African Aura Mining reveals more positive drill results from New Liberty gold project

African Aura Mining’s (LON:AAAM, TSX-V:AUR) New Liberty project is shaping up to be a very significant advanced gold project, said chief executive Luis da Silva.

The company has reported more drilling results from the New Liberty gold project in western Liberia.

"We are very pleased to announce further robust drill results from the Latiff zone of the New Liberty gold project which already has a 1.4moz NI43-101 resource at a grade of 3.18 g/t and excellent metallurgy,” da Silva commented.

The best intersections include 4.32 grams per tonne gold (g/t) over 22 metres, 5.17 g/t over 8 metres, 4.33 g/t over 10m and 3.81 g/t over 6m.

This morning’s drilling update relates to the latest 1,180 metres of the 13,350 metres drilled as part of the 2010 programme to date.

African Aura said it will continue step-out drilling along strike, to the west. The step-out programme is expected to be completed during October, with all assay results returned this year.

“All the intersections are expected to fall within the open pit element of the forthcoming independent resource statement and pre-feasibility study expected to be delivered during Q4 2010”, da Silva added.

Evolution Securities analyst Charles Kernot said the good results increase expectations of a ‘solid’ resource upgrade later in the year.

“With the drilling that the group has previously announced we believe that these results will lead to both a significant increase in the resource estimate at the project and an upgrade in geological confidence”, Kernot said.

“Additional news-flow is expected on the two iron projects which should keep African Aura in the public eye.”

The analyst reiterated his ‘buy’ rating, and emphasised that his 210p price target has ‘scope for a significant upgrade when the new resource estimate is released’.

A Definitive Feasibility Study will begin immediately after the pre-feasibility study is complete, subject to results, with a scheduled completion in H1 2011.

African Aura is a diversified mine developer with gold and iron assets, as well as a 30% stake in AIM listed diamond producer Stellar Diamonds (LON:STEL).