Proactiveinvestors Australia

John Lawton, managing director of Auzex Resources, presented at the 'Stars in 2012 Series' series in Sydney last night. Proactive Investors brings you the Question and Answers between John and the audience.

Auzex Resources has increased the Resource at its Bullabulling Gold Project in Western Australia by 23% to 3.2Moz of contained gold with over 65% of that now in the higher confidence Indicated category. This confirms the Scoping Study scenario of 2-2.5Moz over a 10 year mine life.

A recent Scoping Study for Auzex Resources’ Bullabulling Gold Project in Western Australia has highlighted a potential before tax net present value of A$389 million and an internal rate of return of 29% for a 10-year, 2.1 million ounce operation.

Auzex Resources should regain favour as metallurgical study results of primary mineralisation have returned gold recoveries over 90%.  Bullabulling continues to demonstrate all of the characteristics of a robust long term gold project.

Phase Two infill drilling is progressing Auzex Resources towards delivering a resource upgrade at the 2.6m gold ounce Bullabulling project in the first quarter 2012, establishing sufficient reserves for a minimum initial ten year mine life.

With the appointment of an Engineering, Procurement and Construction contractor and the high possibility that a Supplemental Environmental Impact Statement will be issued in November, Peninsula Energy’s Ross Project of the Lance Uranium Projects remains on track for full permitting later this year.

Peak Resources is on track to become the next major rare earth supplier from the Ngualla project in Tanzania. The company has produced two refined rare earth products at ANSTO Minerals - which importantly are in saleable form and available for evaluation by target customers.

The completed Scoping Study for the Mansa manganese project has demonstrated positive project economics as the project moves closer to production in a matter of weeks. Budgeted costs of delivering a CIF product are between $190 and $210 per tonne, in line with its expectations.

The start of the second phase drilling at Mt Forrest iron project puts Mindax on the path to potentially expand both the iron base as well as life of the mine. Importantly, it also has promise for the proposed partnership with Hong Kong-based Perpetual Mining, that could see the company invest $52 million.

The $5.1 million received is part of a planned $10 million investment by Owen Hegarty's EMR Capital in Highfield Resources to develop its advanced potash projects in Spain.