Avesoro Resources Inc. - Q4 2018 Production Results and Full Year Production Guidance Achieved

TSX: ASO
AIM: ASO

TORONTO, Jan. 17, 2019 /CNW/ - Avesoro Resources Inc., ("Avesoro" or the "Company"), the TSX and AIM listed West African gold producer, is pleased to announce its preliminary production results for the quarter ended December 31, 2018 ("Q4" or the "Quarter") of 44,962 ounces. The Company achieved full year guidance with 220,458 ounces of gold produced for the year ended December 31, 2018 ("FY 2018") from its New Liberty Gold Mine ("New Liberty") in Liberia, and Youga Gold Mine ("Youga") in Burkina Faso.

Highlights:

• FY 2018 gold production of 220,458 ounces, a 15% increase on FY 2017 pro-forma group production; and
• Gold production by asset, as follows:
• New Liberty gold production of 24,573 ounces in the Quarter and 109,707 ounces in FY 2018, a 44% increase on FY 2017; and
• Youga gold production of 20,389 ounces in the Quarter and 110,751 ounces in FY 2018, a 4% reduction on FY 2017.

The Company intends to provide 2019 production guidance and an updated Mineral Reserve and Resource estimate for New Liberty, including the Ndablama satellite deposit, in March 2019.

Serhan Umurhan, Chief Executive Officer of Avesoro, commented: "2018 represented a significant year for Avesoro and established our position as a multi-asset producer. I am very pleased to announce that we have achieved our full year production guidance for 2018, which remained unchanged throughout the year. 2018 annual production of 220,458 ounces also represents a 15% increase compared with 2017 pro-forma production from the two mines. The substantial increase in gold production at New Liberty of 44% versus the prior year also underlines the strong performance of our team as we continue to optimise operational performance and add value at our mines.

Moving into 2019, I look forward to updating the market on the results of the ongoing prefeasibility study at the New Liberty underground project which is also expected to include the first open pit reserves from the Ndablama satellite deposit towards the end of the first quarter of 2019. The focus for this coming year will be on the delivery of strong cash flow and further debt reduction following the substantial reinvestment of cash generated by operations that characterised 2018."

Table 1: Preliminary Full Year 2018 Production Results

Parameter	Unit	New  Liberty FY2018	New Liberty FY2017	Variance	Youga FY2018	Youga FY2017^1	Variance	Group Results FY2018	Group Results FY2017^1	Variance
Ore Mined	kt	1,352*	1,166	16%	969	870	11%	2,321	2,036	14%
Waste Mined	kt	21,797*	12,935	69%	14,472	8,645	67%	36,269	21,580	68%
Total Material Movement	kt	23,149	14,102	64%	15,441	9,515	62%	38,590	23,617	63%
Ore Processed	kt	1,411	1,144	23%	1,237	1,200	3%	2,648	2,344	13%
Gold Production	Ounces	109,707	76,179	44%	110,751	115,894	-4%	220,458	192,073	15%

Note:	^1Including the period prior to acquisition of Youga by the Company on December 18, 2017.
	*Including adjustments for year-end survey reconciliation.

New Liberty
Improvements in mining fleet availability and in-pit efficiencies resulted in a 21% increase in total material movement during the Quarter following the wet season in Q3 2018. Process plant throughput for the Quarter increased by 2% to 362kt, however, gold production for the Quarter reduced by 11% on the previous quarter due to a decrease in plant feed grades.

Table 2: New Liberty Performance Metrics

Parameter	Unit	Q4-2018	Q3-2018	Variance	Q4-2017	Variance
Ore Mined	kt	347	396	-12%	354	-2%
Mined Grade	g/t	2.77	2.86	-3%	2.53	9%
Waste Mined	kt	6,445	5,237	23%	2,445	164%
Strip Ratio	Waste: Ore	18.6	13.2	41%	6.9	169%
Total Material Movement	kt	6,792	5,634	21%	2,800	143%
Ore Processed	kt	362	354	2%	315	15%
Feed Grade	g/t	2.44	2.82	-13%	2.97	-18%
Recovery	%	89	90	-1%	90	-1%
Gold Production	Ounces	24,573	27,456	-11%	25,563	-4%

Youga
Total material movement for the Quarter was 4,281kt, an increase of 3% on the previous quarter. Mined grade and plant feed grades were adversely impacted during the Quarter by unplanned ore dilution experienced during mining in the Gassore pit by -5% and -16% respectively.  However, this was compensated for by an increase of 24% in plant throughput, with the plant throughput returning to normalised levels following a reduction during Q3 caused by the impact of unusually heavy rains. Gold production in the Quarter totalled 20,389 ounces, an increase of 3% on Q3 2018.

