Perth, June 3, 2008 AEST (ABN Newswire) - Pilbara iron ore developer Aurox Resources Limited (ASX:AXO)(PINK:AUOXF) is pleased to announce it has increased the JORC compliant Ore Reserve Estimate at Balla Balla by 49 percent to 155 million tonnes.
Category Tonnes (Mt) Fe (%) V2O5 (%)-------------------------------------Proved 102 45.1 0.64Probable 53 45.4 0.65-------------------------------------TOTAL 155 45.2 0.64-------------------------------------
As announced 29 April 2008, the Mineral Resources for the Central Pit and the Eastern Block deposits were re-estimated by Golder & Associates Pty Ltd ("Golder") to include new infill and extension drilling undertaken between October and December 2007.
The updated resource models were delivered to Orelogy Pty Ltd for economic optimisation and calculation of new JORC compliant Ore Reserve estimates for these areas. The new Central Pit and Eastern Block areas are now contained within a single pit design and their reserve numbers reported together. The new "Central-East" Ore Reserves were added to the Western Pit Ore Reserve estimate to increase the total reserves from 103 to 155 million tonnes grading 45% Fe and 0.64% V2O5.
The new Ore Reserve Statement set out by deposit is shown in Table 1 below.
Golder is now remodelling the Western Pit area to include infill and extension drilling completed between January and May of this year. This work will include the results from six deep diamond holes received last month which demonstrate the strong geologic continuity of the deposit.
Managing Director Charles Schaus stated that "the Ore Reserve at Balla Balla will continue to grow this year, with these latest results representing only about one third of the deposit's full reserve potential."
Table 1 - Ore Reserve Statement----------------------------------------------Deposit Category Tonnes(Mt) Fe(%) V2O5(%)----------------------------------------------Central-East Proved 77.8 44.7 0.63 Probable 17.4 45.0 0.64 Total 95.2 44.8 0.63----------------------------------------------Western Proved 23.7 46.4 0.66 Probable 35.8 45.6 0.63 Total 59.5 45.9 0.64----------------------------------------------Total Proved 101.5 45.1 0.64 Probable 53.2 45.4 0.65----------------------------------------------Combined TOTAL 154.7 45.2 0.64----------------------------------------------
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, May 2007
About Balla Balla
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 and phosphate potential, and is located near major ports, gas and grid power with main highway access.
The Balla Balla Feasibility Study demonstrates strong project economics with magnetite iron ore shipments to China scheduled to commence in the second half of 2010 making Aurox Western Australia's first magnetite producer.
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 and Mr Ross Chaney 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
Managing Director
Telephone: +61-8-9382-4477
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