Aurox Resources to Finish FS for New Vanadium Project in West Australia

Aurox Resources, which is Australian new metal mining firm, will finish bankable feasibility study by the end of September for vanadium production from ore to ferrovanadium in Western Australia starting mid 2008. The firm started the marketing for Asian buyers and the managing director Charles Schaus visited Japanese integrated steel makers and trading firms. The firm accelerates the launch of annual 5,850 tonnes of new ferrovanadium production system when the demand will expand associated with raw steel output growth. Mr. Schaus said to a reporter of Japan Metal Bulletin in Tokyo on Wednesday the firm tries to establish long term relationship with Japanese integrated steel makers, which have high level technology to use raw materials and high reputation in financial market. He said the firm would welcome Japanese trading firm as the joint venture partner. He will visit Japan again for selling contract in November after finish of the study. Mr. Schaus visits South Korea and China after Japan for the marketing. The firm tries to get long term relationship with customers appealing low cost operations with high quality ore and better location as supplier for Asia. The firm expects the users also welcome new supplier when the world demand will increase to 70,000 tonnes in pure vanadium in 2008 from 60,000 tonnes in 2006. The Balla Balla vanadium project is to start construction work in May 2007 establishing production system for intermediate, V2O5 and ferrovanadium for A$ 250 million. The annual production volume represents 4,440 tonnes of pure vanadium. The firm keeps 54 million tonnes of reserve with 0.73% of V2O5, which represents more than 30 years operation.