STOCK
EXCHANGE
CODES
ASX: ADU
TSXV: ADU
FSE: AXM
SHARE
INFORMATION
ASX Share
Price :
A$0.62
Issued
Shares :
116.3M
Market Cap:
A$72.1M
Unlisted
Options :
2.95M
RESOURCES
Measured:
0.86mozs
12mt
2.3g/t
Indicated:
0.31moz
5.0mt
1.9g/t
Inferred:
0.39mozs
6.3mt
1.9g/t
MARKET
CAP/OZ
A$46
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Adamus Advances – Positive Feasibility
Study
ASX and Media Release
14 June 2007
Emerging gold producer Adamus Resources Limited
(‘Adamus’ or ‘the Company’) (ASX:ADU) has further
advanced its Southern Ashanti Gold Project (’SAGP’ or the ‘Project’)
in West Africa, with the feasibility study
confirming the resource and economic potential of the Project.
Adamus’ Managing Director Mark Bojanjac said “the principal objectives of the feasibility
study had now been achieved, including JORC compliant reporting of resources
and reserve estimates, along with operating and capital costs estimates for a
1.3Mtpa throughput scenario”.
Total measured, indicated and inferred gold resources
of the Salman and Anwia deposits in the SAGP have been increased to 1.6 million
ounces, with more than 73% now in the measured and indicated category.
The SAGP is located in southern Ghana, West Africa.
The Project consists of a contiguous block of granted tenure covering approximately
500 square kilometres on the southern extension of the Ashanti Gold Belt,
host to over of 60 moz of gold. Ghana
has a long mining history and the Project is located to take advantage of excellent
access to port and road infrastructure.
“The
feasibility study has allowed Adamus to upgrade its resource and financial estimates
for the Southern Ashanti Gold Project. We
have now largely de-risked the Project and the Board is encouraged by the
regional potential of its ground holding,” Mr Bojanjac said.
“Adamus’
strategy is to advance and grow these assets as quickly as possible, while
maintaining our aggressive exploration approach,” Mr Bojanjac said.
Work on the feasibility study commenced in the first
quarter of 2006. The study was coordinated by Adamus using the services
of experienced independent consultants including Lycopodium Engineering Pty Limited,
Knight Piesold Consulting, SGS Environment and Mining Solutions Consultancy Pty
Limited.
The feasibility study estimates average annual gold production
of approximately 100,000 ounces over the first five and a half years of mine
life and is based on the development of a 1.3 million tonne per annum (Mtpa) processing
facility, treating the Anwia and Salman deposits over a six and a half year
period. The studied plant configuration consists of crushing, SAG milling,
gravity recovery, pre-leach thickening and a six stage CIL circuit.
Total cash costs per ounce are estimated to be US$354.
Cash operating costs include all mining, processing and administration costs,
royalties (3% of gross revenue) and excludes sustaining capital and mine
closure costs. Operating costs have been estimated by Lycopodium
Engineering Pty Ltd in consultation with Adamus. Mining costs have been
calculated by Mining Solutions Consultancy Pty Ltd based on budget pricing
received from experienced Ghana
active mining contractors.
The Base Case economic model has been run at a gold
price of US$660 per ounce and estimates total project cash flows to be A$184.6
million (pre capex and tax). Ore
reserve estimates have been calculated using the more conservative gold price
of US$575 per ounce. The study assumes power sourced from the Ghanaian
power grid.
The Company has also run an Expected Case scenario,
which demonstrates the potential impact of an assumed increases in total
production on the economics of the Project, with Estimated total cash flows of
A$218.9M (pre capex and tax). The Company’s exploration and
development activities in 2007 will focus on the most prospective areas of the
Project in terms of endeavouring to prove up additional ore reserves.
About Adamus
Adamus
Resources Limited is a Perth-based mineral exploration company, listed on
Australian Stock Exchange (ASX), Toronto Stock
Exchange Venture Exchange (TSX-V) and Frankfurt
Stock Exchange Open Market (FSE).
The
Company’s primary focus is on exploring and realising the economic
potential of the Southern Ashanti Gold Project in Ghana,
West Africa. The Project encompasses 500km2 of
granted tenure in the Ashanti
Gold Belt – host to over 60moz of gold and some of the largest gold mines
in the world. Ghana
is a stable West African country with a long history of large-scale gold
mining. Gold production is vital to the national economy.
Members
of the Adamus Board and management team have proven records in mineral exploration,
project development and project financing.
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For
Further Information Please contact:
Mark
Bojanjac
– Managing Director/CEO
+61 8 9322 5943
email:
mark@adamusresources.com.au
|
Mark
Connelly
– Executive Director/COO
+61 8 9322 5943
email: mark.connelly@adamusresources.com.au
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Further information and detail on the
feasibility study available on the Adamus Resources website: www.adamusresources.com.au
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