FURTHER ENCOURAGING DRILLING AND TRENCHING RESULTS IN LIBERIA AND BOARD CHANGES
April 19, 2011Back
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April 19, 2011
Aureus Mining Inc.
FURTHER Encouraging DRILLING AND TRENCHING Results in LIBERIA AND BOARD CHANGES
Aureus Mining Inc. (“Aureus” or the “Company”), the TSX (AUE) and AIM (AUE) listed Exploration and Development company focused on gold in Sub-Saharan Africa, announces encouraging exploration results from reconnaissance exploration work at various prospects within the Company’s 100% owned Bea Mountain Mining licence in Liberia.
- Ndablama prospect’s drilling results include 14m at 2.86 g/t and 10m at 2.77 g/t.
- Continuous bedrock mineralisation outlined over a 900 metre strike extent at Ndablama.
- Drilling west of New Liberty deposit intersects 10m at 5.25 g/t and 9m at 1.25 g/t.
- Diamond drilling contracts signed for six rigs and 36,000 metres.
David Reading, President and CEO of Aureus commented:
“I am delighted to announce such positive drilling results soon after our arrival on the markets as an independent company. The further positive drill results at Ndablama and the good intercepts at the western extensions to New Liberty highlight the opportunity to expand our current resources. The company is also very excited about the potential of Weaju, Gondoja and Silver Hills. . Because of the size and prospectivity of the Bea Mountain Mining licence to date, and with very limited exploration having been carried out throughout the area, we have always believed that there may be additional large deposits in addition to New Liberty. The delivery of the new drill rigs will more than double the metres drilled at New Liberty to date, as well as facilitating further exploration of the Weaju, Ndablama and Gondoja prospects.”
Ndablama – trenching and diamond drilling outlines a continuous mineralised zone
The Ndablama prospect is located in the northeast corner of the Company’s 457km2, twenty five year mining licence, in western Liberia and is approximately 40km northeast of the Company’s New Liberty Deposit (1.5 million ounces grading 3.78 g/t). The Ndablama prospect is defined by the presence of extensive artisanal mining activity and a two kilometre, gold in soil anomaly which trends in a North – South direction. The anomalous soil zone of gold enrichment is defined by values of 150 to 3,000 ppb and is up to 600 metres wide in the south eastern portion, and approximately 200 metres wide for the majority of its northerly strike. The anomalous zone remains open to the North, South and East.
Trenching and drilling indicates that the gold mineralisation is located within in a North–South trending band of sheared, folded and altered ultramafic rocks close to the contact with granite pegmatites and intrusives. In the South East portion of the prospect the rocks are folded and the strike changes direction from a north-south an east-west orientation. Gold Mineralisation is associated with disseminated pyrite, minor chalcopyrite and quartz veinlets.
Exploration activities at Ndablama include extensive trenching and diamond drilling. Previous trench results and results for the first eight diamond drilling holes were reported by African Aura Mining Inc in the press releases of 2 November 2010 and 3 February 2011. The remaining seven holes from the 3,423 metre programme are reported in table one below. The more encouraging trench results are given in table two.
The drilling and trenching results received to date define an area which is 150 metres east–west by 900 metres north – south that hosts multiple gold zones. This mineralised system is still open to the North, South and South East and at depth.
Results are pending from a further 1,500 metres of trenching, which was completed in the south eastern portion of the gold in soil anomaly in order to understand the geology and mineralisation within this folded area. Future exploration work at Ndablama will be focused on Ground Geophysical surveys and follow up drilling programmes.
Table 1: Ndablama Prospect Diamond drill hole results
|Borehole ID||From (m)||To (m)||CoreLength (m)||Au Grade
|Assay grade data is un-cut. NSV = No Significant Value|
Table 2: Ndablama Prospect Trench results
|Trench ID||From (m)||To (m)||Length (m)||Au Grade
|Assay grade data is un-cut.|
New Liberty – a new zone outlined to the west of the current gold resource
An eight hole, diamond drill programme (K172 – K179) totalling 1,101 metres was completed to the west of the currently defined gold resources at New Liberty. Drilling covered a potential westerly strike extension of the mineralised systems for five hundred metres. Encouraging drill intercepts of 9m at 1.25g/t and 10m at 5.25 g/t were intersected some 150 metres west of the edge of the planned New Liberty open pit outlined in the Company’s Preliminary Economic Assessment reported by African Aura Mining Inc in the press releases of 14 December 2010 and 21 December 2011.
The geology and mineralisation intercepted in these drill holes is identical to that encountered in the New Liberty deposit. The mineralisation would appear to have a potential strike extent of 100 metres. Holes drilled west and east of this area did not return any significant intercepts. Further drilling is warranted in the area and a programme of ground geophysics is also planned.
Table 3: Results of New Liberty Extension drilling
|Borehole ID||From (m)||To (m)||Core Length (m)||Au Grade
|Holes K172, K174-176 and K178-179 did not return any significant intercepts. Assay grade data is un-cut.|
Bea Mountain Mining Licence Exploration: Ground Geophysics and Diamond drilling contracts signed
The Company has engaged the services of Fugro Ground Geophysics Pty Ltd) to carry out Induced Polarisation (“IP”) and ground magnetic surveys covering a total of 15 line kilometres over target areas around new Liberty as well as the prospects of Weaju, Ndablama and Gondoja. The New Liberty ore body is strongly magnetic in character due to the presence of abundant pyrhotite and magnetite. The orebody hosts between 3 and 10% disseminated sulphides by volume. The objective of the ground geophysics work is to attempt to pick up similar types of deposits to New Liberty. The Ground geophysical programmes will commence on 25 April 2011.
