Long Canyon Project Proceeds Toward Feasibility

 

VANCOUVER, BC - AuEx Ventures, Inc. reported continuing progress on several fronts advancing the development of the Long Canyon gold deposit in eastern Elko County, Nevada. These include the completion in 2009 of over 100,000 feet of core and reverse circulation drilling, significant metallurgical testwork to confirm the amenability of the deposit to conventional recovery techniques, geotechnical investigations for safe pit designs and the collection of data necessary for further permitting. In addition, the results of a Preliminary Economic Assessment were released on December 1 that demonstrate the attractive economics of the project including a 64% pre-tax IRR and a 1.3 year payback on capital at a gold price of $800/ounce. The Company owns a 49% interest in the Long Canyon Venture along with Fronteer Development Group, Inc. who owns 51% and is operator.

Drilling conducted at Long Canyon in 2009 consisted of over 200 core and reverse circulation holes. Activity was initially focused on metallurgical and infill holes to upgrade the existing resource with work shifting during the latter part of the field season to more exploration due to the lifting of permitting restrictions. Highlights of new results from infill drilling conducted during 2009 include;

LC 341C containing 68.0 feet @ 0.251 ounces/ton gold LC 343C containing 19.2 feet @ 0.222 ounces/ton gold LC 351C containing 15.0 feet @ 0.102 ounces/ton gold LC 353C containing 29.0 feet @ 0.203 ounces/ton gold LC 356C containing 38.5 feet @ 0.068 ounces/ton gold

Over 40 core holes were drilled at Long Canyon during 2009 to provide subsurface samples of gold mineralization for metallurgical evaluation. Numerous column leach tests have been conducted from surface samples recovered in late 2008 and more tests are planned using this core to confirm the favorable metallurgical response indicated from that work. Additional holes drilled at Long Canyon during 2009 were completed for geotechnical data to assist in pit wall slope stability design studies and for hydrology related purposes.

The Preliminary Economic Assessment announced on December 1 (AuEx release NR09-30 dated December 1, 2009), confirms the earlier held belief that Long Canyon possessed very favorable project economics. This assessment was performed using a gold price of $800 per ounce, estimated initial capital costs of $66,000,000, operating costs based on similar projects and metallurgical recoveries based on the ongoing Long Canyon metallurgical program. The results of the assessment indicate a 6 year mine life producing an average of 93,000 ounces/year at a cash cost of $351/ounce. The project generates a pre-tax IRR of 64%, a project payback of 1.3 years and a pre-tax NPV of $145,000,000. The resource used for this assessment did not include any drill results from 2009.

The company’s address is 940 Matley Lane, Suite 17, Reno, NV 89502, 775-337-1545, fax: 775-337-1542, email: [email protected].