Perth, Apr 24, 2008 (ABN Newswire) - Pilbara iron ore developer Aurox Resources Limited (ASX: AXO)(PNK: AUOXF) has secured key long lead items required to construct and commission the Balla Balla magnetite project in September 2010. Contracts have been signed with FLSmidth Minerals Pty Ltd ("FLSmidth") and Siemens Ltd ("Siemens") to engineer and manufacture the major components required to commission the 6 million tonne per annum (Mtpa) concentrate production Balla Balla magnetite processing plant and related port infrastructure.

As outlined in the ASX Announcement dated 29 January 2008, a Letter of Agreement had been signed with FLSmidth and a fee of AUD $8,000,000 paid to initiate detailed engineering work and secure key plant components. Aurox had also signed a Letter of Intent with Siemens to engineer, manufacture and install all major electrical items including gearless drives for the grinding mills.

Initial fixed price contracts have been negotiated and signed with both FLSmidth and Siemens.

The Balla Balla plant will commence operations using a gyratory crusher and SAG mill capable of 10 Mtpa concentrate production in anticipation of the expansion from 6 to 10 Mtpa in 2015. A ball mill sized for the 6 Mtpa operation will form part of the initial grinding, circuit later to be complimented by the installation of a second ball mill as part of the Year 5 expansion.

Managing Director Charles Schaus stated that "our success in securing a timely delivery of two new high quality European mills and a large gyratory crusher ensures our scheduled September 2010 Balla Balla start-up remains on track."

Contract negotiation outcomes include a schedule limiting the combined total payments to FLSmidth and Siemens to AUD $45,000,000 up until 31 January 2009.

Aurox is in advanced discussions with other contracting groups for balance of plant including earthworks, pipeline and Australian Standards supervision.