AMA AMARA MINING

Trades on a forward P/E of just over
8.5 to 2013 ...Derd cheap imo.

Amara Mining PLC

FORECASTS 2012 2013
Date Rec Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)

GMP Securities
01-10-12 BUY 1.80 7.76
Edison Investment Research
28-09-12 None 10.95 2.97 38.92 14.47
Westhouse Securities
13-09-12 SBUY 10.00 2.40 13.70 4.50
Seymour Pierce
03-09-12 BUY 9.07 2.64 25.25 7.56
W H Ireland Ltd
28-08-12 BUY 13.76 8.76 21.34 10.33

2012 2013
Pre-tax (£) EPS (p) DPS (p) Pre-tax (£) EPS (p) DPS (p)

Consensus 10.91 3.62 24.88 8.90
1 Month Change -1.29 -0.48 1.37 0.32
3 Month Change -2.37 -0.03 24.88 0.26


GROWTH
2011 (A) 2012 (E) 2013 (E)
Norm. EPS % -39.36% 146.20%
DPS % % %

INVESTMENT RATIOS
2011 (A) 2012 (E) 2013 (E)

EBITDA £22.95m £21.77m £33.70m
EBIT £13.32m £8.94m £25.12m
Dividend Yield % % %
Dividend Cover x x x
PER 12.75x 21.02x 8.54x
PEG f -0.53f 0.06f
Net Asset Value PS 18.76p p p

Yesterdays RNS overview

UPDATE: Amara Mining unveils ‘significantly more robust’ Baomahun resource
Mon 12:38 pm by Jamie AshcroftBroker Westhouse said the structural work has identified more targets that lie within the current pit shell

Amara Mining (LON:AMA, TSE: AMZ) has updated the indicated gold resource at the Baomahun project to 2.24 million ounces.

The Baomahun project, in Sierra Leone, is being advanced through a feasibility study which is due in the first half of next year. This puts the project on track for first gold production in 2015.

The new update has increased indicated resources by adding material from a low grade halo that’s found around a high grade core - the resource now stands at 38.4 million tonnes at 2.6 grams per tonne (g/t).

Baomahun’s high grade core deposit remains at 23 million tonnes at 2.6 g/t for 1.92 million ounces of indicated gold resources.

Amara says the new resource model is significantly more robust.

“The completion of the resource update for Baomahun, following the additional structural work, is a key step on our path to delivering long term value at the project,” said chief executive Peter Spivey.

“Not only does this represent a robust geological model for the development of our feasibility study, it also significantly increases our understanding of the genesis of the Baomahun deposit, highlighting a number of additional near term exploration targets and assisting with the long term exploration of our tenements.

“With the new geological model we move forward with increasing confidence as we complete the work required to develop Baomahun.”

Broker Westhouse said the structural work has identified more targets that lie within the current pit shell, with the potential to replace material currently classified as waste.

“This could result in a reduced strip ratio and therefore increased project economics,” added analyst Rob Broke.

He keeps his ‘buy’ rating and 124p target price on the stock, more than twice the current value of the shares which stand at 60.6p, up 1.6p or 2.7% today.



I Still Hold

http://tomwinnifrith.com/articles/1469/amara-mining-cluff-gold-baomahun-results-analysis


TWs update for what its worth.

Amara reveals further significant results at Yaoure
StockMarketWire.com
Amara Mining - formerly Cluff Gold - has revealed further significant sulphide drilling results from its Yaoure project in Cote d'Ivoire.

It says drill results continue to confirm the potential for a large, moderate-grade sulphide deposit underlying the previously mined oxide resources at Yaoure.

All of the 90 holes reported have encountered mineralisation.

Significant intercepts include 38.1m at 3.67g/t from 102.9m in hole YDD0068 and 8.0m at 9.47g/t from 69.0m and 43.2m at 1.78 g/t from 144.9m(i) in hole YDD0073.

Chief executive Peter Spivey said: "These latest drilling results from Yaoure continue to confirm our belief in the project's potential.

