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Posts tagged ‘Auryx Gold Corp (AYX)’

Auryx reports Namibia Gold Assays up to 7.55 g/t over 20m

November 23rd, 2011

Resource Clips - essential news on junior gold mining and junior silver miningAuryx Gold Corp TSX:AYX announced results from the K2 shoot of its Otjikoto Project in Namibia. Assays include

7.55 g/t gold over 20 metres
(including 14.42 g/t over 3 metres)
3.95 g/t over 11 metres
(including 8.4 g/t over 2 metres)
13.37 g/t over 3 metres
(including 32.48 g/t over 1 metre)
2.34 g/t over 9 metres
2.3 g/t over 5 metres
(including 7.09 g/t over 1 metre)

CEO Tim Searcy comments, “The K2 shoot is a true geologic discovery. The new structurally controlled model that we have developed is a significant step forward in our geologic modelling and drill targeting at Otjikoto. The model describes the mineralization of the current resource and has now demonstrated predictive powers for locating new zones of mineralization, such as K2. I expect that this will greatly improve the exploration hit rate and it has positive implications for resource growth. These results confirm that the mineralizing system at Otjikoto is far more extensive than what falls within the PEA pit and there is excellent potential for finding mineralization of robust grade and good thickness.”

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Contact:
Andisheh Beiki
Investor Relations
416.361.2213

by Greg Klein

Auryx reports Namibia Gold Assays as high as 2.07 g/t over 12m

October 21st, 2011

Resource Clips - essential news on junior gold mining and junior silver miningAuryx Gold Corp TSX:AYX announced assays from its Otjikoto gold project in Namibia. Results include

1.51 g/t gold over 12 metres
1.69 g/t over 11 metres
4.04 g/t over 4 metres
3.72 g/t over 6 metres
7.96 g/t over 3 metres
3.97 g/t over 6 metres
3.32 g/t over 3 metres
12.56 g/t over 1 metre
1.2 g/t over 15 metres
2.62 g/t over 7 metres
1.55 g/t over 13 metres
1.86 g/t over 9 metres
2.07 g/t over 12 metres
8.27 g/t over 3 metres (including 23.79 g/t over 1 metre)
4.98 g/t over 3 metres
7.11 g/t over 5 metres
1.39 g/t over 18 metres
7.97 g/t over 1 metre

CEO Tim Searcy said, “In-pit drilling is confirming the continuity of the inferred mineralization and demonstrating that areas that were previously modelled as waste are, in fact, mineralized. The potential to add resources ‘in-pit’ demonstrates that the Otjikoto gold deposit is still underexplored. The southern extensions of the western shoots are located below the Main Magnetite Zone and demonstrate the potential for resource growth along strike at Otjikoto.”

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Read about the October 11 acquisition of Auryx Gold by B2Gold Corp

Contact:
Andisheh Beiki
Investor Relations
416.361.2213
or 647.968.1920

by Ted Niles

A Healthy Hybrid

October 17th, 2011

B2Gold Grows With Auryx Buy

By Ted Niles

It is a rare company that hasn’t seen its share price take a beating this year. Rarer still, one that has seen the steady growth that B2Gold Corp TSX:BTO has. President and CEO Clive Johnson puts it down to strength of management, “beating your projections” and growth through exploration and acquisition. He adds, “Most explorers don’t produce; and most producers don’t find a lot. In our case, we’re a bit of a hybrid company. We’re producers, but we’re also very good at exploration. We always have been.”

True enough, as anyone familiar with B2Gold and its predecessor, Bema Gold, will attest. When Bema—a company which began as a grassroots explorer—was acquired by Kinross Gold Corporation TSX:K in 2006 for $3.1 billion, it had nine mines in five countries with reserves and resources of 50 million ounces gold, 80 million ounces silver and 2.9 billion ounces copper. Founded in 2007 (and retaining Bema’s executive and management team), B2Gold now has two producing mines in Nicaragua—La Libertad and Limon, with combined production in 2010 of 108,700 ounces gold—as well as other properties in Latin American and now, after its October 11 acquisition of Auryx Gold Corp TSX:AYX, Namibia.

