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A U R E X
CONSOLIDATED LIMITED
ACN 071 444 061
10 December 2003
BY FACSIMILE TO: 1300 300 021
Company Announcements Office
Australian Stock Exchange Limited
2 The Esplanade
PERTH WA 6000
Dear Sir / Madam
Re: Aurex to Acquire Terra Gold Mining Ltd – Advanced Nicolson’s Find Gold Project
Nicolson’s Find Project:
• Advanced exploration
• New 120,000 tpa CIP gold plant with crushing and grinding
capacity of 200,000 tpa
Aurex Consolidated Ltd proposes to acquire Rewah Gold Mining Ltd (which is being renamed
“Terra Gold Mining Limited”) the owner of the Nicolson's Find Gold Project in the East
Kimberley.
Due diligence investigations have been carried out and completed to both parties’ satisfaction.
The acquisition is subject to 80% acceptance, various shareholder’s approvals in both
companies and all ASX and other regulatory approvals that are required. Offers are being
made to all Terra Gold shareholders and shareholder’s representing in excess of 80 percent of
Terra Gold’s issued capital have already indicated they intend to accept.
If the transaction is approved and accepted by all Terra Gold shareholders, Aurex will issue
approximately 123,000,000 shares and 30,000,000 options exercisable at 10 cents each to the
Terra Gold shareholders to acquire the company.
NICOLSONS FIND PROJECT
Consists of granted mining leases M80/343, 355, 359, 362, 471 and 503 with a total of
1102.4ha and one exploration license 80/3281 of 38sq/kms.
The project is located approximately 40kms south west of Halls Creek (Figs 1 & 2) on Lamboo
Pastoral Station in the East Kimberley region of Western Australia. Access to and within the
project area is excellent. Halls Creek is served by a daily air service from Broome, and a direct
service once a week from Perth.
Project Geology
The geology consists of felsic volcanics, metasediments, metabasalts and ultramafics of the
Tickalara metamorphics, which have been intruded by Proterozoic granites. The depth of
weathering is variable and dependent on rock type and intensity of shearing. Saprolitic clays
can be developed to 50-60 metres below surface.
Gold mineralisation within the mining leases is hosted by a north trending 50 degree east
dipping shear zone, which extends in excess of 5kms through the tenement block. Some gold
prospects also appear to be associated with subsidiary structures.
History
Several companies through the 70’s and 80’s have carried out exploration for gold and base
metals.
Hunter Exploration
● Explored for platinum, palladium and to a lesser extent nickel and gold.
● Identified prospective targets for gold
Anglo Australian Resources
● Gold exploration.
Money Mining
● Gold and base metals
● Identified additional gold targets.
Precious Metals Australia
• 2,515m RC drilling defined the extent of the Nicolson’s open pit;
• 50 holes retuned significant intersections below the existing pit;
● Continued detail evaluation of previously identified gold targets;
● Developed and mined the Nicolson’s Find open pit;
● Some 92,000t at an average grade of 7.7 g/t gold were processed at PMA’s
Palm Springs gold mine.
Rewah Gold Mining Ltd (Terra Gold Mining Ltd)
● Constructed 120,000tpa CIP plant
● Surface sampling and air track drilling of target zones resulted in trial mining.
● 55,000t ore processed at 2.65g/t Au. (Recovered)
Prospects
1. Nicolson's Main Pit
Precious Metals Australia mined 92,000t at 7.70g/t gold from this pit. Drilling by Precious
Metals and a review by external consultants has identified that by extending the shear at depth
and resource modelling it has been estimated that the deposit outside the current pit
boundaries contains 111,000t at 11.3 g/t gold. The estimate is based on limited geological and
geotechnical information and requires further evaluation and validation. Mineralised zones are
still open at depth and along strike to the north with very high prospectivity for drilling to
significantly increase tonnages. Highlighting this prospectivity, results for selected deeper holes
below the existing pit include:
Dip/Azimuth
NRC – 211 19462N – 10209 E -60/270 160-163m 3m at 7.76 g/t Au (uncut)
NRC – 225 19607N – 10141E -60/270 110-113m 3m at 13.62 g/t Au (uncut)
NRC – 226 19627N – 10192.82E -60/270 178-182m 4m at 11.19 g/t Au (uncut)
NRC – 166 19580.5N – 10162.4 E -60/270 114-121m 7m at 19.50 g/t Au (uncut)
Additionally, 80m north of the Nicolson Pit trench sampling has found three anomalous gold
zones, which returned 4m at 5.90 g/t gold, 4m at 15.80 g/t gold and 5m at 11.05 g/t gold. A
surface rock chip sample 60m north of the pit assayed 143 g/t gold. This area has only been
very lightly tested by exploration including drilling and shows prospectivity for the discovery of
additional medium to high-grade open pittable ore. This area represents a high priority target
for drilling.
