9 June 2016
Aureus Mining Inc.
TSX : AUE
AIM : AUE
NEW LIBERTY GOLD MINE
UPDATE ON THE RECOMMENCEMENT OF PROCESSING OPERATIONS
Aureus Mining Inc. ("Aureus" or the "Company"), the TSX and AIM listed West African gold producer, is pleased to
announce that it has made significant progress towards the recommencement of gold processing operations at the New Liberty
Mine.
The Company highlights the following:
· The Environmental Protection Agency of Liberia ("EPA") has
granted the Company permission to discharge from its Tailings Storage Facility ("TSF") and issued a permit for future discharges
in compliance with the International Cyanide Management Code ("ICMC") limits;
· A detailed start-up plan has been submitted to Ministry of Lands,
Mines and Energy ("MLME") for formal approval, outlining a controlled start-up of the gold processing plant;
· The Company has received a letter from the MLME
stating their commitment to working with the Company to recommence operations and supporting the detailed start-up plan the
Company has submitted for its review;
· Modifications to the gold processing plant and detoxification
circuit are nearing completion;
· The recommencement of gold processing operations is currently
targeted for mid-June 2016 following the completion of gravity circuit screen replacement works and a full mill reline;
· Mining operations have continued with a current run of mine
("ROM") ore stockpile balance of approximately 105,694 tonnes at a grade of 4.02 g/t Au; and
· The Company is in advanced discussions to secure additional
funding in the short term from a potential strategic partner.
During the temporary suspension of processing operations, the Company has been focused upon the completion of
various modifications to the process plant and detoxification circuit, with the assistance of technical specialists from Maelgwyn
Mineral Services Africa ("MMSA"). These modifications are nearing completion and have all been undertaken in accordance
with the ICMC and various operational reviews have been carried out on site by international consultants including TSF experts
Knight Piésold Consulting (UK) ("Knight Piésold").
Prior to the recommencement of processing operations, the Company intends to complete a full
reline of the New Liberty ball mill, which was previously scheduled to be undertaken at the end of June 2016. This reline
involves the mill being fitted with more heavy duty liners than originally supplied and improved lifters and grates.
The Company has received a letter from the MLME stating their commitment to working together with
the Company to recommence operations at New Liberty and supporting the detailed start-up plan the Company has submitted for
review. Following the completion of the on-going modifications to the process plant, and subsequent sign off by both MMSA
and representatives of the MLME, the Company expects the MLME to grant formal approval to commence with a controlled
start-up of the gold processing plant.
The detailed start-up plan submitted by the Company includes a gradual ramp-up in operations with waste and low
grade ore towards name plate capacity at ROM grade ore, and including scheduled periods of plant downtime to allow for
performance testing and additional modifications to be made within the process plant. It is anticipated that this
controlled start-up process will be initiated with the support of staff from MMSA, and in full cooperation with both the EPA and
MLME.
A further announcement will be communicated following receipt of the MLME's approval to commence start-up of the
process plant.
The Company believes that following extensive consultation and technical studies by international experts, the
plant modifications currently being undertaken and the enhanced monitoring programme and compliance regime it has initiated at
New Liberty will enable it to operate in compliance with its operating licence and social commitments as well as its commitment
to compliance with the ICMC.
Investigations to date have shown that cyanide discharge exceedances of ICMC compliance guidelines and the
environmental laws of Liberia have been recorded on the TSF and at environmental compliance monitoring points downstream of the
TSF periodically between mid-December 2015 and March 2016. Full disclosure of the historic exceedances has been made to the
EPA. These exceedances can be attributed to operational issues at the plant, including complications with the oxygen plant,
the detoxification circuit and on site laboratory resulting in a lack of stable operating conditions. Processing operations
were suspended as previously reported by the Company on 10 May 2016.
Investigations led by international experts are ongoing with the aim of understanding the impact of these
discharges on the river ecosystem and downstream water users, and defining appropriate rehabilitation actions. The Company
has provided additional water wells within the village of Jikando, the closest settlement to New Liberty situated five kilometres
downstream, and is ensuring there is no impact on the residents' livelihoods while assessments to the downstream river ecosystem
continue.
Contact Information
Aureus Mining Inc.
