Balla Balla Phospate
Balla Balla Phosphate CircuitAurox is progressing studies into the beneficiation of phosphate from its Balla Balla project. Potential processing and sale of a phosphate concentrate could further enhance the already strong Balla Balla project. The phosphate is contained in the hanging-wall waste rock located immediately above the magnetite ore. From the currently available assay and geological information the phosphate mineralisation typically extends to 20 metres above the titanomagnetite ore into the hanging wall waste rock. The apatite bearing material displays grades of between 3% and 7% over this distance and a maiden P2O5 resource estimate has recently been prepared by geological consultants Golder Associates as displayed below.
Previous beneficiation tests on a composite sample from two core–holes which assayed 4.1% returned a concentrate grade of 30.5% P2O5 and an overall recovery of 67% by a combination of magnetic separation and flotation of the non-magnetic fraction. Concentrate grades of 30 to 32% P2O5 are saleable, with recent prices being in the vicinity of US$430 per tonne (World Bank reported price August 2008). Testwork is currently underway using a similar feed sample to replicate the historical testwork with Amdel Limited. Interim results indicate a similar result is likely. With a strong market for phosphate it is anticipated that Aurox will accelerate the studies for the Phosphate project with a concept to produce up to 1Mtpa of +30% P2O5 concentrate.
Balla Balla P2O5 Mineral Resources at 19 September 2008
Western Pit Area
| Class | Tonnes | P2O5 % |
| Measured | 34,192,000 | 3.80 |
| Indicated | 4,759,000 | 4.14 |
| Inferred | 1,846,000 | 3.94 |
| Total | 40,797,000 | 3.85 |
Central-East Pit Area
| Class | Tonnes | P2O5 % |
| Measured | 38,435,000 | 3.63 |
| Indicated | 8,058,000 | 3.65 |
| Inferred | 2,403,000 | 3.98 |
| Total | 48,896,000 | 3.65 |
Total Balla Balla Mineral Resources
Class | Tonnes | P2O5 % |
| Measured | 72,627,000 | 3.71 |
| Indicated | 12,817,000 | 3.83 |
| Inferred | 4,249,000 | 3.96 |
| Total | 89,693,000 | 3.74 |
Notes: P2O5 Mineral Resource figures for the deposits quoted include total in situ P2O5-bearing minerals. P2O5 mineral resources quoted refers to >2% P2O5 within 20 metres disseminated Fe hangingwall wire-frames only. Where drill density was less than or equal to 100m along strike by 50m down dip, the resource was classified as Measured. Where drill density was less than or equal to 250m along strike by 100m down dip, the resource was classified as Indicated. The remaining material has been classified as Inferred and given a short down dip extrapolation until such time as additional studies confirm the behaviour of P2O5 mineralisation at depth.
Competent Persons Statements
On 19 September 2008 Aurox reported new Measured, Indicated and Inferred Resources associated with the P2O5 mineralisation located in the hangingwall material adjacent to the Western Pit and Central-East Pit titanomagnetite zone at Balla Balla. The information in these reports that relates to Exploration and, Minerals Resources is based on information compiled by Matt Chinn and Richard Gaze who are both members of the Australian Institute of Mining and Metallurgy. Matt Chinn is a full-time employee of Aurox Resources Limited. Richard Gaze is a full time employee of Golder Associates. Matt Chinn and Richard Gaze haves 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 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral resources and Ore Reserves.’ Matt Chinn and Richard Gaze consent to the inclusion in the report of matters based on this information in the form and context in which it appears.