African Aura Resources Ltd. - Batouri Project

Introduction

The Batouri licence is located in south east Cameroon and covers a transition between tropical rainforest to the south and open tree savannah to the north. Access from the capital Yaoundé is excellent with a combination of tarmac and maintained laterite roads.

Artisanal workings define 16km long mineralised corridor

2 main prospects at Dimako & Kambele currently being drilled

Drilling intersects up to 65.9 g/t Au over 2.67m and 43.3 g/t Au over 1.50m

Exploration Summary

Exploration commenced in 2006 with a soil sampling programme in the centre of the licence over the Kambele prospect. Assay results define a 3.5km long zone containing >100 ppb Au, varying between 100 - 1,000m in width, with extensive co-incident hard rock artisanal gold workings (approximately 200 pits). A soil sampling programme 7km to the southwest of Kambele, on the Mongonam - Dimako trend confirmed a 3.5 km long shear zone co-incident with hard rock artisanal workings. Pit sampling of eight artisanal workings, which in places extend to depths of 27m, has returned maximum grades of 65g/t Au over 5 vertical, and 24g/t Au over 4 metres. Further sampling of 122 pits in the Kambele - Dem trend and 50 pits in the Mongonam - Dimako trend has established that gold is predominantly present within quartz veins, with lower grades in altered wall rock.

In 2007, African Aura commissioned a combined IP resistivity and radiometric survey across the Kambele and Mongonam prospects, completing a total of 32 line kilometres using a 200m line spacing. Within the Kambele prospect, the geophysics recorded a low resistivity axis striking 070º interpreted as a fault corridor, running sub parallel to the geochemical anomaly.

Current Status

In April 2008, African Aura initiated drilling at the Kambele Prospect. Currently, the Company's diamond coring rigs are nearing completion of an initial 50 hole programme on the 3.5km long Kambele trend, which in places is up to 500m wide as defined by a >250ppb gold-in-soil contour that coincides with extensive hard rock artisanal workings. Drilling to date has comprised 31 holes across five discontinuous fences to maximum depths of 157m across approximately 30% of the trend.

Table 1: Assay results from drilling Kambele-Dem trend:

Hole ID
From
To
Apparent width (m)
Gold (g/t Au)

KBDD001
-
-
-
no value >0.5g/t

KBDD002
3.5
4.5
1
0.53g/t

KBDD003
-
-
-
no value >0.5g/t

KBDD004
31.6
32.6
1
2.13g/t

and
33.6
34.6
1
1.82g/t

KBDD005
78.8
79.8
1
14.66 g/t

KBDD006
0
1.6
1.6
3.17g/t

and
114.6
115.5
1
2.16 g/t

KBDD007
1
2
1
1.15 g/t

and
12
13.5
1.5
12.39 g/t

KBDD008
22.4
23.9
1.5
1.50 g/t

and
52.4
53.4
1
0.91g/t

and
55.4
56.4
1
6.21 g/t

KBDD009
89.5
90.5
1
0.79g/t

and
130.5
131.5
1
0.62g/t

KBDD010
4.5
6
1.5
0.74g/t

and
37
38
1
0.67g/t

and
73
74
1
2.14 g/t

KBDD011
1.4
2.9
1.5
1.08g/t

and
5.6
7.4
1.8
0.57g/t

and
10.4
11.9
1.5
0.99g/t

and
47.4
48.4
1
131.95 g/t

and
57.4
62.4
5
1.81 g/t

KBDD012
-
-
-
no value >0.5g/t

KBDD013
0
1.5
1.5
0.93g/t

and
3.5
4.5
1
0.51g/t

and
6
7.5
1.5
0.58g/t

and
9.5
10.5
1
2.87g/t

and
11.5
12.5
1
1.29g/t

and
20.5
21.5
1
0.95g/t

and
48.5
49.5
1
0.73g/t

and
22.5
24
1.5
1.4g/t

KBDD014
-
-
-
Not drilled

KBDD015
8
9
1
1.36g/t

KBDD015
49.5
51
1.5
0.53g/t

and
123.5
124.5
1
1.94g/t

and
138.5
140.5
2
5.45 g/t

KBDD016
22.5
24
1.5
49.16 g/t

and
95
96
1
4.76g/t

KBDD0017
86.45
88.45
2
5.7

and
104.45
105.45
1
32.4

KBDD0019
43.45
44.74
1.29
9.6

and
90
92.67
2.67
65.9

KBDD0019A
58.25
59.75
1.5
43.3

and
64.11
65.68
1.57
5.7

and
73
76
3
4.6

and
86
87.1
1.1
1.9

and
144.4
145.5
1.1
4.5

KBDD0021
31.6
34.6
3
8.24

KBDD0025
43.45
44.95
1.5
3.3

and
70
72
2
1.45

KBDD0026
9
12
3
2.99

and
47
48
1
35.07

and
63
64
1
1.08

and
68
69
1
1.55

and
79
80
1
1.84

and
93
95
2
1.51

KBDD0028
30
33
3
4.75

and
54
55
1
14.5

and
63
65
2
12.35

and
75
78
3
0.83

Intersections are based on a 0.5 g/t cut-off grade with no top cut applied.

Results to date from Kambele indicate good correlation between the surface geochemical anomaly, potassic alteration as defined by a geophysical survey, and the presence of high grade gold bearing quartz veins.

Kambele Drilling Status (November 2008)

As of September 2008 one drill rig was mobilised to the north-south striking, 3.5km long Mongonam - Dimako prospect which lies approximately 7km southwest of Kambele. The prospect is defined by a 600m long, greater than 50ppb gold in soil contour that concides with discontinuous hard rock artisanal workings. The artisanal workings at Dimako are up to 20m wide by 20m deep and exploit a granite hosted composite quartz vein. The strike of the Mongonam - Dimako trend is interpreted from the surface soil geochemistry and a ground geophysical survey performed by the Company.

A recent grab sample taken from the workings returned 32g/t gold, and drilling to date has comprised 14 holes along the strike of the workings to maximum depths of 102m of which four have intercepted visible gold in the core. Assay results are pending.

African Aura has undertaken systematic prospecting, soil and stream sampling over the majority of the rest of the Batouri licence. At Djengou, a regional soil sampling programme, with samples collected at 200m intervals on 200m spaced lines, has outlined an 8km long gold in soil anomaly defined by a greater than 25ppb gold contour. The prospect coincides with a major structural lineament as observed from remote sensing data which is considered to be a potential shear zone with the same strike as the Dimako - Mongonam zone. A systematic programme of trenching is currently underway across the structure. Results from the trenching will be used to guide follow up trenching and any future drilling.

Batouri Project Status (November 2008)
Geological setting

The Batouri licence is situated on the southern boundary of a Paleoproterozoic tectonic window within the Neoproterozoic Yaoundé series. The tectonic window comprises a syn-tectonic granite which pre-dates the metasediments of the Yaoundé nappe.

The auriferous zones within the granite are considered to be controlled by a major shear zone. The shear zone cuts through the granite resulting in the development of a gentle to steep foliation. The gold bearing quartz veins are not concordant with the foliation, and often found within altered wall rock.

Infrastructure & Local Resources

Batouri town is a divisional capital with shops, hotels, and a hospital located 420km east of the capital Yaoundé. It takes approximately eight hours to drive to the project on tarmac and maintained laterite roads. Access within the licence is by 4x4 tracks and forestry roads. The project has good mobile phone coverage, a dedicated satellite link for data and email, and 3-phase electrical power is available from the national grid less than 10km from the main Kambele-Dem trend.