AAAM African Aura

 

TIDMAAAM 
 
RNS Number : 0044U 
African Aura Mining Inc. 
07 October 2010 
 

 NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION TO US NEWS WIRE 
                                    SERVICES. 
 
October 7, 2010 
 
TSX-V:   AUR 
AIM:       AAAM 
                            African Aura Mining Inc. 
 
          HIGHLY ENCOURAGING MET-TEST RESULTS FOR PUTU IRON ORE PROJECT 
 
African Aura Mining Inc. ("African Aura" or the "Company"), the TSX-V (AUR) and 
AIM (AAAM) listed exploration and development company focused on iron ore and 
gold in sub-Saharan Africa, announces the results of independent metallurgical 
testwork undertaken by Amdel Mineral Laboratories ("Amdel") in Australia on 
samples from the Putu iron ore project in Liberia. 
 
Highlights: 
 
·     Modelled iron recoveries increased by 19% to 95% 
·     Modelled concentrate grades increased by 9% to 70% 
·     Higher grade concentrate estimated to increase revenues by 8% 
·     Significant reductions in processing, mining & CAPEX costs envisaged 
 
Luis da Silva, President and CEO of African Aura commented: 
"We are incredibly pleased with the metallurgical test results from the Putu 
project which indicate substantially improved recoveries and higher concentrates 
to what had previously been modelled by Amdel on early-stage less representative 
samples taken in 2008. With our joint venture partner, Severstal Resources, the 
project is moving forward rapidly, with four drill rigs conducting an initial 
62,000m resource definition programme, of which over 14,000m had been completed 
as at mid-September 2010. The existing 43-101 resource of 1.08 billion tonnes 
sits within 22% of the project's estimated 13km strike length. As the current 
drilling campaign covers an increasingly higher percentage of the total ridge 
and as we learn more about the structure of the ore body and types of ore, we 
anticipate an increase in confidence of the resource as we progress towards our 
minimum target of 2 billion tonnes. Putu is shaping up to be a significant iron 
ore deposit and we look forward to keeping shareholders updated on progress." 
 
Summary of metallurgical test work 
Metallurgical test work was completed by Amdel on five samples collected from 
the four mineralisation types identified so far at the Putu project.  Samples 
comprised two types of fresh magnetite banded iron formation ("BIF"), fresh 
hematite BIF, transitional zone BIF, and weathered BIF; the total weight of 
these samples exceeded 2,000kg. The samples were taken from two holes of the 
2008 campaign drilling locations.  Further metallurgical test work will be 
required to asses the extent to which the samples tested are representative of 
the entire resource at Putu. 
 
The comminution test work suggests that from a crushing/AG/SAG and ball milling 
perspective the Putu fresh BIF (representing the majority of the resource and 
mineralisation) is moderately hard, and potentially amenable to AG milling. 
There is a greater variability in comminution characteristics for the other iron 
ore types, being the transition zone BIF, weathered BIF and fresh hematite BIF 
samples. 
 
Davis Tube test work on samples at a P80 of 40-60 microns (i.e. 80% of 
comminuted material will pass through a 60 micron mesh size), demonstrates that 
high quality concentrates (Fe content 69-71%, SiO2 content of 1-4%, Al2O3 
content below 0.3%) can be produced from the fresh magnetite BIF mineralisation 
with mass recoveries ranging between 50-70%.  Similar quality concentrates were 
produced from the transition zone BIF and weathered BIF samples but at 
significantly lower mass recoveries.  Further metallurgical test work will be 
required to determine the economics of ores from the transition zone BIF, fresh 
haematite BIF and weathered BIF. 
 
Relative to the assessment completed by Amdel in May 2008, the mass recoveries 
achieved from the fresh magnetite BIF samples are significantly higher (50-70% 
vs. 50%) as is the concentrate iron content (68-70% vs. 64%).  The higher mass 
recoveries would enable the same volume of saleable concentrate to be extracted 
from a lower amount of ore feed, thus reducing both total mining and processing 
opex and capex.  The higher concentrate grade would also result in an improved 
selling price for the concentrate, with no additional processing costs. 
Furthermore, the implied iron recovery from fresh magnetite BIF samples is in 
the order of 95%, again significantly higher than the 80% recovery figure 
implied by the Amdel analysis. 
 
 
Follow up metallurgical test work 
As part of the pre-feasibility study further laboratory and pilot scale testwork 
will be undertaken on drill core and bulk samples in order to provide data for 
comminution and beneficiation plant design purposes. Testwork will include point 
load tests for calculating the rock strength characteristics and grind, regrind 
and magnetic separation testwork to identify the optimum grind size, guide 
equipment selection and future design capacity considerations and ore moisture 
in feed tests in order to produce process flow diagrams. 
 
About the Putu Iron Ore Project 
The Putu iron ore project is a 13km long iron rich ridge, located only 120km 
inland from the deepwater shoreline of eastern Liberia. In 2009 the Company 
announced an Independent Mineral Resource of 1.08 billion tonnes of iron ore at 
37.6% total iron (Fe) from drilling undertaken on a 2.6km section of the ridge. 
The best drill results to date are 91m at 61.3% Fe oxidised BIF haematite and 
232m at 40.8% Fe magnetite. The deposit is being advanced in joint venture with 
Severstal Resources that is currently investing US$30m towards completion of a 
Pre-Feasibility Study, anticipated to be completed in 2012, in order to earn a 
61.5% interest in the project. A Mineral Development Agreement detailing the 
fiscal and legal terms for the development and mining of the Putu iron ore 
deposit was granted and ratified by the Government of Liberia on 9th September 
2010. 
 
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). The division also includes a 100% interest in the Nkout iron ore 
project and surrounding iron targets in Cameroon. 
 
-     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 Weaju, Ndablama, Gondoja and Silver Hills projects, all 
in western Liberia. 
 
In addition, the Company has a 30% 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: 
 
About Severstal Resources 
Severstal Resources is the mining division of international steel and mining 
company OAO Severstal (www.severstal.com) Severstal is 3.5% shareholder in 
African Aura and is earning a 61.5% interest in the Putu iron ore project by 
expending $30m. Severstal Resources is one of Russia's biggest mining companies. 
It consists of two iron ore mining complexes (Karelsky Okatysh and Olcon), a 
coking coal complex (Vorkutaugol) in northwest Russia, a ferroniobium producer 
(Stalmag) in east Russia, a coking coal complex in the US (PBS Coals) and a mine 
design company (SPb-Giproshakht).  Severstal Resources also includes a 
significant gold business with assets in Russia, Kazakhstan and Burkina Faso and 
Guinea. 
 
 OAO Severstal is listed on the Russian Trading System, Moscow Interbank 
Currency Exchange and the London Stock Exchange. Incorporated in 1993, the 
company focuses on high value added and unique niche products and has a track 
record of acquiring and operating assets in North America and Europe. Severstal 
owns mining assets in Russia and in the US, thus securing its supplies of raw 
materials. Its enterprises are located in Russia, Ukraine, Kazakhstan, United 
Kingdom, France, Italy, United States and Africa. In 2009, Severstal produced 
16.7 million tonnes of steel. 
 
African Aura Mining Inc. 
Luis da Silva, President & CEO                                 Tel: +44 (0) 20 
7257 2930 
 
Evolution Securities Limited 
Simon Edwards / Tim Redfern / Neil Elliot                 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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