--adds broker comment, sharre price--
David Reading, Aureus’ president and chief executive said: "The latest drilling results at Ndablama highlight the contiguous nature of what appears to be an extensive mineralised system, linking the deposits of Leopard Rock with Ndablama.
“This system =is both open down dip and along strike and the opportunity of defining further resources in the large pressure shadow corridor provides yet further upside to the Ndablama discovery.”
Ndablama, like Leopard Rock, is one of a number of targets on Aureus’ 457 sq km Bea Mountain licence in Liberia.
This also contains the New Liberty mine development and one of the possible options for Aureus is to use the satellites as sources of additional ore for the mine.
Last year, a maiden inferred resource at Ndablama showed 451,000 oz of gold at 2.1g/t based on 250 metres of down dip mineralisation.
The current drillng programme is designed to bolster the resource. To date, 21 holes totalling 5,038m from a planned 50 hole, 10,000m phase four programme have been reported. Over 70% has been completed and further results are pending, the company added.
So far, the results have shown Ndablama sits within a five kilometre mineralised, structural zone which dips shallowly to the west.
This target is referred to as the pressure shadow zone (PSZ). The PSZ extends from Ndablama Far North to Leopard Rock South and covers a distance of five kilometres.
RFC Ambrian noted that all the holes drilled in the latest programme had intersected the mineralised system and confirm the shallow westerly dip of about thirty degrees, with the mineralised body still open in all directions.
“The drilling indicates a continuous and predictable ore body. The resource remains open down dip and along a significant strike length. However, the reported widths indicate that perhaps the mineralisation narrows with depth.”
“So whilst the resource will expand down dip and remains open at depth, we expect the company will focus the bulk of its exploration efforts on along strike potential going forward.“
In conclusion, the broker says that Ndablama continues to shape up and demonstrate potential as a second mining centre within Bea Mountain , while Aureus itself remains a ‘buy’ with a target price of 47p/share.
Shares today were 30p.