African Aura Mining upbeat on latest drill results at Nkout iron ore project

African Aura Mining (LON:AAAM), the exploration and development company focused on iron ore and gold in sub-Saharan Africa, this morning reported that drilling at its 100% owned Nkout iron ore project in southern Cameroon had intersected significant widths of banded iron formation (BIF). African Aura described the results as “very encouraging” and said the project was now firmly moving towards a maiden resource estimate covering the first 30% of the primary 8km long target, which is now being drilled. A second in-house drill rig is being mobilised to site in order to speed up the resource definition programme.

Nkout is defined by an 8km long intense geophysical target and range of hills with a further 12km of iron ore targets existing around Nkout as defined by geophysics. So far, African Aura has drilled the first four holes, or 950m, of the planned 10 hole, 4,200m programme and has intersected up to 75m of hematite BIF and 195m of magnetite BIF. Receipt of the first batch of assay results from holes NKDD002 and NKDD003 are expected during November. Preliminary metallurgical test work will also be undertaken on representative sample of core collected from the current drilling programme and results will be expected in the first quarter of 2011.

Luis da Silva, the president and chief executive of African Aura, said: “Nkout is a greenfield discovery made by African Aura which stemmed from initial reconnaissance field work completed in 2008. With a combined geophysical signature of 20km which is larger than the company's Putu iron ore project in Liberia. With its excellent strategic location being within 30km of the proposed rail line linking the coast to the 2.5 bt Mbalam iron ore project (being developed by ASX listed Sundance Resources), Nkout has the potential to evolve into a very significant iron ore project. We look forward to receipt of the first batch of assay results and updating shareholders accordingly.”

African Aura has three principal iron ore projects in Cameroon, namely the Nkout, Ngoa and Akom Hills and considers that their combined dimensions represent a potentially significant iron ore asset. The company’s iron ore division also includes its 38.5% interest in the Putu iron ore project, which is moving through pre-feasibility managed by joint venture partner Severstal Resources. African Aura’s gold division includes the 1.4 million ounce New Liberty gold deposit, which is being advanced through a bankable feasibility study, and the proximal Weaju, Gondoja and Silver Hills projects, all in western Liberia. In addition, the company has a 30% interest in AIM-listed diamond producer Stellar Diamonds (LON:STEL) . Click here to read a Stockopedia interview with Luis da Silva.