Third Quarter Activities and Cashflow Report
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AXO000184_Quarterly Report and App5b.pdf (961 KB)Balla Balla Project Highlights
- Aurox finalises vanadium bankable feasibility study
- Bankable feasibility study for the 3 million tonne per annum titanomagnetite concentrate operation nearing completion
- Balla Balla titanomagnetite reserves increased by 92% to 103.9 million tonnes grading 46% Fe, 0.63% V, 13% Ti
- Aurox signs 15 year, 3 million tonne per annum sales agreement with Chengde Iron & Steel Group
- Titanium recovery study shows encouraging results
- Yalgoo rock chips demonstrate iron ore potential
- Aurox raises $3.2 million
Summary
Aurox Resources Limited (“Aurox”) retains the option to purchase 100% of the Balla Balla titanomagnetite project located in the West Pilbara mineral field of Western Australia. Balla Balla is Australia's largest and highest grade titanomagnetite reserve, having a proposed mine life of over 30 years. The project is located adjacent to key infrastructure including gas and grid power and is within 100km of Australia's largest iron ore shipping facilities at Port Hedland and Karratha.
The Company has completed a bankable feasibility study (“BFS”) for the development of a 5,900 tonnes per annum (“tpa”) ferrovanadium operation. Extensions to the BFS will soon be complete and will include the annual production of 3 million tonnes of titanomagnetite concentrate, which is the focus of a recent 15-year, 100% off-take agreement with Chinese steel and vanadium producer Chengde Iron and Steel Group. Aurox has also signed a Memorandum of Understanding with a major resource group who are proposing to invest at the corporate and project levels upon successful completion of their five-week due diligence process.
During the March quarter, ore reserves within the BFS area at Balla Balla were increased to 103 million tonnes grading 46% Fe and 0.63% V2O5. Enormous potential remains for future resource and reserve increases along the additional 11km titanomagnetite horizon extending east and west of the 5km-long BFS area.
This upside was confirmed in the drilling of 42 RC holes across the extension area. The company has also commenced research work into the recovery of TiO2 from the non-magnetic tailings material remaining following the concentration process. A large batch of sample material is current being analysed by Ammtec Laboratories in Perth.
Aurox sampled iron-bearing outcrops located on its 100% owned Yalgoo tenements. The rock chip sampling focused on targets highlighted by aeromagnetics and/or targets located near iron ore resources defined by neighboring explorers. All 25 samples returned strong Fe grades.
Also during the quarter, the Company raised $3.2 million through the issue of 4 million ordinary fully paid shares at an issue price of $0.80 per share. The funds are being applied toward completion of the iron concentrate BFS, continued exploration activities and general working capital.