B2Gold Grows With Auryx Buy

“Some people ask if we can handle all these projects in all these different locations, but I think you have to look at our history,” Johnson remarks. “All of us together in B2Gold built Bema Gold—so we’ve done it before in Russia, in South Africa, in Chile and now in Nicaragua. We have an unusually strong team from exploration all the way through construction and production. We didn’t go to Namibia saying we have to have something in Namibia—we’ve been looking at lots of projects. The [Otjikoto] project itself was the first thing that attracted us. We’re definitely ready to build another mine, and we have the team to do it. We’ve shown we can do it anywhere in the world.”

B2Gold acquired Auryx and its flagship Otjikoto gold project last week in a friendly-merger deal for $160 million. Otjikoto is located on the Damara Belt Formation—which also hosts AngloGold Ashanti’s Navachab Mine—and has a December 2010 NI 43-101 resource estimate of 1.16 million ounces gold indicated and 660,000 ounces inferred. In September 2011 Auryx released a positive preliminary economic assessment showing a pre-tax net present value of $301 million, and an internal rate of return of 42% (with gold at $1,300 per ounce).

“[Otjikoto] is a robust project economically,” Johnson continues. “We think there’s a lot of upside, and we think there’s a lot of optimization that can be done in a number of areas to make an already good project even better. It’s got a minimum 10-year mine life with, by 2015, [production of] 100,000 ounces per year. We think there’s upside on that, but that’s a long mine life. And Namibia is a very good jurisdiction. The logistics are fantastic; the tax regime is fair; and the mining law works. We think it’s a good acquisition for us, and it can have a significant impact on our production. By 2015, we’re looking at getting up over 300,000 ounces.”

B2Gold will visit the project this week. Auryx anticipated the completion of a definitive feasibility study by 2Q 2013, and while B2Gold will be conducting a detailed review, Johnson expects to follow the same timeline.

Meanwhile, B2Gold’s La Libertad and Limon mines in Nicaragua proceed apace. The company had gold revenues totalling $127.5 million in 2010—an increase of 517% from 2009—and expects to increase 2011 production to approximately 135,000 ounces. Also, exploration drilling at La Libertad in 2010 yielded the discovery of the high-grade Jabali target, which already has an inferred mineral resource of 522,000 ounces gold, increasing La Libertad’s total inferred resources by 180%.

We’re definitely ready to build another mine, and we have the team to do it. We’ve shown we can do it anywhere in the world —Clive Johnson

Johnson notes that the company’s Gramalote property in Colombia is becoming an important asset. It is a joint venture with AngloGold Ashanti (B2Gold holds 49%, AngloGold Ashanti 51%), with AngloGold as the project operator. “The 2.4 million ounces we started with there is definitely getting a lot bigger, and everything is looking very positive,” Johnson says. “Anglo is talking 250,000 to 300,000 ounces a year, and we think it might be larger than that.” Johnson expects an updated resource at Gramalote by the end of year.

The combination of good management, year-over-year production increases and aggressive exploration and acquisition have granted B2Gold a degree of financial independence unusual in the junior mining sector. Johnson reports, “We’re generating from the Nicaragua mines right now about $118 million of cash from operations. So we can do all of our capital spends at the mine and all of our exploration—our budget this year totalled $53 million—and we can take on [Otjikoto] as well and still maintain a really strong cash balance going well into the future. With [Auryx's] cash and our cash we’ll have about $100 million in cash and no debt or hedging.”

He concludes, “We’re looking at production growing from about 145,000 ounces this year to, within two years, over 200,000 ounces. Then up to 320,000 ounces or thereabouts by bringing the [Otjikoto] project on. Then there’s the Colombian project. So we see a path to approaching a half-million ounces a year from existing ounces. This puts us in a very unusual place in the sector right now. And there are more acquisitions to be done.”

