Promising initial Kingsgate silica (quartz) testwork

Highlights

Kingsgate Molybdenum-Bismuth Project, Glen Innes NSW (Auzex 100%)

·         Quartz, in the form of quartz pipes, is intimately associated with the molybdenum and bismuth mineralisation at Kingsgate, which from a future mining perpective, would be mined and processed during the normal course of operations.

• Initial investigations and testwork into the potential of silica (quartz) to be a value addition in the Kingsgate production process have been positive.

·         Early metallurgical testwork, which formed part of the 2007 scoping study, assumed a bulk concentrate would be produced which contained all the metals (Mo-Bi-Ag-Au-W-Pb) and the remaining material to be deposited as waste in a long term tailings storage facility. However, current testwork on this “waste” has highlighted the significant quality and value of the silica (quartz) component.

·         Silica is used in the electronic, lighting, fibre optic and semiconductor industries, and in silicon production. A consultancy firm advising the Company on the marketing of its silica material has indicated, based on initial testwork assay data, that it may be suitable for high value markets such as thin film transistor (TFT) and liquid crystal display (LCD) applications. Material for such applications has an indicative value of US$400 per tonne.

·         The Company is currently completing a feasibility study assuming an overall plant process rate of 250,000tpa. Given the style of mineralisation, it is estimated that silica production could represent 100,000-150,000 tpa.

• If the results of further testwork (due at the end of this quarter) confirm the value of Kingsgate silica, then this will have a major positive impact on project profitability, resource potential and longevity.

Regards

Brett O'Donovan

Auzex Resources Limited

Ph: 0433 399 501

Level 30, AMP Place

10 Eagle Street

Brisbane  Qld  4000

www.auzex.com