In its report on the June quarter, TSX- and AIM-listed Aureus Mining Inc says that it has recently restarted processing operations at its New Liberty Gold Mine (NLGM) in Liberia. This follows approval from Liberia’s Ministry of Lands, Mines and Energy (MLME) for the recommencement of processing operations in order to test a number of plant modifications and following delivery of additional reagents to site.
The company reported in May that operations at NLGM had been temporarily suspended as a consequence of problems with the detoxification circuit in the process plant. It said at the time that the detoxification circuit had not been operating to original design specifications resulting in higher concentrations of cyanide WAD (weak acid dissociated cyanide) in the process effluent.
Mining operations underway in the Larjor pit at New Liberty (photo: Aureus).
Aureus says that since the restart of processing operations, it has experienced periods of unscheduled plant downtime as it works to resolve processing plant performance issues, testing and further optimisation activities. The company will apply to the MLME for approval of the full and continued operation of the processing plant once it has achieved steady state operations for a continuous period of 60 days. Since the recommencement of processing operations, gold shipments have resumed with Aureus pouring and shipping approximately 3 500 ounces of gold.
Mining operations continued at New Liberty throughout the period of suspended processing operations, with a focus on exposing further fresh ore within the Kinjor and Larjor pits and establishing sumps allowing for continuing mining operations throughout the wet season. ROM stockpiles currently stand at approximately 201 367 tonnes of fresh ore at a grade of 3,24 g/t and oxide and transitional stockpiles stand at 91 719 tonnes at a grade of 1,46 g/t.
However, mining operations continue to be hampered by low equipment availability, with a consequential adverse effect on unit mining cost. Aureus is currently undertaking a review of the options to remedy the situation.
Aureus says it remains committed to maintaining its listing on both the AIM and TSX markets but points out that the immediate focus of the management team is to stabilise and then improve both operational and financial performance at NLGM.
The management team is currently undertaking a comprehensive review of the company’s cost base with a view to improving cash costs and operating margins. Following the completion of the operational and financial performance reviews and the achievement of steady state operations at New Liberty, Aureus intends to produce a new life of mine plan for the project.
Notwithstanding the closing of the previously announced US$30 million equity financing transaction with MNG Gold, as announced on 15 July 2016, Aureus’ management believes that the company remains under-capitalised to deliver to its full potential and is likely to require further funding for capital investment activities to deliver improvements in operational performance.
