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Amara Mining plc: Results of Preliminary Economic Assessment and Exploration Update for the Sega Gold Project

Date : 10/16/2012 @ 4:30PM
Source : Marketwired
Stock : America Mineral Fields (AMZ)
Quote : 0.21  0.0 (0.00%) @ 11:35AM
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Amara Mining plc: Results of Preliminary Economic Assessment and Exploration Update for the Sega Gold Project

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Amara (AIM:AMA)(TSX:AMZ) ("Amara" or "the Company") (formerly Cluff Gold plc), the dual AIM and TSX-listed West African focused gold mining company, announces the results of the Preliminary Economic Assessment ("PEA") and an exploration update for its Sega Gold Project ("Sega") in Burkina Faso. A technical report supporting the results of the PEA will be filed on SEDAR within 45 days.

The PEA has confirmed the potential viability of mining oxide and transitional material at Sega, located 20km north of Kalsaka, and transporting it to Amara's existing heap leach operation at the Kalsaka Gold Mine ("Kalsaka") 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.

Highlights of the PEA:


--  An internal rate of return ("IRR") of 48%, with a post-tax net present
    value ("NPV") of US$49.5 million using a gold price of US$1,500 per
    ounce and a discount rate of 10% 
--  Contained gold of 162,825 ounces over the 21 month initial mine life 
--  Cash cost per ounce produced excluding royalties of US$821 per ounce 
--  Mining licence expected to be received in Q1 2013 and mining at Sega
    anticipated to commence in H1 2013

Highlights of the exploration programme:


--  Drill results to date confirm potential for substantial upside to
    current Sega resources 
--  Significant intercepts at the Touli prospect on the Sega licence area
    include: 
    --  26m at 3.05g/t from 8m in hole SRB0232 
    --  26m at 2.14g/t from 24m in hole SRC0119 
    --  18m at 3.49g/t from 18m in hole SRB0290 
--  Exploration continuing at Kalsaka, with encouraging results received at
    the Rondo, Zoungwa and ZR prospects

Peter Spivey, Chief Executive Officer of Amara, commented:

"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."

The PEA has been prepared by Richard Quarmby, Group Project Manager of Amara. It has also benefited from the input of three independent contractors: SENET, SRK and Digby Wells Environmental.

Management Conference Call

The management team of Amara will host a conference call for analysts and investors at 9:30am UK time today. Dial-in details are as follows:


Dial in number:       +44 20 3427 1919
Participant PIN Code: 3172840         

A second conference call will be hosted at 9:30am EDT/2:30pm UK time today for North American analysts and investors. Dial-in details are as follows:


USA                      +1 212 444 0412     
Other parts of the world +44 20 3450 9987    
Participant PIN Code:    9425939             

Mine Plan

Amara prepared a mine plan based on the mineral resources delineated at Sega to date. Open pit optimisations were calculated assuming a gold price of US$1,300 per ounce. The PEA was based on the following parameters:


Gold price:             US$1,500 per ounce                                  
Diesel fuel price:      US$1.54 per litre                                   
Metallurgical recovery: 87% for oxide material / 70% for transitional       
                        material                                            
Mining dilution:        5% at zero grade                                    
Mining recovery:        95%                                                 

A gold price of US$1,500 per ounce was used to reflect the Company's short term gold price forecast. Sega is a brownfield extension of an existing plant and as its initial life of mine is 21 months, it would not be appropriate to employ a more conservative, long term gold price forecast as the project's resources will be exhausted before this point.

The PEA has confirmed that Amara will have access to material at Sega that is of a higher grade than the remaining reserves at Kalsaka. The following mined tonnages were estimated to be contained in the engineered open pit design:


Tonnes of gold bearing material: 2.5Mt                                   
Head grade:                      2.0g/t                                  
Ounces:                          162,825 contained gold                  
Tonnes of waste:                 17.3Mt                                  
Strip ratio:                     6.8:1                                   

The weighted average resource grade of the oxide and transitional material at Sega is similar to the Kalsaka reserves. However the Company's geological model shows that the grade of the material processed from Sega will be higher than that at Kalsaka due to the high grade core of the mineralisation, which can be selectively mined.

Processing

Detailed metallurgical testwork was undertaken by Orezone(i) prior to the acquisition of the project by Amara on 23 May 2012. It was conducted to a suitable standard for inclusion in a PEA and has been corroborated by Amara's internal testwork. The results indicate that the material is non-refractory and suggest an overall metallurgical recovery of 87% for oxide material and 70% for transitional material using a 12.5mm crush size and agglomeration using 0.45kg/t of cyanide and 10kg/t cement. This compares well to the Kalsaka material and therefore gives Amara confidence in its cost estimates.

Throughput of the Kalsaka processing plant is expected to be maintained at 1.6Mtpa.

Capital Costs and Infrastructure

Capital costs associated with the commencement of production from Sega are expected to be US$9.5 million. The capex required to bring Sega online is limited as the Sega material will be processed in the existing plant at Kalsaka and there is good existing infrastructure in place.


