Avesoro Resources Inc. Encouraging Drilling Results from 2017 Exploration Campaign and 2018 Exploration and Development Programme

TSX: ASO
AIM: ASO

TORONTO, Feb. 1, 2018 /CNW/ - Avesoro Resources Inc. ("Avesoro" or the "Company"), the TSX and AIM listed West African gold producer, is pleased to announce further high-grade drilling intercepts from its H2 2017 Burkina Faso focused exploration campaign and to provide details on its fully funded and board approved US$25 million exploration programme for 2018.

Drilling Result Highlights

• Drilling of Balogo near mine targets returns high grade intersections including:
• BDH-241: 22.30g/t Au over 5.45 metres (including 44.84g/t Au over 2.50 metres);
• BDH-208: 28.11g/t Au over 5.10 metres (including 68.70g/t Au over 2.00 metres);
• BDH-221: 21.16g/t Au over 3.40 metres; and
• BDH-252: 12.12g/t Au over 4.00 metres (including 31.50g/t Au over 1.35 metres).
• Mineralisation underneath the optimised Balogo open pit shell is now identified over a 140 metre vertical extent averaging 3.51 metres at 36.34g/t Au in drilling to date;
• Drilling at A2NE Mid Pit, which is currently being mined, has significantly extended the vertical depth of the mineralisation by a further 65 metres. Intersections include:
• YNE-17-116: 35.45g/t Au over 3.65 metres (including 138g/t Au over 0.90 metres); and
• YNE-17-112: 15.32g/t Au over 4.40 metres (including 35.32g/t Au over 1.75 metres).
• Additional drilling at the Gassore prospect has intersected further high grade mineralisation, including:
• GASS-17-003: 6.20g/t Au over 3.05 metres (including 13.90g/t Au over 1.15 metres);
• GASS-17-023: 7.34g/t Au over 3.85 metres (including 15.45g/t Au over 1.60 metres); and
• GASS-17-047: 7.99g/t Au over 2.75 metres.

Further details of the key intercepts can be found in Appendix 1 of this announcement.

2018 Exploration Programme Highlights

• Group exploration drilling budget of 171,000 metres approved for West Africa, split between Burkina Faso (139,000 metres) and Liberia (32,000 metres);
• Burkina Faso near-mine drilling campaign to include 54,000 metres focused on nine targets at Youga and five targets at Balogo, with another 85,000 metres of regional drilling at priority targets within trucking distance of the Youga plant; and
• Liberia near-mine drilling campaign of 17,000 metres focused on satellite target resource development and 15,000 metres of regional drilling focused on the advanced Ndablama target.

Serhan Umurhan, Chief Executive Officer of Avesoro, commented:

"The drilling results delivered by the team over the past six months have been highly encouraging, with our exploration success in Burkina Faso throughout H2 2017 resulting in an increase in production guidance at the Youga Gold Mine to encompass the additional ounces we identified at Gassore. This committed and focused drilling campaign will continue in 2018 and I am delighted that further high grade mineralised intercepts have been reported from drilling across both our Youga and Balogo licences. With our aggressive US$25 million 2018 exploration campaign fully funded and board approved, I am confident that this will see the Company identify additional mineral resources at both our New Liberty and Youga & Balogo Gold Mines".

Burkina Faso

Summary of 2017 Exploration Activities

As previously reported, throughout H2 2017, the Company conducted drilling campaigns on several targets across the Youga and Balogo licences in Burkina Faso. A 6,600 metre 45-hole diamond drilling programme was completed across the Balogo licence, which holds the Balogo Gold Mine, with drilling predominantly focused on the following targets: Balogo Hill, Panga, Cobra Hill, Balogo North, Balogo Northwest, Balogo Southeast and Balogo Down Dip Extension.

Youga On Mine Development

Further to the announcement dated January 24 2018, the Company is also pleased to report additional intercepts from its 52,880 metre diamond drilling campaign undertaken throughout late 2017 across the Youga exploitation permit and encompassing the following targets:

• Gassore (233 holes for 34,530 metres);
• West Pit 3 East (14 holes for 980 metres);
• West Pit 4 (45 holes for 4,130 metres); and
• A2NE Mid Pit Down Dip Extension (72 holes for 8,880 metres).

The success of the 2017 drill programme in Burkina Faso resulted in the discovery of new minable mineralisation at Gassore, located approximately 2 kilometres from the Youga plant and within the Youga exploitation permit, and is included in the Company's 2018 mine plan.

