Aurox Resources has completed the Balla Balla vanadium Bankable Feasibility Study (BFS) and associated titanomagnetite prefeasibility study. The only part remaining outstanding is the financial modelling section, which requires figures currently being discussed with Chengde Iron & Steel Group Co of China The timetable for the negotiation of Aurox"s formal agreement with Chengde/MCC has been extended to this quarter.

A study on the Balla Balla Project conducted by mining consultants Orelogy has confirmed that the strip ratio of 1 tonee of ore to 0.25 tonne of waste could be maintained for not only the 5km BFS area but also for the 11km of titanomagnetite extending east and west beyond the BFS area. 3D block modelling work to be undertaken by Golder Associates will be used by Orelogy to estimate new JORC-compliant reserves.

The Balla Balla vanadium-titanium-iron ore project is situated midway between Karratha and Port Hedland near the West Pilbara coast of Western Australia . It is a titaniferous magnetite containing measured, indicated and inferred resources of 306 million tonnes at an average grade of 0.65% V2O5 being ideally suited to low cost open cut mining.

In August 2006 the company signed a Heads of Agreement with Chengde Iron & Steel Group and China Metallurgical Group Corp. It is proposed that Chengde/MCC will farm into the Balla Balla vanadium and iron ore projects via cash payments and buy a significant ferro vanadium production and a minimum of 2 million tonnes per year of titanomagnetite iron ore concentrate in off-take arrangements for the life of the vanadium and iron ore projects respectively. www.aurox.com.au

News sourced from International Mining Project News - www.im-mining.com