"We expect the remaining assays in the coming days and we intend to update our sulphide resources in Q1 2013.

"By using our cashflow from Kalsaka to fund our exploration at Yaoure and at the Baomahun project in Sierra Leone, Amara is differentiating itself from other junior mining companies and delivering on its strategy to become a mid-tier producer."

Amara Mining braced for busy year of potential catalysts

Tue 11:03 am by Jamie Ashcroft

Amara is expecting to produce 53-57,000 ounces of gold this year, throwing off around $30-40mln a year in earnings.

For an AIM quoted gold miner Amara Mining (LON:AMA) has a particularly busy schedule packed full of potential catalysts.

With cash generative production, a major mine development project and exploration upside it ticks many of the boxes for investors that might otherwise be looking at much bigger companies.

It is not a new story for investors, however.

The company, previously called Cluff Gold, has been around for years, but key board changes and a reboot of the brand has rejuvenated the investment case in the eyes of some investors.

Indeed, RFC Ambrian said in a note recently that Amara was set for a brighter future, while banking heavyweight Goldman Sachs last month added it to a ‘buy list’ of West African miners.

This new-found recognition from the City is in part due to the recent appointment of John McGloin as executive chairman in May.

Prior to his appointment McGloin was a well-regarded City mining analyst - formerly head of mining at Collins Stewart - and along with fellow Amara executives Peter Spivey (CEO) and Pete Gardner (FD) he plans to oversee the group’s next phase of growth.

“We have invested more cash flows from our operations into the business to provide flexibility going forward,” McGloin said, in an interview with Proactive Investors.

Amara is expecting to produce 53-57,000 ounces of gold this year, throwing off around $30-40mln a year in earnings.
McGloin says that the re-investment of this cash is vital for the company’s future.

“We've ensured that we've invested in all our projects, and although we've got a rigid path that we're moving on in terms of exploration, development and production, we have got a spread of risk across the value chain and also the West African region.

“Also, being able to fund yourself is a great comfort to have. We have solid production and good margins. That allows us to keep investing in growth.”

The Sega project in Burkina Faso is a pertinent example of this investment. The project was acquired in May and while it is not huge, the new mine will serve a crucial strategic purpose.

Sega will cost just shy of $10mln to build and it will preserve Amara’s status as a ‘miner’ by providing higher grade ore to the maturing Kalsaka mine, which would otherwise deplete its reserves at some point next year.

Initially it will see an additional 21 months of gold production from Burkina Faso – though fresh exploration may increase this. What is most significant, however, is that the extended production will support Amara through what is likely to be its most important period to date.

A pivotal feasibility study on the Baomahun project is due towards the end of the first half.

If successful, it will trigger a transformational programme of development which will ultimately see Amara establish gold output in the order of 140,000 ounces a year.

It is estimated that the mine will cost $200mln to build, though a ground-breaking financing deal with Korean conglomerate Samsung promises to cover the majority of the project finance.

Those invested since the Cluff days will know the potential of Baomahun. For them it has for a long time been the prize they've had sights on, although the progression of Kalsaka/Sega and Yaoure means it now has a broader portfolio appeal.

They will also know that, based on original timelines, the feasibility should have been done and dusted at this point - the deadline was first pencilled in for the third quarter of last year.

But the decision was taken to spend more time on the pivotal study to ensure the project was sufficiently robust.

That has involved a full geological remodelling of the project, and the process, McGloin explains, has reaffirmed confidence and refined the mine plan – a new resource statement, released last week, will also form part of the study.

"I'm happy with the recent work we've done.

"We now have a model that we are very happy with. There is not a huge difference between the new number and the old number in terms of the global resource, but we've now got a better definition of the deposit, on a more local level.

"It gives us greater confidence as we move forward through to the scheduling and pit design, that we've got a model that will behave more like the real world rather than something theoretical.

"And we are now looking at the scheduling so we can get a high grade starter pit over the first couple of years and allow rapid payback."

