Perth, April 30, 2008 AEST (ABN Newswire) - Aurox Resources Limited (ASX: AXO)(PINK:AUOXF) is pleased to announce the quarterly activities report for the period ending 31 March, 2008.
Highlights include:
- 74 million tonnes of additional Measured & Indicated Resources delineated from Central Pit & Eastern Block Phase 1 drilling
- Ore Reserve estimation work on new Phase 1 resource models underway; significant increases anticipated
- Phase 2 drilling below Western Pit confirms magnetite mineralisation extends to 427 metres - resource modeling to commence shortly
- Significant progress on Balla Balla plant, pipeline and shipping development work
- Long lead items secured - Balla Balla remains on schedule for September 2010 start-up
The Full Quarterly Report is available at Aurox Resources Website:
http://aurox.com.au/announcements
Summary:
The Company has received new Mineral Resource estimate upgrades for the Central Pit and Eastern Block areas of its Balla Balla magnetite project. The Measured and Indicated Resource in the Central Pit and Eastern Block areas increased by 74 million tonnes. The new Measured and Indicated Resources are now being optimized and designed for Ore Reserve conversion.
A total of 18,152m of drilling was completed across the Western Deposit, including six deep holes (to a maximum vertical depth of 427m) spaced every 500m along the entire strike length of the Western Deposit. Upon receipt of all assays from the Western Deposit, Golder Associates will commence to update and extend the existing three dimensional resource block model and to calculate a new JORC-compliant Mineral Resource estimate for the Western Deposit. Drilling continues to infill the low level Inferred resource areas and to unlock new resource tonnage potential via the drilling of the deposit below 125 vertical metres.
The Ore Processing Plant Layout design has been finalized and the Balance of Plant facilities being arranged to ensure best plant layout is arranged for the 30 year Mining Operations.
FL Smidth Minerals Pty Ltd ("FLSM") have secured long lead items such as the Gyratory Crusher castings and shaft and the SAG and Ball Mill heads and shells which are now under manufacture.
Siemens AG have procured the materials for the long lead items required for the Mill gearless drives, and Siemens AU have identified a critical items list that confirms the need for items such as transformers, variable speed drives and switchgear.
Golder and Associates have conducted geotechnical investigations across the Ore Processing Plant area, Tailing Storage facility, and Village at Balla Balla.
Work is progressing with engineering consultants for design of roads, drainage, Balance of Plant works, as well as pricing the concrete foundation works at the Ore Processing Facility ("OPF").
Slurry Systems Engineering ("SSE") have been engaged to undertake a pre-feasibility engineering study for the 110 kilometre, 10 million tonne per annum ("Mtpa") slurry and return water pipelines between the mine processing plant at Balla Balla and the Port Hedland Port Authority ("PHPA") planned multiuser facility at Utah Point. The study is scheduled for completion in May.
Negotiations with the PHPA for the Utah Point Facility and lease agreements continue. The majority of the processing infrastructure planned for installation by Aurox for the slurry product dewatering, stockpiling and reclaiming will service the longer term production target of 10 Mtpa.
The Company has secured supply of key long lead items required to construct the Balla Balla project which is scheduled for commissioning in late 2010. Contracts have been signed with FLSM and Siemens Ltd to engineer and manufacture the major components required to commission the 6 Mtpa concentrate production Balla Balla magnetite processing plant and related port infrastructure. Contract outcomes include a schedule limiting the combined total payments to FLSM and Siemens to AUD $45,000,000 up until 31 January 2009.
There has been strong interest shown by local and international banking groups for the provision of Project Finance facilities for the Balla Balla project. Aurox's debt advisors have held introductory meetings with all of the major Australian banks and are confident that up to 65% of the project capital costs can be debt funded. Aurox management has been reviewing strategies in relation to the balance of funding comprising a 35% or greater portion of the Balla Balla project. The strong profit margins continue to attract competitive financing interest.
Contact
Telephone 08 9382 4477
Fax 08 9382 2012
www.aurox.com.au
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