----------------------------------------------------------------------------
                                                                 US$ million
----------------------------------------------------------------------------
Crushing Plant at Sega                                                  2.38
----------------------------------------------------------------------------
Sega mining capital including haul road construction                    2.25
----------------------------------------------------------------------------
Sega infrastructure costs                                               0.32
----------------------------------------------------------------------------
Pre-project PEA and Environmental and Social Impact Assessment              
 (ESIA)                                                                 0.99
----------------------------------------------------------------------------
Other taxes                                                             0.65
----------------------------------------------------------------------------
Execution of Resettlement Action Plan (RAP)                             2.00
----------------------------------------------------------------------------
Contingency                                                             0.86
----------------------------------------------------------------------------
Total                                                                   9.45
----------------------------------------------------------------------------

Operating Costs

The following operating costs are robust as they were estimated based on Amara's existing cost structures at Kalsaka and incorporated into the financial analysis:


----------------------------------------------------------------------------
Life of Mine Operating Costs                                US$/oz  US$/t(i)
----------------------------------------------------------------------------
Mining(ii)                                                     376      2.59
----------------------------------------------------------------------------
Haulage from the crushed ore stockpile to Kalsaka              106      5.72
----------------------------------------------------------------------------
Processing                                                     226     12.18
----------------------------------------------------------------------------
G&A                                                            114      6.14
----------------------------------------------------------------------------
Total                                                          821         -
----------------------------------------------------------------------------
(i)mining costs are given as US$/t mined. All other costs are given as US$/t
processed                                                                   
(ii)includes haulage to the central Sega crushing facility                  

Material from Sega, which is located 20km north of Kalsaka, will be trucked to the existing Kalsaka plant. Trucking costs are estimated to be US$5.72 per tonne hauled (US$0.286 per tonne hauled per kilometre). Due to the higher grade of the Sega material, cash costs per Sega ounce are expected to be lower than the cash costs of Kalsaka ounces despite these additional transport costs.

Project Economics and Financial Analysis

Amara has produced a cash flow model for Sega based upon the geological, metallurgical and engineering work completed to date. The base case was developed using a short-term gold price of US$1,500 per ounce and includes applicable royalties, which currently include a 5% government royalty and a net smelter royalty of 1%, which is held by Royal Gold Inc. This latter royalty will be reduced from 3% to 1% in return for an upfront payment of US$2 million, which is not included in the initial capex of US$9.5 million.

Sega is expected to produce total post-tax cash flow of US$59.1 million and calculated sensitivities show the robust nature of the projected economics to operating assumptions.

NPV Sensitivity (post-tax) (US$000)


------------------------------------------------
                    Undiscounted                
Gold price              cashflow             10%
------------------------------------------------
1,300                     37,810          30,704
------------------------------------------------
1,400                     48,452          40,087
------------------------------------------------
1,500                     59,094          49,471
------------------------------------------------
1,600                     69,736          58,774
------------------------------------------------
1,700                     80,377          68,061
------------------------------------------------
1,800                     91,019          77,347
------------------------------------------------

Next Steps

Amara will lodge the necessary documents with the Burkina Faso Government in late October 2012, as agreed, to allow them adequate time to review the technical details in order to grant an environmental licence and a mining licence and enable the trucking of ore to commence in H1 2013. Full details of the PEA in the form of a National Instrument 43-101 technical report will also be filed on SEDAR within the next 45 days.

The Company has received verbal authorisation from the Government to begin the infrastructure work associated with Sega in advance of the final mining licence being granted, which is testament to the Government's desire to see production commence at the project. This work includes a dedicated haul road between Sega and Kalsaka, the installation of crushing facilities at Sega and an upgrade to the power and transmission plants. Construction is due to commence before the end of the year.

Following a visit to Sega, Digby Wells Environmental was appointed to conduct an Environmental and Social Impact Assessment ("ESIA") in April 2012. With the help of local consultants including BECOREM in Burkina Faso, Digby Wells Environmental has made significant progress towards completing the specialist studies and also in sensitising the project's stakeholders to the potential effects. A draft ESIA report, including a provisional resettlement action plan, is expected to be issued at the end of October 2012. Work is underway on physically demarcating the affected areas and once this is completed, Amara will undertake a public consultation on the ESIA.

Exploration Update

Exploration at the Kalsaka-Sega complex is a primary focus for Amara. Drilling results received to date give confidence that there is further upside potential to Sega's current resources, with particularly encouraging intercepts logged at the Touli prospect. This upside potential is expected to ensure that production continues uninterrupted at the Kalsaka-Sega complex as the Company continues to develop its portfolio of growth assets.

At 30 September 2012, 18,881 metres of RC drilling and 16,583 metres of RAB drilling have been conducted by the Company on the 313km2 Sega licence area since the project was acquired. In addition in Q1, before Sega was transferred to Amara, Orezone Gold Corporation ("Orezone") conducted a 10,000 metre drilling programme on the Sega license area. The drilling covered 11 targets and the most significant intercepts recorded were at the Touli, Sampella, Bangassila, Tiba3Sud and KNW prospects. Further RC drilling was then conducted at Touli, Sampella and Bangassilla.

Significant intercepts from Touli include:


--  23m at 1.35g/t from surface in hole SRC0017 
--  26m at 2.14g/t from 24m in hole SRC0119 
--  26m at 3.05g/t from 8m in hole SRB0232 
--  18m at 3.49g/t from 18m in hole SRB0290

Significant intercepts from the other prospects include:


--  5m at 3.48g/t from 96m in hole SRC0052 at Sampella 
--  4m at 2.07g/t from 99m in hole SRC0083 at Bangassila

RAB drilling was also conducted at Touli as part of the exploration campaign, and 4,592m of RAB sterilization drilling was undertaken at Bakou and Gambo. Further RC drilling commenced at KNW in late Q3 and, together with drilling at Tiba3Sud, will be completed after the harvest in early November.