Table 3: Youga Performance Metrics

Parameter	Unit	Q4-2018	Q3-2018	Variance	Q4-2017	Variance
Ore Mined^1	kt	282	233	21%	210	34%
Mined Grade^1	g/t	2.62	2.76	-5%	5.84	-55%
Waste Mined	kt	3,998	3,909	2%	1,951	105%
Strip Ratio	Waste: Ore	14.2	16.8	-16%	9.3	52%
Total Material Movement	kt	4,281	4,142	3%	2,161	98%
Ore Processed	kt	345	279	24%	306	13%
Feed Grade	g/t	2.04	2.44	-16%	3.30	-38%
Recovery	%	90	90	0%	89	1%
Gold Production	Ounces	20,389	19,721	3%	28,845	-29%

¹ Including 21kt of ore at 4.81 g/t from the Balogo satellite deposit in Q4 2018 (Q3 2018: 44kt at 4.53 g/t;).

Outlook

The Company intends to provide 2019 production and cost guidance and updated Mineral Reserve and Resource estimates for the New Liberty underground project, including the Ndablama satellite deposit, during March 2019. 

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

About Avesoro Resources Inc.

Avesoro Resources is a West Africa focused gold producer and development company that operates two gold mines across West Africa and is listed on the Toronto Stock Exchange ("TSX") and the AIM market operated by the London Stock Exchange ("AIM"). The Company's assets include the New Liberty Gold Mine in Liberia ("New Liberty") and the Youga Gold Mine in Burkina Faso ("Youga").

New Liberty has an estimated Proven and Probable Mineral Reserve of 7.4Mt with 717,000 ounces of gold grading 3.03g/t and an estimated Measured and Indicated Mineral Resource of 11.5Mt with 1,105,000 ounces of gold grading 3.0g/t and an estimated Inferred Mineral Resource of 3.7Mt with 424,000 ounces of gold grading 3.6g/t. The Company has prepared an NI 43-101 compliant Technical Report dated November 1, 2017 and entitled "New Liberty Gold Mine, Bea Mountain Mining Licence Southern Block, Liberia, West Africa" and is available on SEDAR at www.sedar.com.

Youga has an estimated Proven and Probable Mineral Reserve of 11.2Mt with 660,100 ounces of gold grading 1.84g/t and a combined estimated Measured and Indicated Mineral Resource of 16.64Mt with 924,200 ounces of gold grading 1.73g/t and an Inferred Mineral Resource of 13Mt with 685,000 ounces of gold grading 1.70g/t. The foregoing Mineral Reserve and Mineral Resource estimates and additional information in connection therewith, prepared in accordance with CIM guidelines, is set out in an NI 43-101 compliant Technical Report dated July 31, 2018 and entitled "Mineral Resource and Mineral Reserve Update for the Youga Gold Mine, Burkina Faso" and is available on SEDAR at www.sedar.com.

For more information, please visit www.avesoro.com

Qualified Persons

The Company's Qualified Person is Mark J. Pryor, who holds a BSc (Hons) in Geology & Mineralogy from Aberdeen University, United Kingdom and is a Fellow of the Geological Society of London, a Fellow of the Society of Economic Geologists and a registered Professional Natural Scientist (Pr. Sci.Nat) of the South African Council for Natural Scientific Professions. Mark Pryor is an independent technical consultant with over 25 years of global experience in exploration, mining and mine development and is a "Qualified Person" as defined in National Instrument 43 -101 "Standards of Disclosure for Mineral Projects" of the Canadian Securities Administrators and has reviewed and approved this press release. Mr. Pryor has verified the underlying technical data disclosed in this press release.

Forward Looking Statements

Certain information contained in this press release constitutes forward looking information or forward-looking statements within the meaning of applicable securities laws. This information or statements may relate to future events, facts, or circumstances or the Company's future financial or operating performance or other future events or circumstances. All information other than historical fact is forward looking information and involves known and unknown risks, uncertainties and other factors which may cause the actual results or performance to be materially different from any future results, performance, events or circumstances expressed or implied by such forward-looking statements or information. Such statements can be identified by the use of words such as "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "would", "project", "should", "believe", "target", "predict" and "potential". No assurance can be given that this information will prove to be correct and such forward looking information included in this press release should not be unduly relied upon. Forward looking information and statements speak only as of the date of this press release.