Further to this, quartz veining, gossans and alteration extend for a further 320m to the north
before becoming obscured by soil cover.
2. Nicolsons Southern Lode
This lode is located 40m south and is offset 60m west of the Nicolson Main Pit. Only very
limited mining has taken place on this prospect with a small pit down to a maximum depth of 1-
2m and 100m in length.
Rock chip sampling at surface gave results of 3m at 17.13 g/t gold and 2m at 2.67 g/t gold.
Selected drill holes gave:
Dip/Azimuth
NRC – 173 19288mN-10037mE -60/270 80-84m 4m at 15.26 g/t Au (uncut)
NRC – 218 19261mN-10065mE -60/270 144-151m 7m at 11.95 g/t Au (uncut)
NRC – 219 19260mN-10095mE -60/270 163-167m 4m at 10.89 g/t Au (uncut)
This lode remains open to the south and at depth, and represents a high quality target for
further exploration.
3. Rowdy Open Pit
A small pit has been excavated showing strong hematite-sericite alteration in association with
two parallel quartz veins. The pit has been excavated over approximately 100m length and
down to a maximum depth of 6m. Rock chip sampling has returned values of 2.90 g/t gold to
17.40 g/t gold. Only limited exploration and drilling has been carried out in this prospect.
4. Wagtail and Wagtail North
Two shallow open pits approximately 350m apart provided limited ore for the Nicolson's plant.
Controls for mineralisation in these prospects is at this stage poorly understood. The areas
between these two pits are soil covered and has only been very lightly explored and has
potential for the discovery of economic gold deposits. Rock chip, soil sampling and rotary-airblast
drilling by Hunter Exploration and Anglo Australian Resources has given strong gold
anomalism with reverse circulation drilling on line 15745N obtaining:
Dip/Azimuth
WRC-13 -60/270 8m from 16m at 14.24 g/t gold (uncut)
WRC-12 -60/270 4m from 28m at 3.55 g/t gold (uncut)
WRC-26 -60/270 6m from 44m at 11.60 g/t gold. (uncut)
Several other prospects within the tenements occur where relatively limited exploration has
been carried out and at this time little is known other than from historical data. Further work is
warranted and will be prioritised after the review of available data combined with field visits.
These include:
Topknot Prospect – previous rotary-air-blast drill intersections returned 3m at 2.44 g/t gold and
7m at 2.46 g/t gold.
Hawk Prospect – An old diamond drill hole drilled for platinum and palladium reportedly
intersected 4.30m at 9.46 g/t gold.
Eagle Prospect – soil anomaly to 580 ppb gold.
Burnt Out Prospect – drill hole intersecting 3m at 3.87 g/t gold.
Springvale Prospect – drill hole intersecting 3m at 2.23 g/t gold.
Conclusion
● Gold mineralisation extends intermittently over several kilometres of strike length and
high grades (+10 g/t gold) are not uncommon.
● Relative to other gold regions of Western Australia the area is grossly under explored.
● Limited deeper drilling has shown medium/high grade gold mineralisation extends to
depth and in several cases, remains open at depth and along strike.
● A 120,000 tpa plant, which is in excellent, condition with crushing and grinding capacity
of 200,000 tpa.
● A strategic tenement holding in the East Kimberley.
● This project with associated plant and infrastructure, gives Aurex the ability to move
relatively quickly from explorer to producer status and given its significant upside, it is
proposed that exploration work will commence as soon as practicable.
