SOURCE: Aurora Gold Corporation

November 30, 2009 18:10 ET

Aurora Gold Corporation Is Pleased to Announce That the Company Has Signed a Letter Agreement With Global Minerals to Earn up to an Initial 70% Interest in the Front Range Gold Project, in Boulder County, Colorado in the United States of America

ZUG, SWITZERLAND--(Marketwire - November 30, 2009) - Aurora Gold Corporation (the "Company," "Aurora") (OTCBB: ARXG) (FRANKFURT: A4G) (XETRA: A4G) (BERLIN: A4G), a mineral exploration company focusing on exploration and development in the Tapajos Gold Province, State of Pará, Brazil, is pleased to announce that the Company has signed a letter agreement with Global Minerals Limited to acquire an initial 70% of the Front Range Gold Project located in Boulder County, Colorado.

Aurora is a Company focused on finding and developing large gold projects in Northern Brazil. Aurora also considers the Front Range Project in Boulder, Colorado as an important source of cash flow to support exploration of the Tapajos projects in the Amazon basin.

The Front Range Gold (FRG) property is located about 16 km west of the city of Boulder, Colorado, USA, and consists of 85 patented and 21 unpatented lode claims, totaling approximately 480 acres (about 3/4 square mile). The property lies in the Gold Hill Mining District of Boulder County, and includes eighteen past producing mines. These mines produced gold, silver, and gold-tellurides from narrow quartz veins hosted in Precambrian granites and gneisses.

The outline of Deal Structure for the letter agreement was that Aurora pay US$100,000 on signing the letter agreement. A further figure US$400,000 is due on signing the formal agreement on or before the 28 February 2010. Aurora would then provide the capital to resume mining and development at the FRG. Aurora would recoup 100% of the investment into the FRG from production before the profit share of 60% to Aurora and 40% to Global Minerals. Aurora has the right to acquire a further 10% by issuing 2 million shares to Global Minerals, resulting in 70% Aurora and 30% Global. A net smelter royalty of 5% is payable to a third party vendor.

Almost all of the claims in the Gold Hill Mining District have been consolidated under a single ownership and will now be explored and developed in unison. Operating permits and licenses are in place, ownership has been settled and a fully functional 50 TPD, with plans to upgrade to 100 TPD, flotation mill and associated facilities are in place. The processing plant was built in 1987 and has processed no more than 2,000 tons of ore, with a new tailings facility.

Production in the district was halted during Word War II by order of the US Government's War Production Board. After the war most mines remained closed. The Cash Mine was one of the few that reopened. The Rex Mine was discovered in the 1950s. By 1964 development at the Cash mine had reached the eastern limits of the mine property, and both mines were closed by their owner with "ore in the back," awaiting higher gold prices.

There are numerous old mine workings and waste dumps on the property. The Cash mine includes an inclined shaft 761 feet deep, with more than 6220 feet of drifting on 9 levels including an adit at the 1st level 500 feet southwest of the shaft, and a further adit intersecting the 3 level. The Cash shaft follows the Cash vein, and the Freiburg vein is accessible from the Cash workings on the 1st, 2nd, 3rd and 7th levels. The Rex Mine includes an inclined shaft with more than 2500 feet of drifting on six levels. The Who Do mine, the St. Joe mine and the Black Cloud mine include more than 3000 feet of underground workings on 3 levels.

Infrastructure at the mine is excellent with regularly maintained state roads leading to the mine. The FRG is located only 16 km from the City of Boulder and less than an hour from Denver airport, the Colorado School of Mines and all facilities associated with a large American City. The Gold Hill mill, Cash mine and adjacent Who Do mine were connected to, and have power lines of, the Colorado Power Company crossing them.

Mining activities are expected to resume during the first quarter of 2010 initially focusing on the resources in the Cash Mine. Aurora plans to expand the current development to include more than a dozen other past producers that are now part of the Cash Mine holdings.

Aurora is a mineral exploration company focusing on the exploration and development of its 4 exploration properties and 2 applications in the Tapajos Gold Province, State of Pará, Brazil. The project areas were selected due to their proximity to known gold occurrences and from historical records of gold production. Please note that proximity to an area having historical records of gold production provides no assurance that we will discover any commercial resources on our property. The lithologies associated with the projects are similar to those that have proven to be the host of significant gold occurrences elsewhere in the Tapajos. The Company's stock is quoted for trading in the United States of America on the OTC Pink Sheets under the symbol "ARXG.PK," under the symbol "A4G.F" on the Frankfurt Exchange, "A4G.DE" on XETRA and "A4G.BE" on the Berlin-Bremen Stock Exchanges in Germany.

ON BEHALF OF THE BOARD

"Lars Pearl"
Lars Pearl
President, CEO and Director

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release contains statements that plan for or anticipate the future, called "forward-looking statements." In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of those terms and other comparable terminology.

These forward-looking statements appear in a number of places in this press release and include, but are not limited to, statements about: our market opportunity; revenue generation; our strategies; competition; expected activities and expenditures as we pursue our business plan; the adequacy of our available cash resources; our ability to acquire properties on commercially viable terms; challenges to our title to our properties; operating or technical difficulties in connection with our exploration and development activities; currency fluctuations; fluctuating market prices for precious and base metals; the speculative nature of precious and base metals exploration and development activities; environmental risks and hazards; governmental regulations; and conduct of operations in politically and economically less developed areas of the world.

Many of these contingencies and uncertainties can affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us. Forward-looking statements are not guarantees of future performance. All of the forward-looking statements made in this press release are qualified by these cautionary statements. Specific reference is made to our most recent annual report on Form 10KSB and other filings made by us with the United States Securities and Exchange Commission for more detailed discussions of the contingencies and uncertainties enumerated above and the factors underlying the forward-looking statements. These reports and filings may be inspected and copied at the Public Reference Room maintained by the U.S. Securities and Exchange Commission at 100 F Street, N.E., Washington, D.C. 20549. You can obtain information about operation of the Public Reference Room by calling the U.S. Securities and Exchange Commission at 1-800-SEC-0330. The U.S. Securities and Exchange Commission also maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the U.S. Securities and Exchange Commission at http://www.sec.gov.

We disclaim any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except to the extent required by applicable laws.

This press release is for informational purposes only and is not and should not be construed as an offer to solicit, buy, or sell any security.

Contact Information

  • For further information, please call Lars Pearl or Axino AG.

    Lars Pearl
    Phone: (+41) 7887 96966
    Address: level 1, 10 Baarestrasse,
    Zug, Switzerland 6400
    Website: http://www.aurora-gold.com

    AXINO AG
    investor & media relations
    Königstraße 26
    70173 Stuttgart, Germany
    Tel. +49 (711) 25 35 92-30
    Fax +49 (711) 25 35 92-33
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