The Company has signed drilling contracts with two international diamond drilling companies covering a total of 36,000 metres and six rigs. Four of these rigs will be dedicated to infill drilling for the New Liberty definitive feasibility study and then will be used to test potential gold targets around the New Liberty area. Two rigs will be dedicated to drilling the Weaju, Gondoja and Ndablama prospects.
The Company also announces that Marvin Singer, a non-executive director of the Company, intends to resign from the Aureus board and that this will be effective upon a replacement director being appointed by the Company. Mr Singer is resigning for personal reasons. The Company has identified a replacement director and is currently completing the necessary documentation and obtaining the applicable approvals prior to an appointment being made. The Company would like to thank Mr Singer for his contribution as a non-executive director of the Company.
The Company’s Qualified Person responsible for preparing this release is David Reading, who holds a MSc in Economic Geology from University of Waterloo, Canada and is a Fellow of the Institute of Materials, Minerals and Mining. David Reading is the President and CEO of Aureus Mining Inc. and 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.
Quality Control and Sample Preparation
Aureus has a rigorous Quality Control Programme (QCP) inserting a minimum 5% of standards, blanks and duplicates into the sample stream. The Company employs independently owned and managed OMAC Laboratories for all its assay requirements, including the preparation of pulps to 90% -100 micron at its in-country preparation facilities in Liberia, followed by chemical analysis at its main laboratory in Loughrea, Ireland. OMAC is accredited to ISO 17025 by INAB (Irish National Accreditation Board), which is a member of ILAC (International Laboratory Accreditation Cooperation), and is a signatory to the ILAC Mutual Recognition Arrangement. OMAC operates an internal QA/QC check assay programme using in-house standards, reagent blanks and duplicates.
About Aureus Mining Inc.
Aureus is a TSX and AIM listed gold mining company (AUE). Its assets include the New Liberty gold deposit in western Liberia (the “New Liberty Gold Project”), which has an estimated Indicated Mineral Resource of 751,000 ounces of gold grading 4.17 g/t (contained in 5,599,000 tonnes) and an estimated Inferred Mineral Resource of 762,000 ounces of gold grading 3.40 g/t (contained in 7,040,000 tonnes). The New Liberty Gold Project is being advanced through a bankable feasibility study, and the proximal Ndablama, Weaju, Silver Hills and Gondoja gold projects are all within the Company’s Bea Mountain 25 year renewable Mineral Development Agreement.
In addition, the Aureus Mining has an approximate 14% interest in AIM-listed diamond producer Stellar Diamonds Plc (AIM: STEL, www.stellar-diamonds.com) which is advancing the highly diamondiferous Druzhba kimberlite pipe.
Aureus Mining Inc.
David Reading, President & CEO
Tel: +44 (0) 20 7257 2930
Evolution Securities Limited RBC Capital Markets
Jeremy Ellis/ Neil Elliot/ Tim Redfern Martin Eales
Tel: +44 (0) 20 7071 4300 Tel: 44 (0)207 653 4000
Bobby Morse / Katharine Sutton
Tel: +44 (0) 20 7466 5000
This press release contains certain forward-looking information. All information, other than information regarding historical fact, that addresses activities, events or developments that Aureus Mining believe, expect or anticipate will or may occur in the future is forward-looking information. Forward-looking information contained in this press release includes, but may not be limited to, the future plans and objectives of Aureus Mining and their anticipated future growth, the admission and listing of the common shares of Aureus Mining as set forth above, mineral resource estimates and the anticipated exploration and development activities of Aureus Mining. The foregoing and any other forward-looking information contained in this press release reflects the current expectations, assumptions or beliefs of Aureus Mining based on information currently available to Aureus Mining. With respect to the forward-looking information contained in this press release, Aureus Mining has made assumptions regarding, among other things: general business, economic and mining industry conditions; and it has also been assumed that no material adverse change in the price of precious and/or base metals occurs, no unusual geological or technical problems occur and no significant events occur outside of the normal course of Aureus Mining’s respective business.
Such forward-looking information is subject to a number of risks and uncertainties that may cause actual results or events to differ materially from current expectations, including: risks normally incidental to exploration and development of mineral properties; uncertainties in the interpretation of results from drilling and test work; the possibility that future exploration, development or mining results will not be consistent with expectations; uncertainty of mineral resources estimates; adverse changes in precious and/or base metal prices; and future unforeseen liabilities and other factors including, but not limited to, those listed under “Risk Factors” in the Information Circular of African Aura dated February 28, 2011, a copy of which is available on SEDAR at www.sedar.com, and in the Aureus Mining Admission Document, a copy of which is available at www.aureus–mining.com.
Any mineral resource figures referred to in this press release are estimates and no assurances can be given that the indicated levels of minerals will be produced. Such estimates are expressions of judgment based on knowledge, mining experience, analysis of drilling results and industry practices. Valid estimates made at a given time may significantly
change when new information becomes available. While Aureus Mining believes that the mineral resource estimates in respect of their respective properties are well established, by their nature mineral resource estimates are imprecise and depend, to a certain extent, upon statistical inferences which may ultimately prove unreliable. If such mineral resource estimates are inaccurate or are reduced in the future, this could have a material adverse impact on Aureus Mining, as applicable. Due to the uncertainty that may be attached to inferred mineral resources, it cannot be assumed that all or any part of an inferred mineral resource will be upgraded to an indicated or measured mineral resource as a result of continued exploration.
Forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable law, Aureus Mining disclaim any obligation to update or modify such forward-looking information, either as a result of new information, future events or for any other reason.