Electra Battery Materials Corp. V.ELBM

NEWS: Maiden resource at Nkout exceeds 1bn tonnes

[bigchris33]

Huge news from the Nkout project in my opinion, leaving African Aura looking very undervalued versus its peers.

https://tmx.quotemedia.com/article.php?newsid=38039457&qm_symbol=AUR:CA

MAIDEN RESOURCE AT NKOUT EXCEEDS 1 BILLIONTONNES

Feb. 1, 2011 (Canada NewsWire Group) --

/NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATIONTO US NEWS WIRE SERVICES./

TSX-V: AUR

AIM: AAAM

LONDON, Feb. 1 /CNW/ - African Aura Mining Inc. ("African Aura" orthe "Company"), the TSX-V (AUR) and AIM (AAAM) listed exploration anddevelopment company is pleased to announce an initial independent NationalInstrument 43-101 compliant Mineral Resource Estimate at its 100% owned Nkoutiron ore project in southern Cameroon.

• Maiden Inferred mineral resource estimate of 1.04 billion tonnes of iron ore at 34% Fe
• Management targeting 4 billion tonnes at Nkout and surrounding anomalies
• Estimate covers a 3km section of a 20km long magnetic anomaly
• Metallurgical test work on the magnetite BIF proves high grade concentrate
• Metallurgical test work on the oxidized BIF shows sinter fines potential
• Potential for direct shipping ore ("DSO") being investigated
• 2011 drilling campaign underway and expected to total 25,000m

Luis da Silva, Chief Executive of African Aura,commented:
"This is an excellent maiden resource achieved for thefirst 3km of the Nkout deposit and with the recently announced excellentmetallurgical results, testifies to the world class potential of the project.Aggressive expansion of the resource base by drilling along strike both east andwest of Nkout Centre is underway. The Nkout project is extremely well located,being 30km from the proposed iron ore rail line linking the 2.4Bt Mbalam project160km to the east with a proposed deep water Atlantic port 310km to the west.The project will undoubtedly form a major part in the development of theregional iron ore infrastructure which has yet to be built. With the newresource at Nkout, the preliminary economic assessment for New Liberty and anupdated resource statement on Putu pending, the value opportunity in AfricanAura is increasingly visible and the rationale for the proposed split intoseparate gold and iron companies even more compelling."

Mineral Resource Estimate
This Nkout Mineral ResourceEstimate, issued by independent engineers SRK Consulting (UK) Ltd ("SRK") hasbeen prepared for the Company and made compliant with Canadian NationalInstrument 43-101 (NI43-101).

The report serves as an independent report prepared by aQualified Person as defined by the Canadian National Instrument 43-101 and thecompanion policy 43-101CP. The definitions of Measured, Indicated and InferredResources, as well as reserves as used by the author, conform to the definitionsand guidelines of the CIM (Canadian Institute of Mining, Metallurgy andPetroleum) reporting codes.

SRK undertook a site visit in September 2010 to assist in thedrillhole planning with the exploration scope being to generate Inferred MineralResources for the Nkout Centre asset.

Table 1: Nkout Centre, Mineral ResourceEstimate

Zone	Resource Category	Tonnes (Mt)	Fe %	SiO2 %	AL2O3 %	P %
110 (oxidized, >55% Fe)	Measured	-	-	-	-	-
	Indicated	-	-	-	-	-
	Meas + Ind	-	-	-	-	-
	Inferred	7.01	58.0	5.3	5.6	0.11
120 (oxidized, 50 to 55% Fe)	Measured	-	-	-	-	-
	Indicated	-	-	-	-	-
	Meas + Ind	-	-	-	-	-
	Inferred	22.5	51.2	11.8	7.5	0.11
130 (oxidized, 30 to 50% Fe)	Measured	-	-	-	-	-
	Indicated	-	-	-	-	-
	Meas + Ind	-	-	-	-	-
	Inferred	131.0	40.1	29.8	6.4	0.08
210 (Magnetite BIF)	Measured	-	-	-	-	-
	Indicated	-	-	-	-	-
	Meas + Ind	-	-	-	-	-
	Inferred	878.6	32.7	46.0	2.2	0.05
TOTAL	Measured	-	-	-	-	-
	Indicated	-	-	-	-	-
	Meas + Ind	-	-	-	-	-
	Inferred	1,039.1	34.2	43.0	2.9	0.05

