TIDMAAAM
RNS Number : 4210A
African Aura Mining Inc.
01 February 2011
NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION
TO US NEWS WIRE SERVICES.
1 February 2011
TSX-V: AUR
AIM: AAAM
MAIDEN RESOURCE AT NKOUT EXCEEDS 1 BILLION TONNES
African Aura Mining Inc. ("African Aura" or the "Company"), the
TSX--V (AUR) and AIM (AAAM) listed exploration and development
company is pleased to announce an initial independent National
Instrument 43-101 compliant Mineral Resource Estimate at its 100%
owned Nkout iron ore project in southern Cameroon.
-- Maiden Inferred mineral resource estimate of 1.04 billion
tonnes of iron ore at 34% Fe
-- Management targeting 4 billion tonnes at Nkout and
surrounding anomalies
-- Estimate covers a 3km section of a 20km long magnetic
anomaly
-- Metallurgical test work on the magnetite BIF proves high
grade concentrate
-- Metallurgical test work on the oxidized BIF shows sinter
fines potential
-- Potential for direct shipping ore ("DSO") being
investigated
-- 2011 drilling campaign underway and expected to total
25,000m
Luis da Silva, Chief Executive of African Aura, commented:
"This is an excellent maiden resource achieved for the first 3km
of the Nkout deposit and with the recently announced excellent
metallurgical results, testifies to the world class potential of
the project. Aggressive expansion of the resource base by drilling
along strike both east and west of Nkout Centre is underway. The
Nkout project is extremely well located, being 30km from the
proposed iron ore rail line linking the 2.4Bt Mbalam project 160km
to the east with a proposed deep water Atlantic port 310km to the
west. The project will undoubtedly form a major part in the
development of the regional iron ore infrastructure which has yet
to be built. With the new resource at Nkout, the preliminary
economic assessment for New Liberty and an updated resource
statement on Putu pending, the value opportunity in African Aura is
increasingly visible and the rationale for the proposed split into
separate gold and iron companies even more compelling."
Mineral Resource Estimate
This Nkout Mineral Resource Estimate, issued by independent
engineers SRK Consulting (UK) Ltd ("SRK") has been prepared for the
Company and made compliant with Canadian National Instrument 43-101
(NI43-101).
The report serves as an independent report prepared by a
Qualified Person as defined by the Canadian National Instrument
43-101 and the companion policy 43-101CP. The definitions of
Measured, Indicated and Inferred Resources, as well as reserves as
used by the author, conform to the definitions and guidelines of
the CIM (Canadian Institute of Mining, Metallurgy and Petroleum)
reporting codes.
SRK undertook a site visit in September 2010 to assist in the
drillhole planning with the exploration scope being to generate
Inferred Mineral Resources for the Nkout Centre asset.
Table 1: Nkout Centre, Mineral Resource Estimate
Tonnes SiO2 AL2O3
Zone Resource Category (Mt) Fe % % % P %
------------------ ------------------- -------- ----- ----- ------ -----
110
(oxidized, >55%
Fe) Measured - - - - -
------------------ ------------------- -------- ----- ----- ------ -----
Indicated - - - - -
------------------ ------------------- -------- ----- ----- ------ -----
Meas + Ind - - - - -
------------------- -------- ----- ----- ------ -----
Inferred 7.01 58.0 5.3 5.6 0.11
-------------------------------------- -------- ----- ----- ------ -----
120
(oxidized, 50
to 55% Fe) Measured - - - - -
------------------ ------------------- -------- ----- ----- ------ -----
Indicated - - - - -
------------------ ------------------- -------- ----- ----- ------ -----
Meas + Ind - - - - -
------------------- -------- ----- ----- ------ -----
Inferred 22.5 51.2 11.8 7.5 0.11
-------------------------------------- -------- ----- ----- ------ -----
130
(oxidized, 30
to 50% Fe) Measured - - - - -
------------------ ------------------- -------- ----- ----- ------ -----
Indicated - - - - -
------------------ ------------------- -------- ----- ----- ------ -----
Meas + Ind - - - - -
------------------- -------- ----- ----- ------ -----
Inferred 131.0 40.1 29.8 6.4 0.08
-------------------------------------- -------- ----- ----- ------ -----
210
(Magnetite BIF) Measured - - - - -
------------------ ------------------- -------- ----- ----- ------ -----
Indicated - - - - -
------------------ ------------------- -------- ----- ----- ------ -----
Meas + Ind - - - - -
------------------- -------- ----- ----- ------ -----
Inferred 878.6 32.7 46.0 2.2 0.05
-------------------------------------- -------- ----- ----- ------ -----