David Reading / Paul Thomson
Tel: +44(0) 20 7010 7690
|
Buchanan
Bobby Morse / Anna Michniewicz
Tel: +44(0) 20 7466 5000
|
Numis Securities Limited
(Nominated Adviser)
John Prior / James Black / Paul Gillam
Tel: +44(0) 20 7260 1000
|
RBC Capital Markets
(Financial Advisor)
Richard Horrocks-Taylor / Richard Hughes
Tel: +44(0) 20 7653 4000
|
About Aureus Mining Inc.
The Company's assets include the New Liberty Gold Mine in Liberia (the "New Liberty Gold Mine," "New Liberty" or
the "mine") which has an estimated proven and probable mineral reserve of 8.5 Mt with 924,000 ounces of gold grading 3.4 g/t and
an estimated measured and indicated mineral resource of 9,796 Kt with 1,143,000 ounces of gold grading 3.63 g/t and an estimated
inferred mineral resource of 5,730 Kt with 593,000 ounces of gold grading 3.2 g/t. A Definitive Feasibility Study ("DFS")
has been completed, the first gold pour has taken place and commercial production has been declared. The foregoing mineral
reserve and mineral resource estimates and additional information in connection therewith are set out in the Company's technical
report dated March 25, 2015 and entitled "New Liberty Gold Project, Bea Mountain Mining Licence Southern Block, Liberia, West
Africa, Definitive Project Plan."
The New Liberty Gold Mine is located within the Southern Block of the 100% owned Bea Mountain mining licence.
This licence covers 478 km² and has a 25 year, renewable, mineral development agreement. The Bea Mountain mining license
also hosts additional gold projects of Ndablama, Gondoja, Weaju and Leopard Rock which are the focus of exploration programs
during 2016. Ndablama has an indicated mineral resource of 386,000 ounces of gold grading 1.6 g/t and inferred mineral resource
of 515,000 ounces of gold grading 1.7 g/t and Weaju has an inferred mineral resource of 178,000 ounces of gold grading 2.1
g/t. The Yambesei (759 km2), Archaen West (112.6 km2), Mabong (36.6 km2) and Mafa West
(15.6 km2) licences will also be subject to preliminary reconnaissance geological work. The foregoing mineral
resource estimates and additional information in connection therewith are set out in the Company's technical report dated
December 1, 2014 and entitled "Ndablama and Weaju Gold Projects, Bea Mountain Mining Licence, Northern Block, Technical Report on
Mineral Resources" ("Ndablama and Weaju Technical Report 2014").
The Company also has a gold exploration permit in Cameroon.
Qualified Persons
The Company's Qualified Person is David Reading, who holds a MSc in Economic Geology from University of Waterloo,
Canada and is a Fellow of the Institute of Materials, Minerals and Mining. David Reading is the President and CEO of Aureus
Mining Inc. and has reviewed and approves this press release.
Forward Looking Statements
Certain information contained in this Announcement constitutes forward looking information. This information
may relate to future events or the Company's future performance. All information other than information of historical fact
is forward looking information. The use of any of the words "anticipate", "plan", "continue", "estimate", "expect", "may",
"will", "project", "should", "believe", "predict" and "potential" and similar expressions are intended to identify forward
looking information. This information involves known and unknown risks, uncertainties and other factors that may cause
actual results or events to differ materially from those anticipated in such forward looking information. No assurance can
be given that this information will prove to be correct and such forward looking information included in this Announcement should
not be unduly relied upon. This information speaks only as of the date of this Announcement. Such forward looking
information includes, among other things, statements or information relating to: plans to recommence processing operations, to
conduct various environmental and social studies, to construct remediation facilities and to modify the process plant and
detoxification circuit, the Company's ability to successfully complete the foregoing, the continuation of commercial production
at the New Liberty Gold Mine and the proposed plans relating thereto regarding operations, estimates relating to tonnage, grades,
waste ratios, recovery rates and future gold production, expectations regarding throughput gold production, mill treatment and
plant feed, expectations regarding the engagement of external contractors, as well as the other forecasts, estimates and
expectations relating to the New Liberty Gold Mine included in this Announcement; the future market price of commodities;
production targets; timetables; the continued listing of the common shares of the Company on the TSX and AIM.
