Auryx Gold Confirms a Significant New Zone of Mineralization at the Otjikoto Gold Project in Namibia
TORONTO, ONTARIO -- (Marketwire) -- 05/12/11 -- Auryx Gold Corp. ('Auryx' or the 'Company') (TSX: AYX)(NSX: AYX) is pleased to announce the assay results from eight diamond drill ('DD') holes drilled to the east of the current resource at the Otjikoto gold project in Namibia. These holes represent a 900 m strike extension to the East 1 ('E1') shoot and combined with twenty-one holes drilled by the previous operator, Teal Exploration & Mining Inc.('TEM'), define the E1 zone as 1400 m long, 50 m to 150 m wide, and 10 m to 40 m thick. The E1 zone is still open along strike.
Auryx's CEO, Mr. Searcy comments: 'These results confirm that the mineralization system at Otjikoto is much larger than previously defined. The close proximity of the E1 shoot to the Main shoot is a significant benefit to the potential of the E1 zone and the Otjikoto deposit itself. Furthermore, the ability to identify new zones of mineralization so close to the densely drilled resource bodes well for the future exploration in the area.'
Drill Results
Table 1: Otjikoto Drilling Results 12 May 2011
True
Hole ID From To Intercept Grade Thickness
(m) (m) (m) (g/t) (m)
--------------------------------------------------------------------
OT86 40 41 1 5.49 0.9
193 194 1 2.88 0.9
240 244 4 0.63 3.6
270 306 36 0.63 32.4
including 278 282 4 2.00 3.6
OT93 277 343 61 0.43 54.9
including 337 338 1 3.94 0.9
OT220 78 81 3 0.73 2.7
186 222 36 0.79 32.4
including 209 215 6 1.38 5.4
OT214 154 161 7 0.65 6.3
170 210 40 0.55 36.0
including 184 190 6 0.84 5.4
224 226 2 0.46 1.8
OT215 113 114 1 1.57 0.9
228 258 30 1.05 27.0
including 239 243 4 3.60 3.6
261 262 1 0.95 0.9
OT221 191 195 4 0.88 3.6
231 233 2 0.65 1.8
237 255 18 0.71 16.2
including 239 244 5 0.92 4.5
OT222 138 139 1 0.99 0.9
265 266 1 1.06 0.9
283 286 3 0.64 2.7
314 334 20 0.51 18
OT223 213 217 4 0.59 3.6
223 226 3 0.87 2.7
254 257 3 0.61 2.7
286 287 1 1.01 0.9
314 317 3 0.47 2.7
333 351 16 0.64 14.4
351 360 9 0.30 8.1
360 375 15 0.95 13.5
Holes OT 86 and OT 93 were drilled by TEM but were never previously released.
Drilling is ongoing at Otjikoto. Since taking over the project, Auryx has drilled 63 DD holes for 19,432 m and 85 RC holes for 6,919 m at Otjikoto. As of today, results from 18 DD and 36 RC holes have been released. The location of all holes drilled at Otjikoto can be viewed on a drill hole map in plan view at http://www.auryxgold.com/projects/otjikoto_drill_program/plan_views/all_holes_may_11/.
Corporate Update - Hiring of a General Manager, Namibia
Auryx is pleased to announce the hiring of Charles Loots as the General Manager for Namibia. Mr. Loots has more than 14 years of experience in the mining industry, primarily with AngloGold Ashanti, in roles of Community and Environmental management, and with Anvil Mining, in the roles of Public Affairs and Risk Management. Mr. Loots' strengths in social and environmental management and public and government relations are an excellent complement to the Auryx technical team. His experiences in West Africa, East Africa, and the DRC, as well as his time spent in Namibia at AngloGold Ashanti's Navachab Mine, will serve him well in his new role with Auryx. Mr. Loots has an MSc in Ecological Economics (Resource Economics) from Edinburgh University and an MBA from the University of Western Australia.
Along with Mr. Loots, Auryx has hired five other employees and has issued 825,000 incentive stock options. The options have a five year life and were issued at exercise prices between CAD 0.68/share and CAD 0.82/share.
Quality Assurance/Quality Control
Auryx operates a rigorous QA/QC protocol on all aspects of sampling and analytical procedure. Drill core is checked, logged, marked for sampling and split in half. One half of the NQ core is maintained for future reference and the other half is sent for analysis. Due to the significant nugget effect present at Otjikoto, Auryx consistently samples only the south half of the core in order to avoid personal bias from affecting the samples and, ultimately, the resource. Core and RC samples are both collected in one (1) meter intervals. Each RC sample is riffle split twice to generate four further samples - primary assay, field duplicate, reference, and metallurgical. All core and RC samples are stored in the Company's secure core shack in Otjiwarongo and are transported from there and beyond by independent couriers.
Samples are screen fire assayed at Genalysis and SGS laboratories, both of which are in located in Johannesburg, South Africa. Analysis is by screen fire assay process whereby the sample is pulverized and sieved with into 106 um and -106 um fractions. The 106 fraction is assayed until completion, typically 10 g to 50 g. At SGS a 50g aliquot is split from the -106 fraction and assayed, while at Genalysis, two 25 g aliquots are split and assayed.
The final assay result is calculated by a weighted average of mass x grade of the two size fractions divided by the total mass of the un-split sample. For both core and RC blanks are inserted at every 25th sample and standards (for each size fraction) for every 20th sample. For the RC only, duplicates are submitted at every 20th sample.
These QA/QC procedures provide several measures of data quality and assure the Company that the assay data is representative of the original sample. For a more detailed description of QA/QC procedures please see the SRK 43-101 report dated 31 March 2010, available at www.sedar.com.
About Auryx Gold Corp.
Auryx Gold Corp. (TSX: AYX) is a Canadian, growth-focused resource company engaged in the acquisition and exploration of gold projects in Namibia. The Company is currently advancing the Otjikoto gold deposit, located 300 km north of Namibia's capital city, Windhoek. By virtue of its location, the Project benefits significantly from Namibia's well established infrastructure with paved highways, a railway, power grids, and the water grid all close by. Located in southwest Africa, Namibia is mining-friendly and lauded as one of the continent's most politically and socially stable jurisdictions.
On behalf of the Board of Directors,
Tim Searcy, P.Geo., Chief Executive Officer
Cautionary Notes
Certain information set forth in this press release contains 'forward-looking information' under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking information which include management's assessment of Auryx Gold future plans and operations and are based on Auryx Gold current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. These risks and uncertainties include, but are not limited to: successful completion of the proposed transactions referred to herein; the satisfaction of the Escrow Release Conditions; liabilities inherent in mine development and production; geological, mining and processing technical problems; Auryx Gold inability to obtain required mine licenses, mine permits and regulatory approvals required in connection with mining and mineral processing operations; competition for, among other things, capital, acquisitions of reserves, undeveloped lands and skilled personnel; incorrect assessments of the value of acquisitions; changes in commodity prices and exchange rates; currency and interest rate fluctuations; various events which could disrupt operations and/or the transportation of mineral products, including labour stoppages and severe weather conditions; the demand for and availability of rail, port and other transportation services; and management's ability to anticipate and manage the foregoing factors and risks. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Auryx Gold undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking information.
Qualified Person Statement.
Tim Searcy, PGeo, Auryx Gold's President, is a Qualified Person as defined under National Instrument 43-101. Mr. Searcy has reviewed and approved of all of the technical disclosure in this document.
Contacts:
Auryx Gold Corp.
Direct: 1 (416) 361-5996
info@auryxgold.com
www.auryxgold.com