AuEx Ventures, Inc.
TSX : XAU

AuEx Ventures, Inc.

December 01, 2009 07:00 ET

AuEx Ventures, Inc.: Preliminary Economic Assessment Released for Long Canyon

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 1, 2009) - AuEx Ventures, Inc. ("AuEx" or the "Company") (TSX:XAU) is pleased to report the results of the initial Preliminary Economic Assessment ("PEA") for the Long Canyon gold project located in Elko County, Nevada. The PEA, prepared by Mine Development Associates ("MDA") and reviewed by AMEC Americas Limited ("AMEC"), is based on the March 2009 resource estimate for Long Canyon. This assessment does not include the results from the 100,000 feet of core and reverse circulation drilling that comprised the 2009 drill program. This PEA demonstrates the robust economics and technical favorability of the Long Canyon gold deposit and forms a solid beginning for further growth and advancement of Long Canyon and the important new Pequop Gold District in eastern Elko County. "These results are an important step for Long Canyon and provide strong encouragement for continued exploration and development of the project" commented Ronald L. Parratt, President and CEO. Highlights of the PEA are as follows;



----------------------------------------------------------------------------
Total gold produced 565,000 ounces
----------------------------------------------------------------------------
Average gold grade 2.15 g/t
----------------------------------------------------------------------------
Average annual gold production 93,000 ounces
----------------------------------------------------------------------------
Peak annual production 132,000 ounces
----------------------------------------------------------------------------
Life of mine 6 years
----------------------------------------------------------------------------
IRR (pre-tax) 64%
----------------------------------------------------------------------------
NPV (pre-tax) $145 million
----------------------------------------------------------------------------
Discount rate 5%
----------------------------------------------------------------------------
Pay-back period 1.3 years
----------------------------------------------------------------------------
Net cumulative cash flow (pre-tax) $181 million
----------------------------------------------------------------------------
Direct cash costs $351/oz
----------------------------------------------------------------------------
Initial capital expenditures including mining pre-strip,
equipment, process, infrastructure & buildings, owners and
miscellaneous costs $66 million
----------------------------------------------------------------------------
Metallurgical recovery rate 87%
----------------------------------------------------------------------------
Long-term gold price $800/oz
----------------------------------------------------------------------------
Note: This PEA is preliminary in nature as it includes inferred mineral
resources that are considered too speculative geologically to have the
economic considerations applied to them that would enable them to be
categorized as mineral reserves at this time and there is no certainty
that the preliminary assessment will be realized.


The Long Canyon Venture is owned by AuEx Ventures, Inc. (49%) and by Fronteer Development Group, Inc (51%) who is the operator. The PEA considers the Long Canyon gold project to be developed as an open pit mine with a run-of-mine (ROM) heap leach operation. The PEA utilized both indicated and inferred mineralization using a pit design cut of grade of 0.30 g/t and an internal cut of grade of 0.20 g/t. The average grade of mined material sent to leach was 2.15 g/t with ultimate recoveries of 88% and 80% for material above and below a grade of 1.25 g/t. The forecast mine life was 6 years with a total of 565,000 ounces of gold produced. Excellent opportunities appear to exist to refine various aspects of the project and improve economics through cost reduction, optimization and through an increase in the size of the overall resource from the 2009 drill program. Initial project capital costs, as evaluated in the PEA, are estimated at $66,000,000 with an additional $6,000,000 of subsequent sustaining capital. Operating costs and sensitivity analysis are as follows;



----------------------------------------------------------------------------
Items Cost per tonne processed Cost per ounce
----------------------------------------------------------------------------
Mining cost $15.58 $259.52
----------------------------------------------------------------------------
Processing and refining cost $2.12 $36.81
----------------------------------------------------------------------------
G&A (transport included) $2.57 $42.76
----------------------------------------------------------------------------
Reclamation $0.71 $11.78
----------------------------------------------------------------------------


----------------------------------------------------------------------------
Gold price IRR (pre-tax) NPV (5%, pre-tax) Pay back
----------------------------------------------------------------------------
$700 45% $96 million 1.5 years
----------------------------------------------------------------------------
$800 (base case) 64% $144 million 1.3 years
----------------------------------------------------------------------------
$900 82% $193 million 1.1 years
----------------------------------------------------------------------------
$1000 100% $241 million 1.0 years
----------------------------------------------------------------------------


Activities planned in 2010 for the Long Canyon project include;

- To immediately add the 100,000 feet of core and reverse circulation drilling done in 2009 to upgrade and expand the deposit.

- Drill additional core and reverse circulation holes to continue to expand the resource base for the project and to upgrade the existing resources to measured and indicated categories needed for ultimate conversion to reserves

- Continue geotechnical evaluations to provide data needed for pit slope designs

- Continue metallurgical testing to confirm gold recoveries from the various mineralized zones within the deposit

- Collect further data as is required for ongoing permitting.

The PEA was prepared to the standards of National Instrument 43-101 and will be filed on SEDAR within 45 days of this news release. The PEA was prepared under the supervision of Dr. Michael Gustin, P.G. and Mr. Thomas Dyer, P.E. of MDA and Mr. Gary Simmons each of whom are independent of the company and "qualified persons". Ronald L. Parratt, MSc, CPG, PG, President & CEO, is the Company's designated "qualified person" for this news release and has reviewed and validated that the information contained in the release is consistent with that provided by the QPs responsible for the PEA.

AuEx Ventures, Inc. is a precious metals exploration company that has a current portfolio of twenty two exploration projects in Nevada, two projects in Argentina and one project in Spain. The Company controls about 176,000 acres of unpatented claims and fee land in prospective areas of Nevada. Eleven of the projects are in exploration earn-in or formal joint venture agreements with seven companies who provide exploration funding. The Company applies the extensive 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 & 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.

Long Canyon mineral resource estimation as of February 9, 2009. The Long Canyon mineral resource estimation was completed by MDA. The resources were modeled and estimated by evaluating the drill data statistically and utilizing three-dimensional lithologic solids provided by Fronteer to interpret mineral domains on cross sections spaced at 50-metre intervals throughout the extent of the Long Canyon mineralization. The mineral domain interpretations were then rectified on cross sections spaced at 10-metre intervals. The modeled mineralization was analyzed statistically to establish estimation parameters, and gold grades were estimated by inverse-distance methods into a block model with 5 meter (width) x 10 meter (length) x 3 meter (height) blocks that were coded to the mineral domains by the 10-metre mineral domain polygons. All modeling of the diluted resources was performed using Gemcom Surpac® software. Quality-control data generated during the various drill programs conducted at Long Canyon were independently reviewed by MDA as part of the resource study. The person responsible for the resource estimate on behalf of MDA is Michael Gustin, Ph.D., P. Geo, a Qualified Person as defined by National Instrument 43-101. Further details of the estimation procedure are available in the updated NI 43-101 report posted on SEDAR (www.sedar.com).

This press release uses the terms "indicated resources" and "inferred resources", which are calculated in accordance with the Canadian National Instrument 43-101 and the Canadian Institute of Mining and Metallurgy Classification system. We advise investors that while those terms are recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize them. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. In addition, "Inferred resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. U.S. investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally minable.

Contact Information