Auzex Resources Limited

Bullabulling is located 65km south west of Kalgoorlie, Western Australia in the highly prospective Eastern Goldfields. 

Bullabulling has 431,000 oz Au in JORC compliant resource, with 96% of resource in Measured and Indicated.  Significant resource upgrade is expected in August 2010.

Key Points

• Bullabulling previous production by Resolute Mining Ltd was 371,474 oz (7.9Mt at 1.45g/t gold); 
• Nine gold resources along mineralised 12km zone;
• Gold mineralisation open in all directions, especially at depth where high grades have been intersected;
• Geological modelling has identified continuous gold zones at 5-10 g/t Au within a broad 2 g/t Au envelope in primary mineralisation;
• Over 400km’s of previous drilling data is being remodelled using modern techniques and current gold price;
• Target of 1.0Moz+ reserve, 10 year operation in 2012;
• Excellent potential for high margin operation with strong financials within short development period;

Bullabulling Assets

• 2,422 hectares of granted mining tenure;
• Nine gold resources along mineralised 12 km zone;
• Ore previously mined predominantly from shallow pits (30m) and not into the primary mineralisation;
• Extensive exploration database, over 400kms of previous drill data at an average depth of 34km – approximately A$30m replacement value;
• 25,000 oz gold in dumps and ROM pads at surface
• Existing mining infrastructure

High grade drill intersections include:-

• BacchusPit: 7m@77g/tAu, 5m@14g/tAu, This e-mail address is being protected from spambots. You need JavaScript enabled to view it /tAu, 3m @ 9.16 g/t Au;
• Endeavour Pit: 3m @ 21.2g/t Au;
• Dicksons Pit: 4m@14.5 g/t Au;
• Hobbit Pit: 9m @ 10.5 g/t Au;
• Edwards pit: 9m @ 11.9 g/t Au

Grade Increases at Depth

Based on existing drilling data

(click the image on the right  for a larger view);

• Previous mining operation focussed on shallow laterite and supergene gold mineralisation – pits were shallow (30m –    mtrs 40m depth).
• Shallow gold mineralisation typically spotty and low grade with poor continuity
• A total of 371,000oz Au mined, predominantly from less than 50m depth
• Grade and continuity of gold mineralisation increases with depth – tonnage (and contained ounces gold) expected to increase significantly

The Opportunity

• Currently remodelling the extensive database is expected to significantly increase resource - results in August 2010;
• Targeting high grade (primary) mineralisation beneath the supergene mineralisation: a 7 hole drilling program in progress targeting high grade mineralisation outside of the current resource. Results due in August 2010;
• Current program focusing on 2.5 km area between Bacchus and Phoenix open pits which is expected to provide target resource of 1m+ ounces Au.

Timetable

Summary

• Highly experienced management;
• Expect to be fully funded through to bankable feasibility study post Rights Issue;
• Portfolio of high quality, under explored projects with multiple opportunities for success;
• Market Capitalisation of approx. $7.0m* and Enterprise value of approx. $3.5m*;
• Main project is Bullabulling advanced gold project, targeting 1m+ ounces, 10 year operation targeting commencement in late 2012;
• Bullabulling has 431,000oz Au in JORC compliant resource and has previously produced - 7.9Mt at 1.45g/t gold (371,474 oz);
• Pedigree address, project located in world class Yilgarn Craton of WA, 65 kms from Kalgoorlie;
• Excellent potential for high margin operation with strong financials within short development period;
• Exposure to strong gold price;
• Well respected shareholder base including Baker Steel and Resource Capital Funds;
• Consistent news flow and opportunity for re-rating;

*Share Price of A$0.12 as at 26th July 2010

Attachments:

File	File size
31/08/2010 - Bullabulling Gold Project Symposium	6682 Kb
Bullabulling New Resource August 2010	1363 Kb
Company Presentation July 2010	878 Kb
Bullabulling Gold Project January 2010	7442 Kb