At press time, B2Gold had 344 million shares trading at $3.36, for a market cap of $1.16 billion. Its other exploration projects in Nicaragua are the Trebol, Pavon and San Pedro properties, which it holds in joint venture with Radius Gold Inc TSXV:RDU; and the Borosi prospect, also a joint venture with Calibre Mining Corp TSXV:CXB. It also has the Bellavista property in Costa Rica, the Mocoa property in Colombia and the Cebollati property in Uruguay.

B2Gold President Clive Johnson on $160M acquisition of Auryx Gold

October 12th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningB2Gold Corp TSX:BTO announced that it has signed an agreement to acquire Auryx Gold Corp TSX:AYX at a purchase price of approximately $0.88 per share of Auryx for a total equity value of $160 million. The merged companies will hold a 92% interest in Otjikoto gold project in Namibia as well as a 100% interest in two other Namibia projects.

B2Gold President/CEO Clive Johnson tells ResourceClips.com, “This is a friendly-merger deal—a plan of arrangement to combine the two companies. It’s valued at around $160 million in B2 shares. We’ve been aware of the Otjikoto project for a couple of years, and we thought it looked interesting. Our acquisition policy is to look for projects where we can come in and help a good technical group—which Auryx has—and bring our financial strength to bear on the project as well as our own exploration, mine-building and production experience. So we’ll be working with Auryx, and they’ll end up getting B2Gold shares.

We’re definitely ready to build another mine, and we have the team to do it. We’ve shown we can do it anywhere in the world, and we see this project in Namibia as being a very robust project in a good country—Clive Johnson

“We liked Otjikoto because it came out with a PEA that looked attractive,” Johnson continues. “It is a robust project economically. We think there’s a lot of upside, and we think there’s a lot of optimization that can be done in a number of areas to make an already good project even better. It’s got a minimum 10-year mine life with, by 2015, [production of] 100,000 ounces per year. We think there’s upside on that, but that’s a long mine life—at least 10 years. And Namibia is a very good jurisdiction. The project is in a good location. The logistics are fantastic in terms of it not being close to a population but with power and highways. The tax regime is fair, and the mining law works. We think it’s a good acquisition for us, and it can have a significant impact on our production. By 2015, we’re looking at getting up over 300,000 ounces of production. Beyond that, if we build the Gramalote project [in Colombia] with AngloGold Ashanti that could take us up to over 450,000 ounces a year. So there’s a lot of growth built into what we’re doing. Otjikoto will become an important part of our growth profile, and we look forward to finding out more about it.

“We tend to look at opportunities. We didn’t go to Namibia saying we have to have something in Namibia—we’ve been looking at lots of projects. The project itself was the first thing that attracted us. The fact that it’s in a good jurisdiction helps. Some people ask if we can handle all these projects in all these different locations, but I think you have to look at our history. The team, all of us together in B2Gold, built Bema Gold—so we’ve done it before in Russia, in South Africa, in Chile and now in Nicaragua. We’ve have an unusually strong team from exploration all the way through construction and production. We’re definitely ready to build another mine, and we have the team to do it. We’ve shown we can do it anywhere in the world, and we see this project in Namibia as being a very robust project in a good country.

“A number of us are going to visit the project next week, and we’ll come out with a more detailed plan going forward. But [Auryx] was talking about having a definitive feasibility study completed by 2Q 2013, with a budget—between now and next July—of around $20 million. So a lot of drilling and a lot of feasibility work. We have not reviewed that in detail yet, but we don’t see any reason to disagree with it, so we’re just going to go down to firm up the budget.”

Johnson adds, “Another important point here is the financial strength we bring. With [Auryx's] cash and our cash we’ll have about $100 million in cash and no debt or hedging. And we’re generating from the Nicaragua mines right now about $118 million of cash from operations. So we can do all of our capital spends at the mine and all of our exploration—our budget this year totalled $53 million—and we can take on this project as well and still maintain a really strong cash balance going well into the future.”