Significant intercepts from KNW include:


--  6m @ 2.22 g/t from 63m in hole SRC0144 
--  11m @ 2.89 g/t from 25m in hole SRC0145

Please note that SRBs are RAB holes, and SRCs are RC holes. A significant intercept has a minimum width of 2m, a minimum grade of 0.4 g/t and a maximum internal dilution of 2m.

The full results of the 10,000 metre drilling programme conducted by Orezone are included in Appendix 1. The results of the RC drilling that Amara has conducted at Touli, Sampella, KNW and Bangassila are included in Appendix 2. The results of the RAB drilling conducted at Touli, Bakou and Gambo are included in Appendix 3.

In addition, exploration work is ongoing at Kalsaka, focusing on areas east of the existing K-zone pits along the K-zone shear structure. In-fill drilling at a line spacing of 50m has confirmed the continuity of mineralisation between the Rondo and Zoungwa prospects (known as the Z-R prospect) over a strike length of 900m. Amara believes there is further upside potential at Kalsaka, which the Company plans to mine once operations at Sega conclude. Resource estimations for these areas are expected to be completed during Q4 2012.

Mineral Resources at Sega(ii)


Indicated                               Tonnes          Grade   Contained Au
                                       ('000t)          (g/t)       (Ounces)
----------------------------------------------------------------------------
Ox-LAT Contact                              17           1.52            829
Oxide                                    3,279           1.67        175,630
Transitional                             1,594           1.58         81,113
----------------------------------------------------------------------------
Total Oxide and Transitional             4,890           1.64        257,572
----------------------------------------------------------------------------
Sulphide                                 3,399           1.76        192,794
----------------------------------------------------------------------------
Total Indicated                          8,289           1.69        450,366
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Inferred                                Tonnes          Grade   Contained Au
                                       ('000t)          (g/t)       (Ounces)
----------------------------------------------------------------------------
Ox-LAT Contact                               9           1.75            505
Oxide                                      740           1.50         35,764
Transitional                               422           1.47         19,989
----------------------------------------------------------------------------
Total Oxide and Transitional             1,171           1.49         56,258
----------------------------------------------------------------------------
Sulphide                                 1,737           1.63         91,086
----------------------------------------------------------------------------
Total Inferred                           2,908           1.58        147,344
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Note: Resources presented in the above table are accurate as at 11 January  
2010 (see note (i) below) and have not changed as a result of the drilling  
programme described in this announcement. Mineral resources that are not    
mineral reserves do not have demonstrated economic viability.               

Qualified Person

Richard Quarmby is a "Qualified Person" within the definition of National Instrument 43-101 and has verified the data disclosed in this release and reviewed and approved the information contained within this announcement. Mr Quarmby is the Group Project Manager.

The delineation of the Sega resources and the 10,000 metre drilling programme were executed under the supervision of Pascal Marquis, SVP Exploration for Orezone, who is a Qualified Person as defined by National Instrument 43-101 and who has reviewed and approved the relevant technical information in this release. Orezone completed the 10,000 m reverse circulation drilling program and the rotary sample division of all the samples that were then handed over to Cluff who supervised the sample preparation and the analytical work reported here.

Peter Brown is a "Qualified Person" within the definition of National Instrument 43-101 and has verified the data disclosed in this release with regards to the exploration conducted at Sega for Amara, including sampling, analytical and test data underlying the information contained herein, and reviewed and approved the information contained within this announcement. Mr Brown (MIMMM) is the Group Exploration Manager.

About Amara Mining plc

Amara (formerly Cluff Gold) is a gold developer-producer with assets in West Africa. The Company generates significant cash flow through its Kalsaka gold mine in Burkina Faso, where the production profile has been enhanced by the recent acquisition of the neighbouring Sega project. Amara remains focused on its objective of becoming a mid-tier producer through the development of its Baomahun project in Sierra Leone and its Yaoure project in Cote d'Ivoire. With its experience of bringing new mines into production and a project pipeline spanning Burkina Faso, Cote d'Ivoire and Mali, Amara aims to further increase its production profile with its highly prospective exploration work across all assets.

This report includes certain "forward-looking information" within the meaning of applicable Canadian securities legislation.

All statements other than statements of historical fact included in this report, including, without limitation, the positioning of the Company for future success, statements regarding exploration, production estimates and future objectives of Amara, are forward-looking information that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Amara's expectations include, among others, risks related to international operations, timing of receipt of mining licence, the actual results of current exploration and drilling activities, the reduction of the net smelter returns royalty on Sega, the results of the Baomahun feasibility study, changes in project parameters as plans continue to be refined as well as the future price of gold. Although Amara has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Amara does not undertake to update any forward-looking statements that are included herein, except in accordance with applicable securities laws.

Non IFRS Measures - Cash cost per ounce is a financial measure used by many investors to compare mining companies on the basis of operating results and asset value. It is not a measure of financial performance, nor does it have a standardized meaning prescribed by IFRS, and it may not be comparable to similar measures presented by other companies. Investors are cautioned that cash cost per ounce should not be construed as an alternative to other financial measures determined in accordance with IFRS as an indicator of Amara's performance. This measure has been described and presented in this document in order to provide shareholders and potential investors with additional information regarding the Company's operational performance.