Notes:
(1) Mineral Resources which are not MineralReserves do not have demonstrated economic viability
(2) The effectivedate of the Mineral Resource is 28 January 2011
(3) The MineralResource Estimate for the Nkout deposit was constrained within lithological andgrade based solids and within a Lerchs-Grossman optimised pit shell defined bythe following assumptions; metal price of USD1.40/dmtu; slope angles of 35º and44º in the oxide and fresh material; a mining recovery of 97.5%; a miningdilution of 2.5%; a base case mining cost of USD1.40/t and an incremental mineoperating costs of USD0.05/t/10 m below the 80 m reference RL and USD0.05/t/10 mabove the 80 m reference RL; process operating costs of USD4.39/t crushed DSO,USD2.3/t crushed oxide and USD4.49/t crushed BIF ore; and G&A costs of USD2.31/t crushed ore.

In total, SRK has estimated an Inferred Mineral Resource forNkout Project of 1.04 billion tonnes ("Bt") grading 34.2% Fe, 43.0%SiO2 and 2.9% Al2O3 and 0.05% P. Of this, 7million tonnes ("Mt") grading 58% Fe lies within a near surface high gradeoxidized zone (Zone 110, >55% Fe), 22.5 Mt grading 51.2% Fe lies within theoxidized zone 120 (50 to 55% Fe) and 131 Mt lies within the oxidized zone 130(30 to 50% Fe). 878.6 Mt lies within the fresh magnetite BIF domain (Zone 210)and grades 32.7% Fe.

Nkout Centre Resource Potential
The Nkout Centremodel is open at depth and SRK recognises that there is potential to increasethe Mineral Resource Statement by targeting material that falls below theoptimised pit shell but remains potentially economic. This material, based on ametal price of USD1.40/dmtu is considered by SRK to be potentially economic,should sufficient exploration data be collected that confirms the geometry andcontinuation of the orebody and that enables a classified resource to beestimated. SRK has identified that an additional 300 to 600 Mt lies below theoptimised pit shell used for constraining the Inferred Mineral Resources. Thepotential quantity of tonnes is conceptual in nature as there has beeninsufficient exploration or demonstration of economic viability to report thesein the Inferred Mineral Resource category at the current time. It is uncertainif further exploration will result in these targets being defined and reportedin a future Mineral Resource Estimate. These potential tonnages reflect a rangeof material within SRK's wireframe solid models outlining the interpreted downdip extent of mineralisation.

Database Validation
The QA/QC program for Company'sNkout project consists of alternating the insertion of a blank, standard andduplicate sample on a regular basis within the sample train. The Company usesstandards with varying grades which are also alternated. All samples have beenassayed at the accredited OMAC laboratory in Ireland. SRK found that the resultsof the above described QA/QC program indicate that the Company's Nkout assaydatabases were appropriate for Mineral Resource Estimation.

Data Verification
Howard Baker as qualified personcompleted the verification of data on which the Nkout Resource Estimate wasbased. This verification included an assessment of QA/QC data, samplepreparation and assay methodologies, density data, data inputs and survey dataused in the estimate. Data was validated by using field checks, statisticalmethods and evaluating the Company's protocols.

Geological Modelling, Resource Estimation Assumptions,Parameters and Methods
Nkout Centre, being a 3.5 km portion of a larger20 km strike length magnetic anomaly, forms an east-west trending magnetiteBanded Iron Formation ("BIF") with an oxidized cap of dominantly haematitemineralisation. SRK created a geological model based on the lithological loggingand magnetic susceptibility data enabling the hangingwall and footwall contactsof the BIF unit to be modelled and a three dimensional solid to be created. Astatistical review of the validated drillhole data enabled grade based domainsto be created within the oxidized cap. Internal metasedimentary waste domainscreated within the BIF and oxidized cap were based on lithology logging,magnetic susceptibility data and predominantly Al2O3 assaygrades.

