AuEx Ventures, Inc.: Long Canyon Project Proceeds Toward Feasibility
December 21 2009 - 6:00AM
Marketwired
AuEx Ventures, Inc. (TSX: XAU) ("AuEx" or the "Company") is pleased
to announce continuing progress on several fronts advancing the
development of the Long Canyon gold deposit in eastern Elko County,
Nevada. These include the completion in 2009 of over 100,000 feet
of core and reverse circulation drilling, significant metallurgical
testwork to confirm the amenability of the deposit to conventional
recovery techniques, geotechnical investigations for safe pit
designs and the collection of data necessary for further
permitting. In addition, the results of a Preliminary Economic
Assessment were released on December 1 that demonstrate the
attractive economics of the project including a 64% pre-tax IRR and
a 1.3 year payback on capital at a gold price of $800/ounce. The
Company owns a 49% interest in the Long Canyon Venture along with
Fronteer Development Group, Inc. ("Fronteer") who owns 51% and is
operator.
Drilling conducted at Long Canyon in 2009 consisted of over 200
core and reverse circulation holes. Activity was initially focused
on metallurgical and infill holes to upgrade the existing resource
with work shifting during the latter part of the field season to
more exploration due to the lifting of permitting restrictions.
Highlights of new results from infill drilling conducted during
2009 include;
LC 341C containing 68.0 feet @ 0.251 ounces/ton gold
LC 343C containing 19.2 feet @ 0.222 ounces/ton gold
LC 351C containing 15.0 feet @ 0.102 ounces/ton gold
LC 353C containing 29.0 feet @ 0.203 ounces/ton gold
LC 356C containing 38.5 feet @ 0.068 ounces/ton gold
A drill hole map and a table containing the results from 22 new
infill holes is attached to this release. An updated table of all
released drill results from Long Canyon reported at a 0.30 g/t
cutoff grade is available at www.auex.com.
Over 40 core holes were drilled at Long Canyon during 2009 to
provide subsurface samples of gold mineralization for metallurgical
evaluation. Numerous column leach tests have been conducted from
surface samples recovered in late 2008 and more tests are planned
using this core to confirm the favorable metallurgical response
indicated from that work. Additional holes drilled at Long Canyon
during 2009 were completed for geotechnical data to assist in pit
wall slope stability design studies and for hydrology related
purposes.
The Preliminary Economic Assessment announced on December 1
(AuEx release NR09-30 dated December 1, 2009), confirms the earlier
held belief that Long Canyon possessed very favorable project
economics. This assessment was performed using a gold price of $800
per ounce, estimated initial capital costs of $66,000,000,
operating costs based on similar projects and metallurgical
recoveries based on the ongoing Long Canyon metallurgical program.
The results of the assessment indicate a 6 year mine life producing
an average of 93,000 ounces/year at a cash cost of $351/ounce. The
project generates a pre-tax IRR of 64%, a project payback of 1.3
years and a pre-tax NPV of $145,000,000. The resource used for this
assessment did not include any drill results from 2009.
Further information regarding these activities at Long Canyon
will be reported over the next few months as they become available.
This will include additional drill results including those from
exploration drilling conducted to the northeast of the known
resource, an updated 43-101 resource estimate for the Long Canyon
deposit using all drill data through the end of 2009, a detailed
metallurgical report incorporating testwork based on core samples,
and a forecast for the 2010 Long Canyon Venture budget.
As reported to AuEx by Fronteer, all drill samples were
collected following standard industry practice and were assayed by
ALS Chemex of Reno, Nevada. True widths of the mineralized
intervals are interpreted by Fronteer to be 70-100% of the reported
lengths. Gold results were determined using standard fire assay
techniques on a 30 gram sample with an atomic absorption finish.
Samples exceeding 5 grams per tonne gold were re-assayed using a
gravimetric finish and the values received were reported in the
averages. QA/QC included the insertion of numerous standards and
blanks into the sample stream. A table containing all drill results
to date reported to a 0.3 gram/tonne cutoff is posted on the
Company's website. All data, as reported to the Company by Fronteer
and disclosed in this press release including sampling, analytical
and test data, have been reviewed by the Company's qualified person
Mr. Eric M. Struhsacker, M.Sc., and Certified Professional
Geologist as recognized by the American Institute of Professional
Geologists. The PEA was prepared under the supervision of Dr.
