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

Cluff Gold Broker Views
Date Broker Recommendation Price Old target price New target price Notes

01 Oct Seymour Pierce Buy 0.00 136.00 136.00 Reiterates
18 Sep Westhouse Securities Strong Buy 0.00 112.00 124.00 Reiterates
14 Sep Westhouse Securities Strong Buy 0.00 112.00 112.00 Reiterates
13 Sep HB Markets Speculative Buy 0.00 - - Initiates/Starts
12 Sep Seymour Pierce Buy 0.00 136.00 136.00 Reiterates

Waiting for a reversal now....

Broker Brief just out.....

05 Oct Cluff Gold PLC CLF Westhouse Securities Strong Buy 0.00 76.00 124.00 124.00 Reiterates

124p SP target.

I presume this AIM-stock isn't "dual-listed?"

AMA AMARA formerly Cluff Gold.

Excelent update SP should start
to move up now..........

http://www.investegate.co.uk/Article.aspx?id=201210160700057464O

Nice lengthy leading article in my hard copy of Shares magazine this week entitled "Precious Picks" and detailing the best ways to put a shine in your portfolio, focussing on Gold, Silver and Platinum plays and stating that they see a rally in the precious metals over the next 6 months.

Good half a page devoted to Amara Mining with a BUY recommendation at 73p and lots of positives mentioned:

~ They believe it is in the 1rst stage of a rerating
~ Preliminary economic assessment of SEGA is scheduled to come out soon
~ Mining licence then expected in early 2013
~ End of the month should see a Resource Upgrade at Baomahun
~ Mentions the Samsung deal and states that Samsung want to see the structure of how the deal works first before committing a larger payment of up to 1/2 the capital for Baomahun.
~Mentions Yauore had impressed the market with drill results and a new resource statement is due there by the end of the year and that Amara themselves were bullish on this prospect as it has access to cheap hydro-electric power and they believe there should be a quick turnaround from exploration to permit to production.

Finishes by stating that they have previously flagged Amara as a takeover candidate and they add that "there could still be a bid" but they also now think Amara "offers significant value creation potential over the coming 1 to 2 years as a standalone business."

You will need to buy the magazine to get the gist of the full and extensive article.

West African-focused gold miner Amara Mining has revealed that a preliminary economic assessment has confirmed the potential viability of the Sega gold project in Burkina Faso.

A technical report supporting the results of the PEA will be filed on SEDAR within 45 days.

Amara said the PEA has confirmed the potential viability of mining oxide and transitional material at Sega, located 20km north of Kalsaka, and transporting it to the compnay's existing heap leach operation at the Kalsaka gold mine for processing.

Maintaining cash flow is a key priority for the company and, with Sega's resources located 20km north of Kalsaka, production is expected to continue in Burkina Faso to help fund Amara's development pipeline (Baomahun and Yaoure) and ensure that the company maintains its status as a gold producer.

Chief executive Peter Spivey said: "The delivery of the Sega PEA is a key step in ensuring that cash flow is maintained at our producing mine Kalsaka.

"The resources at Sega, which are located within trucking distance of our existing plant, will significantly increase Kalsaka's mine life with limited capital investment required. In addition, the exploration results received from the Kalsaka-Sega complex have confirmed that there is significant upside resource potential.

"Amara is committed to its strategy of using its cashflow to develop its growth assets, providing flexibility to the company as it grows into a mid-tier producer."

Thought we might have had an RNS by today on a resource update. Maybe next month!!

I hold as the SP dips under 70p!

If it was a strong buy at 85 then I guess its even stronger at 62!!

9 days overdue with their resource update

Yep, must mean that they've found a little extra!!

Amara Mining (formerly Cluff Gold) Q3 Results – On Track: shares very cheap

November 14, 2012 | Filed under: AIM,Bullish,Stocks | Posted by: Tom Winnifrith



I tipped Cluff Gold (CLF) in September 2011 at 96p on t1ps.com, the website I founded in 2000 and left three months ago. Like most AIM listed gold shares Cluff has taken a beating and the stock closed at 58.5p today after the release of third quarter numbers. To reflect a change of leadership the company has now changed its name to Amara Mining (AMA). That seems like a bit of wasteful corporate PR willy-waving to me but, ignoring that, it seems to me that the fundamentals look increasingly attractive for Cluff, sorry Amara, and that this is not reflected in the stock price. Here is why.

The third quarter (to September 30th) results were solid rather than spectacular. The company’s lead producing asset Kalsaka produced 14,360 ounces despite unusually heavy rains in Burkina Faso. However higher grades meant that the cash cost fell by 8% from the Q2 cash cost, to $883 oz. Full year output is now predicted to be 53,000-57,000 oz. This is less than I had expected but the company is predicting a further improvement in grade in H1 2013 however the resource at Kalsaka is running out. It might produce 70,000 oz next year but at some stage output will tail off.

At a financial level there was a 22% increase (compared to Q2) in quarterly EBITDA, to $7.6 million, driven by the reduced cash costs. At the period end cash and liquid assets were $28.4 million with a further $20 million added to that since September by a drawdown on the Samsung loan facility which will be used to bring the next projects on track. And that is the key to a rapid ramp up in output.

On October 16th Amara announced the results of the Preliminary Economic Assessment for the Sega gold project. It is a small open pit resource within trucking distance of Kalsaka. It contains 162,825 ounces of gold which will be extracted over a 21 month period starting in the first half of next year at a cash cost of $821. The resource may actually be bigger and that would simply extend the project’s life.