The mineral resources for Sega were estimated by Orezone in 2010. The 2010 resource estimate was updated from the resource estimate prepared by Met-Chem in February 2009 and included 12,471 m of new infill definition drilling, for a total of 104,752 m of core and reverse circulation drilling compiled up to December 2009. The resources are contained in thirteen separate block models, and for the most part are restricted to a vertical depth of 150 m.

The RC drilling programmes at Sega were undertaken by independent drilling contractors. All the Company's drill hole collar positions were pegged using a Garmin GPS unit and re-surveyed after drilling. The drill collars after survey were checked by an onsite geologist. Each 1.0m RC chipping passing through a cyclone is collected in a plastic bag and reduced in a multistage splitter to get a split of between 2kg and 4kg. Sampling was done under the supervision of the site geologist. Duplicate samples were collected at every 20th sample point and one blank inserted at every 20th point. Every fiftieth sample is a Certified Reference Material from Geostats. Samples were submitted to the in-house laboratory, dried, crushed and pulverised to 85-90% passing 106um and analysed by bulk leach extractable gold assays for twelve hours.

The RAB drilling programme at Sega was undertaken by an independent drilling contractor. All the drill holes collar positions were pegged using a Garmin GPS unit and re-surveyed after drilling. The drill collars after survey were checked by an onsite geologist. Each 1.0m RAB chipping passing through a cyclone is collected in a plastic bag and 2m-composites are reduced in a multistage splitter to get a split of between 2kg and 4kg. Sampling was done under the supervision of the site geologist. Duplicate samples were collected at every 20th sample point and one blank inserted at every 20th point. Every fiftieth sample is a Certified Reference Material from Geostats. Samples were submitted to the in-house laboratory, dried, crushed and pulverised to 85-90% passing 106um and analysed by bulk leach extractable gold assays for twelve hours.

RAB and RC check assays will also be submitted to external commercial laboratories in Burkina Faso as part of the Company's quality control procedures.

Appendix 1: Results of 10,000m drilling programme conducted by Orezone

Please note that SRBs are RAB holes, and SRCs are RC holes. A significant intercept has a minimum width of 2m, a minimum grade of 0.4 g/t and a maximum internal dilution of 2m.


