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TORONTO , Oct. 1, 2012 /CNW/ - Aureus Mining Inc. ("Aureus" or the "Company") is pleased to announce the results of its NI43-101 compliant Feasibility Study ("FS") for its New Liberty Project in Liberia ("New Liberty" or "the Project"). The FS outlines an economically viable and robust gold project based on an average gold price of US$1,400/oz. New Liberty will be Liberia's first commercial gold mine and Aureus' first mine in its highly prospective 546km2 total licence area.

The main conclusions from the FS demonstrate a pre-tax IRR of 37% at an average gold price of US$1,400/oz, average annual production of 120,000oz per annum over the first four years at 3.7g/t head grade, with initial capital costs of US$140m.

In completing the FS Aureus was assisted by AMC Consultants (UK) Limited ("AMC"), DRA Mineral Projects (Pty) Ltd ("DRA"), MDS Ltd ("MDS"), Golder Associates Ghana Ltd ("Golder") and Digby Wells (Pty) Ltd ("Digby Wells"). The FS has been completed to within a 10% cost accuracy based on firm tenders received from suppliers and contractors.

Key highlights of the FS include:

David Reading , Chief Executive Officer of Aureus, commented:

"We are delighted to be able to announce the results from the New Liberty Feasibility Study, which clearly illustrates the technical and financial robustness of the Project. This is a major milestone for the Company and Liberia , as New Liberty will become the country's first commercial gold mine. This will not only generate wealth for Liberia and Aureus' shareholders, but also provide significant employment and the opportunity for ancillary businesses in Grand Cape Mount County, western Liberia ."

"We believe we are still capable of improving the robust economics of the Project further through a number of initiatives. These opportunities include conversion of Inferred Resources through drilling and optimizing infrastructure, plant layout and conditions for gold recovery. Once this work is complete we intend to move quickly to mine building and production phases."

"Aureus Mining remains on track to fulfil its objectives set out during its listing in April 2011: to bring New Liberty into production quickly, to become the first commercial gold mine in Liberia and invest the consequent cash flow into developing the high potential of the remainder of the licence area, with Aureus growing organically into a west African focussed mid-tier gold producer."

A presentation for investors and analysts will take place at 9:00am BST on Monday 1 October 2012 at the office of Buchanan at 107 Cheapside, London , EC2V 6DN. Participation will also be available by webcast or conference call with the following details:

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New Liberty Feasibility Study confirms strong financial returns