Aurora says Hazelbrook indicates promise

Dual listed Australian gold explorer Aurora Minerals said today that first interpretation of an aeromagnetic survey has confirmed a prospective zone in its Hazelbrook joint venture in Northland.

Aurora's and New Zealand-owned Emerald Mining are spending $10 million prospecting the 1200sq km region in Northland.

Aurora said it had added the preliminary magnetic interpretation to its geological mapping and soil and rock chip sampling results.

"Together these indicate that the Backyard gold prospect lies within an east-west trending corridor - 'the Huia trend' - confirming the company's original interpretation of this trend extending several kilometres."

The company said the northern margin of the basin, a zone between 500 metres and 1500m wide, was marked by east-west faulting.

The area also could be mined for high quality speciality clays.

Aurora said its geological team was prospecting within the zone and more results could be expected from this work over the coming months.

Results from infilling of the existing soil sampling grid at Backyard confirmed the typical erratic, low level gold and arsenic anomalies under the dairy pastures.

The company is preparing an application for Resource Management Act consent for drilling.

Aurora had an oversubscribed initial public offering in Australia which raised nearly $4.5 million in May last year.

It listed on the Australian stock exchange in June and on the New Zealand exchange in September.

- NZPA