----------------------------------------------------------------------------
Hole_ID    From  To Interval  Au_ppm    Prospect          UTME          UTMN
----------------------------------------------------------------------------
TBC1025      20  25        5    0.41       Tiba2    611824.442    1482038.78
TBC1025      28  31        3    5.09       Tiba2    611824.442    1482038.78
TBC1025      67  71        4    1.00       Tiba2    611824.442    1482038.78
TBC1026      16  20        4    0.72       Tiba2    611833.807     1482015.6
TBC1026      58  60        2    0.70       Tiba2    611833.807     1482015.6
TBC1027       1   3        2    0.89       Tiba2     611867.43    1482065.85
TBC1027      31  33        2    0.58       Tiba2     611867.43    1482065.85
TBC1027      36  55       19    0.81       Tiba2     611867.43    1482065.85
TBC1027      76  78        2    1.88       Tiba2     611867.43    1482065.85
TBC1028       4   8        4    0.44       Tiba2    611876.795    1482042.67
TBC1028      10  12        2    1.36       Tiba2    611876.795    1482042.67
TBC1028      24  29        5    1.11       Tiba2    611876.795    1482042.67
TBC1029       9  15        6    1.26       Tiba2     611886.16    1482019.49
TBC1029      23  26        3    0.56       Tiba2     611886.16    1482019.49
TBC1029      30  34        4    1.35       Tiba2     611886.16    1482019.49
TBC1029      44  50        6    0.57       Tiba2     611886.16    1482019.49
TBC1032       4   6        2    0.56       Tiba2    611930.646    1482042.86
TBC1032      44  48        4    0.69       Tiba2    611930.646    1482042.86
TBC1033      54  56        2    1.40       Tiba2    611959.024    1482106.09
TBC1040      54  60        6    1.32   Tiba3-Sud    612517.499    1482198.15
TBC1044      30  33        3    0.58   Tiba3-Sud     612811.68    1482285.56
TBC1047      12  14        2    0.59   Tiba3-Sud    612869.306    1482367.44
TBC1055      18  21        3    0.44   Tiba3-Sud    613039.618    1482361.28
TBC1057      10  13        3    1.14   Tiba3-Sud    613014.669    1482222.15
TBC1058      38  40        2    4.37   Tiba3-Sud    613034.369    1482206.75
TBC1061      38  47        9    1.28   Tiba3-Sud    613028.752    1482084.24
TBC1062      16  23        7    1.28   Tiba3-Sud    613009.051    1482099.63
TBC1063       5   7        2    0.79   Tiba3-Sud    613003.586    1482167.35
TBC1063      52  54        2    0.83   Tiba3-Sud    613003.586    1482167.35
TBC1065      27  32        5    0.58   Tiba3-Sud    613138.538    1482315.72
TBC1065      49  52        3    0.51   Tiba3-Sud    613138.538    1482315.72
TBC1066       5   8        3    0.83   Tiba3-Sud    613118.838    1482331.11
TBC1071      53  55        2    6.84   Tiba3-Sud    613130.391    1482480.71
TBC1071      62  65        3    0.45   Tiba3-Sud    613130.391    1482480.71
TBC1073       3   5        2    0.44   Tiba3-Sud    613199.049    1482553.97
TBC1073       6  13        7    0.63   Tiba3-Sud    613199.049    1482553.97
TBC1079      10  15        5    1.49    Sampella    616349.577    1483247.81
TBC1080      24  30        6    0.94    Sampella    616410.378     1483242.5
TBC1081      52  59        7    2.47    Sampella     616453.68     1483267.5
TBC1082      41  43        2    6.65    Sampella    616504.481    1483279.51
TBC1083      31  34        3    0.79    Sampella    616542.782    1483313.17
TBC1088      57  59        2    1.17        Dere    614487.386    1480989.26
TBC1091      81  83        2    0.70        Dere    614340.887    1481069.18
TBC1094      26  29        3    6.21       Touli        612100       1479300
TBC1094      32  36        4    0.79       Touli        612100       1479300
TBC1094      43  50        7    1.22       Touli        612100       1479300
TBC1094      59  62        3    1.33       Touli        612100       1479300
TBC1095      31  34        3    2.78       Touli        612100       1479250
TBC1095      40  44        4    0.70       Touli        612100       1479250
TBC1095      59  67        8    1.32       Touli        612100       1479250
TBC1097      35  37        2    0.74     Kamense    611017.627    1479121.97
TBC1098      20  22        2    3.03         KNW        610638       1478500
TBC1100      11  13        2    0.49         KNW        610508       1478500
TBC1100      16  22        6    1.68         KNW        610508       1478500
TBC1106       2  12       10    2.88         KNW        610631       1478450
TBC1108      11  13        2    0.75         KNW        610600       1478400
TBC1110      20  22        2    0.96         KNW        610525       1478375
TBC1110      26  30        4    0.58         KNW        610525       1478375
TBC1112      24  30        6    3.00         KNW        610625       1478375
TBC1113      57  64        7    2.40         KNW        610645       1478345
TBC1119       7  11        4    2.78         KNW        610240       1478250
TBC1129      26  29        3    0.52         KNW        610533       1477900
TBC1135       4   8        4    1.63         KNW        610538       1477750
TBC1135      12  15        3    0.97         KNW        610538       1477750
TBC1136      14  19        5    0.82         KNW        610569       1477700
TBC1146      29  31        2    0.80         KNW        611018       1477500
TBC1146      35  37        2    0.86         KNW        611018       1477500
TBC1147      24  26        2    3.31         KNW        611044       1477450
TBC1151       1   7        6    0.89         KNW        611044       1477400
TBC1151      31  35        4    0.45         KNW        611044       1477400
TBC1158       7   9        2    0.61         KNW        610942       1477200
TBC1159      31  33        2    0.54         KNW        611003       1477150
TBC1161       7  15        8    1.30         KNW        610911       1477150
TBC1162      12  15        3    1.03         KNW        610886       1477150
TBC1163      14  18        4    0.45         KNW        610919       1477045
TBC1163      24  32        8    0.59         KNW        610919       1477045
TBC1167       5  11        6    0.45         KNW        610880       1477300
TBC1167      35  38        3    0.61         KNW        610880       1477300
TBC1168      22  24        2    0.72         KNW        610905       1477300
TBC1168      28  30        2    0.70         KNW        610905       1477300
TBC1169      22  24        2    0.83         KNW        610899       1477350
TBC1170      16  18        2   11.99         KNW        610874       1477350
TBC1170      27  29        2    0.57         KNW        610874       1477350
TBC1172       2   6        4    0.53         KNW        610893       1477400
TBC1172      13  15        2    0.72         KNW        610893       1477400
TBC1178       1   4        3    1.33         KNW        610500       1478000
TBC1178      15  19        4    1.24         KNW        610500       1478000
TBC1179      21  24        3    0.53         KNW        610531       1478050
TBC1179      30  34        4    0.47         KNW        610531       1478050
TBC1180       4   9        5    0.82         KNW        610510       1478100
TBC1182      27  29        2    0.75         KNW        610556       1478050
TBC1184      14  19        5    0.73         KNW        610500       1478150
TBC1185      19  26        7    0.51         KNW        610292       1478100
TBC1186      16  18        2    0.70         KNW        610212       1478100
TBC1188      13  15        2    1.29         KNW        610235       1478200
TBC1189      46  52        6    2.34        G2SW        606750       1476520
TBC1203      71  79        8    7.75  Bangassila    606848.523    1479949.06

Appendix 2: Results of the RC drilling conducted by Amara at the Touli, Sampella, KNW and Bangassila prospect

Please note that SRBs are RAB holes, and SRCs are RC holes. A significant intercept has a minimum width of 2m, a minimum grade of 0.4 g/t and a maximum internal dilution of 2m.


