www.auzex.com
Auzex Resources (ASX:AZX) major project is the 50%-owned Bullabulling gold project, located 65km from Kalgoorlie in Western Australia. The project area has a proven history of discovery and new exploration techniques are leading to new discoveries.
Auzex Resources on track to upgrade gold Resource and establish Reserve at Bullabulling
Auzex Resources (ASX: AZX) continues to intercept high grade gold in the Phase Two infill drilling program at the Bullabulling Gold Project, as it works towards establishing a JORC Reserve.
The company is on track to complete the drilling program in December 2011, which is infilling the historic drilling between the Phoenix and Hobbit prospects to increase confidence in the current resource base.
In the latest results, approximately 99% of holes intersected mineralisation. Better intersections include:
- 1 metre at 48.8g/t gold from 182 metres;
- 9 metres at 13.32g/t gold from 195 metres; and
- 1 metre at 12.5g/t gold from 61 metres.
Managing director John Lawton said: “These latest results continue to confirm the resource and geological model with approximately 99% of the drill holes hitting gold mineralisation. The drilling also continues intersecting regularly higher grade mineralisation within the broad low grade halo which provide encouragement for targeting high grade ore shoots within the Bullabulling Trend beneath the low grade, open pittable resource.”
The Bullabulling gold project is located 65 kilometres south west of Kalgoorlie in Western Australia's Yilgarn basin.
In August, Auzex released a JORC resource of 78.8 million tonnes at 1.03 grams per tonne (g/t) gold for 2.6 million ounces contained gold, with a 0.5g/t cut-off.
A key aim of the Phase Two drilling program is to reclassify the Inferred Resources as Indicated Resources, which in turn enables an initial Reserve to be established.
The next JORC upgrade is due in the March quarter of 2012.
A new exploration program is planned to test regional structures and anomalies identified by recent regolith mapping.
Drill planning for this work has been completed, and exploration drilling will follow on from the current Phase Two infill drilling program.
Meanwhile, the company has completed planning for the Deeps exploration program, with magnetic and radiometric data acquired over the Bullabulling shear zone.
A combination of detailed magnetic data will be used in combination with 2D seismic and gravity to develop a detailed 3D model of the structure and geology of the Bullabulling Trend.
