Amara Mining PLC: RESULTS OF FIRST PHASE OF BAOMAHUN OPTIMISATION LONDON, UNITED KINGDOM -- (Marketwired) -- 01/30/14 -- Amara Mining PLC (AIM: AMA) (TSX: AMZ) *T LSE: AMA; TSX: AMZ 30 January 2014 AIM:AMA Amara Mining plc ("Amara" or "the Company") RESULTS OF FIRST PHASE OF BAOMAHUN OPTIMISATION WORK Amara Mining plc, the AIM-listed West African focused gold mining company, is pleased to announce the results of the first phase of optimisation work[i] for the July 2013 Feasibility Study ("FS") of the Baomahun Gold Project ("Baomahun") in Sierra Leone. HIGHLIGHTS * First phase of optimisation work focused on 'right-sizing' the plant to the deposit to reflect current market conditions and gold price outlook. The optimisation studies demonstrated that a 1 million tonne per annum ("Mtpa") plant would allow for: o the selective mining of the deposit's higher grade core in a smaller open pit o the longer term mine feed from underground sources to unlock the full potential of Baomahun's Mineral Resources * Based upon this smaller scenario, there is a 40% reduction in the upfront capital cost to US$90 million and a 43% reduction in the total pre-production capital costs to US$143 million compared to the FS * Average production in years 1-6 remains robust at 88,000 ounces per annum with total cash costs (including royalties) reduced by 11% to US$711 per ounce over the life of mine ("LOM") * At a gold price of US$1,350 which was used for the FS, the open pit only scenario delivers a post-tax Internal Rate of Return ("IRR") consistent with the FS at 22% and a post-tax Net Present Value ("NPV") of US$80 million at a discount rate of 8% * At a gold price of US$1,250, the post-tax IRR is 17% and the post-tax NPV is US$50 million at a discount rate of 8% for an open pit only scenario * Baomahun's metrics are in line with other similar West African gold projects on an open pit only basis, however the underground opportunity transforms its economics Click on, or paste the following link into your web browser, to view the associated PDF document: http://www.rns-pdf.londonstockexchange.com/rns/8393Y_1-2014-1-29.pdf This information is provided by RNS The company news service from the London Stock Exchange END Contacts: RNS Customer Services 0044-207797-4400 firstname.lastname@example.org http://www.rns.com
Amara Mining PLC: RESULTS OF FIRST PHASE OF BAOMAHUN OPTIMISATION
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