Aurora Appoints New CEO; Stock Up

Aug. 8.08 | About: AURORA ENERGY (AUEGF)

Aurora Energy Resources Inc. (OTC:AUEGF) investors appear happy with the appointment Wednesday of Bruce Dumville as Aurora's new president and CEO.

Shares in the uranium miner were up more than 3% on Thursday after it was announced that Mr. Dumville will begin his new post on Sept. 8, 2008, replacing Mark O'Dea who will become Aurora's deputy chairman. 

Aurora also reported Thursday encouraging initial results of its 2008 summer drill program at the 100% owned Jacques Lake deposit in coastal Labrador.

A former Xstrata (XSRAF.PK) executive with over 25 years of mining experience including responsibilities for pre-feasibility and feasibility studies, RBC Capital Markets analyst Adam Schatzker says Mr. Dumville has the appropriate skill set to help Aurora develop its Michelin Project in Newfoundland/Labrador.

In a note to clients he said:

We believe that his experience and insights working with stakeholders to secure their support for a development project should benefit Aurora as it works with the Nunatsiavut government and local Labrador communities to gain support for development on Aurora's Michelin Project.

Aurora shares are down more than 80% since the start of the year on rumours of and then in April the eventual vote in favor by the Nunatsiavut government of a three-year moratorium on uranium mining.  Mr. Schatzker reiterated his opinion that Aurora, who is not expected to produce uranium for another six years, will not be affected by the suspension.

He wrote:

We continue to believe that Aurora's share price has over-reacted to the recent Nunatsiavut government's three-year moratorium announcement and that the current share price offers investors the potential for substantial gains over the long-term.

He maintained his "outperform" rating on the stock.