Aureus: Focuses Drilling Capacity On Exploration Targets

The primary focus for Aureus (AUE) remains the development of New Liberty from which we expect the results of the ongoing DFS in Q412. While this work continues, the company has focused its drilling capacity on its exploration targets within the Bea Mountain Licence, host to the Ndablama, Gondoja and Leopard Rock targets.

Yesterday’s release displays the company’s ongoing success across its exploration ground with near-surface drill intercepts of high grade gold mineralisation at Ndablama including 7.1g/t for 11m, 4.8g/t for 3.3m and trenching results of 7.8g/t over 10m. At Gondoja the drilling results were equally positive, with intercepts including 11.7g/t for 6m and 14.8g/t for 3m.

Importantly, this announcement identified the possible presence of sulphide-bearing bodies between the Ndablama and Leopard Rock targets. A drill programme starting in Q412, after the rainy season, will test this target for mineralisation associated with the sulphides that have been identified by airborne geophysics.

Given continued exploration success and timely execution of the New Liberty development plan, the DDF of New Liberty production could be worth USD 1.92/share (£1.20/share), with potential upside of US$1.44/share (90p/share) as the company moves to production and continues to grow its resource (subject to change on announcement of the DFS results, due in Q412).

Given market conditions the primary risk to the execution of the New Liberty development plan is financial, with significant funding (see our New Liberty resource increase note) required to enable the development. However, this financial risk is partly mitigated by the ongoing and advanced negotiations with a shortlist of eight banks on the financing of the project.

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