, the average headgrade of the ore processed in 2013 is expected to strengthen as material from Sega becomes available and as the higher grade transitional ore is processed at Kalsaka. The trucking of material at Sega is expected to commence in mid-2013, before Kalsaka''s remaining reserves are exhausted, ensuring production continues uninterrupted. The environmental permit for Sega is expected to be received from the Burkina Faso government in Q1 2013, although management recognises this is an aggressive timeline given the recent change of government following elections in Burkina Faso in December 2012. It is anticipated that the mining licence will be received shortly after the environmental permit.
Amara expects to continue to generate robust cashflow in 2013 and full year production guidance from Kalsaka/Sega is 50,000-60,000 ounces.
Exploration at the Kalsaka-Sega complex is a primary focus for Amara. Exploration work on the Kalsaka permit in 2012 focused on areas east of the existing K-zone pits along the K-zone shear structure at the Zoungwa and Z-R prospects. Following this work, additional resources were defined and have been included in Kalsaka''s mine plan for 2013. Although these resources have a lower headgrade than the remaining Kalsaka reserves, they will provide a two month extension to Kalsaka''s minelife, further assisting a smooth handover to the processing of material from Sega.
Drilling results received to date from the Sega licence give confidence that there is further upside potential to Sega''s current resources, with encouraging intercepts logged at the Touli prospect. This upside potential adds further confidence that production will continue at the Kalsaka/Sega complex until production commences at Baomahun, which is expected in H2 2015. Amara intends to delineate additional resources from Touli and include them in Sega''s mine plan. Although this may increase the timeline until the mine plan is complete, management believes Sega''s value will be best realised through a thorough understanding of the project''s mine life.
An exploration update is planned for Kalsaka/Sega in Q1 2013.
Management Conference Call
The Company will host an analyst conference call at 9:00am UK. Dial in details are as follows:
|Telephone number (toll free from UK):||0808 237 0030|
|Other parts of the world:||+44 (0)203 139 4830|
|Participant PIN Code:||88637608#|
A second conference call will be hosted at 9:30am EDT/2:30pm UK time for North American analysts. Dial-in details are as follows:
|Canada||1866 404 5783|
|USA||1866 928 7517|
|Other parts of the world||+44 (0)203 139 4830|
|Participant PIN Code:||88637608#|
Notice of Results
Amara will announce its results for the year ended 31 December 2012 on Wednesday 27 March 2013. A meeting and conference call will be held in London for analysts at 9:30am UK time. A second call will be held at 2:30pm UK time (9:30am EST) for North American analysts and investors. Details of the conference call numbers will be announced at the time of the FY2012 results.
This report includes certain "forward-looking information" within the meaning of applicable Canadian securities legislation.
All statements other than statements of historical fact included in this report, including, without limitation, the positioning of the Company for future success, statements regarding exploration, production estimates, anticipated timing for the environmental permit and the mining licence for Sega, and future objectives of Amara, are forward-looking information that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Amara''s expectations include, among others, risks related to international operations, timing of receipt of mining licence, the actual results of current exploration and drilling activities, the reduction of the net smelter returns royalty on Sega, changes in project parameters as plans continue to be refined as well as the future price of gold. Although Amara has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Amara does not undertake to update any forward-looking statements that are included herein, except in accordance with applicable securities laws.
Peter Brown is a "Qualified Person" within the definition of National Instrument 43-101 and has verified the data disclosed in this release, including sampling, analytical and test data underlying the information contained herein, and reviewed and approved the information contained within this announcement. Dr Brown (MIMMM) is the Group Exploration Manager.