16 January 2008
ASX / Media
Announcement
BALLA BALLA
EXPLORATION UPDATE
DRILLING
TARGETS SIGNIFICANT RESOURCE / RESERVE INCREASES
Pilbara magnetite developer
Aurox Resources Limited (ASX: AXO) has received the first assay results from
its drilling programme at Balla Balla, which have confirmed potential to double
the current resource base at the advanced Pilbara project.
The reverse circulation
(RC) drilling programme is designed to significantly increase the strike length
of the titanomagnetite mineralisation, which hosts ore reserves of 103 million
tonnes, from 4.8
kilometres to 18.3 kilometres. A
series of deep RC holes are also planned to extend the open-cut mineralisation
down dip from 125 vertical metres to approximately 250m.
Managing
Director Charles Schaus said the exploration success to date is a positive
milestone for shareholders.
“Aurox remains on track to become
WA’s first magnetite iron ore producer from the low cost Balla Balla
project, which is located near the Pilbara coast 100kms west of Port
Hedland,” Mr Schaus said.
In-house studies of
geophysical data and past RC drilling indicates the potential to double the
current 325 million tonne titanomagnetite resource and increase ore reserves to
more than 350 million tonnes once the drilling, resource modelling and reserve
estimation work is finished.
The programme is
scheduled for completion by August of this year with interim resource
estimations generated and reported as drilling progresses. Highlights from
drill assays received to date include:
HOLE
WIDTH
(m)
FE(%)
V2O5(%) TiO2(%)
BBR265
30
46
0.61
15
BBR266
44
45
0.62
14
BBR277
30
46
0.66
14
BBR296
30
47
0.71
14
BBR304
34
47
0.66
15
The attached table
displays results of all drill assays received to date. A total of 111 RC holes
totalling 8,294m were drilled prior to Christmas. This phase of drilling
achieved its design criteria by:
1)
deepening the Central Zone mineralisation,
2)
extending the Central Zone mineralisation eastwards by
800m, and
3)
drilling the ‘East
Block B’ area which hosts approximately 1,500m (strike) of
easily-accessible, shallow and flat-lying titanomagnetite mineralisation.
The attached map shows where the open pits enclose the current 103
million tonne ore reserves and the location of the titanomagnetite
mineralisation subject to ore reserve conversion as the RC drilling programme
progresses.
Assay results from 33
of the 111 holes have been received to date and are summarised in Table 1.
Highlights include 44m @ 45.3% Fe (BBR266 in the Central Pit area), 30m
@ 46.0% Fe (BBR277 in the Central Pit Eastern Extension) and 34m @ 46.7%
Fe (BBR304 in East Block B). The results show that grades
and thicknesses remain consistent along strike and at depth. The Balla Balla 3D
block resource model will be updated and expanded on a regular basis when
the assays from each phase of drilling are received. New JORC-compliant
reserve figures will be estimated and announced in due course.
The drill programme
resumed on 9 January and a second rig is due to arrive in the middle of the
month. This next phase of drilling will deepen the Western Pit Area and then
extend it along strike to both the north-east and south-west.
Notes to accompany the results:
1)
All holes drilled vertically; apparent intercept
widths are quoted
2)
Downhole samples were composited over 2m
intervals through the ore zone and assayed by Genalysis Laboratories in Perth
3)
Sample preparation: All samples were sorted, dried,
then subjected to Single Stage Mix and Grind (SSMG) to nominal 1050 micron
4)
Analytical methodology: Fused Disc X-Ray (suitable for
ore grade material):- A sub sample is automatically determined for LOI and
fused into a glass disc using a Lithium Borate flux with direct analysis using
PANalytical Magix Fast Simultaneous X-ray system for the following element
suites: Al2O3, CaO, Fe, Fe2O3, K2O, LOI @1000C, MgO, Mn, Na2O, P,
S, SiO2, TiO2, Plus Traces: V Cr Co Ni Cu Zn As Sn Ba Pb
About Aurox
Aurox Resources Limited (ASX: AXO) is a Perth
based metals developer, with its primary asset the 100% owned Balla Balla iron
ore concentrate project. The project is located near the coast west of Port
Hedland in the renowned Pilbara region of Western Australia.
Aurox is well advanced in the development of
Balla Balla, having completed a Bankable Feasibility Study for six million
tonnes of magnetite iron ore production annually. The Company has in place two
15 year sales contracts each for 3mtpa with major Chinese Steel Companies
Balla Balla is based on a large homogenous
magnetite ore body, which will be developed as one of the lowest costs
magnetite operations in Australia.
The project also has significant titanium potential, and is located near major
ports, gas and grid power with main highway access
The new Balla Balla Bankable Feasibility Study
demonstrates strong project economics with magnetite iron ore shipments to China
scheduled to commence mid 2010.