That said, McGloin reckons next year's study will merely define the base case for Baomahun.

He highlights targets outside the current pit design. They are not huge in themselves (about 200,000 to 300,000 ounces each) but because they are near surface and close to the planned facilities they are likely to be economic.

There is also a much larger target further north with different geology but a similar structure, and while a lot more work is needed here. McGloin says it has the potential to be 'Baomahun size'.

It is still early days however, and McGloin is wary of talking this prospect up too much.

For now, though, the priority is to get the project signed off and built.

Key to keeping the project on track will be to start as much work as possible, as early as possible. The challenge is Sierra Leone’s long rainy season.

“Losing one month or two at the start of a programme it can potentially mean we lose a whole season because you can’t start to build a mine in the rainy season,” McGloin says.

Also between now and completing the feasibility study, Amara plans to start putting infrastructure in place.

In completing the feasibility, cost estimates and supply chain timetables also need to be refined and McGloin explains that this may yield some cost savings.

The project is currently estimated to cost US$200mln. It is anticipated that the majority of this will be covered by Samsung via a similar off-take deal to the one currently in place for Kalsaka/Sega, but, an additional element of funding will also be required.
In the meantime, Amara will be throwing off $30-40mln in cash from its production in Burkina Faso.

The plan is to invest this primarily into exploration across the portfolio, to fund growth across the whole group, he says.

"We have two choices. We can either invest the money to move all our projects forward, or we slow everything down, sit on our hands, and build that cash to plug the gap for Baomahun."

McGloin points to the value that Amara is adding via its investments this year as a reason why he prefers the first option.
He highlights that $10-12mln was invested this year at Yaoure. That investment, according to McGloin, has allowed Amara to advance the project and could add value in the months ahead.

“The full effect of that will be seen when we get the resource update out in the first quarter. The value will be clear to see. I’m expecting to see those resources jump significantly."

Reverting momentarily to his past role of mining analyst, McGloin explains that the City doesn’t currently recognise the value of Yaoure at all.

He also said that while it's not necessarily an ideal 'Plan A', Yaoure could potentially open up strategic opportunities to help fund Baomahun and avoid the need to raise capital in the debt and equity markets


I hold

Graph shows Mkt concern....was 75p when they changed the name (that's when folk starting looking seriously and found it has African names at its mast ) - none too keen on arty names . . why not African Mining?
Sp fallen from 75p to current 42p ~4 months- that's some hole we're looking at.
EDIT(,1Mch2013)- I'm reading it's a Sell in IC - so that's a Buy, then? I hold in hope rather than sell at evens/loss. . . . (why profit the Brokers, eh?)

RNS Number : 7238A

Amara Mining PLC

25 March 2013 AIM:AMA / TSX:AMZ
Amara Mining plc

("Amara" or "the Company" or "the Group")
RESOURCE UPDATE FOR YAOURE GOLD PROJECT
Amara Mining plc, the dual AIM and TSX-listed West African focused gold mining company, is pleased to announce an updated NI 43-101 compliant Mineral Resource estimate for its 90% owned Yaoure Gold Project ("Yaoure") in Côte d'Ivoire.
HIGHLIGHTS
· 1.7 million ounce sulphide Inferred Mineral Resource delineated at Yaoure (34.6Mt at 1.52g/t) 1

· Indicated Mineral Resource upgraded to 0.3 million ounces (8.0Mt at 1.31g/t) 1, 2

· Mineral Resources contained within 40% of the total mineralised volume drilled to date

· Further Mineral Resource update expected in H2 2013 from on-going in-fill drilling campaign

· Resource grade is expected to be updated through definition of additional resources via in-fill drilling below the higher grade CMA North-Central pit

· Resource is open at depth and along strike with all 106 holes drilled in 2011/12 encountering mineralisation

· Initial metallurgical testwork has confirmed the non-refractory nature of the gold mineralisation with 94% recovery in a conventional carbon-in-leach ("CIL") circuit