ATTRIBUTION
Information in this report which relates to mineralisation is based on information compiled by
Phillip Mattinson, a full time employee of Rewah Gold Mining Limited who is a Member of the
Australian Institute of Geoscientists and has relevant experience as a Competent Person as
defined in the Australasian Code for Reporting of Identified Mineral Resources and Ore
Reserves in relation to mineralisation being reported on. Mr Mattinson has consented to the
inclusion of the information and this attribution.
AUREX BOARD
Following completion of the transaction Terra Gold is to nominate 3 directors to the Board of
Aurex, including the Chairman and CEO. Terra Gold has advised Aurex that it proposes to
nominate Mr Gil Playford, Mr Playford is supported by both Aurex’s current board and Terra
Gold to assume the Chairman’s role to take the merged company forward.
Mr Gilbert E. Playford
Gilbert E Playford age 56, began his career in 1972 with Union Carbide in Canada after
graduating as an engineer from McGill University (Montreal) in 1969 and a MBA from York
University (Toronto) in 1971. He resigned from Union Carbide Corporation in February 1996 as
Chief Financial Officer. He became President and CEO of LionOre Mining until June 1998. He
has continued as a director and non-executive deputy Chairman on the LionOre board. From
June 1998 to June 2003, Mr Playford was Chairman and CEO of UCAR Carbon, subsequently
renamed GrafTech International Ltd. He is currently non-executive Chairman of GrafTech (a
Fortune 500 NYSE listed company). Mr Playford is based in the USA.
AUREX CONSOLIDATED LTD
Aurex will continue with its other projects including:
Yamarna Project – which is joint ventured with AngloGold Australia Ltd. Drilling is due to
recommence early in the New Year.
Chesterfield Project – in which Aurex is farming in and manager. Geological mapping as a
precursor to drilling is currently being undertaken.
Credo Project – Recently acquired from AngloGold Australia Ltd. Aurex is progressing the
tenement applications and target review.
Yours faithfully
SIMON TREVISAN
Chairman
Tenement boundary
LEGEND
Cambrian and Pre-cambrian
platform cover
Granites
Bow batholith
Mafic and ultramafic complexes
Woodward dolerite
Tickalara metamorphics
Koongie Park Formation
Olympio Formation
Butchers Gully Member
Biscay Formation
Ding Dong Downs volcanics +
Saunders Creek Formation
Sophie Downs granophyre
Anticline
Syncline
Fault
Ph
Phv
Pu
Pg
Pb
Pm
Po
Pt
Pe
Pr
Pv
Pgv
NICOLSONS FIND
EAST KIMBERLEY REGION
REGIONAL GEOLOGY
ORD STREET DIGITAL (+61 8) 9321 8598
N
0 10 20km
Halls Creek
127 ° 30' 128 ° 00'
18 ° 00'
18 ° 30'
19 ° 00'
Phv
Pb
Po
Ph
Pv
Pgv
Pg
Pm
Pm
Pt Pe
Pu
Pr
Po
Pu
Ph
Pr
Pr
Pm
Pm
Pm Pm
Pm
Pm
Pm
Pm
Pr
Ph
Pe
Pt
Pr
Pr Ph
Ph Pr Po
Pt
Pt
Pu
Pu
Pu
Pu
Pg
Pg
Pe
Pg
Pg
Pg
Pm
Pg
Pu
Pt
Po
Po
Ph
Po
Pr
Pr
Pr
Pr
Ph
Pr
Pr
Pr
Pu
Pu
Pu
Pt
NICOLSONS
FIND
BUTCHERS
CREEK
Figure 1
Northern
Highway
Great
Pm
Pt
AUREX CONSOLIDATED LTD
ORD STREET DIGITAL (+61 8) 9321 8598
N
Figure 2
7 970 000mN
320 000mE 330 000mE
7 960 000mN
7 950 000mN
Great
Highway
Northern
0 1 2 5km 3 4
River Fault
Fault
Fault
Mary
Highway
Nicolson
Fault
E80/2623
E80/2552
E80/2612
NICOLSONS FIND
TENEMENT PLAN
E80/2567
E80/2707
E80/2755
E80/2560
E80/2523
E80/2623
E80/2567
Lamboo
E80/2610
E80/2566
E80/2601
AUREX CONSOLIDATED LTD
Lamboo
M80/355
M80/343
M80/362
M80/503
M80/471
Nicolson Pit
E80/3281
M80/359
AUREX
Tenement boundary