TOTAL Measured - - - - -
------------------ ------------------- -------- ----- ----- ------ -----
Indicated - - - - -
------------------ ------------------- -------- ----- ----- ------ -----
Meas + Ind - - - - -
------------------- -------- ----- ----- ------ -----
Inferred 1,039.1 34.2 43.0 2.9 0.05
-------------------------------------- -------- ----- ----- ------ -----
Notes:
(1) Mineral Resources which are not Mineral Reserves do not have
demonstrated economic viability
(2) The effective date of the Mineral Resource is 28 January
2011
(3) The Mineral Resource Estimate for the Nkout deposit was
constrained within lithological and grade based solids and within a
Lerchs-Grossman optimised pit shell defined by the following
assumptions; metal price of USD1.40/dmtu; slope angles of 35 and 44
in the oxide and fresh material; a mining recovery of 97.5%; a
mining dilution of 2.5%; a base case mining cost of USD1.40/t and
an incremental mine operating costs of USD0.05/t/10 m below the 80
m reference RL and USD0.05/t/10 m above the 80 m reference RL;
process operating costs of USD4.39/t crushed DSO, USD2.3/t crushed
oxide and USD4.49/t crushed BIF ore; and G&A costs of USD
2.31/t crushed ore.
In total, SRK has estimated an Inferred Mineral Resource for
Nkout Project of 1.04 billion tonnes ("Bt") grading 34.2% Fe, 43.0%
SiO2 and 2.9% Al2O3 and 0.05% P. Of this, 7 million tonnes ("Mt")
grading 58% Fe lies within a near surface high grade oxidized zone
(Zone 110, >55% Fe), 22.5 Mt grading 51.2% Fe lies within the
oxidized zone 120 (50 to 55% Fe) and 131 Mt lies within the
oxidized zone 130 (30 to 50% Fe). 878.6 Mt lies within the fresh
magnetite BIF domain (Zone 210) and grades 32.7% Fe.
Nkout Centre Resource Potential
The Nkout Centre model is open at depth and SRK recognises that
there is potential to increase the Mineral Resource Statement by
targeting material that falls below the optimised pit shell but
remains potentially economic. This material, based on a metal price
of USD1.40/dmtu is considered by SRK to be potentially economic,
should sufficient exploration data be collected that confirms the
geometry and continuation of the orebody and that enables a
classified resource to be estimated. SRK has identified that an
additional 300 to 600 Mt lies below the optimised pit shell used
for constraining the Inferred Mineral Resources. The potential
quantity of tonnes is conceptual in nature as there has been
insufficient exploration or demonstration of economic viability to
report these in the Inferred Mineral Resource category at the
current time. It is uncertain if further exploration will result in
these targets being defined and reported in a future Mineral
Resource Estimate. These potential tonnages reflect a range of
material within SRK's wireframe solid models outlining the
interpreted down dip extent of mineralisation. Database
Validation
The QA/QC program for Company's Nkout project consists of
alternating the insertion of a blank, standard and duplicate sample
on a regular basis within the sample train. The Company uses
standards with varying grades which are also alternated. All
samples have been assayed at the accredited OMAC laboratory in
Ireland. SRK found that the results of the above described QA/QC
program indicate that the Company's Nkout assay databases were
appropriate for Mineral Resource Estimation.
Data Verification
Howard Baker as qualified person completed the verification of
data on which the Nkout Resource Estimate was based. This
verification included an assessment of QA/QC data, sample
preparation and assay methodologies, density data, data inputs and
survey data used in the estimate. Data was validated by using field
checks, statistical methods and evaluating the Company's
protocols.
Geological Modelling, Resource Estimation Assumptions,
Parameters and Methods
Nkout Centre, being a 3.5 km portion of a larger 20 km strike
length magnetic anomaly, forms an east-west trending magnetite
Banded Iron Formation ("BIF") with an oxidized cap of dominantly
haematite mineralisation. SRK created a geological model based on
the lithological logging and magnetic susceptibility data enabling
the hangingwall and footwall contacts of the BIF unit to modelled
and a three dimensional solid to be created. A statistical review
of the validated drillhole data enabled grade based domains to be
created within the oxidized cap. Internal metasedimentary waste
domains created within the BIF and oxidized cap were based on
lithology logging, magnetic susceptibility data and predominantly
Al2O3- assay grades.
