29 April 2008
e-lodgement
Company
Announcements Office
ASX Limited
2 The
Esplanade
PERTH WA 6000
ASX / Media Announcement
BALLA BALLA MINERAL RESOURCES UPGRADE & DRILLING PROGRESS
- 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 modelling to commence
shortly
Central Pit & Eastern Block Mineral Resource Upgrades
Pilbara iron
ore developer Aurox Resources Limited (ASX: AXO) is pleased to announced a
significant upgrade to its Mineral Resource Estimate for the Central Pit and
Eastern Block areas of its Balla Balla magnetite project.
The 74
million tonne resource upgrade (111 to 185 million tonnes ) follows completion
of a 8,300 metre reverse circulation (RC) drilling programme in these two areas
prior to Christmas (ASX Announcement 11 March 2008). The infill drilling
targeted the Inferred Mineral Resources (lowest JORC confidence level) located
immediately below the Central Pit and across the Eastern Block areas.
The aim was
to upgrade these resources to Measured and Indicated categories in preparation
for Ore Reserve conversion and subsequent pit design and mine scheduling.
Golder Associates have now completed new 3D resource block modelling of the
Central Pit and Eastern Block areas. Aurox Managing Director Charles Schaus
said the new Mineral Resource estimate report shows successful and significant
upgrades to the Measured and Indicated tonnages in these areas. “We have
delivered a 64% increase in Measured and Indicated resources at the Central Pit
and Eastern Block areas. We are now undertaking Reserve estimations on the new
resource models and are anticipating significant increases,” Mr Schaus
said.
The Central
Pit Area Mineral Resources shown in Table 1 represent a tonnage increase of
29.8 million tonnes to the Measured and Indicated resources. The Eastern Block
Mineral Resources shown in Table 2 represent 44.2 million tonnes of newly
defined Measured and Indicated Resources. Previously only Inferred Mineral
Resources were estimated via wide spaced drilling in the Eastern Block
area.horizon, although assays are still pending.
TABLE 1- CENTRAL PIT AREA
TABLE 2 - EASTERN BLOCK
AREA
The new Measured and
Indicated Mineral Resources are now eligible for Ore Reserve conversion. Perth mining engineering
consultant Orelogy Pty Ltd have commenced pit optimisation work and expect to
report new Ore Reserve Estimates for the Central Pit and Eastern Block areas in
two to three weeks time.
A plan map and
corresponding long-section (Figure 1) shows the location of the new Resource
Estimate updates relative to the entire Balla Balla magnetite deposit. The
long-section also depicts the location of ‘target resource tonnages’
in anticipation of ongoing drilling.
As the 65,000 metre RC
and diamond drilling programme progresses, the 3D block models will be updated
and new JORC-compliant Mineral Resource and Ore Reserve will continue to be
estimated and announced.
The resource upgrade is
another milestone for Aurox, which is on track to become WA’s first
magnetite iron ore producer from the low cost Balla Balla project, located near
the Pilbara coast 100km west of Port Hedland.
Balla
Balla Drilling Programme Update
Aurox is continuing the
aggressive programme of RC resource drilling recommenced in January 2008
focusing on increasing the Mineral Resource within the Western Deposit and its
strike extensions at Balla Balla.
During the first quarter
a total of 18,152 metres of drilling (including 1,238 metres of RC precollar
and 568 metres of diamond-core tail) was completed, covering the entire 3km
strike of the Western Deposit, in addition to 0.4km of strike extension to the
north-east and 1km of strike extension to the south-west.
The second phase of the
Western Deposit drilling program has been completed, with each deep drill hole
successfully intersecting the magnetite horizon, although assays are still
pending.
A total of 132 RC holes
were completed to an average vertical depth of 124m and a maximum depth of 234
metres. Six deep holes were drilled (by RC pre-collar and diamond tail) to a
maximum vertical depth of 427 metres, spaced every 500 metres along the entire
strike length of the Western Deposit. A cross section showing the
project’s deepest hole to date, BBD044, is displayed in Figure 2.
To date, assay results
have been received from 56 of the 138 holes drilled (see Table 3 for drilling
result update). Recent drilling highlights include:
Upon receipt of all
assays from the Western Deposit, the data will be delivered to Golder
Associates to update and extend the existing 3D resource block model and to
calculate a new JORC-compliant Mineral Resource estimate for the Western
Deposit and its strike extensions.
Meanwhile drilling is
continuing on Phase Three, which involves approximately 10,000 metres of RC
drilling in the Central Deposit area. This drilling is planned to extend the
down-dip Central Pit Area mineralisation by an additional 50 to 100 metres
vertically along the entire strike length. This drilling should be completed
during the June 2008 quarter.
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
Reverse circulation
drilling at Balla Balla with Depuch
Island in background
(High resolution picture
also available at http://www.purplecom.com..au/gallery.asp
)
Competent Persons Statement
The
Balla Balla Mineral Resources were estimated by Richard Gaze of Golder
Associates Pty Ltd. Mr Gaze has sufficient experience which is relevant to the
style of mineralisation and type of deposit under consideration and to the
activity which he is undertaking to qualify as a Competent Person as defined in
the 2004 Edition of the ’Australasian Code for the Reporting of
Exploration Results, Mineral Resources and Ore Reserves.’ Mr Gaze
consents to the inclusion in this report of the above Resource information in
the form and context in which it appears.
The
information in this report that relates to Exploration Result is based on
information compiled by Matt Chinn who is a member of the Australian Institute
of Mining and Metallurgy and a full-time employee of Aurox Resources Limited.
Matt Chinn has sufficient experience which is relevant to the style of
mineralisation and type of deposit under consideration and to the activity
which he is undertaking to qualify as a Competent Person as defined in the 2004
Edition of the ‘Australasian Code for Reporting of Exploration Results,
Mineral resources and Ore Reserves. Matt Chinn consents to the inclusion in the
report of matters based on his information in the form and context in which it
appears.
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 for a total of 6 million tonnes per
annum increasing to 10 million tonnes per annum concentrate production in year
5 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
cost 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 in the second half of 2010.
Aurox
Resources Limited
Charles
Schaus
Managing
Director
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