Forward looking statements or information in this press release include, among other things, statements regarding the provision of 2019 production and cost guidance, and updated Mineral Reserve and Resource estimates for the New Liberty underground project in March 2019.

In making the forward looking information or statements contained in this press release, assumptions have been made regarding, among other things: general business, economic and mining industry conditions; interest rates and foreign exchange rates; the continuing accuracy of Mineral Resource and Reserve estimates; geological and metallurgical conditions (including with respect to the size, grade and recoverability of Mineral Resources and Reserves) and cost estimates on which the Mineral Resource and Reserve estimates are based; the supply and demand for commodities and precious and base metals and the level and volatility of the prices of gold; market competition; the ability of the Company to raise sufficient funds from capital markets and/or debt to meet its future obligations and planned activities and that unforeseen events do not impact the ability of the Company to use existing funds to fund future plans and projects as currently contemplated; the stability and predictability of the political environments and legal and regulatory frameworks including with respect to, among other things, the ability of the Company to obtain, maintain, renew and/or extend required permits, licences, authorizations and/or approvals from the appropriate regulatory authorities; that contractual counterparties perform as agreed; 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.

Actual results could differ materially from those anticipated in the forward-looking information or statements contained in this press release as a result of risks and uncertainties (both foreseen and unforeseen) and should not be read as guarantees of future performance or results and will not necessarily be accurate indicators of whether or not such results will be achieved. These risks and uncertainties include the risks normally incidental to exploration and development of mineral projects and the conduct of mining operations (including exploration failure, cost overruns or increases, and operational difficulties resulting from plant or equipment failure, among others); the inability of the Company to obtain required financing when needed and/or on acceptable terms or at all; risks related to operating in West Africa, including potentially more limited infrastructure and/or less developed legal and regulatory regimes; health risks associated with the mining workforce in West Africa; risks related to the Company's title to its mineral properties; the risk of adverse changes in commodity prices; the risk 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 jurisdictions where the Company operates, including adverse or arbitrary changes in applicable laws or regulations or in their enforcement; competitive conditions in the mineral exploration and mining industry; risks related to obtaining insurance or adequate levels of insurance for the Company's operations; that Mineral Resource and Reserve estimates are only estimates and actual metal produced may be less than estimated in a Mineral Resource or Reserve estimate; the risk that the Company will be unable to delineate additional Mineral Resources; risks related to environmental regulations and cost of compliance, as well as costs associated with possible breaches of such regulations; uncertainties in the interpretation of results from drilling; risks related to the tax residency of the Company; the possibility that future exploration, development or mining results will not be consistent with expectations; the risk of delays in construction resulting from, among others, the failure to obtain materials in a timely manner or on a delayed schedule; inflation pressures which may increase the cost of production or of consumables beyond what is estimated in studies and forecasts; changes in exchange and interest rates; risks related to the activities of artisanal miners, whose activities could delay or hinder exploration or mining operations; the risk that third parties to contracts may not perform as contracted or may breach their agreements; the risk that plant, equipment or labour may not be available at a reasonable cost or at all, or cease to be available, or in the case of labour, may undertake strike or other labour actions; the inability to attract and retain key management and personnel; and the risk of political uncertainty, terrorism, civil strife, or war in the jurisdictions in which the Company operates, or in neighbouring jurisdictions which could impact on the Company's exploration, development and operating activities.

Although the forward-looking statements contained in this press release are based upon what management believes are reasonable assumptions, the Company cannot provide assurance that actual results or performance will be consistent with these forward-looking statements. The forward looking information and statements included in this press release are expressly qualified by this cautionary statement and are made only as of the date of this press release. The Company does not undertake any obligation to publicly update or revise any forward looking information except as required by applicable securities laws.

SOURCE Avesoro Resources Inc.

Avesoro Resources Inc., Geoff Eyre / Nick Smith, Tel: [phone]; Camarco, (IR / Financial PR), Gordon Poole / Nick Hennis, Tel: [phone]; finnCap, (Nominated Adviser and Joint Broker), Christopher Raggett/Scott Mathieson/Camille Gochez, Tel: [phone]; Berenberg, (Joint Broker), Matthew Armitt/Sara MacGrath/Detlir Elezi, Tel: [phone]; Hannam & Partners (Advisory) LLP, (Joint Broker), Rupert Fane/Ingo Hofmaier/Ernest Bell, Tel: [phone]

Related Links

https://avesoro.com/