With respect to forward looking information contained in this Announcement, assumptions have been made regarding,
among other things: general business, economic and mining industry conditions; that Aureus will be able to advance and complete
its planned remediation, rehabilitation and restoration activities within expected timeframes; that there will be no significant
delay or other material impact on the expected timeframes for completion of the planned remediation and restoration of the New
Liberty Gold Mine and the recommencement of processing operations; that any required permits, approvals and arrangements to
proceed with planned remediation and restoration and the resumption of processing operations will be obtained in a timely manner;
that there will be no interruptions that will materially delay Aureus' progress with any remediation plans; that Aureus will have
access to any additional capital if required to fund such activities and other operations; , the ability of the Company to
obtain, maintain, renew and/or extend required permits, licences, authorizations and/or approvals from the appropriate regulatory
authorities; interest rates and foreign exchange rates the parameters and assumptions employed in the New Liberty Technical
Report, (including but not limited to, those relating to future mining and operating costs, processing and recovery rates, net
present values and internal rates of return, timing for the commencement of production, tax and royalty rates, future gold
prices, metallurgical rates, operations and management, grades); the supply and demand for commodities and precious and base
metals and the level and volatility of the prices of gold; the ability of the Company to raise sufficient funds from capital
markets and/or debt to meet its future obligations and planned activities; the obtaining of waivers and amendments from the
Company's creditors in respect of its debt repayment obligations; the business of the Company including the political
environments and legal and regulatory frameworks in and the ability of the Company to continue to obtain qualified staff
and equipment in a timely and cost-efficient manner to meet its demand. Assumptions used in the preparation of such information,
although considered reasonable by Aureus at the time of preparation, may prove to be incorrect.
Actual results could differ materially from those anticipated in the forward looking information contained in this
Announcement as a result of the risk factors, including: uncertainty regarding the outcome of any sample testing and analysis to
be conducted on the area affected by the overflow from the TSF; risks relating to the timely receipt of necessary approvals and
consents to proceed with the proposed remediation plan and with the recommencement of processing operations; risks relating to
the timing, costs and liabilities relating to the proposed modifications and new facilities; uncertainty as to actual timing of
completion of any remediation and restoration activities and the recommencement of processing operations at the New Liberty Gold
Mine; risks relating to the impact of the overflow from the TSF on Aureus' reputation; the quantum of any claims, fines or
penalties that may become payable by Aureus and the risk that current sources of funds are insufficient to fund any such
liabilities; risks that Aureus will be unsuccessful in defending against any legal claims or potential litigation; risk of costs
arising from any unforeseen longer-term environmental consequences of the overflow from the TSF at the New Liberty Gold Mine
risks normally incidental to exploration and development of mineral properties; the inability of the Company to obtain required
financing, when needed and/or on acceptable terms or at all; the inability to obtain required waivers and amendments from the
Company's creditors in respect of its debt repayment obligations and consequential risks of default thereon; risks related to
operating in West Africa; health risks associated with the mining workforce in West Africa; risks related to the Company's title
to its mineral properties; adverse changes in commodity prices; risks related to current global financial conditions; risks that
the Company's exploration for and development of mineral deposits may not be successful; the inability of the Company to obtain,
maintain, renew and/or extend required licences, permits, authorizations and/or approvals from the appropriate regulatory
authorities and other risks relating to the legal and regulatory frameworks in Liberia, including adverse changes in applicable
laws; competitive conditions in the mineral exploration and mining industry; risks related to obtaining insurance or adequate
levels of insurance for the Company's operations; uncertainty of mineral resource and reserve estimates; the inability of the
Company to delineate additional mineral resources; risks related to environmental regulations; uncertainties in the
interpretation of results from drilling; uncertainties in the estimates and assumptions used, and risks in the methodologies
employed, in the New Liberty Technical Report and that the completion of additional work at the New Liberty Gold Mine could
result in changes to the forecasts, estimates and expectations contained in the New Liberty Technical Report; risks related to
the legal systems in Liberia; risks related to the tax residency of the Company; the possibility that future exploration,
development or mining results will not be consistent with expectations; inflation; changes in exchange and interest rates; risks
related to the activities of artisanal miners; actions of third parties that the Company is reliant upon; lack of availability at
a reasonable cost or at all, of plants, equipment or labour, including required equipment, explosives and other necessary
material not being delivered in the expected time frame, or at all; the inability to attract and retain key management and
personnel; political risks; the inability to enforce judgments against the Company's directors and officers; and future
unforeseen liabilities and other factors.
The forward looking information included in this Announcement is expressly qualified by this cautionary statement
and is made as of the date of this Announcement. The Company does not undertake any obligation to publicly update or revise
any forward looking information except as required by applicable securities laws.