The really big uplift to production will come from the Baomahun gold project in Sierra Leone where work continues on the resource update but we already know that there are 2.1 million ounces of gold there at a 2.5/g/t cut off.. But it is assumed that this mine could add another 135,000 oz per annum to output at a cash cost of c$700-800 oz. There have been delays here but the company still expects to have it commissioned and pouring its first gold in 2015. Looking further ahead the Yaoure, Cote d’Ivoire exploration project continues to deliver some cracking exploration grades. We can expect a comprehensive resource update in early 2013 and this could be Amara’s most attractive property of all.

So what sort of output can we expect? Assuming that deadlines are met, Kalsaka plus Sega should deliver 100,000 ounces in 2013, rising to 120,000 oz in 2014 and then in 2015 as Baomahun comes onstream we can expect sustained output of 135,000-150,000 oz per annum. Let us assume an average cash cost of $800 and a gold price of $1500 (naturally I expect a higher gold price but let’s be prudent) then that implies operational cashflow of $70 million next year, $84 million in 2014 and around $100 million per annum thereafter. At 58.5p Amara is capitalised at £92 million ($150 million). Even ignoring the enormous potential of Yaoure, if one strips out the cash you are paying $120 million for 2013 cashflow of $70 million, rising to $84 million and to $100 million sustainably from 2015. That is clearly the wrong price. On a miserly three times 2015 cashflow multiple (based on a very cautious $1500 gold price) plus cash the shares should more than double. Value this company on a $1700 gold price and allow something for Yaoure and one can easily construct a basis for setting a 200p target price. Notwithstanding the silly name change, Cluff (I mean Amara) should be in your gold portfolio.

The stock is clearly cheap on fundamentals


I hold

What he said 3 months ago!!

Cluff Gold – Takeover Target? Yes. But also a mega buy on fundamentals

By Tom Winnifrith

PUBLISHED: Aug 14 2012 @ 09:56

Like most AIM (and in this case also Toronto) listed smaller gold companies the share price of Cluff Gold (LSE:CLF) has taken a beating of late – falling by almost 50% to 55p. While many of its peers may have to raise extra cash – hence their share price collapse – Cluff has already completed a placing (at 85p) and is thus fully funded to bring a portfolio of exploration and development projects onstream. Moreover it is already producing and generating cash. On fundamentals it is cheap. But the recent bid by Endeavour for Avion shows that Cluff is also pretty much in play as a bid target. This is a win.win for investors.

Let’s start with Endeavour. I quote here research out this morning from a leading London broker:

“In early August Endeavour Mining announced its offer for Avion Gold Corp at a healthy premium of 70% above the 20 volume weighted average price of Avion’s shares. Endeavour has also agreed to provide Avion with a $20m bridging loan to enable the junior to carry out a mill capacity expansion, a recent thorn in the side of Avion that is related to the recent weakness in its share price. The objectives of Endeavour are clear: it is bolting on producing ounces at a price of $588 per reserve ounce.

Of particular note are comments that outgoing Executive Director Mark Connolly made while presenting at the Diggers & Dealers conference at the same time the acquisition announcement was made. Mark said that Endeavour would actively pursue two other Canadian listed companies once it had completed the acquisition of Avion. Extrapolating the main drivers behind the Avion acquisition, Cluff could be another good fit for a larger Endeavour Mining company in that Cluff has producing assets, a good near-term development project as well as plentiful resource growth potential.”

Enough said. You will note that Endeavour paid for Avion not what the market priced Avion at but some reflection of its true worth. For companies like Endeavour drilling in the City is pretty attractive right now.

What is Cluff worth? This morning we had news of some fairly decent drill grades from its Yaoure prospect in the Ivory Coast. The Company expects to announce an increase to the current 292koz gold resource by the year end. Early metallurgical test work suggests that gold is free and relatively easy to recover. The grades today included:

 7.05m at 3.15g/t gold from 106.78m

 9.14m at 4.28g/t gold from 91.42m

 6.17m at 9.06g/t gold from 421.67m

 6.51m at 9.39g/t gold from 40.92m

Yaoure is but a small part of the exploration portfolio but since it is close to water and infrastructure it would be cheap to develop. Of more interest is the much larger Baomahun prospect where we will get news soon with the publication of its feasibility study. This could well add 135,000 oz a year to output.

Cluff already produces gold (on a cash margin of c$750 oz) from Kalsaka and this should deliver 60,000 to 70,000 oz this year. It is EBITDA positive on a quarterly basis. And if it can incorporate the recently purchased Sega prospect into the Kalsaka processing plant output will rise sharply as will the cash margin.

At 55p Cluff is valued at c£86 million. This is a company that in two of three years from Kalsaka, Sega and Baomahun could be producing 200,000 – 250,000 oz on a cash margin ( at current gold prices) of $800 ( call it £500). And it is fully funded. And it has additional exploration upside. You can do your own maths but on fundamentals this is very cheap indeed. On an operating cashflow multiple of even 3 and allowing nothing for exploration upside you are looking at a target price of well over 200p per share.

Gold stocks are not loved. But with its balance sheet and producer status Cluff limits the downside risk. The upside (even without a bid) is clear.

Also worth a read

http://www.24hgold.com/english/news-gold-silver-christopher-welch-searching-for-a-perfect-10.aspx?article=4125128130G10020&redirect=false&contributor=The+Gold+Report&mk=1

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