Baomahun, Sierra LeoneHighlights
Baomahun is Amara’s feasibility stage project in Sierra Leone and is wholly owned by the Company. An updated resource estimate, consisting of 2.24Moz Au in indicated resources and 0.54Moz Au in inferred resources, is hosted in an area of approximately 2 sq. km, while the total project licence area is 136 sq. km.
The Company announced the results of its Feasibility Study for Baomahun on 02 July 2013. The Feasibility Study outlined a robust and economically viable project which 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. The Maiden Mineral Reserve defined for Baomahun in the Study was 1.21 million ounces (23.3Mt at 1.62g/t) at a gold price of US$1,100oz.
The Feasibility Study is based on an open pit operation with a mine life of 11.5 years and a processing capacity of 2 million tonnes per annum 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.
Amara believes that there is an opportunity to improve Baomahun’s robust economics by reducing the initial capital outlay and payback period for the project. Work is on-going on the key recommendation, which is to substantially reduce the upfront capex requirement through a smaller open pit and processing plant. This scenario would allow higher average grade ore to be processed through a more capital efficient plant. The results from the initial whittle shells suggest that this would still generate robust production from Baomahun’s high grade core and maintain a swift payback period. Work on this near-term optimisation scenario is expected to be completed in January 2014.Basis for Technical Disclosure
The technical information contained on this webpage, and more generally contained on this website pertaining to Baomahun, is based on the technical report entitled "Technical Review of the Baomahun Gold Exploration Project, Sierra Leone" dated as of August 12, 2010 and prepared by Dr. John Arthur and Dr. Chris Bonson, who are "qualified persons" (as such term is defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects) and independent of Amara Mining plc. A copy of the report can be found by clicking on the link entitled "Baomahun NI43-101.pdf" under "Related Links". A technical report for the updated resource announced on 19 November 2012 was filed on SEDAR on 03 January 2013 (within 45 days).