2012 Production Results for Kalsaka Gold Mine

2012 Production Results for Kalsaka Gold Mine 
LONDON, UNITED KINGDOM -- (Marketwire) -- 01/22/13 -- Amara Mining
plc (AIM:AMA)(TSX:AMZ), 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. 
HIGHLIGHTS 


 
--  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 anticipa
ted later in H1, we will move closer to our goal of
becoming a mid-tier producer." 
Kalsaka Production 


 
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                                                  2012       2011     Change
----------------------------------------------------------------------------
Ore mined                               (t)  1,624,788  1,898,711      (14%)
----------------------------------------------------------------------------
Waste mined                             (t)  8,072,798 12,670,996      (36%)
----------------------------------------------------------------------------
Ore processed                           (t)  1,557,656  1,646,166       (5%)
----------------------------------------------------------------------------
Average ore head grade                (g/t)       1.23       1.45      (15%)
----------------------------------------------------------------------------
Gold production                        (oz)     53,544     71,505      (25%)
----------------------------------------------------------------------------
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.  
Kalsaka/Sega Exploration 
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.
Contacts:
Amara Mining plc
John McGloin
Chairman
+44 (0)20 7398 1420 
Amara Mining plc
Peter Spivey
Chief Executive Officer
+44 (0)20 7398 1420 
Amara Mining plc
Pete Gardner
Finance Director
+44 (0)20 7398 1420 
Amara Mining plc
Katharine Sutton
Head of Investor Relations
+44 (0)20 7398 1420 
Canaccord Genuity Limited
(Nominated Adviser & Broker, London)
Rob Collins
+44 (0)20 7523 8350 
Canaccord Genuity Limited
(Nominated Adviser & Broker, London)
Sebastian Jones
+44 (0)20 7523 8350 
Canaccord Genuity Limited
(Nominated Adviser & Broker, London)
Joe Weaving
+44 (0)20 7523 8350 
Pelham Bell Pottinger
(Financial Public Relations)
Charlie Vivian
+44 (0)20 7861 3232 
Pelham Bell Pottinger
(Financial Public Relations)
Lorna Spears
+44 (0)20 7861 3232 
Pelham Bell Pottinger
(Financial Public Relations)
James Macfarlane
+44 (0)20 7861 3232
 
 
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