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African Aura: Publication of Quarter 2 2010 Accounts - company shall be splitted into two separate companies |
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Thursday, 02 September 2010 06:05 |
The Board of African Aura is pleased to release the Unaudited Interim Consolidated Financial Statements of the Company for the quarter ended, June 30, 2010.
Luis da Silva, President and CEO of African Aura commented: "The Company finds itself at a very exciting period of growth. The first half capital raise means that the Company can carry out its planned strategy and key projects are adequately funded.
The Board believes that the current value of the Company does not recognise fully its key assets. With this in mind the Board is considering splitting African Aura into two separate companies, one focussed on developing its gold assets and the main surviving entity developing the iron ore assets. This process, being a Canadian incorporated company, would follow the most tax efficient means for the Company and its shareholders. At the appropriate time in the near future, the Board will announce the results of its review.
Meanwhile, at project level, the Putu iron ore project in which the Company has a 38.5% interest is making excellent progress. The drilling for the pre-feasibility study commenced in quarter two and the study itself will complete at the latest in 2012. The definitive feasibility study is then expected to be completed 18 months thereafter. A project update with metallurgical and current drilling progress will follow in September.
The Nkout Iron ore project in the Cameroon is an exciting prospect over which the Company has commenced a resource drilling programme in late July 2010. The Board believes there is currently no value attributed to the Cameroon iron ore assets in the Company's market capitalisation. Having commenced the year with an iron ore exploration licence the intention is to deliver an inferred resource statement by year end or early next year, depending on drilling progress.
The gold strategy is based around progressing New Liberty towards a definitive feasibility study during the first half of 2011. Further definition drilling in the Latiff zone has been completed and assays are expected during September. The resource statement to NI 43-101 level and results of the scoping study are expected towards the end of October.
The Company is also stepping out along strike with extension drilling to further test the geology of the system. Additional targets within the same Bea Mountain licence area are being reviewed in order to provide further near surface mineable gold ounces. Of particular note are Silver Hills, Weaju, and Ndablama, all located within 15-30 kilometres of New Liberty. These near surface target ounces will allow for truckable ore to be transported to New Liberty." |
