AuEx Ventures, Inc.
TSX : XAU

AuEx Ventures, Inc.

February 25, 2010 07:00 ET

AuEx Ventures, Inc.: Santa Cruz, Argentina-Initial Drill Results and Exploration Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 25, 2010) - AuEx Ventures, Inc. (TSX:XAU) ("AuEx" or the "Company") is pleased to announce the results from its first drill program conducted in Argentina and update its overall exploration activities in Santa Cruz Province. The first drill program was conducted at the Meridiano project where 13 out of 15 reverse circulation drill holes encountered broad zones of shallow gold mineralization grading better than approximately 0.10 g/t. Selected intercepts included RCM06 with 27 meters of 0.31 g/t gold including 2 meters of 1.1 g/t gold, RCM08 with 10 meters of 0.58 g/t gold, RCM10 with 10 meters of 0.68 g/t gold including 6 meters of 1.1 g/t gold, RCM11 with 8 meters of 0.58 g/t gold including 3 meters of 1.38 g/t gold and RCM13 with 22 meters of 0.29 g/t gold including 1 meter of 1.44 g/t gold. The initial phase drilling has confirmed and helped to define recessive breccia zones. Geophysics is currently underway to give a better three dimensional view of these structural corridors and to help plan the second phase drilling scheduled to commence in March. Commenting on the Project, Richard Bedell, Executive Vice President says, "This project is particularly exciting because we have identified broad zones of gold mineralization over multiple square kilometers and appear to be high in the epithermal mineral system. We appear to have good tonnage potential and now need to find the higher grade."

At the La Rosita Project near the Mina Martha Mine, geophysics will be carried out in March to help define the first drilling program planned in April. La Rosita has undergone extensive mapping, surface sampling and reinterpretation. The project contains multiple gold and silver targets, some with elevated copper values that will be the targets for exploration.

The Gertrudis Project, located in the eastern portion of the province, contains multiple veins in structural corridors within an andesitic dike complex. The prospect was initially identified using Thematic Mapper satellite imagery that was processed by AuEx. Detailed surface sampling and geologic mapping have been conducted to define drill targets that are planned to be tested later in 2010 once appropriate permits have been granted.

At the Covadonga Project located in the central part of the province, continued surface mapping and sampling has located a gold anomalous area within an extensive, but generally barren, vein field. Recent reconnaissance work has identified an area of the vein field that has returned up to 7 g/t gold and 145 g/t silver in grab samples. These results have led Agnico-Eagle to formally accept Covadonga as a project. Depending on the results of continuing field work, this project may also have initial drilling completed before the end of the year.

Encouraging results from 2009 field work and drilling has resulted in a significant budget increase for 2010 to over $1.5 million for Santa Cruz Province. AuEx as operator will continue to find new prospects, develop the current land package up to the project level, and do detailed work and drilling on the 4 projects that are being funded by Agnico Eagle at the 100% level. Exploration by AuEx in Santa Cruz is being conducted under an exploration agreement with Agnico-Eagle Mines Limited ("Agnico-Eagle"). Under the agreement, Agnico-Eagle and AuEx share 70:30 respectively in generative exploration expenditures with work activity conducted by AuEx. Agnico-Eagle has the option to take on projects identified by the generative program and has exercised the option on four projects (Meridiano, La Rosita, Gertrudis and Covadonga). Agnico-Eagle is required, but not committed, to expend US$1,000,000 within 4 years on each project to vest an initial 60% interest. Agnico-Eagle then has the option to earn an additional 10% interest by carrying all further costs through feasibility capped at $10,000,000. The exploration venture now controls exploration rights to 14 parcels that total almost 90,000 hectares within Santa Cruz Province.

In January Richard Bedell, Executive Vice President presented a full day course in spectroscopy and remote sensing in Rio Gallegos, the capital of Santa Cruz Province. This was held at the offices of Formicruz, the Provincial mineral company and was attended by various mining and exploration companies working in the Province in addition to Formicruz staff. Richard Bedell comments: "The province is expanding rapidly for mineral development and AuEx intends to be an active participant. We want to be good neighbors and to help discover and develop precious metal resources in Santa Cruz."

Generative activity is continuing to develop new prospects and to bring other existing properties to a project stage for presentation to Agnico-Eagle. Properties not accepted by Agnico-Eagle remain the property of AuEx with no further obligations to Agnico-Eagle.

All drill samples were collected following standard industry practice and assayed by Alex Stewart Laboratories, Inc. of Mendoza, Argentina. Gold results were determined using standard fire assay techniques on a 30 gram sample with an atomic absorption finish. Samples exceeding 5 grams per tonne gold were re-assayed using a gravimetric finish and the values received were reported in the averages. QA/QC included the insertion of numerous standards and blanks into the sample stream. A table containing all drill results to date using a 0.3 gram/tonne cutoff is posted on the Company's website. Drill intervals are reported as drilled thickness and insufficient data exists to estimate true thickness. All data, as reported by the Company and as disclosed in this press release, including sampling, analytical and test data, have been reviewed by the Company's qualified person Mr. Richard L. Bedell, M.Sc., and Certified Professional Geologist as recognized by the American Institute of Professional Geologists. Further details concerning the AuEx Argentina exploration program are posted on the Company's website at www.auex.com.

AuEx Ventures, Inc. is a TSX listed precious metals exploration company that has a current portfolio of twenty one exploration projects in Nevada/Utah, one project in Spain and four projects in Argentina. The Company controls about 167,000 acres of unpatented mining claims and fee land in Nevada. Twelve of the projects are in joint venture or exploration earn-in agreements with seven companies. 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 Chief Executive Officer

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.

This news release contains information about adjacent properties on which we have no right to explore or mine. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties.

Contact Information

  • AuEx Ventures, Inc.
    Ronald L. Parratt
    President and Chief Executive Officer
    775-337-1545
    rparratt@auex.com