AFRICAN AURA FILES PRELIMINARY ECONOMIC ASSESSMENT
STUDY ON NEW LIBERTY GOLD PROJECT
22 December 2010, African Aura Mining Inc.
("African Aura" or the "Company") the TSX-V (AUR) and AIM (AAAM) listed exploration and development
company with divisions focused on iron ore and gold projects in sub-Saharan
Africa, announces the filing of a Preliminary Economic Assessment study
pursuant to National Instrument 43-101, relating to the Company's 100% owned
New Liberty gold project located in western Liberia.
With this news release, the Company is reporting the
filing as required under the National Instrument 51-101. A copy of the document
may be obtained via www.sedar.com and on the Company's corporate website .
- Study highlights potential for
robust open pit gold mine with strong economics
- First five year's production
with minimum 100,000oz pa in initial 8.5 year mine life
- Pre-tax NPV of $234m (�148m)
based on $1,100/oz Au and 10% discount rate
- Initial capex
of $92m, average cash cost of $484/oz and head grade of 3.6 g/t Au
- IRR of 73% and capital payback
in under two years
- Definitive Feasibility Study
underway and on track for 4Q 2011 completion
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, namely: iron ore and gold:
. The iron
ore division includes its 38.5% interest in the Putu
iron ore project in Liberia, which is 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 iron ore
project and surrounding iron targets in Cameroon which is subject to a resource
definition drilling programme.
. The gold
division includes the multi million ounce potential New Liberty greenstone gold
deposit, 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 number of gold projects in the Cameroon.
In addition, the Company presently 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
Simon Edwards / 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.