· Preliminary Economic Assessment ("PEA") is expected to be completed in Q4 2013

· Location of Yaoure is highly advantageous due to close proximity to Kossou dam, which offers cheap hydo-electric power and abundant water, excellent roads and accommodation

1. Using a 0.8g/t cut-off

2. Previously 0.2 million ounces Measured and Indicated (4.9Mt at 1.6g/t) using a 0.5g/t cut-off, an uplift of 90,000 ounces
Peter Spivey, Chief Executive Officer of Amara, commented:

"The delivery of a significant Mineral Resource update confirms Yaoure's position as an important part of Amara's portfolio. It is particularly exciting that the volume of the resource is only 40% of the total volume drilled and excludes much of the anticipated higher grade CMA zone, suggesting substantial upside potential. We have commenced in-fill drilling and we expect to deliver a further Mineral Resource update in H2 2013."
Yaoure Strategy
Amara conducted a 106-hole drilling campaign at Yaoure in 2011/2012 with the objective of defining a large scale, moderate grade sulphide deposit underlying the previously mined oxide resources. Yaoure had existing Measured and Indicated sulphide Mineral Resources of 249,000 ounces (4.9Mt at 1.6g/t)[i] and Amara's aim was to deliver a significant increase on these existing resources. The area drilled has an across-strike width of 1.1km covering both the historic open pits (Yaoure Central and CMA North-Central) and an along-strike length of 1.5km. All holes encountered mineralisation suggesting the full extent of the deposit has not yet been defined.



The Yaoure mineralisation is an epithermal-mesothermal, quartz-carbonate vein-style gold deposit. The mineralisation is controlled by a thick zone of shearing (imbricate thrusting from the east), resulting in multiple zones of alteration, quartz veining and gold mineralisation. The drilling has focused primarily on two targets:



· The north-south trending Yaoure Central mineralised package in the west - a 200m thick low-grade body with higher grade lenses, extending down to the east from the Yaoure Central pit at a dip of 30 degrees

· The north-south trending CMA set of mineralised zones in the east, including a more discrete, relatively continuous 20m thick zone, about 140m above the Yaoure Central body, extending down to the east from the CMA North and Central pits



Mineralisation within later cross-cutting high-grade sub-vertical quartz veins with visible gold is evident in the Yaoure Central body. Although these veins potentially enhance the overall grade of the deposit, they were not a primary target of the outline drilling programme.



The drilling programme was designed to delineate a large-scale opportunity at Yaoure. The drilling in the central portion has a higher density (approximately 120 metres by 120 metres) than the drilling in the CMA zone to the east (approximately 200 metres by 200 metres). The resource update announced today relates to the central area, which covers approximately 40% of the total mineralised volume drilled.



Mineral Resource Upgrade

Amara has delivered an Inferred Mineral Resource of 1.7 million ounces (34.6Mt at 1.52g/t) and an upgraded Indicated Mineral Resource of 0.3 million ounces (8.0Mt at 1.31g/t) at Yaoure. The Company invested US$14 million in exploration at the project in 2012 and this increase in Mineral Resources represents an average discovery cost of approximately US$8/oz.

The Mineral Resource estimate has been prepared by AMC Consultants (UK) Limited ("AMC") in accordance with the Canadian Institute of Mining and Metallurgy and Petroleum ("CIM") Standards on Mineral Resources and Reserves as recognised by National Instrument 43-101 "Standards of Disclosure for Mineral Projects" of the Canadian Securities Administrators ("NI 43-101"). The Mineral Resource estimate is reported above a 0.8g/t cut-off derived using a US$1,500/oz gold price. Further details of the resource estimation parameters and cautionary statements relating to the statement of Mineral Resources are set out in Appendix 1.

Yaoure Mineral Resource estimate, including cut-off grade sensitivity, as of 25 March 2013[ii]
A 0.8g/t cut-off has been used on the basis of a US$1,500/oz gold price and costs consummate to similar types of deposits in West Africa.

