African Aura Mining

As foreshadowed in May’s Growth Company Investor, African Aura Mining has found a new gold zone at its New Liberty project in Liberia.

The AIM-quoted company, formerly Mano River, says it is awaiting a revised resource estimate for the project following identification of the new zone, near the surface, with 3.75 grammes of gold per tonne of ore over 12 metres. Latest gold intersections from New Liberty include 7.52 grammes a tonne over 14 metres from 145 metres depth and 5.51 grammes a tonne over 14 metres from 312 metres depth.

African Aura, steered by chief executive officer Luis da Silva, hopes the new findings can help increase New Liberty’s present estimated resource of 1.38m oz of gold at 3.18 grammes a tonne. The company, which recently raised £11.3m at 65p, has commissioned a scoping study to contribute to a bankable feasibility study for a mine targeting annual gold production of 100,000 oz.

As well as New Liberty, African Aura is interested in neighbouring projects in western Liberia, at Weaju, Gondoja and Silver Hills. The company, which also has 31.8% of AIM-listed gem producer Stellar Diamonds, is best known for its 38.5% holding in Liberia’s Putu iron ore project, holding an estimated 1bn tonnes at 37% iron ore.

Recommended as Mano River at 10p on the initial Putu deal two years ago and in March as African Aura at 69.75p, the shares now trade at 82.5p and could go higher if New Liberty and Putu look like bearing out current hopes.