----------------------------------------------------------------------------
BHID     FROM  TO Interval   AU Permit    Prospect Dril_Type   UTME     UTMN
----------------------------------------------------------------------------
SRC0061    51  55        4 1.47   TIBA  Bangassila        RC 606732  1479852
SRC0062    14  16        2 2.01   TIBA  Bangassila        RC 606777  1479886
SRC0064     1   5        4 0.55   TIBA  Bangassila        RC 606791  1479933
SRC0064    50  53        3 0.65   TIBA  Bangassila        RC 606791  1479933
SRC0064    56  60        4 0.81   TIBA  Bangassila        RC 606791  1479933
SRC0065    15  17        2 1.74   TIBA  Bangassila        RC 606808  1479915
SRC0065    27  29        2 1.62   TIBA  Bangassila        RC 606808  1479915
SRC0065    37  40        3 0.59   TIBA  Bangassila        RC 606808  1479915
SRC0066    38  41        3 0.62   TIBA  Bangassila        RC 606839  1479977
SRC0066    58  61        3 2.13   TIBA  Bangassila        RC 606839  1479977
SRC0080    72  74        2 0.82   TIBA  Bangassila        RC 606750  1479833
SRC0082    89  92        3 0.62   TIBA  Bangassila        RC 606795  1479866
SRC0082   114 118        4 1.03   TIBA  Bangassila        RC 606795  1479866
SRC0083    99 103        4 2.07   TIBA  Bangassila        RC 606842  1479880
SRC0083   110 114        4 0.82   TIBA  Bangassila        RC 606842  1479880
SRC0083   121 124        3 0.89   TIBA  Bangassila        RC 606842  1479880
SRC0084    79  81        2 1.03   TIBA  Bangassila        RC 606826  1479899
SRC0085    64  70        6 0.41   TIBA  Bangassila        RC 606772  1479953
SRC0085    72  76        4 0.90   TIBA  Bangassila        RC 606772  1479953
SRC0090   105 109        4 0.74   TIBA  Bangassila        RC 606865  1479929
SRC0093   126 129        3 0.93   TIBA  Bangassila        RC 606668  1479706
SRC0109    28  31        3 0.63   TIBA  Bangassila        RC 606812  1479986
SRC0141    54  60        6 0.64   TIBA         KNW        RC 610526  1478550
SRC0142    30  33        3 1.62   TIBA         KNW        RC 610506  1478551
SRC0144    52  54        2 0.52   TIBA         KNW        RC 610662  1478450
SRC0144    63  69        6 2.22   TIBA         KNW        RC 610662  1478450
SRC0144    72  77        5 0.51   TIBA         KNW        RC 610662  1478450
SRC0145    25  36       11 2.89   TIBA         KNW        RC 610645  1478451
SRC0150    35  40        5 0.82   TIBA         KNW        RC 610913  1477350
SRC0150    67  69        2 0.53   TIBA         KNW        RC 610913  1477350
SRC0151    11  14        3 0.46   TIBA         KNW        RC 610889  1477350
SRC0151    16  19        3 1.14   TIBA         KNW        RC 610889  1477350
SRC0033    82  91        9 1.74   TIBA    Sampella        RC 616440  1483290
SRC0046    68  71        3 0.70   TIBA    Sampella        RC 616384  1483276
SRC0046    75  80        5 0.50   TIBA    Sampella        RC 616384  1483276
SRC0052    66  68        2 0.70   TIBA    Sampella        RC 616338  1483269
SRC0052    96 101        5 3.48   TIBA    Sampella        RC 616338  1483269
SRC0008    56  60        4 1.02   TIBA       Touli        RC 611950  1479242
SRC0010     1   7        6 0.92   TIBA       Touli        RC 612000  1479332
SRC0010    10  15        5 0.86   TIBA       Touli        RC 612000  1479332
SRC0010    18  23        5 3.16   TIBA       Touli        RC 612000  1479332
SRC0014    90  92        2 0.47   TIBA       Touli        RC 612053  1479287
SRC0014   105 109        4 0.99   TIBA       Touli        RC 612053  1479287
SRC0015    37  42        5 0.73   TIBA       Touli        RC 612052  1479240
SRC0015    47  50        3 0.51   TIBA       Touli        RC 612052  1479240
SRC0016    78  85        7 0.71   TIBA       Touli        RC 612100  1479332
SRC0016   151 153        2 0.87   TIBA       Touli        RC 612100  1479332
SRC0017     1  24       23 1.35   TIBA       Touli        RC 612150  1479332
SRC0017    37  39        2 0.75   TIBA       Touli        RC 612150  1479332
SRC0017    47  60       13 1.20   TIBA       Touli        RC 612150  1479332
