Company Profiles

Aurex Energy


Resource and Platinum Group Element Exploration Across North America

Press Releases


Aurex Energy Corp. (TSXV:AURX) is a resource exploration company focused on the acquisition and development of a diversified portfolio of resource properties including natural gas, gold and energy-related metals such as copper, zinc, nickel, cobalt and platinum group elements (PGEs). Aurex Energy has acquired a company with substantial natural gas reserves in the Barnett shale, Texas area and is exploring and developing four mineral projects in North America.

Through its Texas subsidiary, Aurex Energy owns interests in 10 shut-in natural gas wells, including eight horizontal and two vertical wells. The company has initiated a work program on one vertical well and four horizontal wells with the goal of generating significant cash flow. Aurex Energy expects to apply the program to the remaining wells once the current program is complete.

The wells are connected to pipelines and the natural gas receives the Henry Hub price plus 20 percent, which as of July 2019, was over C$3.50 per thousand cubic feet compared to less than C$1 per thousand cubic feet in Canada (the Henry Hub 52-week high price exceeded C$6.00 per thousand cubic feet). The company’s 51-101-compliant reserve report indicates that operating cash flow could exceed C$14 million per annum when the 10-well rework program is complete. Aurex Energy’s breakeven cost for the program is C$0.70 per thousand cubic feet.

The Cook gold-copper project, located in northern Nevada, is within 50 kilometers of the Sleeper mine, which was formerly operated by Amax Gold Inc. between 1986 and 1996. In 1987, Amax reported ore reserves of 3.1 million tonnes grading at 12.88 g/t gold and a lower grade reserve of 40.6 million tonnes grading at 0.72 g/t gold. The Sleeper mine is currently operated by Paramount Gold Nevada Corp. (NYSEAMERICAN:PZG) and they are reporting a measured and indicated resource of 297.1 million tonnes containing 3.1 million ounces of gold and 28.9 million ounces of silver.

In 2018, exploration work on the Cook project located and sampled 35 historic mine workings, with nearly 30 percent of the samples assaying over 10 g/t gold and 17 percent of samples assaying over 35 g/t gold. The sampling produced the highest-grade gold assay yet on the property: 90.9 g/t gold. High-grade copper was also discovered with assays as high as 15.6 percent copper.

The Whiskey Flat copper-zinc-cobalt project is in Mineral County, Nevada. The property is accessible year-round and hosts the historic Quailey mine, which features several types of mineralization including a cobalt-bearing massive sulfide zone with assays up to 11.05 percent copper, 11.08 percent zinc, 635 g/t silver and 0.15 percent cobalt. The property is also approximately 75 kilometers away from the Red Rock mill. Aurex has an option to acquire a 50 percent interest by bringing the Red Rock mill into commercial production. The mill historically processed ore for the Quailey mine and is configured as a gravity-flotation circuit capable of processing 200 tons of ore per day.

The Peter Lake project is located in the Swan River complex, which is considered to be prospective for magmatic breccia type PGE deposits. An independent resource report (non-43-101-compliant) completed in 2013, estimates a current resource of 15.2 million tonnes grading 0.272 percent copper, 0.076 percent nickel, 0.010 percent cobalt and 0.3 g/t combined gold-platinum-palladium. There are 17 other VTEM geophysical anomalies like the one represented by the current resource.

Finally, the Craig Lake project is located between Craig Lake, Saskatchewan and Flin Flon, Manitoba. The property is approximately 1.7 kilometers from the former producing Westarm mine, which has reported grades of 3.82 percent copper, 1.5 percent zinc, 17.4 g/t silver and 1.37 g/t gold. Aurex Energy plans to conduct a two-hole drill program on the property to test two large DPEM targets identified on the property.

Aurex Energy’s management, insiders and close associates hold up to 50 percent of the shares. The management team contains over 100 years of combined experience in the mining industry.

Aurex Energy’s Company Highlights

  • Natural gas projects located in prolific Barnett Shale, Texas and tied into pipelines.
  • Mining projects in top-ranked jurisdictions of Nevada, US and Saskatchewan, Canada.
  • Year-round access to projects in Texas and Nevada.
  • Potential to derive significant cash flow from natural gas to help support mineral exploration and development.
  • Low overhead costs from being based in Saskatoon allow for more expenditure funneled towards exploration.
  • Cook gold-copper project may be the northern extension of the prolific Battle-Mountain gold trend located 50 kilometers from past-producing Sleeper mine with current resources of 3.1 million ounces of gold and 28.9 million ounces of silver.
  • Spectacular high-grade gold and copper results from 2018 work program on the Cook project.
  • Hyperspectral survey at Cook confirms the potential for both a bonanza-gold epithermal system and porphyry gold-copper system.
  • Hyperspectral work at Whiskey Flat confirms existence of large multi-source mineralizing system.
  • Underground sampling at Whiskey Flat confirms extensive area of high-grade copper mineralization.
  • Management, insiders and close associates own 50 percent of the shares.
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