Balogo Down Dip Extension

Drilling at Balogo targeted down-dip extension areas underneath the planned open-pit floor and intersected further high-grade results, with the mineralisation being extended by 140 metres below the planned final pit floor and intersecting an average width and grade of 3.51 metres grading 36.34g/t Au. The high grade mineralised shoot remains open at depth with further deeper drilling to be undertaken throughout 2018. Upon conclusion of the 2018 drilling programme, the Company plans to embark on an underground mining scoping study for the Balogo deposit. Additionally, the Balogo Northwest, Balogo North and Balogo Southeast targets all fall within a 450 metre radius of the existing Balogo open pit and results received warrant further exploration.

The link below illustrates a cross sectional view of the drilling below the Balogo deposit:

http://avesoro.com/wp-content/uploads/2018/01/Balogo_Schematic_Section_v1.3.jpg

Panga

The Panga target is located 700 metres north-east from the Balogo open pit and mineralisation is related to a parallel quartz-sulphide veins system hosted in sheared diorite striking north-northwest and dipping at 85 degrees towards west-southwest. During 2017, eight holes for 1,061 metres were drilled and mineralisation was intersected over a 200 metre strike length with an average width of 3.33 metres grading 11.59g/t Au to a depth of 96 metres below surface. The mineralisation remains open to the north-northeast and south-southwest.

Cobra Hill

One kilometre north-east along strike from the Balogo open pit is the Cobra Hill target, a 1.4-kilometre-long five metre wide magnetite zone with related gold and copper mineralisation located between diorite and sericite schist contact striking northeast, dipping 75 degrees towards to northwest. During 2017, a 12 hole 2,154 metre drilling campaign was completed on selective areas of this trend delivering average intersects of 2.44 metres grading 3.87g/t Au to a depth of 130 metres below surface based on these holes. This mineralised trend remains open along strike and at depth.

Balogo Hill

At the Balogo Hill target, eight holes for 985 metres were drilled testing a 100 metre strike length of a 500-metre-long mineralised trend located 1.2 kilometres north-east from the Balogo open pit. Results delivered to date represent high grade gold mineralisation and have intersected mineralisation with average width of 2.14 metres grading 15.40g/t Au, with mineralisation remaining open both along strike and at depth beyond the deepest mineralization intersected 92 metres below surface. Further drilling is planned for 2018.

Smyrna

The Smyrna target was a new discovery in 2017 located 6.2 kilometres southwest of the Balogo pit. Field rock chip samples to date have returned results grading up to 4.88g/t Au.

Individual intercepts through selected mineralised zones from this comprehensive drilling programme are reported in Appendix 1.

The links below illustrates the location of the drill targets and provides a summary cross sectional view of the Gassore deposit:

http://avesoro.com/wp-content/uploads/2018/01/Youga_Prospects_v1.1.jpg

http://avesoro.com/wp-content/uploads/2018/01/Gassore_Schematic_Section06_v1.0.jpg

http://avesoro.com/wp-content/uploads/2018/01/Gassore_Schematic_Section26_v1.0.jpg

2018 Exploration and Development Outlook

The Company plans to update the Mineral Resource and Mineral Reserve for both the Youga and Balogo Gold Mines with an effective date of February 28, 2017 and the New Liberty Gold Mine with effective date of July 31, 2017 with the drilling results obtained during the 2017 and 2018 campaigns during H1 2018.

Drilling during 2018 will focus on identified targets in close proximity to existing Mineral Resources, with a 45,500 metre drilling and 50,600 metre trenching programmes planned for Youga and its adjacent licences.

The figure below provides details on the Company's Burkina Faso Licence Portfolio:

http://avesoro.com/wp-content/uploads/2018/01/Avesoro_Burkina_v1.7.jpg

Youga On Mine Development

Drilling has been planned at Gassore for both the western continuation of the target where 1,950 metres of mineralised trend remains open and also to test the target at depth. The Company will also focus on other additional near-mine targets following up mineralised zones identified from 2017 trenching such as WDE, A2NE Southeast and testing other existing near-mine gold anomalies. In total, more than ten kilometres of strike length of gold in soil anomalism will be tested by trenching within the Youga exploitation permit.

Youga Exploration

The Company will also extend its work outside of the Youga exploitation permit and plans to conduct exploration activities on its adjacent Songo and Zerbogo tenements. Zerbogo hosts several kilometres of gold-in-soil anomalies supported by historic trenching and some sparse drilling undertaken by the licences' previous owner. The Company aims to increase the confidence of these mineralised zones by undertaking additional trenching and drilling.