SRC0017    79  84        5 1.45   TIBA       Touli        RC 612150  1479332
SRC0017   136 141        5 0.51   TIBA       Touli        RC 612150  1479332
SRC0017   151 154        3 0.45   TIBA       Touli        RC 612150  1479332
SRC0018    16  21        5 0.53   TIBA       Touli        RC 612152  1479286
SRC0018    24  26        2 1.29   TIBA       Touli        RC 612152  1479286
SRC0019    39  41        2 0.54   TIBA       Touli        RC 612152  1479241
SRC0032     8  13        5 0.91   TIBA       Touli        RC 612103  1479287
SRC0032    16  19        3 5.87   TIBA       Touli        RC 612103  1479287
SRC0032    25  39       14 0.81   TIBA       Touli        RC 612103  1479287
SRC0103    10  18        8 0.80   TIBA       Touli        RC 611989  1479367
SRC0103    63  71        8 1.28   TIBA       Touli        RC 611989  1479367
SRC0104    45  48        3 1.72   TIBA       Touli        RC 611997  1479399
SRC0104    62  70        8 0.91   TIBA       Touli        RC 611997  1479399
SRC0105    13  15        2 0.57   TIBA       Touli        RC 612150  1479364
SRC0105    22  29        7 0.77   TIBA       Touli        RC 612150  1479364
SRC0105    32  44       12 0.49   TIBA       Touli        RC 612150  1479364
SRC0105    48  52        4 0.74   TIBA       Touli        RC 612150  1479364
SRC0105    66  71        5 0.66   TIBA       Touli        RC 612150  1479364
SRC0105    93  95        2 0.53   TIBA       Touli        RC 612150  1479364
SRC0105   100 102        2 2.99   TIBA       Touli        RC 612150  1479364
SRC0106    56  63        7 0.67   TIBA       Touli        RC 612150  1479397
SRC0106    74  78        4 1.66   TIBA       Touli        RC 612150  1479397
SRC0112    90  92        2 1.90   TIBA       Touli        RC 611996  1479437
SRC0112   106 110        4 1.24   TIBA       Touli        RC 611996  1479437
SRC0113    69  71        2 1.04   TIBA       Touli        RC 611944  1479443
SRC0113    76  83        7 1.44   TIBA       Touli        RC 611944  1479443
SRC0113   100 109        9 1.02   TIBA       Touli        RC 611944  1479443
SRC0114     8  19       11 1.65   TIBA       Touli        RC 611946  1479396
SRC0114    33  35        2 1.22   TIBA       Touli        RC 611946  1479396
SRC0114    52  55        3 1.32   TIBA       Touli        RC 611946  1479396
SRC0115    57  61        4 2.10   TIBA       Touli        RC 611898  1479435
SRC0116    12  17        5 1.49   TIBA       Touli        RC 611900  1479396
SRC0118    47  54        7 0.85   TIBA       Touli        RC 611275  1479676
SRC0118    57  61        4 1.07   TIBA       Touli        RC 611275  1479676
SRC0118    71  73        2 2.58   TIBA       Touli        RC 611275  1479676
SRC0119    12  21        9 1.50   TIBA       Touli        RC 611274  1479610
SRC0119    24  50       26 2.14   TIBA       Touli        RC 611274  1479610
SRC0124    64  66        2 1.77   TIBA       Touli        RC 611471  1479710
SRC0124    90  92        2 0.83   TIBA       Touli        RC 611471  1479710
SRC0126    15  17        2 0.67   TIBA       Touli        RC 612203  1479397
SRC0127    86  91        5 1.30   TIBA       Touli        RC 612198  1479438
SRC0127   121 123        2 3.99   TIBA       Touli        RC 612198  1479438
SRC0128    16  19        3 0.80   TIBA       Touli        RC 612249  1479440
SRC0128    34  37        3 0.82   TIBA       Touli        RC 612249  1479440
SRC0128    58  60        2 1.14   TIBA       Touli        RC 612249  1479440
SRC0128    63  72        9 0.48   TIBA       Touli        RC 612249  1479440
SRC0129    27  29        2 4.31   TIBA       Touli        RC 612246  1479397
SRC0132   111 127       16 0.79   TIBA       Touli        RC 612150  1479436
SRC0132   134 141        7 0.72   TIBA       Touli        RC 612150  1479436
SRC0155   127 130        3 1.16   TIBA       Touli        RC 611669  1479747
SRC0156    36  38        2 0.46   TIBA       Touli        RC 611463  1479609
SRC0156    69  71        2 0.44   TIBA       Touli        RC 611463  1479609
SRC0158    44  46        2 1.82   TIBA       Touli        RC 611369  1479643