A 5 m composite file was used in a geostatistical study
(variography and Quantitative Kriging Neighbourhood Analysis,
"QKNA") that enabled Ordinary Kriging ("OK") to be used as the main
grade interpolation method. The interpolation used an elliptical
search following the predominant dip and dip direction of the
geological domains. The results of the variography and the QKNA
were utilised to determine the most appropriate search and
estimation parameters.
The interpolated block model was validated through visual checks
and a comparison of the mean input composite and output model
grades. SRK is confident that the interpolated block grades are a
reasonable reflection of the available sample data.
Metallurgical Test Work
Metallurgical test work is currently underway on a composite
sample of saprolite ore (Zone 120 and 130 combined) from the Nkout
Centre project. The test work is being undertaken by SGS Minerals
in the UK. The sample is a composite sample with approximately
equal proportions of material from three drill line sections
drilled during the 2010 programme. Samples were taken from eight
drill holes and the target Fe head grade of the sample was 44%,
being in-line with the average grade of this domain.
The gravity separation tests showed little potential for lump
production; however, the results indicated that the production of a
sinter fines product from the saprolite ore has potential. For each
size fraction below 3 mm, a high specific gravity ("SG") fraction
with an Fe content of the order of 65% Fe or greater was produced,
with Fe recoveries in some size fractions exceeding 70%.
While significant further test work is required, the early
indications are that the Nkout saprolite presents the potential for
the production of a sinter fines product through a flowsheet
largely based on gravity separation.
Based on the assay results obtained from the first two completed
drillholes, SRK selected 94 representative samples for Davis Tube
Testwork (DTT). The DTT results, based on a grind size of P90 less
than 100u, have been reviewed by SRK to evaluate the quality of the
Fe concentrate that can be produced from the Nkout Centre project
in relation to the feed grade.
The DTT shows that a high grade concentrate averaging greater
than 70% Fe can be attained with low levels of contaminants. The
mass recovery shows an average of 42.2% and 87% of the Fe relates
to a recoverable magnetite mineral phase.
Mineral Resource Classification
The Nkout project has been classified as containing Inferred
Mineral Resource in the fresh BIF and oxidised domains. This is
mostly due to the wide spaced drilling and the poor geological
continuity of the internal metasediments and areas around the
interpreted faults. Inferred Mineral Resources have been
extrapolated no more than 200 m down dip of the deepest drillhole
intersection. It is the opinion of SRK that the down dip extension
of Inferred Mineral Resources is justified in areas of unsupported
blocks due to the known down-dip extensions as observed through the
deep drilling at Nkout that has intersected magnetite BIF up to 390
m from surface.
Cautionary Statement
The effective date of the Nkout Mineral Resource Estimate is
January 28, 2011. The Fe % presented in the above table is not
meant to imply recoverable product. Mineral Resources for the Nkout
Iron Project have been classified according to the "CIM Standards
on Mineral Resources and Reserves: Definitions and Guidelines
(December 2005) by Howard Baker (MAusIMM) an Independent Qualified
Person as defined by National Instrument 43-101. Mineral Resources
were estimated in conformity with generally accepted CIM
"Estimation and Mineral Resource and Mineral Reserve Best Practices
Guidelines". SRK is not aware of any known environmental,
permitting, legal, title, taxation, socio-economic, marketing or
other relevant issues that could potentially affect the estimate of
Mineral Resources. The Mineral Resource may be affected by further
exploration drilling which may increase or decrease the estimate.
The Mineral Resource may also be affected by subsequent assessments
of mining, environmental, processing, permitting, taxation,
socio-economic and other factors. There is insufficient information
at this stage to assess the extent to which the Mineral Resource
will be affected by these factors that are more fully assessed in a
feasibility study. Mineral Resources are not Mineral Reserves and
do not have demonstrated economic viability. Mineral Reserves can
only be estimated based on the results of an economic evaluation as
part of a preliminary feasibility or feasibility study. No Mineral
Reserves have been estimated by SRK as part of the current
assignment. There is no certainty that all or any part of the
Mineral Resource will be converted to a Mineral Reserve. The
quantity and grade of reported Inferred Mineral Resource in this
estimate are uncertain in nature and there has been insufficient
exploration to define these Inferred Mineral Resources as an
Indicated or Measured Mineral Resource; and it is uncertain if
further exploration will result in upgrading them to an Indicated
or Measured Mineral Resource category.
