AuEx Ventures, Inc.
TSX VENTURE : XAU

AuEx Ventures, Inc.

May 30, 2006 08:00 ET

AuEx Divides Pequop and Enters into Letters of Intent for Two Joint Ventures

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 30, 2006) - AuEx Ventures Inc. ("AuEx") (TSX VENTURE:XAU) is pleased to announce that it has signed letters of intent ("LOI") for two exploration and development joint ventures covering AuEx's Pequop gold exploration project in Elko County, Nevada. These agreements commit a minimum of $1,000,000 over the next 12 months and potentially a total of $10,000,000 in exploration and development at Pequop over the next five years.

The first LOI was signed with NewWest Gold Corporation ("NewWest"), a private exploration and development company with whom AuEx has been in discussion for several months regarding mineral rights NewWest owns in the Long Canyon portion of the Pequop project. The LOI provides for AuEx and NewWest to form a joint venture on the eastern portion of the Pequop project to be known hereafter as the Long Canyon Project. AuEx will contribute approximately 6,000 acres of unpatented mining claims, including the Long Canyon portion of the Pequop project. NewWest will contribute approximately 3,000 acres of reserved mineral rights contiguous to the AuEx claims, including NewWest's rights in the drilled area of Long Canyon. Each party will reserve a 3% net smelter royalty on lands contributed. To earn a 51% interest in the joint venture, NewWest must expend the first $5,000,000 on the joint venture properties within five years, with $400,000 committed in the first year. NewWest may earn an additional 14% to increase its joint venture interest to a 65% maximum by completing all subsequent expenditures through to completion of a feasibility study. The agreement also includes a financing provision whereby NewWest may arrange overall project construction financing and provide a loan option to AuEx for its share of required equity. The LOI is subject to the parties entering into a formal binding agreement.

The second LOI was signed with a subsidiary of Agnico-Eagle, Inc. of Toronto. It provides for the parties to enter into an exploration earn-in agreement pursuant to which Agnico may earn a 51% interest in the western portion of AuEx's Pequop project including the Acrobat/Juggler, Section 34 and Mountain Top areas of mineralization. The project area encompasses approximately 8,300 acres consisting of 7,000 acres of unpatented mining claims, 1,220 acres of leased fee land and 160 acres of surface rights. Agnico may earn a 51% interest by spending $5,000,000 over a five year period and is committed to spend at least $600,000 in the first year. Upon Agnico earning its 51% interest, a joint venture will be formed. Agnico may then elect to earn an additional 19% by completing all subsequent expenditures through completion of a feasibility study. This portion of the formally known Pequop Project will be hereafter referred to as West Pequop.

Commenting on the agreements, Ronald L. Parratt, President and CEO, said, "We are very pleased to have consolidated and greatly expanded the Long Canyon property position through this agreement with NewWest. AuEx shareholders now have increased opportunity for exploration success at Long Canyon and exploration can now move forward without restriction. Additionally, by segmenting the property into two areas of interest, we were able to attract a second experienced partner in Agnico-Eagle. In doing this, the company was able to significantly leverage out exploration risk and increase the amount of overall exploration on this large property package. A final benefit of these agreements has been to augment our in-house technical team with significant experience from our JV partners. I have known the exploration staff in both groups for years and am excited to have both teams working with us on Long Canyon and West Pequop."

AuEx Ventures, Inc. is a Nevada focused, precious metals exploration company that began trading on June 30, 2005. AuEx has a current portfolio of 12 exploration projects in Nevada and controls over 40,000 acres of unpatented claims and fee land. The Company applies the extensive Nevada exploration experience and high-end technical skills of its founders to search for and acquire new precious metal exploration projects that are then offered for joint venture.

AuEx Ventures, Inc.

Ronald L. Parratt, President and CEO

This release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration and development activities and events or developments that the Company expects, are forward-looking statements. Although the management of AuEx believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see our public filings at www.sedar.com for further information.


The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • AuEx Ventures, Inc.
    Ronald L. Parratt
    President and CEO
    (775) 337-1545
    or
    AuEx Ventures, Inc.
    Deborah Thiel
    Investor Relations
    (604) 541-9606
    www.auexventures.com