Auryx Gold Corp (TSE:AYX; NSE:AYX) is a Canadian resource company engaged in the acquisition and exploration of gold projects in Namibia. Auryx’s flagship project, the Otjikoto gold deposit, is located 300km north of Namibia’s capital city, Windhoek and is well-served by infrastructure. Otjikoto has a 43-101 compliant indicated resource of 1.22 Moz at a grade of 1.34 g/t Au and an inferred resource of 0.71 Moz at a grade of 1.28 g/t Au, using a 0.4 g/t cut-off. Auryx was recently listed on the Namibian Stock Exchange, though the Toronto Stock Exchange remains its primary listing for common shares. In June 2010, Auryx acquired over 300,000 ha of exploration licenses located in north-central Namibia.

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All The Ingredients
Auryx Gold is Secure and Moving to Production in Namibia
~ By Ted Niles - May 18, 2011
The offices of Auryx Gold must have resounded with a great sigh metres long, 50 to 150 to maybe 200 metres wide and anywhere
of relief after the announcement from Namibia’s Mines and Energy from 10 to 40 metres thick. So it’s an impressive zone of mineraliza-
Minister. On May 10, Isak Katali clarified that nationalization will not tion. Certainly it will convert to resource.”
apply to foreign-owned companies with existing licenses. Since the
confusion began April 28, Auryx’s share price has taken a near-20- Otjikoto is located in the Damara Belt Formation, as is AngloGold
cent tumble to, at press time, $0.55, but CEO Tim Searcy remains Ashanti’s Navachab Gold Mine, which produced 86,000 ounces in
confident. “Namibia is a great operating jurisdiction,” he maintains. 2010 and hosts 3.64 million ounces measured and indicated and
“It has a very stable government and is a mining friendly country. I 850,000 ounces inferred.
think this project is great.”
At a 0.4 g/t cut off, Otjikoto has a resource estimate of 1.16 million
Auryx’s Otjikoto Gold Project is part of the company’s roughly ounces gold indicated and 658,643 ounces inferred, both at a
3,080-square-kilometre Otavi exploration area. Auryx holds a 100% grade of 1.4 g/t. But Searcy notes, “If you want to raise that cut-
interest in one Exclusive Prospecting Licence, consisting of 971 off to something more appropriate for open pit mining—say 0.8
square kilometres, and a 92% interest in four other EPLs, totalling g/t—then the resource goes to 1.5 million ounces [indicated and
2,409 square kilometres. inferred] of 1.9 g/t. So there’s a significantly higher-grade core to
this deposit, and we think that’s going to have a significant impact
The focus for 2011, Searcy says, is exploration of Otjikoto. “What on the economics.”
we’re really trying to do here—in the first 12 to 18 months that
we’ve been on the ground—is to scope out how big this system And Otjikoto’s infrastructure is solid. “It’s three kilometres from a
might be. So we’re doing some pretty aggressive step-out drilling.” paved highway, three kilometres from a railway line, and power
lines are nearby,” Searcy reports. “And even though Namibia is a
very dry country, there’s significant groundwater in the area.”
Production, Searcy says, is the company’s ultimate focus. “We’re
going to de-risk this project and advance it as quickly as we can
towards production. In 2011, we’re going to be focused primarily on
exploration, but we are doing long lead-time items on the develop-
ment studies, like environmental and social impact and geohydro-
logical studies. These are things that take over a year to do. So
we’re getting them done now, and we’re going to do it to a definitive
feasibility level, so it doesn’t have to be repeated further down the
road.”
While the market has yet to recover from the initial shock of the
Namibian government’s new “strategic metals” policy, Searcy is
persuaded that Otjikoto has “all the ingredients to go.” He con-
cludes, “At those grades and on that scale, this thing ought to be
Assays released May 12 included 5.49 grams per ton gold over 1 able to produce 100,000 ounces a year quite easily. That’s a nice
metre, 0.63 g/t over 36 metres, 0.79 g/t over 36 metres, 1.05 g/t threshold. The market accepts that and that’s the kind of asset
“
over 30 metres, 0.64 g/t over 16 metres and 0.95 g/t over 15 me- that’s in high demand.”
tres. April 13 results included 3.14 g/t over 4 metres, 1.72 g/t over 2
metres, 0.5 g/t over 12 metres, 1.11 g/t over 4 metres, 0.56 g/t over
14 metres, 0.71 g/t over 9 metres, 1 g/t over 7 metres and 1.82 g/t
over 7 metres.
This thing ought to be able
to produce 100,000 ounces
Searcy calls the latest results “pretty positive.” He explains, “I think a year quite easily. That’s a
what they demonstrate is that this resource is part of a bigger sys- nice threshold.
tem than was previously defined. With the drilling we’ve done now,
we’re quite confident that there’s a pretty long zone there: 1.4 kilo- – Tim Searcy
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