Mano River looks to boost Liberian gold tally

Vancouver – A new round of drilling recently initiated by Mano River Resources (MNO-V, MANA-L) on its New Liberty gold project in northwestern Liberia is aimed at increasing the resource.

As part of a positive feasibility study completed in early-2007 the company tabled a measured and indicated resource of 13.5 million tonnes at 3.2 grams gold per tonne at New Liberty using a 1 gram gold cut-off grade – for about 1.38 million contained oz. gold. Within the resource proven and probable reserves of 4.6 million tonnes at 3.9 grams gold was reviewed for 573,000 contain oz. gold.

Drilling will mostly focus on delineation and infill to upgrade portions of the current resource but will also test the depth extent of mineralization – targeting to 500-600 metres below surface.

Mano River’s early-2007 feasibility study indicated positive economics for an open pit operation at New Liberty. The plan models eight years of production from three open pits with average annual output of 68,000 oz. gold.

Based on US$600 per oz. gold and assuming 70% debt financing (at 6% interest over five years) the mine would deliver a 72% internal rate of return, have a US$28 million net present value (at 10% discount) and have a capital expenditure of US$59 million. Payback is projected in 2.5 years.

The company is looking at revising its feasibility study to facilitate an integrated underground operation boosting the mine life.

Mineralization at New Liberty occurs in an Archean greenstone belt environment with gold hosted in a steeply-dipping zone up to 30 metres in thickness. Studies indicate simple metallurgy with overall gold recoveries of about 93%.

Since 2003 and the end of a civil war, Liberia is seeing significant growth in mineralization exploration. Companies are acquiring significant land positions to evaluate the region’s geology, which is similar to its neighbouring countries of Guinea, Cote d’Ivoire and Sierra Leone.