Further Exploration Potential

A total of 31,955 metres were drilled at Yaoure in late 2011 and 2012. Outside of the areas where an Indicated and Inferred resource has been defined the exploration has outlined an along-strike and down-dip exploration target of 2 to 3 million ounces of gold contained within 50Mt to 60Mt of mineralisation grading 1.3g/t to 1.5g/t. The potential tonnages and grade are conceptual in nature and are based on drill results that defined the approximate length, thickness, depth and grade of the deposit. There has been insufficient exploration to date to define this additional potential as a CIM-compliant resource currently and the Company cautions that there is a risk that further exploration will not result in the delineation of a resource.



A significant portion of the exploration target relates to the continuation of the higher grade CMA zone, which is expected to increase the overall grade of the mineralisation if further drill results confirm the continuity and grade of this mineralisation.



Following the delineation of this Mineral Resource at Yaoure, Amara has commenced in-fill diamond drilling at the project to reduce the drill spacing. This campaign is focused on promoting the mineralisation lying outside the currently defined Inferred Mineral Resource envelope, which covers 40% of the total mineralised volume drilled. The Company expects to announce an updated Mineral Resource in H2 2013.



Next Steps

Alongside the 2011/12 drilling campaign, Amara conducted a metallurgical testwork programme at Yaoure to understand the leaching kinetics of the mineralised material. This reported a recovery rate through a traditional CIL circuit of 94%, confirming the non-refractory nature of the gold mineralisation. Phase two metallurgical testwork is expected to be completed by the end of Q2 2013, which is designed to identify the optimal processing route. This will include comminution testwork together with an analysis of the amenability of the ore to heavy medium separation, gravity and flotation.

In addition, Amara intends to begin assessing the economic potential of the updated Mineral Resource through a Preliminary Economic Assessment that is expected to be completed in Q4 2013. Yaoure's location presents a number of advantages that will enhance the prospects for a CIL plant to be developed at site. These include excellent existing infrastructure, such as close proximity to the Kossou dam, which offers the potential for lower operating and capital costs through the utilisation of hydro-electric power. In addition, Yaoure benefits from an existing mining licence and environmental permits, which is expected to reduce the timeline from exploration to development.

Full Year 2012 Results

Amara will announce its results for the year ended 31 December 2012 on Wednesday 27 March 2013. A conference call and webcast will be held for analysts and investors at 09:30am UK time and a second conference call will be held for North American analysts and investors at 2:30pm UK time / 09:30am EST on 27 March, which will also cover the on-going work at the Yaoure Gold Project. Details of the conference call numbers will be announced at the time of the FY2012 results.

For more information please contact:

Amara Mining plc

John McGloin, Chairman

Peter Spivey, Chief Executive Officer

Pete Gardner, Finance Director

Katharine Sutton, Head of Investor Relations

+44 (0)20 7398 1420


Canaccord Genuity Limited

(Nominated Adviser & Broker, London)

Andrew Chubb

Sebastian Jones
Tim Redfern



+44 (0)20 7523 8000


Pelham Bell Pottinger

(Financial Public Relations)

Charles Vivian

Lorna Spears

James MacFarlane

+44 (0)20 7861 3232

Top riser this morning.

..more to come.

Interesting chart.

The message from the USA seems to be "buy gold now".


http://goldnews.bullionvault.com/gold-long-bond-082720132

Results for the half year due out 10th September. Feasibility study announced on 16th August sounded very positive.

