Perth, Nov 10, 2008 AEST (ABN Newswire) - Pilbara iron ore developer Aurox Resources Limited (ASX:AXO)(PINK:AUOXF) is pleased to announce a 34 percent increase to its Balla Balla Ore Reserve estimate.
Aurox has increased the Balla Balla ore reserves from 155 to 207 million tonnes with over 87% in the Proved Reserve category. The upgrade follows resource modelling of in-fill and extension drilling below 120 metres across the Western and Central-East Pit areas. This interim result does not include the 9.5 km long Far West area where resource modelling by Golder & Associates is currently underway.
Aurox Managing Director Charles Schaus said the results follow a resource upgrade to 502 million tonnes announced 19 September 2008, and the resources and reserves at Balla Balla will continue to grow.
"This strong interim result is in line with our Balla Balla Resource and Reserve development plan. The Company is targeting between 350 and 400 million tonnes of Balla Balla ore reserves following the completion of the Far West resource modelling and optimisation work," Mr Schaus said.
"I think it's important for our investors to remember that the Balla Balla ore will be processed into a vanadium-rich magnetite concentrate which our customers will use to manufacture both steel and vanadium products. We have binding 15 year off-take contracts secured with Chengde Iron & Steel (wholly owned by China's largest steel company Hebei Iron & Steel Group), and RockCheck Iron & Steel who is located on the China coast and one of the few independent steel mills still operating at full capacity.
Our customers will gladly purchase Balla Balla concentrate at the full Hamersley Fines Price as they are receiving the vanadium free of charge. This pseudo-insurance policy sets the Aurox off-take agreements apart from those of other Australian iron ore producers as the vanadium in our product is worth more to our customers than the iron" Mr Schaus said.
Over the past 30 days RockCheck has increased its stake in Aurox from 9 to over 14 percent via on market purchases.
BALLA BALLA ORE RESERVE ESTIMATE AT 10 NOVEMBER 2008
Western Pit Area---------------------------------Class Mt Fe% V2O5% TiO2%---------------------------------Proved 86.7 45.7 0.65 13.9Probable 7.8 45.3 0.66 13.4---------------------------------Total 94.5 45.7 0.65 13.9---------------------------------Central-East Pit Area---------------------------------Class Mt Fe% V2O5% TiO2%---------------------------------Proved 93.7 44.8 0.62 14.0Probable 19.1 45.0 0.63 13.6---------------------------------Total 112.8 44.8 0.62 13.9---------------------------------Total Balla Balla Ore Reserve Estimate---------------------------------Class Mt Fe% V2O5% TiO2%---------------------------------Proved 180.4 45.2 0.63 14.0Probable 26.9 45.1 0.64 13.5---------------------------------Total 207.3 45.2 0.63 13.9---------------------------------
Notes to accompany Ore Reserve Statement
1. Fe cut-off grade is a nominal 35%
2. Dilution of 3% at a diluted Fe grade of 38% is included.
3. Geological Mineral Resource Model - Golder& Associates Pty Ltd, September 2008
About Chengde Iron & Steel Group
Chengde Iron and Steel Group Co. ("Chengde") is one of the world's largest low-cost vanadium producers, making vanadium slag as a by-product of steel production using a feedstock of vanadiumrich titanomagnetite concentrate. Chengde's steel plant is located in the Hebei province and has recently increased production from a reported 4.4 million tonnes per annum ("tpa") to 8 million tpa steel.
Chengde is part of Hebei Iron and Steel Group Ltd, which was recently formed from the merger of the Tangshan and Handan government steel operations making the company China's largest steel producer.
About RockCheck Steel Group
RockCheck Steel Group Co. Ltd is a major Chinese high quality flat steel producer located near the port city of Tianjin, close to Beijing. RockCheck Steel's strategic position near the coast provides the company with logistical advantages compared to other steel makers and puts RockCheck Steel in a good position to expand further. With a pig iron production capacity of 4m tpa and actual steel production in 2006 of 3 million tonnes, the company ranks in the top 100 global steel producers
Competent Persons Statements
The Balla Balla Mineral Resources was estimated by Mr Richard Gaze of Golder & Associates Pty Ltd. The Balla Balla Ore Reserves were estimated by Mr Steve Craig of Orelogy Pty Ltd. Both parties have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Persons as defined in the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Richard Gaze and Mr Steve Craig consent to the inclusion in this report of the above Resource and Reserve information in the form and context in which it appears
Contact
Charles Schaus.
Tel: +61-8-938-24477
Fax: +61-8-9383-2012
Email address: mail@aurox.com.au
Visit the Aurox website: www.aurox.com.au
| ||
|