View Company Profile

Contact:
B2Gold Corp
Ian MacLean
VP Investor Relations
604.681.8371

or Auryx Gold Corp
Tim Searcy
CEO
416.361.5996

by Ted Niles

B2Gold to buy Auryx Gold for $160M Cash and Shares

October 11th, 2011

Resource Clips - essential news on junior gold mining and junior silver miningB2Gold Corp TSX:BTO announced that it has signed an agreement to acquire Auryx Gold Corp TSX:AYX at a purchase price of approximately $0.88 per share of Auryx for a total equity value of $160 million. The merged companies will hold a 92% interest in Otjikoto gold project in Namibia as well as a 100% interest in two other Namibia projects.

B2Gold President/CEO Clive Johnson tells ResourceClips.com, “This is a friendly-merger deal—a plan of arrangement to combine the two companies. It’s valued at around $160 million in B2 shares. We’ve been aware of the Otjikoto project for a couple of years, and we thought it looked interesting. Our acquisition policy is to look for projects where we can come in and help a good technical group—which Auryx has—and bring our financial strength to bear on the project as well as our own exploration, mine-building and production experience. So we’ll be working with Auryx, and they’ll end up getting B2Gold shares.

We’re definitely ready to build another mine, and we have the team to do it. We’ve shown we can do it anywhere in the world, and we see this project in Namibia as being a very robust project in a good country—Clive Johnson

“We liked Otjikoto because it came out with a PEA that looked attractive,” Johnson continues. “It is a robust project economically. We think there’s a lot of upside, and we think there’s a lot of optimization that can be done in a number of areas to make an already good project even better. It’s got a minimum 10-year mine life with, by 2015, [production of] 100,000 ounces per year. We think there’s upside on that, but that’s a long mine life—at least 10 years. And Namibia is a very good jurisdiction. The project is in a good location. The logistics are fantastic in terms of it not being close to a population but with power and highways. The tax regime is fair, and the mining law works. We think it’s a good acquisition for us, and it can have a significant impact on our production. By 2015, we’re looking at getting up over 300,000 ounces of production. Beyond that, if we build the Gramalote project [in Colombia] with AngloGold Ashanti that could take us up to over 450,000 ounces a year. So there’s a lot of growth built into what we’re doing. Otjikoto will become an important part of our growth profile, and we look forward to finding out more about it.

“We tend to look at opportunities. We didn’t go to Namibia saying we have to have something in Namibia—we’ve been looking at lots of projects. The project itself was the first thing that attracted us. The fact that it’s in a good jurisdiction helps. Some people ask if we can handle all these projects in all these different locations, but I think you have to look at our history. The team, all of us together in B2Gold, built Bema Gold—so we’ve done it before in Russia, in South Africa, in Chile and now in Nicaragua. We’ve have an unusually strong team from exploration all the way through construction and production. We’re definitely ready to build another mine, and we have the team to do it. We’ve shown we can do it anywhere in the world, and we see this project in Namibia as being a very robust project in a good country.

“A number of us are going to visit the project next week, and we’ll come out with a more detailed plan going forward. But [Auryx] was talking about having a definitive feasibility study completed by 2Q 2013, with a budget—between now and next July—of around $20 million. So a lot of drilling and a lot of feasibility work. We have not reviewed that in detail yet, but we don’t see any reason to disagree with it, so we’re just going to go down to firm up the budget.”

Johnson adds, “Another important point here is the financial strength we bring. With [Auryx's] cash and our cash we’ll have about $100 million in cash and no debt or hedging. And we’re generating from the Nicaragua mines right now about $118 million of cash from operations. So we can do all of our capital spends at the mine and all of our exploration—our budget this year totalled $53 million—and we can take on this project as well and still maintain a really strong cash balance going well into the future.”

View Company Profile

Contact:
B2Gold Corp
Ian MacLean
VP Investor Relations
604.681.8371

or Auryx Gold Corp
Tim Searcy
CEO
416.361.5996

by Ted Niles

All The Ingredients

May 18th, 2011

Auryx Gold is Secure and Moving to Production in Namibia

By Ted Niles

The offices of Auryx Gold must have resounded with a great sigh of relief after the announcement from Namibia’s Mines and Energy Minister. On May 10, Isak Katali clarified that nationalization will not apply to foreign-owned companies with existing licenses. Since the confusion began April 28, Auryx’s share price has taken a near-20-cent tumble to, at press time, $0.55, but CEO Tim Searcy remains confident. “Namibia is a great operating jurisdiction,” he maintains. “It has a very stable government and is a mining friendly country. I think this project is great.”

