AuEx Ventures, Inc. report that exploration funding partner Fronteer Development Group Inc. has advised the Company that by September 11, 2008 it had expended in excess of the required $5,000,000 to vest an initial 51% interest in the Company’s Long Canyon exploration property located in Elko County, Nevada.
Upon confirmation to AuEx that the spending obligation has been met, the parties will execute a formal joint venture agreement governing activities going forward for the Long Canyon Venture and Fronteer will continue as the manager.
The Company has elected to participate in joint funding of the Long Canyon Venture, however; Fronteer has until December 10, 2008 to notify the Company if it elects to earn an additional 14% interest in the project for a total of 65% by carrying all further costs through the completion of a bankable feasibility study within five years.
Commenting on the news, Ronald Parratt, President & CEO of AuEx, states, “We are very pleased with the aggressive exploration program conducted by Fronteer at Long Canyon during these past 2 years and are excited to enter into our second formal joint venture with a partner like Fronteer. New gold mineralization continues to be found at Long Canyon and we are confident that the amount of mineralization at the project will grow substantially as a result of ongoing drilling by Fronteer.”
AuEx and Fronteer entered into an exploration earn-in agreement on December 22, 2006 that required Fronteer to expend $5,000,000 within a 5 year period to earn an initial 51% in the Long Canyon exploration property now consisting of over 15,000 acres. Since signing the agreement, Fronteer has drilled aggressively; intersecting gold in multiple, parallel zones within a northeast-striking corridor over 4000 feet (1200 meters) in-length. Drilling is continuing at present in the northeastern part of the target area. Fronteer has indicated that drilling will be ongoing throughout 2008 on the known trend of gold mineralization and on previously undrilled targets. Each party will reserve a 3% net smelter royalty on lands contributed by them to the Long Canyon Venture. The agreement also includes a financing provision whereby Fronteer may arrange overall project construction financing and provide a loan option to AuEx for its share of required equity.
AuEx Ventures, Inc. is a TSX listed precious metals exploration company that has a current portfolio of nineteen exploration projects in Nevada, one project in Spain and five projects in Argentina. The Company controls over 80,000 acres of unpatented mining claims and fee land in Nevada. Nine of the projects are in joint venture or exploration earn-in agreements with five companies who provide exploration funding. 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.