Michael Gustin, P.G., Mr. Thomas Dyer, P.E., and Mr. Gary Simmons,
each of whom are "qualified persons" as such term is defined in
National Instrument 43-101, and have each read and confirmed that
the PEA-related content in this news release fairly and accurately
reflects the contents of the PEA report. Further details concerning
the Long Canyon property are described in the Company's National
Instrument 43-101 report filed on Sedar and are on the Company's
website.
AuEx Ventures, Inc. is a TSX listed precious metals exploration
company that has a current portfolio of twenty one exploration
projects in Nevada, one in Utah, one project in Spain and two
projects in Argentina. The Company controls over 167,000 acres of
unpatented mining claims and fee land in Nevada. Twelve of the
projects are in joint venture or exploration earn-in agreements
with eight companies who provide exploration funding. The Company
applies the extensive Nevada exploration experience and high-end
technical skills of its founders to search for and acquire new
precious metal exploration projects that are then offered for joint
venture.
AuEx Ventures, Inc.
By: Ronald L. Parratt, President & CEO
This release includes certain statements that may be deemed to
be "forward-looking statements" within the meaning of the U.S.
Private Securities Litigation Reform Act of 1995. All statements in
this release, other than statements of historical facts, that
address future production, reserve potential, exploration and
development activities and events or developments that the Company
expects, are forward-looking statements. Although the management of
AuEx believes the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are
not guarantees of future performance, and actual results or
developments may differ materially from those in the
forward-looking statements. Factors that could cause actual results
to differ materially from those in forward-looking statements
include market prices, exploration and development successes,
continued availability of capital and financing, and general
economic, market or business conditions. Please see our public
filings at www.sedar.com for further information.
To view the Long Canyon Drill Highlights map accompanying this
press release, please click on the following link:
http://media3.marketwire.com/docs/xau1221.pdf
---------------------------------------------------------
Intercept Intercept
From To Length Au Length Au
Hole ID (feet) (feet) (feet) oz/T (meters) (gpt)
---------------------------------------------------------
LC326C 195 248.5 53.5 0.026 16.3 0.89
---------------------------------------------------------
LC341C 119.5 167 47.5 0.119 14.5 4.07
---------------------------------------------------------
including 155 163.4 8.4 0.438 2.6 15.01
---------------------------------------------------------
192 260 68 0.251 20.7 8.59
---------------------------------------------------------
including 208.7 241.5 32.8 0.496 10.0 16.99
---------------------------------------------------------
LC343C 327 346.2 19.2 0.222 5.9 7.60
---------------------------------------------------------
LC346C 417.5 424 6.5 0.123 2.0 4.20
---------------------------------------------------------
LC349C 262.5 272 9.5 0.102 2.9 3.51
---------------------------------------------------------
LC350C 43 61 18 0.041 5.5 1.41
---------------------------------------------------------
LC351C 0 58 58 0.02 17.7 0.70
---------------------------------------------------------
356 371 15 0.102 4.6 3.49
---------------------------------------------------------
LC352C 230.5 272.8 42.3 0.072 12.9 2.45
---------------------------------------------------------
LC353C 37 66 29 0.203 8.8 6.94
---------------------------------------------------------
LC354C 76.5 139.5 63 0.045 19.2 1.54
---------------------------------------------------------
LC356C 354 392.5 38.5 0.068 11.7 2.33
---------------------------------------------------------
LC357C 119 135 16 0.044 4.9 1.51
---------------------------------------------------------
LC361C 343 358 15 0.058 4.6 1.99
---------------------------------------------------------
LC362C 329 364.6 35.6 0.052 10.9 1.77
---------------------------------------------------------
LC365C 370 417 47 0.05 14.3 1.73
---------------------------------------------------------
LC366C 756 768 12 0.035 3.7 1.20
---------------------------------------------------------
LC380C 271 314 43 0.055 13.1 1.89
---------------------------------------------------------
Note: Holes LC347C, LC355CB, LC369C, LC370C and LC376C do
not contain reportable values for this table.
Contacts: AuEx Ventures, Inc. Ronald L. Parratt 775-337-1545
rparratt@auex.com
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