Auryx’s Otjikoto Gold Project is part of the company’s roughly 3,080-square-kilometre Otavi exploration area. Auryx holds a 100% interest in one Exclusive Prospecting Licence, consisting of 971 square kilometres, and a 92% interest in four other EPLs, totalling 2,409 square kilometres.

Part II of a May 10 Interview

The focus for 2011, Searcy says, is exploration of Otjikoto. “What we’re really trying to do here—in the first 12 to 18 months that we’ve been on the ground—is to scope out how big this system might be. So we’re doing some pretty aggressive step-out drilling.”

Assays released May 12 included 5.49 grams per ton gold over 1 metre, 0.63 g/t over 36 metres, 0.79 g/t over 36 metres, 1.05 g/t over 30 metres, 0.64 g/t over 16 metres and 0.95 g/t over 15 metres. April 13 results included 3.14 g/t over 4 metres, 1.72 g/t over 2 metres, 0.5 g/t over 12 metres, 1.11 g/t over 4 metres, 0.56 g/t over 14 metres, 0.71 g/t over 9 metres, 1 g/t over 7 metres and 1.82 g/t over 7 metres.

Searcy calls the latest results “pretty positive.” He explains, “I think what they demonstrate is that this resource is part of a bigger system than was previously defined. With the drilling we’ve done now, we’re quite confident that there’s a pretty long zone there: 1.4 kilometres long, 50 to 150 to maybe 200 metres wide and anywhere from 10 to 40 metres thick. So it’s an impressive zone of mineralization. Certainly it will convert to resource.”

Otjikoto is located in the Damara Belt Formation, as is AngloGold Ashanti’s Navachab Gold Mine, which produced 86,000 ounces in 2010 and hosts 3.64 million ounces measured and indicated and 850,000 ounces inferred.

This thing ought to be able to produce 100,000 ounces a year quite easily. That’s a nice threshold. – Tim Searcy

At a 0.4 g/t cut off, Otjikoto has a resource estimate of 1.16 million ounces gold indicated and 658,643 ounces inferred, both at a grade of 1.4 g/t. But Searcy notes, “If you want to raise that cut-off to something more appropriate for open pit mining—say 0.8 g/t—then the resource goes to 1.5 million ounces [indicated and inferred] of 1.9 g/t. So there’s a significantly higher-grade core to this deposit, and we think that’s going to have a significant impact on the economics.”

And Otjikoto’s infrastructure is solid. “It’s three kilometres from a paved highway, three kilometres from a railway line, and power lines are nearby,” Searcy reports. “And even though Namibia is a very dry country, there’s significant groundwater in the area.”

Production, Searcy says, is the company’s ultimate focus. “We’re going to de-risk this project and advance it as quickly as we can towards production. In 2011, we’re going to be focused primarily on exploration, but we are doing long lead-time items on the development studies, like environmental and social impact and geohydrological studies. These are things that take over a year to do. So we’re getting them done now, and we’re going to do it to a definitive feasibility level, so it doesn’t have to be repeated further down the road.”

While the market has yet to recover from the initial shock of the Namibian government’s new “strategic metals” policy, Searcy is persuaded that Otjikoto has “all the ingredients to go.” He concludes, “At those grades and on that scale, this thing ought to be able to produce 100,000 ounces a year quite easily. That’s a nice threshold. The market accepts that and that’s the kind of asset that’s in high demand.”

