Important progress for Khartoum tin project, North Queensland

Auzex Resources says “an assessment of results from current exploration at the Khartoum tin project are compelling and indicate at this early stage the potential for the discovery of a new world class tin deposit. Spectral processing of satellite imagery has highlighted the considerable potential to increase the scale of the Khartoum project within the company’s tenement, outside of the area defined by current exploration.”

Exploration to date suggests a mineralised system with a conceptual tonnage potential of 80-120 Mt, averaging 0.2%-0.3% Sn based upon the areal extent of greisen tin mineralisation discovered within the project area, and the reported results of the company’s geological mapping, sampling and drilling program.

Initial metallurgical test work undertaken on diamond core of fresh greisen mineralisation indicate a combined tin recovery from gravity and flotation of 71%. This result is considered highly encouraging because significant improvements are likely to be made with modification to grinding and flotation circuit parameters. Mineralogical studies indicate the cassiterite is generally of fine grain size (<100µm), free from sulphide, and contains only trace stannite (an uneconomic tin mineral).

A total of 195 composite (5 m) rock chip samples have been recently collected from 50 channel sample traverses across greisen mineralisation located in the Boulder-Ahmets region covering a 13km2 area. 3D modelling of mapped greisen bodies has commenced with the objective of designing a second phase of RC drilling to be conducted in the second half of 2008 aimed at developing an initial JORC compliant resource.

The tin price is strong with a positive outlook; currently the metal is around A$25,900/t.