RNS Number : 8414L
Amara Mining PLC
16 August 2013
16 August 2013 AIM:AMA / TSX:AMZ
Amara Mining plc
("Amara" or "the Company")
FILING OF TECHNICAL REPORT FOLLOWING BAOMAHUN FEASBILITY STUDY
Amara Mining plc, the dual AIM and TSX-listed West African focused gold mining company, is pleased to announce that the Feasibility Study ("FS") for its 100% owned Baomahun Gold Project in Sierra Leone ("Baomahun" or "the Project") was filed on SEDAR yesterday. The National Instrument 43-101-compliant technical report is entitled 'Feasibility Study of the Baomahun Project in Sierra Leone - NI43-101 Technical Report' and has an effective date of 28 June 2013. This follows the news release dated 02 July 2013 detailing the results of the Baomahun FS.
A copy of the technical report may be obtained via www.sedar.com and on Amara's website at http://www.amaramining.com/Investor-Relations/NI43-101-Reports. A copy of the news release may also be obtained via SEDAR and on Amara's website.
The previously announced highlights of the Baomahun FS are as follows:
Overview
-- The FS outlines a robust and economically viable project -- The Project is expected to generate a post-tax Internal Rate of Return (IRR) of 22% and a post-tax NPV of US$127 million at a discount rate of 8% and a gold price of US$1,350/oz
-- Life of mine average total cash costs of US$799 per ounce (including royalty and refining) -- Maiden Probable Mineral Reserve defined for Baomahun of 1.21 million ounces (23.3Mt at 1.62g/t) at a gold price of US$1,100oz
-- Amara intends to immediately investigate the recommendations generated by the FS to optimise capital intensity, initial capital outlay and payback period
Operational
-- Average gold production of 148,550 ounces per annum over the first six years at an average grade of 2.53g/t, with production of 203,970 ounces in the first year at 3.90g/t
-- Average recovery of 93.4% through a 2 Mtpa processing plant incorporating single stage crushing, SAG milling and a carbon-in-leach circuit
-- The Project is fully permitted with a Mining Lease granted on 11 July 2008 for a period of 25 years and an Environmental Permit granted on 19 April 2012
Financial
-- Total revenue of US$1.53 billion and post-tax cash flow of US$273 million based on an average gold price of US$1,350 per ounce
-- Upfront capital cost of US$151 million and a rapid capital payback period of three years -- Strategic alliance with Samsung C&T Corporation with the potential to provide cornerstone financing for Baomahun project, capable of satisfying a significant portion of the total Baomahun financing needs
Notice of Results
Amara will announce its results for the half year and quarter ended 30 June 2013 on Tuesday 10 September 2013. A briefing will be held for analysts, with a simultaneous conference call and webcast, at 09:30am UK time and a second conference call will be held for North American analysts and investors at 2:30pm UK time/09:30am EST. Details of the conferencecall numbers will be announced at the time of the H1/Q2 results

"Uncertainty on whether or not military action will be taken against Syria has taken off some of gold’s safe-haven bid," reckons Joni Teves at Swiss investment and bullion bank UBS in London.



But amongst hedge funds trading gold, "the recent move in positioning clearly indicates further reluctance to be short," says Teves, "as geopolitical tensions add to looming event risks out of the US" such as the possible tapering of Federal Reserve asset purchases, and then the likely debt-ceiling deadline in mid-October.



Speculators trading gold cut the number of bearish bets on US futures and options they held by 24% in the week-ending last Tuesday – the fastest pace since March 2009 – reducing it to near 7-month lows.



Net of those bearish bets, the so-called "net long" position held by speculators trading gold derivatives rose 173% from a month earlier, its fastest rise since June 2005.



"First it was short-covering," said US consultancy CPM Group's Jeffrey Christian to BNN late last week – "about half of the shorts liquidated. Now you're seeing some long building, and you're seeing trend followers.



"Soon as the price stalls out, and it will, you'll see those trend followers back off."



But "Bullish potential is beginning to emerge for gold," reckons a technical gold trading note from London market-maker Barclays in London.


"Price charts highlight the rare occurrence of a strong bullish month on the heels of corrective extremes, which previously led to a significant move higher."

Good finish today - half year results due next Tuesday, could be the start of move North up to the 10th.

