Aurox Resources Seeks Japan Partner for Yalgoo Iron Ore Project

Australian new iron ore miner, Aurox Resources Limited tries to get partner from Japanese steel industry to develop new Yalgoo iron ore tenements, which is located mid-west of Western Australia. The firm prepares the project in the year based on recent drilling results. The firm expects the project could be cost competitive new resource. The firm tries to start the project after 2010 when the firm launches Balla Balla iron ore project in northwest of Australia. The firm conducted drilling test with 33 holes and total 2,023 meters. The firm found the samples from 29 holes have more than 20% of Fe content and some of them have more than 50% Fe. The firm analyses the results for the development plan including resource and investment amount. Yalgoo is around 220 kilometers east of Geraldton port. The project is to build 120 km rail way on old track to connect 98 km existing rail to Geraldton. The firm tries to get Japanese partner for Yalgoo while the firm develops Balla Balla project with Chinese partners. The firm starts operation of Balla Balla at annual 6 million tonnes of output in 2010 for Australian $ 600 million. The firm already 15 years sales contract to ship annual 3 million tonnes to Chengde Iron and Steel of China. The firm plans to expand the operation to annual 10 million tonnes by 2014. The firm has another 15 years contract to ship 3 million tonnes first and 7 million tonnes later to RockCheck Steel Group of China.