A 5 m composite file was used in a geostatistical study(variography and Quantitative Kriging Neighbourhood Analysis, "QKNA") thatenabled Ordinary Kriging ("OK") to be used as the main grade interpolationmethod. The interpolation used an elliptical search following the predominantdip and dip direction of the geological domains. The results of the variographyand the QKNA were utilised to determine the most appropriate search andestimation parameters.

The interpolated block model was validated through visualchecks and a comparison of the mean input composite and output model grades. SRKis confident that the interpolated block grades are a reasonable reflection ofthe available sample data.

Metallurgical Test Work
Metallurgical test work iscurrently underway on a composite sample of saprolite ore (Zone 120 and 130combined) from the Nkout Centre project. The test work is being undertaken bySGS Minerals in the UK. The sample is a composite sample with approximatelyequal proportions of material from three drill line sections drilled during the2010 programme. Samples were taken from eight drill holes and the target Fe headgrade of the sample was 44%, being in-line with the average grade of thisdomain.

The gravity separation tests showed little potential for lumpproduction; however, the results indicated that the production of a sinter finesproduct from the saprolite ore has potential. For each size fraction below 3 mm,a high specific gravity ("SG") fraction with an Fe content of the order of 65%Fe or greater was produced, with Fe recoveries in some size fractions exceeding70%.

While significant further test work is required, the earlyindications are that the Nkout saprolite presents the potential for theproduction of a sinter fines product through a flowsheet largely based ongravity separation.

Based on the assay results obtained from the first twocompleted drillholes, SRK selected 94 representative samples for Davis TubeTestwork (DTT). The DTT results, based on a grind size of P90 less than 100µ,have been reviewed by SRK to evaluate the quality of the Fe concentrate that canbe produced from the Nkout Centre project in relation to the feed grade.

The DTT shows that a high grade concentrate averaging greaterthan 70% Fe can be attained with low levels of contaminants. The mass recoveryshows an average of 42.2% and 87% of the Fe relates to a recoverable magnetitemineral phase.

Mineral Resource Classification
The Nkout project hasbeen classified as containing Inferred Mineral Resource in the fresh BIF andoxidised domains. This is mostly due to the wide spaced drilling and the poorgeological continuity of the internal metasediments and areas around theinterpreted faults. Inferred Mineral Resources have been extrapolated no morethan 200 m down dip of the deepest drillhole intersection. It is the opinion ofSRK that the down dip extension of Inferred Mineral Resources is justified inareas of unsupported blocks due to the known down-dip extensions as observedthrough the deep drilling at Nkout that has intersected magnetite BIF up to390 m from surface.

Cautionary Statement
The effective date of the NkoutMineral Resource Estimate is January 28, 2011. The Fe % presented in the abovetable is not meant to imply recoverable product. Mineral Resources for the NkoutIron Project have been classified according to the "CIM Standards on MineralResources and Reserves: Definitions and Guidelines (December 2005) by HowardBaker (MAusIMM) an Independent Qualified Person as defined by NationalInstrument 43-101. Mineral Resources were estimated in conformity with generallyaccepted CIM "Estimation and Mineral Resource and Mineral Reserve Best PracticesGuidelines". SRK is not aware of any known environmental, permitting, legal,title, taxation, socio-economic, marketing or other relevant issues that couldpotentially affect the estimate of Mineral Resources. The Mineral Resource maybe affected by further exploration drilling which may increase or decrease theestimate. The Mineral Resource may also be affected by subsequent assessments ofmining, environmental, processing, permitting, taxation, socio-economic andother factors. There is insufficient information at this stage to assess theextent to which the Mineral Resource will be affected by these factors that aremore fully assessed in a feasibility study.

Mineral Resources are not Mineral Reserves and do not havedemonstrated economic viability. Mineral Reserves can only be estimated based onthe results of an economic evaluation as part of a preliminary feasibility orfeasibility study. No Mineral Reserves have been estimated by SRK as part of thecurrent assignment. There is no certainty that all or any part of the MineralResource will be converted to a Mineral Reserve.

The quantity and grade of reported Inferred Mineral Resource inthis estimate are uncertain in nature and there has been insufficientexploration to define these Inferred Mineral Resources as an Indicated orMeasured Mineral Resource; and it is uncertain if further exploration willresult in upgrading them to an Indicated or Measured Mineral Resource category.