Qualified Person
Howard Baker has some ten years experience in the exploration,
definition and mining of iron ore Mineral Resources. Howard Baker
is a full-time employee of SRK Consulting (UK) Ltd, an independent
Consultancy and has sufficient experience which is relevant to the
style of mineralization and type of deposit under consideration,
and to the type of activity which he is undertaking to qualify as a
Qualified Person in accordance with NI43-101 and a Competent Person
as defined in the June 2009 Edition of the AIM Note for Mining and
Oil & Gas Companies. Howard Baker consents to the inclusion in
the announcement of the matters based on their information in the
form and context in which it appears and confirms that this
information is accurate and not false or misleading.
The NI 43-101 compliant Technical Report on the Mineral Resource
Estimate will be filed on www.sedar.com within 45 days.
About African Aura Mining Inc.
African Aura is an established exploration and development
company listed on the TSX-V (AUR) and London's AIM (AAAM). The
Company operates two divisions that are currently being split and
becoming effective at the end of March 2011:
- The iron ore division includes its 38.5% interest in the 1Bt
Putu iron ore project in Liberia, which is subject to a resource
expansion drilling programme and moving through pre-feasibility
managed by joint venture partner Severstal Resources (the mining
division of Moscow listed OAO Severstal). In September 2010 Putu
was granted a 25 year renewable Mineral Development Agreement by
the Government of Liberia. The division also includes a 100%
interest in the Nkout 1Bt iron ore project and surrounding iron
targets in Cameroon which is subject to a resource expansion
drilling programme.
- The gold assets, to be held in "Aureus Mining Inc." when
listed independently, include the New Liberty gold deposit in
western Liberia which has a resource of 1.51 million ounces of gold
grading 3.78 g/t (comprising 5,599,000 tonnes grading 4.17 g/t in
the indicated category and 7,040,000 tonnes grading 3.40 g/t in the
inferred category) which is being advanced through a bankable
feasibility study, and the proximal Ndablama, Weaju, Silver Hills
and Gondoja gold projects all within the Company's Bea Mountain 25
year renewable Mineral Development Agreement.
In addition, the Company has a 22% interest in AIM-listed
diamond producer Stellar Diamonds Plc (AIM: STEL,
www.stellar-diamonds.com).
The Company has a highly motivated and experienced team with a
track record of discovering mines and taking projects through
development and into production. As a pioneer, African Aura has
attracted some excellent strategic partners and shareholders,
always with the objective of preserving or enhancing shareholder
value. For further information on the Company you are invited to
visit its website at www.african-aura.com or SEDAR's website at
www.sedar.com, or contact one of the following:
African Aura Mining Inc.
Luis da Silva, President & CEO Tel: +44 (0) 20 7257 2930
Evolution Securities Limited
Rob Collins / Tim Redfern Tel: +44 (0) 20 7071 4300
Pelham Bell Pottinger
Charles Vivian / James MacFarlane Tel: +44 (0) 20 7861 3232
Forward-looking Statements
This press release includes certain forward-looking statements.
All statements, other than statements of historical fact, included
herein, including without limitation, statements regarding the
future plans and objectives of African Aura, are forward-looking
statements that involve various known and unknown risks and
uncertainties as well as other factors. Such forward-looking
statements are subject to a number of risks and uncertainties that
may cause actual results or events to differ materially from
current expectations, including delays in obtaining or failure to
obtain required regulatory approvals. There can be no assurance
that such statements will prove to be accurate and actual results
and future events could differ materially from those anticipated in
such statements. Any forward-looking statements speak only as of
the date hereof and, except as may be required by applicable law,
African Aura disclaim any obligation to update or modify such
forward-looking statements, either as a result of new information,
future events or for any other reason.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accept responsibility for the adequacy or
accuracy of this release.
Ends
This information is provided by RNS
The company news service from the London Stock Exchange
END
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