Amara Announces PEA and Exploration Update for Sega

Amara Mining’s Kalsaka mine, shown here, has had its prospects
bolstered by acquisition of the neighboring Sega project. Located
20 km north of Kalsaka, Sega will provide an opportunity to enhance
Kalsaka’s production with limited upfront capital expenditure.
(Photo courtesy Amara Mining)
Amara Mining (formerly Cluff Gold) announced the results of a preliminary economic assessment (PEA) and an exploration update for its open-pit Sega gold project in Burkina Faso in mid-October 2012. The company, which is 78% owner and operator of the Kalsaka gold mine in north-central Burkina Faso, changed its name to Amara Mining effective October 1, 2012.

The Sega PEA has confirmed the poten-tial viability of mining oxide and transition-al material at Sega and transporting it 20 km to Amara’s existing heap leach mining operation at Kalsaka for processing. Contained gold of 162,825 oz will be mined over the project’s 21-month initial mine life. Cash cost per ounce produced excluding royalties is estimated at $821/oz.

Amara expects to receive a mining license for Sega in the first quarter of 2013 and to begin mining before the end of the first half of the year.

Amara also reports significant drill intercepts at the Touli prospect on the Sega license area, including 26 m at 3.05 g/mt from 8 m below the collar in one hole and 18 m at 3.49 g/mt from 18 m below the collar in another.

Amara CEO Peter Spivey said, “The delivery of the Sega PEA is a key step in ensuring that cash flow is maintained at Kalsaka. The resources at Sega will significantly increase Kalsaka’s mine life with limited capital investment required.

Capital costs associated with the commencement of production from Sega are expected to be $9.5 million.

Amara has received verbal authorization from the Burkina Faso government to begin the infrastructure work associated with Sega in advance of the final mining license being granted. This work includes a dedi-cated haul road between Sega and Kalsaka, the installation of crushing facili-ties at Sega, and an upgrade to the power and transmission plants. Construction is due to begin before the end of 2012.

As featured in Womp 2012 Vol 11 -