logo-loader

UPDATE - Aureus Mining boosts resource in Liberia to 2.4mln ounces

Last updated: 04:57 11 Nov 2013 EST, First published: 05:57 11 Nov 2013 EST

no_picture_pai
--ADDS BROKER COMMENTS--

Aureus Mining’s (LON:AUE, TSE:AUE) has defined a further 600,000 ounces of gold from two targets near to its flagship New Liberty development in Liberia.

Maiden resource  statements at Ndabalma and Weaju, 40 kilometres (km) and 30km, respectively, north east from New Liberty, showed over 600,000 ounces at a grade of 2.1 grams per tonne (g/t) under the Canadian NI 43-101 standard with cut-offs of 0.5g/t at Ndablama and 1 g/t at Weaju.

Aureus said it was especially encouraged by the 451,000 ounces at Ndablama, which it believes is a new goldfield with “considerable opportunity” to expand the resource.

Delineation so far had shown a strike heading north for 650 metres and down to a maximum depth of 120 metres below surface. A next phase of diamond drilling will commence in November.

At Weaju, which has a resource of 178,000 ounces, Aureus said the gold mineralisation is associated with discrete, shallow dipping and westerly plunging bodies within three zones. Further drilling will start in 2014 to test the shallow depth extensions of the known plunging mineralised shoots.

David Reading, president and chief executive, said: "The maiden resources for Ndablama and Weaju increase the company's resource inventory to approximately 2.4mln ounces.

“The potential highlighted by our exploration work confirms our strategy of positioning Liberia as an exciting new gold district in West Africa."

RFC Ambrian said these were good results with a strong indication that the resource at Ndablama could grow considerably. 

That grades and width improve at depth provides encouragement for down-dip opportunities, especially as the mineralisation is shallow dipping and not tested below 120m, said the broker. 

Ndablama forms part of a 13km gold corridor, which is located close to a granite contact. Six gold projects have been identified to date through drilling and trenching programmes. The location in the pressure shadow of a large granite body is an excellent position for dilation and traps for gold mineralising fluids.

RFC Ambrian has incorporated the additional resources into its target price, which rises to 52p as a result. It retains a ‘buy stance.

“Aureus is fully funded to production and is starting to demonstrate its strong exploration credentials.

“Further exploration news flow and progress towards production make Aureus an interesting gold development and exploration story.”

Another broker, Investec, added there is more work to do to ascertain whether there will be other mines at these two sites, but the early indications, particularly at Ndablama, are encouraging and suggest Aureus has a prospective land package in Liberia.

Shares rose 4% to 37.5p.

Australian Strategic Materials signs US$600 million LoI

Rowena Smith, CEO and managing director of Australian Strategic Materials Ltd (ASX:ASM, OTC:ASMMF), joins Jonathan Jackson in the Proactive studio to discuss the company’ s Dubbo Project, in Central West New South Wales. This project aims to extract and process critical minerals and rare earth...

4 hours, 58 minutes ago