Avesoro Resources shares preliminary 1Q19 production results

Operational highlights:

• Consolidated gold production of 45 098 oz in the quarter;

1. New Liberty gold production of 25 855 oz in the quarter, a 5% increase on 4Q18;
2. Youga gold production of 19 243 oz in the quarter, a 6% reduction on 4Q18; and

• Total material movement of 13 201 000 t in the quarter, a 19% increase on 4Q18, including 609kt of ore and 12 592 000 t of waste material.

Serhan Umurhan, CEO of Avesoro, commented: “The quarter saw both the mined grade and plant feed grades increasing quarter on quarter at both New Liberty and Youga and with New Liberty increasing gold production levels to achieve group quarterly production of 45 098 oz.

However, performance at both mines was slightly behind our targetted production levels for the quarter with the shortfall in gold production vs. our target predominantly due to lower plant throughput at both operations. At New Liberty, this shortfall was a consequence of a lack of available ore faces within the pit during the early part of the quarter. The increased focus on waste stripping throughout 119 has now resolved this issue and we expect to maintain availability of ore for the remainder of the year. At Youga, additional lower grade ore blocks were mined which together with unexpected ore dilution impacted the average grade of mined ore at the Gassore pit. In response to this, smaller excavators are now being used to reduce dilution whilst the haulage capacity of our existing haul trucks has been increased to ensure required ore volumes are transported to the ROM pad.

Our annual group guidance of 210 000 - 230 000 oz is maintained. We expect Youga to contribute between 90 000 - 100 000 oz, with the difference being compensated for by New Liberty, where the company is in advanced discussions with an open-pit mining contractor. If concluded successfully, the engagement of the contractor is expected to reduce our mining costs below the already very attractive internal cost per tonne that we achieve, provide access to additional mining equipment to increase material movement and outperform the original production guidance at the mine.

I now look forward to updating the market on the updated NI 43-101 Mineral Resource and Mineral Reserve update for Youga, which we intend to complete during the second quarter of 2019.”

Total material movement for the quarter was 4 764 000 t, an increase of 11% on the previous quarter, with waste mined increasing by 12% to 4472 t and ore mined increasing by 4% to 292 000 t. Whilst mining continued to focus on the Gassore Pit adjacent to the Youga process plant, plant feed grades continued to be adversely impacted by mining of additional ore with lower grades, which was identified during grade control drilling and unplanned ore dilution. In order to lower this dilution, and rectify this issue, Management has reduced the mining rate within the Gassore pit by utilising smaller excavators and supplemented plant feed with existing ROM stocks. As a result of this, and despite the small increase in ore mined, the level of ore processed during the quarter reduced by 7% to 320 000 t. This resulted in gold production of 19 243 oz, a 6% reduction on 4Q18 levels. Management has upgraded the haulage capacity of the existing haul trucks in order to allow additional ore tonnage to be mined and transported to the ROM pad for processing.

Read the article online at: https://www.globalminingreview.com/finance-business/12042019/avesoro-resources-shares-preliminary-1q19-production-results/