(Kitco News) - Gold prices ended the U.S. day session with good gains Tuesday, as bargain hunters stepped in to buy the early dip in prices. There was also safe-haven buying that surfaced during the day as it appears the U.S. Congress will support President Obama’s effort to use military force against Syria. December Comex gold was last up $18.30 at $1,414.40 an ounce. Spot gold was last quoted up $18.00 at $1415.00. December Comex silver last traded up $0.897 at $24.41 an ounce.

The gold market started to reverse modest early losses in late-morning dealings—about the same time that news reports said U.S. congressional leaders are falling in line with Obama and his notion that Syria needs to be punished with U.S. firepower for its alleged use of chemical weapons against its population. Russian news agencies reported overnight that two missiles were launched in the Mediterranean Sea, possibly a test from Israel. Those reports caused European stock markets to shudder and gold prices to briefly rally. If this situation escalates, stronger safe-haven demand for gold will likely surface.

Technically, December gold futures prices closed near the session high Tuesday and scored a bullish “outside day” up on the daily bar chart. The gold market bulls have the overall near-term technical advantage. A nine-week-old uptrend is in place on the daily bar chart. The gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at last week’s high of $1,434.00. Bears’ next near-term downside breakout price objective is closing prices below solid technical support at $1,350.00. First resistance is seen at $1,418.60 and then at $1,425.00. First support is seen at $1,400.00 and then at $1,384.00.

"As we pointed out last week, the month of September tends to be a seasonally positive month for gold. With the fundamentals and technicals positively aligned as the month commences, potential is to the upside. Certainly any new shooting in the middle east is going to tend to bolster the yellow metal."

USAGOLD.com

Update from the USA.

"The near and medium term trends are bullish for gold. The market has stalled out at the $1,434 level short-term. The market sees a large amount of event risk over the next several weeks, including potential action over Syria, this Friday’s U.S. jobs report, the September 17-18 Federal Open Market Committee (FOMC) meeting and potential news on when the central bank may decide to begin tapering its monthly asset purchases. The burden is on the bulls to maintain the uptrend. Near term, as long as $1,351 remains intact, the trend pattern will remain positive."

Share price gone blue - price of gold going up and the dollar dropping ...............

Sierra Leone News: Cluff Gold feasibility study confirms robust financial returns at Baomahun

