(PRWEB) April 29, 2005
Aurox Resources Limited (ASX: AXO), a Perth-based junior explorer plans to become a low cost producer of vanadium.
Aurox Resources Limited has negotiated an option to purchase the Balla Balla vanadium-titanium-iron ore project located less than 10 kilometres from roads, gas and power supplies midway between Karratha and Port Hedland in the North West of Western Australia.
ÂThis is a very advanced project which has the potential to generate significant cash flow for the company within three years,Â said Aurox Resources Limited Managing Director, Charles Schaus.
The project by Aurox Resources Limited has identified resources of 75 million tonnes grading around 0.8 per cent vanadium-pentoxide with potential to readily produce 4,000 tonnes of ferro-vanadium (FeV) per annum.
ÂThe price of ferro-vanadium has risen from US$9 per kilogram to around US$85 per kilogram over the last few years because of increased demand from steel-makers, thus Aurox is in an ideal position to develop the Balla Balla project,Â Mr Schaus said.
The life of the mine is expected to be at least 30 years. The agreement commences with the Option payment of $200,000 to secure an exclusive six to nine month review period prior to deciding to proceed to a Bankable Feasibility Study (BFS).
ÂSecuring Balla Balla is a major plank in our growth strategy, and the shareholders can expect a significant re-rating by the market,Â Mr Schaus said.
About Aurox Resources Limited:
Aurox listed on the Australian Stock Exchange on the 22nd of October 2004 and has negotiated to acquire 100 per cent interest in a number of highly prospective tenements covering ground positions in the Yalgoo and West Pilbara mineral fields of Western Australia. It plans to become a low cost vanadium producer with the Balla Balla project within three years.