Appendix 3: Results of the RAB drilling conducted by Amara at the Touli, Bakou and Gambo prospects

Please note that SRBs are RAB holes, and SRCs are RC holes. A significant intercept has a minimum width of 2m, a minimum grade of 0.4 g/t and a maximum internal dilution of 2m.


----------------------------------------------------------------------------
BHID     FROM  TO Interval   AU Permit    Prospect Dril_Type   UTME     UTMN
----------------------------------------------------------------------------
SRB0003    18  20        2 0.43   TIBA       Bakou       RAB 609122  1477446
SRB0005     6   8        2 1.24   TIBA       Bakou       RAB 609125  1477413
SRB0007     2   8        6 1.95   TIBA       Bakou       RAB 609127  1477383
SRB0008     2   6        4 0.69   TIBA       Bakou       RAB 609126  1477361
SRB0008    12  14        2 0.66   TIBA       Bakou       RAB 609126  1477361
SRB0010     0   2        2 3.72   TIBA       Bakou       RAB 609133  1477321
SRB0011    16  18        2 0.44   TIBA       Bakou       RAB 609133  1477299
SRB0029    28  34        6 1.20   TIBA       Bakou       RAB 609313  1477471
SRB0036    14  16        2 1.42   TIBA       Bakou       RAB 609141  1477438
SRB0040    42  50        8 0.90   TIBA       Bakou       RAB 609317  1477366
SRB0043    10  12        2 0.93   TIBA       Bakou       RAB 609215  1477349
SRB0046    18  20        2 0.60   TIBA       Bakou       RAB 609163  1477341
SRB0048    26  28        2 0.96   TIBA       Bakou       RAB 609128  1477337
SRB0051    12  16        4 0.60   TIBA       Bakou       RAB 609084  1477327
SRB0054    38  40        2 0.58   TIBA       Bakou       RAB 609346  1477268
SRB0054    50  54        4 0.64   TIBA       Bakou       RAB 609346  1477268
SRB0055    46  48        2 0.47   TIBA       Bakou       RAB 609292  1477255
SRB0058    16  18        2 1.03   TIBA       Bakou       RAB 609220  1477246
SRB0059     0   2        2 0.69   TIBA       Bakou       RAB 609200  1477245
SRB0061     0   2        2 0.44   TIBA       Bakou       RAB 609163  1477241
SRB0063     0   2        2 0.44   TIBA       Bakou       RAB 609122  1477236
SRB0064    30  32        2 0.55   TIBA       Bakou       RAB 609105  1477231
SRB0073    26  30        4 1.97   TIBA       Bakou       RAB 609178  1477144
SRB0074    24  26        2 0.96   TIBA       Bakou       RAB 609152  1477138
SRB0075     0   2        2 0.61   TIBA       Bakou       RAB 609128  1477137
SRB0087     0   2        2 0.43   TIBA       Bakou       RAB 609065  1476937
SRB0089    36  38        2 2.77   TIBA       Bakou       RAB 609123  1476944
SRB0091    20  22        2 0.60   TIBA       Bakou       RAB 609333  1477060
SRB0107    16  18        2 0.54   TIBA       Bakou       RAB 609200  1476950
SRB0152    14  16        2 1.13   TIBA       Gambo       RAB 607843  1476077
SRB0155    18  20        2 0.55   TIBA       Gambo       RAB 607808  1476169
SRB0122    20  22        2 0.92   TIBA       Touli       RAB 612500  1479500
SRB0123    24  26        2 0.50   TIBA       Touli       RAB 612503  1479460
SRB0158    10  12        2 0.92   TIBA       Touli       RAB 612300  1479500
SRB0159    32  34        2 0.60   TIBA       Touli       RAB 612303  1479465
SRB0159    44  48        4 2.16   TIBA       Touli       RAB 612303  1479465
SRB0167    32  36        4 0.46   TIBA       Touli       RAB 612773  1479047
SRB0182    10  12        2 0.55   TIBA       Touli       RAB 611910  1479396
SRB0182    26  28        2 0.43   TIBA       Touli       RAB 611910  1479396
SRB0183     8  16        8 0.51   TIBA       Touli       RAB 611915  1479376
SRB0184    44  46        2 0.43   TIBA       Touli       RAB 611924  1479321
SRB0209    16  18        2 0.44   TIBA       Touli       RAB 611381  1479012
SRB0215     4  10        6 0.63   TIBA       Touli       RAB 611142  1479176
SRB0230    14  16        2 1.15   TIBA       Touli       RAB 611275  1479658
SRB0230    30  34        4 1.03   TIBA       Touli       RAB 611275  1479658
SRB0230    42  51        9 2.88   TIBA       Touli       RAB 611275  1479658
SRB0231    38  51       13 1.15   TIBA       Touli       RAB 611279  1479631
SRB0232     8  34       26 3.05   TIBA       Touli       RAB 611286  1479595
SRB0233    16  26       10 2.17   TIBA       Touli       RAB 611291  1479561
SRB0271     2   4        2 0.61   TIBA       Touli       RAB 612050  1479902
SRB0288    44  46        2 0.44   TIBA       Touli       RAB 611849  1479820
SRB0289    36  50       14 1.16   TIBA       Touli       RAB 611850  1479785
SRB0290     8  26       18 3.49   TIBA       Touli       RAB 611850  1479750
SRB0290    48  51        3 0.81   TIBA       Touli       RAB 611850  1479750
SRB0297     2   4        2 0.50   TIBA       Touli       RAB 611675  1479982
SRB0298     2   4        2 0.41   TIBA       Touli       RAB 611674  1479928
SRB0300    18  20        2 0.49   TIBA       Touli       RAB 611674  1479828
SRB0301    20  24        4 2.16   TIBA       Touli       RAB 611675  1479775
SRB0310    52  54        2 0.43   TIBA       Touli       RAB 611475  1479751

(i) As per Orezone's press release titled Orezone Confirms Positive Metallurgical Results for Sega Gold Deposit, dated 11 April 2011

(ii) Mineral resources estimates effective as of January 11, 2010. Stated cut-off grade of 0.5g/t Au. Further details of Sega's mineral resources are contained in the technical report entitled: Technical Report on the Mineral Resource of the Sega Gold Project, dated January 11, 2010, filed by Orezone Gold Corporation and available on SEDAR. This technical report was reviewed by Peter Brown, a "Qualified Person" on behalf of Amara. To the best of Amara's knowledge, information and belief, there is no new material scientific or technical information that would make the disclosure of the mineral resources inaccurate or misleading.

NO REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED THE CONTENT OF THIS PRESS RELEASE

Contacts: Amara Mining plc John McGloin Chairman +44 (0)20 7398 1420 Amara Mining plc Peter Spivey Chief Executive Officer +44 (0)20 7398 1420 Amara Mining plc Pete Gardner Finance Director +44 (0)20 7398 1420 Amara Mining plc Katharine Sutton Head of Investor Relations +44 (0)20 7398 1420 Canaccord Genuity Limited (Nominated Adviser & Broker, London) John Prior +44 (0)20 7523 8350 Canaccord Genuity Limited (Nominated Adviser & Broker, London) Sebastian Jones +44 (0)20 7523 8350 Canaccord Genuity Limited (Nominated Adviser & Broker, London) Joe Weaving +44 (0)20 7523 8350 Pelham Bell Pottinger (Financial Public Relations) Charlie Vivian +44 (0)20 7861 3232 Pelham Bell Pottinger (Financial Public Relations) Daniel Thole +44 (0)20 7861 3232 Pelham Bell Pottinger (Financial Public Relations) James MacFarlane +44 (0)20 7861 3232



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