Alusine JallohAmara Mining plc, the dual AIM and TSX-listed West African focused gold mining company has announced the results of its Feasibility Study (“FS”) for its 100% owned Baomahun Gold Project in Sierra Leone which outlines a robust and economically viable project. According to the study the Baomahun Project is expected to generate a post-tax Internal Rate of Return (“IRR”) of 22% and a post-tax NPV of US$127 million at a discount rate of 8% and a gold price of US$1,350/oz whilst the Life of mine (“LOM”) average total cash costs of US$799 per ounce (inc. royalty and refining)
The Maiden Mineral Reserve defined for Baomahun of 1.21 million ounces (23.3Mt at 1.62g/t) at a gold price of US$1,100oz. Amara Mining intends to immediately investigate the recommendations generated by the FS to optimize capital intensity, initial capital outlay and payback period.
The FS is based upon an open pit operation with a mine life of 11.5 years and a processing capacity of 2 million tonnes per annum (“Mtpa”) through a conventional carbon-in-leach (“CIL”) plant.
Average production is expected to be 148,550 ounces per annum over the first six years at 2.53g/t head grade, with production of 203,970 ounces at 3.90g/t in the first year generating strong cash flow.
Peter Spivey, Chief Executive Officer of Amara, commented that “the Feasibility Study has demonstrated the economic strength of the Baomahun Gold Project. We intend to maximize the opportunity for further upside through optimisation which, in light of the current poor equity valuation environment and uncertainty over the outlook for the gold price, is a prudent strategy and in keeping with our approach of lowering risk.
This work he said will focus on opportunities highlighted by the FS including enhancing capital intensity, reducing initial capital outlay and shortening the payback period for Baomahun through exploring scenarios for a smaller plant and higher grade open pit, an earlier underground phase and hydro-electric power. We expect this to demonstrate an even more robust and deliverable project. He added
“Having proven the viability and value of Baomahun, we will now begin discussions with our partner, Samsung, and other interested parties with regards to funding the development in a non-dilutive fashion. The delivery of the Baomahun FS is an important step in demonstrating the intrinsic value in the Company’s portfolio of assets.”
It is estimated that Average gold production of 148,550 ounces per annum over the first six years at an average grade of 2.53g/t, with production of 203,970 ounces in the first year at 3.90g/t. Probable Reserves of 1.21 million ounces (23.3Mt at 1.62g/t) at a gold price of US$1,100 per ounce and Average recovery of 93.4% through a 2 Mtpa processing plant incorporating single stage crushing, SAG milling and a CIL circuit
The Project is fully permitted with a Mining Lease granted on 11 July 2008 for a period of 25 years and an Environmental Permit granted on 19 April 2012 with a financial Post-tax IRR of 22% and NPV of US$127 million at an 8% discount rate and a US$1,350 per ounce gold price.
A Strategic alliance with Samsung C&T Corporation (“Samsung”) with the potential to provide cornerstone financing for Baomahun project, capable of satisfying a significant portion of the total Baomahun financing needs
When contacted the Country Manager of Cluff Gold Sierra Leone Alusine Jalloh said that the company has completed exploration operations within the Baomahun Concession area after several years and believes there is huge gold potential for mining operations.
He said according to the feasibility study of the exploration there is maximum deposit of gold within the Cluff Gold concession area and the company is determined to commence mining after the completion of negotiations with the government for a mining lease agreement.
He said two major events occurred this year that resulted in staff reduction. The first was the completion of exploration work within the Baomahun concession area and the second was the sharp decline of the price of gold world-wide. Those two happened almost at the same time and hence the company was forced to reduce its workforce.
The Country Manager of Cluff Gold also said that despite the slump in the price of gold around the world, which seriously affected the company’s operations in Burkina Faso, “we remain committed and determined to start mining gold at Baomahun.”
He expressed gratitude to the local community for supporting Cluff Gold operations over the years within the Valunia Chiefdom and assured them of continuous collaboration for a successful investment that will create foreign direct investment for economic growth and sustainable development of the country.

From the Telegraph today:

Gold Aim stocks best sellers in August

Gold mining minnows have been one of the most popular areas of London’s alternative Aim stock market since rules were relaxed last month allowing private investors to hold Aim-listed shares inside their Isas.

The number of trades in Aim-listed shares doubled following the change, according to Interactive Investor, the online trading platform. Four of the 20 most bought Aim stocks in August were gold miners, it said.

The most popular gold stocks bought for Isa portfolios in August were Condor Gold, Amara Mining, SolGold and Red Rock Resources. All four stocks have leapt over the past month, with Red Rock Resources rising by 205pc from 0.4p to 1.22p.

Other commodity-focused Aim investments also proved popular in August, particularly oil exploration companies. Popular stocks included Xcite Energy and Range Resources. Top of the pile was Gulf Keystone, the small oil company, which was the top-selling Aim stock in August, during which its price climbed by 3pc to around 178p.

Outside commodities, more recognisable Aim names such as Asos, the online boutique, also proved popular.

Rebecca O’Keeffe of Interactive Investor said: “Many of our more engaged investors have a bias toward commodity stocks, and these exploration stocks are highly correlated with the underlying commodity prices.

“Earlier in the year gold and miners’ prices were driven sharply lower by the prospect of higher US interest rates in light of the likely tapering of quantitative easing. However, recent events in Syria have seen gold prices rise again as increased tensions in the Middle East have prompted the market to introduce a 'geopolitical risk premium’ into the price.”

The Isa rule change is attractive to certain investors because it allows them to benefit from the inheritance tax breaks attached to Aim investments as well as the other tax advantages associated with Isas.

Half year results due tomorrow and ticking up a bit on increased volumes.