Ouaré

This year, the Company also plans to extend its aggressive exploration strategy at the Ouaré Project located within the Bitou2 permit, 36 kilometres north-east from the Youga processing plant. As per the February 28, 2017 Mineral Reserve and Mineral Resource statement, the Ouaré project has an existing CIM compliant Indicated Mineral Resource of 5.1Mt grading 1.39g/t Au containing 228.3koz and an Inferred Mineral Resource of 7.2Mt grading 1.8g/t Au containing 406koz disclosed in accordance with NI 43-101.

Probable Mineral Reserves currently stand at 2.6Mt grading 1.67g/t Au containing 141koz. During Q2 2018 some 65,000 metres of drilling and 20,185 metres of trenching is planned, with some holes designed to twin some of the previous RC drill holes, undertake an infill drilling campaign to upgrade the confidence level and classification of the existing resource.

A number of existing drill ready targets will be drilled during H1 2018 and trenching will target existing gold-in-soil and gold-in-auger anomalies to increase technical knowledge of the mineralisation trends before drill testing.

Balogo Exploration

Within the Balogo licence, the Company's exploration programme will consist of a 29,000 metre drilling programme following up on the significant intercepts encountered around the Balogo open pit in 2017 including the following:

• Further drilling will be undertaken to target the Balogo down-dip extension for underground potential;
• Panga, Balogo Hill and Cobra Hill for near mine high grade satellite pit scenarios.

Additionally, a regional auger sampling programme will be undertaken to follow up upon geophysical and structural targets generated in 2017, combined with geochemistry to outline other potential areas for exploration within the 360km² licence area of which only 8km² has been evaluated to date.

The figures below provide details on the location of the near mine targets within the Youga and Balogo exploitation permits:

http://avesoro.com/wp-content/uploads/2018/01/2017_2018_Targets_v1.0.jpg

http://avesoro.com/wp-content/uploads/2018/01/Balogo_v1.4.jpg

Liberia

Summary of 2017 Exploration Activities

The Company's exploration team undertook a comprehensive review of all previously identified exploration targets across its licence portfolio and conducted additional geological and geochemical work around previously identified gold in soil anomalies.

In Q4 2017, a 14,000 metre 46-hole infill drilling programme was commenced at New Liberty, with the aim of increasing the confidence in the continuity of the New Liberty ore body and to upgrade the classification of a proportion of Inferred Mineral Resource in the NI 43-101 compliant Technical Report dated November 1, 2017 to an Indicated Mineral Resource.

2018 Exploration Outlook

Activities during 2018 will focus on:

• Completion of the on-going 46-hole infill drilling programme;
• Seven hole 6,500 metre deep extension programme at New Liberty planned to test the vertical extension of the high grade plunging shoots of the orebody to 900 metres from surface;
• A 15,000 metre resource conversion infill drilling campaign will commence at Ndablama, focused upon upgrading the confidence level and classification of the existing Mineral Resources;
• Embarking on a study to determine the economic potential of trucking ore from Ndablama to the New Liberty process plant for processing; and
• Exploration drilling of near mine targets.

The figure below provides details on the Company's Liberian licence portfolio and the location of the Cape Mount and Silver Hills targets:

http://avesoro.com/wp-content/uploads/2018/01/Avesoro_Liberia_v1.2.jpg

Silver Hills and the Matambo Corridor

First phase exploration drilling is also planned at Silver Hills and the Matambo Corridor targets. Both targets are 15-kilometre-long gold-in-soil targets hosted by ultramafic rocks similar to New Liberty corresponding to the westerly extension of the Bea Mountain Greenstone Belt, and are located within 20 kilometres of the New Liberty processing plant. This will include a 17,000 metre drill programme scheduled to commence drilling upon delivery of the new previously reported new diamond drill rigs to Liberia.

The Matambo Corridor is located 15 kilometres to the north of New Liberty, within the Company's Cape Mount Licences and Silver Hills is 20 kilometres to the north east and within the Bea Mountain Class A Mining Licence. Trenching and pitting has confirmed the original soil sampling anomalies.

Silver Hills has previously reported channel sampling which encountered intercepts including 2.3 metres grading 90g/t Au and at the Matambo Corridor Sarama Resources, the former owner of the licences, previously reported drilling intercepts including 7.5 metres grading 3.9g/t Au and 6 metres grading 3.2 g/t Au from a 1,600 metre 15-hole reconnaissance drilling programme.

The Company will also continue conducting geochemical sampling and surface mapping on prospective areas and mapping and pitting on areas with low confidence with the aim of identifying new drill ready targets for the 2019 campaign.

Market Abuse Regulation (MAR) Disclosure

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

Appendix 1: Key Drill Intercepts from 2017 Burkina Faso Drilling Programme*