Auryx Gold Advises on Exploration and Development Schedule for the Otjikoto Gold Project in Namibia
TORONTO, ONTARIO -- (Marketwire) -- 07/13/11 -- Auryx Gold Corp. ('Auryx' or the 'Company') (TSX: AYX)(NSX: AYX) is pleased to announce the exploration and development program at the Otjikoto gold deposit and the Otavi exploration area for July 2011 to June 2012. Auryx is targeting the delivery of a new National Instrument 43-101 resource estimate for the Otjikoto gold deposit in Q1 2012, followed by a preliminary economic assessment ('PEA') in Q2 2012 and a Definitive Feasibility Study ('DFS') by Q2 2013. After completion of the PEA and certain associated technical studies, the Company will be in a position to request a Mining Licence from the Namibian government. Subject to timely permitting and financing, and the successful completion of the PEA and DFS, the Company is targeting the production of gold at Otjikoto by Q1 2015.
The work program in support of this timeline will involve approximately 45,000m of drilling over the next twelve months, split evenly between infill and exploration, with a skew towards infill over the next six months. It is estimated that 35,000m will be diamond drilling ('DD') and 10,000m will be reverse circulation ('RC').
Development studies underway or to be started shortly include: metallurgical testwork, geohydrology, environment, tailings, plus more detailed design work on mining layouts, process plant, and site infrastructure.. Most of these studies are building upon work completed by the previous operators. Auryx studies will be completed to a level of detail that is suitable for input into the DFS. The Company is evaluating opportunities to materially advance the delivery of both the PEA and DFS and will advise the market should the schedules change.
The Company currently has five DD rigs at site and is planning to keep them there for the next twelve months, at least. In March of this year, the Company provided guidance towards completing 42,000m of drilling in its first twelve months, since listing in July 2010. The Company has completed 33,500m in that period; DD was 1,500m shy of its target level and the RC program was 7,000m short. The first six months of 2011 were the wettest on record in Namibia, which led to the postponement of the RC program until the second half of 2011 and is the primary reason for the RC drilling shortfall
The Company has entered into a contract to do a 17,000 line km helimag and radiometric survey on 50m line spacing on the southern half of EPL 2410 and the northern portion of newly granted EPL 4309. The survey includes all of the Otjikoto structure, a projected southern extension of the structure, and a similar structure on EPL 4309. The intent is to define more discreet targets for drill testing within these large, 10 km scale, features.
About Auryx Gold Corp.
Auryx Gold Corp. (TSX: AYX)(NSX: 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 300km 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 the western part of southern 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's future plans and operations and are based on Auryx's 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 exploration and development programs referred to herein; the actual results of current and future exploration and development activities, liabilities inherent in exploration, mine development and production; geological, mining and processing technical problems; Auryx's inability to obtain required licenses, permits and regulatory approvals required in connection with exploration, mining and mineral processing operations; competition for, among other things, capital, acquisitions of resources, 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; the availability of financing, 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 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.
Contacts:
Auryx Gold Corp.
Andisheh Beiki
Investor Relations
Direct: 1 (416) 361-2213
info@auryxgold.com
www.auryxgold.com