Auryx CEO Tim Searcy on Namibia gold assays of 1.05 g/t over 30m

May 16th, 2011

“Otjikoto was discovered in 1999 by a South African group called Avmin [i.e. Anglovaal Mining Ltd]. Avmin underwent some corporate restructuring and a couple of different spin-outs, and the property ended up with a company called TEAL Exploration & Mining. TEAL had a couple of non-core assets from what was then Avmin, large copper projects in Zambia and the Congo, and this base metal exploration project which turned into the Otjikoto gold discovery. [Companhia] Vale [do Rio Doce] took a look at the big copper projects and liked them, and they bought TEAL. Then, we recognized that Vale didn’t do 2 million ounce gold deposits—probably wouldn’t want to be in Namibia just for one asset—so we gave them a call and said we’d like to buy it and arranged the transaction and we ended up acquiring it last June.

“I think these assay results are pretty positive. I think what they demonstrate mainly is that this resource is part of a bigger system than was previously defined. What we’re really trying to do here—in the first 12 to 18 months that we’ve been on the ground—is to scope out how big this system might be. So we’re doing some pretty aggressive step-out drilling. One of the zones we’ve hit had been intersected by the previous operators, but only sporadically and not enough to really piece together the fact that there was something continuous there. With the drilling we’ve done now, we’re quite confident that there’s a pretty long zone there: 1.4 kilometres long, 50 to 150 to maybe 200 metres wide, and anywhere from 10 to 40 metres thick. So it’s an impressive zone of mineralization. Certainly it will convert to resource. How much of it will convert to reserve will be dependent on a number of things, not the least of which is the gold price. But some of it’s going to convert for sure. We’re not really there yet as far as putting economics on the project, but we hope to be able to give the market guidance on the timeline for that sort of thing.

“The project is advanced. 1.8 million ounces of resource at a grade of 1.4 g/t—that’s at a cut-off grade of 0.4 g/t. If you want to raise that cut-off to something more appropriate for open pit mining—say 0.8 g/t—then the resource goes to 1.5 million ounces of 1.9 g/t. So there’s a significantly higher grade core to this deposit. And we think that’s going to have a significant impact on the economics.

“Ultimately production is our focus. If something happens in the market otherwise, well that’s beyond our control. But that’s certainly our intention. We’re going to de-risk this project and advance it as quickly as we can towards production.

“The plan for 2011 is pretty simple. We’re going to be focussed primarily on exploration. But we are doing long lead time items on the development studies, like environmental and social impact and geo-hydrological studies. These are things that take over a year to do. So we’re getting them done now, and we’re going to do it to a definitive feasibility level so it doesn’t have to be repeated further down the road.

“I think this project is great. Namibia is a great operating jurisdiction. It has a very stable government, is a mining friendly country, and has excellent infrastructure. Infrastructure is really key on this project. It’s three kilometres from a paved highway, three kilometres from a railway line, and power lines are nearby. And even though Namibia is a very dry country, there’s significant ground water in the area. So water access won’t be a hang up for the project.

“Basically, it’s got all the ingredients to go. And at those grades and on that scale, this thing ought to be able to produce 100,000 ounces a year quite easily. That’s a nice threshold. The market accepts that and that’s the kind of asset that’s in high demand.”

Press Release Summary

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Auryx reports Namibia Gold Assays as high as 3.14 g/t over 4m

April 14th, 2011

Auryx Gold Corp TSX:AYX announced assay results from its Otjikoto Gold Project in Namibia. Highlights include 2.66 g/t gold over 1 metre, 3.14 g/t over 4 metres, 1.72 g/t over 2 metres, 1.31 g/t over 1 metre, 0.5 g/t over 12 metres, 1.11 g/t over 4 metres, 0.56 g/t over 14 metres (including 1.2 g/t over 4 metres), 0.71 g/t over 9 metres, 1 g/t over 7 metres and 1.82 g/t over 7 metres.

CEO Tim Searcy stated, “The discovery of new mineralized zones in what is essentially an in-pit environment is very positive for the Otjikoto project and confirms the company’s view that there is potential for discovery of more mineralized shoots along strike and along dip from the current resource. Furthermore, the ability to discover new zones in a region that has had significant drill testing in the past bodes well for the discovery potential in regions that have received limited drilling previously.”

View Company Profile

Contact:
Auryx Gold Corp
416.361.5996

by Ted Niles