Auryx Gold Corp Discovers Massive Iron Oxides at the Otjikoto Gold Project, Namibia
TORONTO, ONTARIO -- (Marketwire) -- 09/08/11 -- Auryx Gold Corp. ('Auryx' or the 'Company') (TSX: AYX)(NSX: AYX) is pleased to announce the discovery of two distinct zones of massive iron-oxides ('Fe-oxides') overlying and peripheral to the Otjikoto gold deposit. Both zones occur at and near surface and have been named the Main Magnetite Zone ('MMZ') and the Magnetite 1 Zone ('M1Z'). Geophysical work suggests the Fe-oxide mineralization has a potential strike length of 6km. Please follow the link to view a plan view of the magnetic anomaly: http://auryxgold.com/projects/otjikoto_drill_program/mag_anomalies/
The MMZ is a 5m to 30m thick unit of semi-massive to massive Fe-oxides. It is currently drill defined to dimensions of 400m long by 250m wide. It sub-crops on its western margin and extends to about 80m depth on its eastern 'drill defined' margin. The Main Magnetite zone is still open to the North, South, and East. Please follow the link to view a cross section of the MMZ:
http://auryxgold.com/projects/otjikoto_drill_program/cross_sections/
The M1Z is a 5m to 20m thick unit of semi-massive to massive Fe-oxides. It is currently drill defined to dimensions of 300m long by 250m wide and is still open to the east and south. M1Z lies within the modelled pit boundaries and overlies the downplunge extensions of gold mineralization. If the Magnetite mineralization can be recovered and sold at a profit, it could significantly reduce the strip rate in that area and improve the viability of the depth extensions of the gold mineralized shoots. Please follow the link to view a cross section of the M1Z: http://auryxgold.com/projects/otjikoto_drill_program/cross_sections/
Preliminary metallurgical testwork suggests that the Magnetite can be easily concentrated to greater than 65% by crushing to 8mm and magnetic separation. No deleterious elements have been identified by the preliminary test work to date; however, sulfides (Pyrhotite and Pyrite) are often associated with the Magnetite mineralization and would need to be separated out of the concentrate by flotation methods. Within the weathered horizon, which extends from 20m to 50m, the Fe-oxides are primarily in the form of Hematite and any sulfides present have been weathered out.
The massive Fe-oxides occur at a higher stratigraphic level than the main gold mineralized shoots; however, the Fe-oxides do contain sporadic, structurally controlled gold mineralization. As a result of this relationship, the gold mineralization is estimated to post-date the Fe-oxide mineralization. Judging by the close spatial relationship and the estimated similar timing, the Fe-oxides and the gold may have a genetic relationship and may have shared the same feeder structures.
Auryx currently has five diamond drill rigs on site at Otjikoto and is mobilizing an RC rig to site now. The Company is in the process of formulating a drill plan to test the 6 km strike extension of the magnetic anomaly. Auryx is also evaluating a proposal from third party technical consultants in order to define and execute a scoping study on the viability of extracting the Fe-oxide resource, either as a by-product of the gold recovery process or as a stand-alone operation.
Drill Results
Table 1: Gold intercepts from the Main Magnetite and
Magnetite 1 zones
True
Hole ID From To Intercept Grade Thickness
(m) (m) (m) (g/t) (m)
-------------------------------------------------------------
OT199 21 27 6 1.10 5.4
and 172 181 9 1.54 8.1
and 185 198 13 0.77 11.7
GTR 49 44 49 5 0.75 4.5
GTR 55 18 19 1 2.57 0.9
and 57 60 3 2.36 2.7
and 81 82 1 1.65 0.9
GTR 59 36 37 1 1.20 0.9
and 49 52 3 0.50 2.7
and 64 67 3 0.63 2.7
GTR 60 24 27 3 0.39 2.7
and 81 84 3 0.51 2.7
GTR 62 4 12 8 0.59 7.2
GTR 65 40 43 3 0.52 2.7
GTR 66 16 19 3 0.87 2.7
and 99 102 3 6.58 2.7
and 100 101 1 19.24 0.9
GTR 71 37 40 3 0.75 2.7
GTR 72 30 31 1 1.38 0.9
and 47 48 1 1.64 0.9
GTR 73 39 42 3 0.58 2.7
GTR 76 25 26 1 0.93 0.9
and 31 34 3 1.13 2.7
GTR 77 47 52 5 0.67 4.5
GTR 81 55 58 3 0.63 2.7
GTR 83 64 67 3 0.68 2.7
(i) OT199 was drilled by Teal Mining and Exploration Ltd. In 2008. Holes
GTR 48, 56, 57, 58, 61, 63, 64, 74, 75, 78, 79, 80, 82, and 84 returned no
significant intercepts
Drilling is ongoing at Otjikoto. Since taking over the project, Auryx has drilled 161 DD holes for 39,700m and 85 RC holes for 6,919m at Otjikoto. As of today, results from 18 DD and 64 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://auryxgold.com/projects/otjikoto_drill_program/plan_views/september_2011/.
Quality Assurance/Quality Control
Auryx's 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 Auryx Gold press release dated 12 May 2011 or the SRK 43-101 report dated 31 March 2010, available at www.sedar.com.
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 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 DFS and 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.
Qualified Person Statement.
Tim Searcy, PGeo, Auryx's Chief Executive Officer, is a Qualified Person as defined under National Instrument 43-101. All of the scientific and technical disclosure contained in this document was prepared by or under the supervision of, and verified by Mr. Searcy.
Contacts:
Auryx Gold Corp.
Andisheh Beiki
Investor Relations
1 (416) 361-2213
info@auryxgold.com
www.auryxgold.com