Re: News - Wednesday, November 19, 2008
Title: High Grades Intersected at Dimako gold
prospect in Cameroon and strategic review
NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR
DISSEMINATION TO US NEWS WIRE SERVICES
TSX-V: AAZ
November 19th, 2008
African Aura Resources Ltd. ("African Aura" or the
"Company", TSX-V: AAZ), a pioneering exploration company with gold,
iron ore and uranium exploration activities in sub-Saharan Africa, announces
that the Phase 1 drilling programme at Dimako prospect, located in the
Company's 100% owned 1,000km2 Batouri licence in eastern Cameroon, has returned
high grade gold assays. The Company also announces that in light of current
market conditions it has implemented a further financial rationalisation in
order to conserve shareholder funds and focus exploration efforts on its
flagship gold and iron projects.
- Drilling
intersects 12.98g/t over 2.4m, and 16.44g/t Au over 1.10m at Dimako
- 11
holes completed to date at Dimako for a total of 1016m
- Increase in drilling rates and reduction in
costs
- Strategic review to accelerate flagship projects
and preserve cash
Dimako gold prospect
Assays from the first five holes drilled at the Dimako prospect have returned
high gold grades including 12.98g/t gold over 2.4m, and 16.44g/t gold over
1.10m (Table 1). The Company has drilled 11 holes of a planned 25 hole
programme on the 3.5km long Mongonam - Dimako trend which is defined by a
>50ppb gold-in-soil contour coinciding with extensive hard rock artisanal workings
from which a recent grab sample yielded 32g/t gold. Drilling to date has
comprised a series of holes, spaced at an average 100 metres apart to a maximum
depth of 152.95 metres. As of November 19th 2008, hole DMDD16 was being
drilled.
Table 1. Up to date assay results from drilling at Dimako
Hole ID
|
From (m)
|
To (m)
|
Apparent width (m)
|
Gold (g/t Au)
|
DMDD001
|
64.2
|
66.6
|
2.4
|
12.98
|
DMDD002
|
No significant results
|
DMDD003
|
39.8
|
40.9
|
1.1
|
16.44
|
DMDD004
|
No significant results
|
DMDD005
|
79.35
|
80.64
|
1.29
|
5.77
|
DMDD006
|
Assays pending
|
DMDD009
|
Assays pending
|
DMDD010
|
Assays pending
|
DMDD011
|
Assays pending
|
DMDD012
|
Assays pending
|
DMDD013
|
Assays pending
|
Intersections are based on a 0.5 g/t cut-off grade with no top cut
applied.
|
Drilling costs
With the appointment of a new drill manager in Cameroon, African Aura has
markedly increased the drilling rate whilst reducing the costs of running its
two in house diamond coring rigs.
Strategic review
In light of the weak global financial markets, the Company has reduced its
exploration budget by more than 75%, to a projected cash burn rate that will
sustain the Company for at least 3 years while maintaining its drilling
programmes. At the same time, African Aura continues to assess merger and
acquisition opportunities in order to identify a transaction that will create
significant value for shareholders.
John Gray, Chief Executive Officer, commented:
"We are very encouraged by these initial positive drilling results from
the Dimako prospect which is the second target we have drilled of the many that
exist at the Batouri gold project in eastern Cameroon. I look forward to
updating shareholders on further results when they are received. On behalf of
the board I would also like to reassure our shareholders that, in these
challenging market conditions, we have taken firm measures to significantly
reduce the Company's burn rate while ensuring our flagship gold and iron ore
projects continue to be advanced aggressively. We regret that the
rationalisation will result in a reduction in local and expatriate members in
our team, but I would personally thank them for their valued contribution. In
the meantime, the board will continue to actively examine merger and
acquisition opportunities as a means of adding shareholder value."
To see the remainder of this press release please see the link below
Associated
File: http://www.african-aura.com/i/pdf/2008News/AAR NR 19-11-08 DIMAKO STRAT 19-11-08.pdf
70 KB in size, approx. 14 seconds to download at 56.6Kbps
Copyright � 2008 AFRICAN AURA RESOURCES LTD. (AAZ) All
rights reserved. For more information visit our website at http://www.african-aura.com/ or send
email to info@african-aura.com
..