AuroxResources
Limited
Charles Schaus
Managing Director
BALLA BALLA RESOURCE
DRILLING RESULTS
Table 1
Hole ID
|
From
(m)
|
To
(m)
|
Width
(m)
|
Fe
(%)
|
V2O5 (%)
|
TiO2
(%)
|
P
(%)
|
S
(%)
|
SiO2
(%)
|
Comment
|
BBR260
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Fault Zone
|
BBR261
|
8
|
16
|
8
|
32.8
|
0.57
|
15.4
|
0.16
|
0.01
|
15.3
|
Fault Zone
|
BBR262
|
48
|
56
|
8
|
41.7
|
0.64
|
13.5
|
0.05
|
0.01
|
16.2
|
Fault Zone
|
BBR263
|
72
|
96
|
24
|
46.6
|
0.68
|
14.3
|
0.05
|
0.95
|
9.4
|
|
BBR264
|
58
|
78
|
20
|
46.7
|
0.61
|
15.1
|
0.04
|
0.82
|
9.4
|
|
BBR265
|
60
|
90
|
30
|
46.4
|
0.61
|
15.0
|
0.14
|
0.80
|
9.3
|
|
BBR266
|
50
|
94
|
44
|
45.3
|
0.62
|
14.3
|
0.16
|
0.83
|
10.2
|
|
BBR267
|
54
|
76
|
22
|
45.1
|
0.65
|
14.1
|
0.09
|
0.79
|
10.4
|
|
BBR268
|
68
|
84
|
16
|
44.1
|
0.63
|
13.8
|
0.04
|
0.94
|
12.7
|
|
BBR269
|
74
|
86
|
12
|
39.6
|
0.36
|
14.2
|
0.48
|
0.77
|
15.3
|
|
BBR270
|
58
|
88
|
30
|
42.5
|
0.51
|
14.2
|
0.38
|
0.69
|
12.3
|
|
BBR271
|
50
|
82
|
32
|
42.0
|
0.52
|
13.9
|
0.33
|
0.75
|
12.5
|
|
BBR272
|
72
|
96
|
24
|
43.5
|
0.60
|
13.8
|
0.16
|
0.71
|
11.8
|
|
BBR273
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Dyke
|
BBR274
|
50
|
92
|
42
|
41.3
|
0.53
|
13.2
|
0.13
|
0.77
|
15.6
|
|
BBR275
|
0
|
8
|
8
|
41.1
|
0.79
|
10.4
|
0.02
|
0.01
|
16.5
|
|
BBR276
|
16
|
40
|
24
|
43.4
|
0.59
|
13.8
|
0.07
|
0.55
|
13.7
|
|
BBR277
|
28
|
58
|
30
|
46.0
|
0.66
|
14.4
|
0.07
|
0.81
|
10.8
|
|
BBR278
|
8
|
30
|
22
|
45.7
|
0.71
|
14.0
|
0.02
|
0.59
|
9.4
|
|
BBR279
|
18
|
42
|
24
|
44.6
|
0.61
|
14.7
|
0.25
|
0.84
|
10.5
|
|
BBR280
|
26
|
38
|
12
|
47.0
|
0.70
|
17.7
|
0.19
|
0.85
|
13.1
|
|
BBR281
|
26
|
46
|
20
|
46.6
|
0.62
|
15.2
|
0.12
|
0.79
|
9.0
|
|
BBR282
|
60
|
74
|
14
|
45.4
|
0.63
|
14.9
|
0.03
|
0.72
|
9.1
|
|
BBR283
|
36
|
48
|
12
|
45.9
|
0.63
|
15.5
|
0.15
|
0.36
|
9.7
|
|
BBR284
|
40
|
60
|
20
|
42.3
|
0.58
|
13.8
|
0.30
|
0.50
|
13.6
|
|
|
|
|
|
|
|
|
|
|
|
|
BBR285
|
|
|
|
|
|
|
|
|
|
Pending
|
To
|
|
|
|
|
|
|
|
|
|
“
|
BBR294
|
|
|
|
|
|
|
|
|
|
“
|
|
|
|
|
|
|
|
|
|
|
|
BBR295
|
36
|
66
|
30
|
43.87
|
0.60
|
13.9
|
0.21
|
0.79
|
12.80
|
|
BBR296
|
24
|
54
|
30
|
47.21
|
0.71
|
14.4
|
0.12
|
0.71
|
8.96
|
|
BBR297
|
16
|
36
|
20
|
45.01
|
0.63
|
14.0
|
0.18
|
0.62
|
11.43
|
|
|
|
|
|
|
|
|
|
|
|
|
BBR298
|
|
|
|
|
|
|
|
|
|
Pending
|
To
|
|
|
|
|
|
|
|
|
|
“
|
BBR301
|
|
|
|
|
|
|
|
|
|
“
|
|
|
|
|
|
|
|
|
|
|
|
BBR302
|
76
|
104
|
28
|
45.9
|
0.62
|
14.5
|
0.18
|
0.76
|
10.18
|
|
BBR303
|
60
|
80
|
20
|
41.4
|
0.48
|
13.6
|
0.32
|
0.74
|
13.97
|
|
BBR304
|
42
|
76
|
34
|
46.7
|
0.66
|
14.5
|
0.13
|
0.76
|
8.97
|
|
BBR305
|
4
|
26
|
22
|
45.2
|
0.75
|
13.1
|
0.02
|
0.51
|
9.30
|
|
BBR306
|
4
|
14
|
10
|
45.0
|
0.84
|
12.1
|
0.01
|
0.01
|
8.61
|
|
|
|
|
|
|
|
|
|
|
|
|
BBR307
|
|
|
|
|
|
|
|
|
|
Pending
|
To
|
|
|
|
|
|
|
|
|
|
“
|
BBR369
|
|
|
|
|
|
|
|
|
|
“
|
Issued
by
Purple
Communications
Level
3, 28 Kings Park Road, WEST
PERTH WA 6005
Ph:
08 9485 1254 Fax: 08 6263 0455
purple@purplecom.com.au