AuEx Ventures, Inc.
TSX : XAU

AuEx Ventures, Inc.

May 19, 2010 07:00 ET

AuEx Ventures, Inc.: Long Canyon Gold Resource Grows

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 19, 2010) - AuEx Ventures, Inc. ("AuEx" or the "Company") (TSX:XAU) is pleased to report an updated resource estimate for the Company's 49% owned Long Canyon gold deposit located within the Pequop Gold District in eastern Elko County, Nevada. The resource has grown significantly and exploration results continue to demonstrate the attractiveness and growth potential of the Long Canyon gold deposit.

The Classified Mineral Resource estimate is quoted at a cut-off grade 0.2 grams per tonne ("g/t") and consists of;

  • A Measured and Indicated resource of 672,000 ounces of gold at an average grade of 1.71 g/t gold (12,240,000 tonnes); and
  • An Inferred resource of 552,000 ounces of gold at an average grade of 1.65 g/t gold (10,394,000 tonnes)

Ronald L. Parratt, President & CEO of AuEx stated, "This new resource estimate continues to demonstrate the robustness and upside potential of Long Canyon and of the new Pequop Gold District. Mineralization still has significant growth potential and many exploration targets remain to be drill tested. Additional surface evaluation may lead to the identification of additional targets as well. Exploration activity is underway with five drill rigs working and with significant engineering, metallurgy and environmental work ongoing. We look forward to another exciting year for Long Canyon."

2010 Resource
  Cut-off Tonnes g/t Au oz Au
Measured 0.20 587,000 2.50 47,000
0.30 510,000 2.84 47,000
1.00 297,000 4.47 43,000
Indicated 0.20 11,653,000 1.67 625,000
0.30 9,839,000 1.93 611,000
1.00 4,432,000 3.61 515,000
Measured & Indicated 0.20 12,240,000 1.71 672,000
0.30 10,348,000 1.98 657,000
1.00 4,729,000 3.67 558,000
Inferred 0.20 10,394,000 1.65 552,000
0.30 8,292,000 2.01 536,000
1.00 3,571,000 3.97 456,000

The block-diluted resources are shown at additional cutoffs in order to provide grade-distribution information. Using a 0.3 g/t cut-off, as was used for the 2009 initial resource, the 2010 resource contains an increase over the 2009 estimate of 81% for resources in the Measured & Indicated category and a 17% increase for resources in the Inferred category. The focus in 2009 was on infill drilling with less step-out drilling. It is important to note that at a higher 1.0 g/t cut-off, the total resource ounces are only slightly reduced however the grade of mineralization more than doubles demonstrating the robust, high-grade nature of the deposit as shown below;

Measured and Indicated resource of 558,000 ounces at an average grade of 3.67 g/t gold (4,729,000 tonnes) and,

Inferred resource of 456,000 ounces at an average grade of 3.97 g/t gold (3,571,000 tonnes)

The 2010 exploration and development program for Long Canyon is budgeted at $19,800,000 funded 49% by AuEx and will consist of 45,000 metres of additional infill drilling as well as significant step-out drilling to help further define the limits of the deposit. Further surface exploration consisting of soil and rock chip sampling is also planned to define additional exploration targets on the large property package. Further column leach metallurgical testing, geotechnical evaluation and other engineering activities are underway to move the project to the pre-feasibility stage.

The Long Canyon mineral resource estimation was completed by Mine Development Associates ("MDA") as of May 13, 2010. The resources were modeled and estimated by evaluating the drill data statistically and utilizing geologically interpreted cross-sections 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 metre (width) x 10 metre (length) x 3 metre (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 will be available in an updated NI 43-101 report, which will be filed by the Company on SEDAR (www.sedar.com), no later than 45 days from the date of this release.

Ronald L. Parratt, Certified Professional Geologist, is the Company's designated Qualified Person for this news release and has reviewed the information contained in the release and confirmed that it is consistent with that provided by Michael Gustin of MDA, the independent QP responsible for the resource estimate.

The Long Canyon deposit is subject to a joint venture agreement with Fronteer Gold, Inc. the 51% owner and operator.

AuEx Ventures, Inc. is a precious metals exploration company that has a current portfolio of nineteen exploration projects in Nevada, one project in Utah, four projects in Argentina and one project in Spain. The Company controls about 167,000 acres of unpatented claims and fee land in prospective areas of Nevada. Fifteen of the projects are in exploration earn-in or formal joint venture agreements with eight 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 is listed on the Toronto Stock Exchange under the symbol XAU.

AuEx Ventures, Inc.

By: 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.

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