$DUCP COMPANY OVERVIEW
Headquartered in Brisbane, Australia, ARX Gold Corporation is a gold exploration, mining, and production company with projects in Australia. In the fourth quarter of 2012, the Company changed its name from Daulton Capital Corp to ARX Gold Corporation and installed a new management team focused on the exploration, acquisition and development of gold resource projects, and continues to invest in the expansion of exploration activities. The Company also continues to seek out opportunistic special situations that can add to its portfolio of assets within the resource sector. In exchange for the license for the project described below, along with the recapitalization and restructuring of the firm, ARX will pay prior parties a fixed royalty of $7.5 million and, to reduce operating costs, pay a partner a production and processing royalty based upon the value of the extracted resource.
As part of its unique approach to the mining industry, ARX has exclusively licensed a proprietary extraction method that will not only improve efficiency but allow for more gold to be extracted. The Company uses the more traditional gravity separation method in its pre-processing phase. However, in the main processing stage, ARX plans to implement its exclusively licensed technology to allow for separation of micro-fine gold particles that cannot be extracted using traditional technology, thus yielding a recovery rate of more gold per ton than traditional methods alone. We should note that not only are these methods cost effective, but they do not require the typical heavy infrastructure investment associated with the mining space. As a result, with this method and the relationship with processing partners, ARX can generate profitability at the earliest of production stages.
ARX Springs Project
The ARX Springs Project, covering an area of approximately 4,000 acres located in the Coonambula, the vicinity of Eidsvold, Queensland, is the Company’s first major project and offers huge potential.
The ARX Springs Gold site is located at Coonambula near Eidsvold in Queensland Australia, a proven producer of gold from a historical perspective. The Queensland area was the site of the Australian gold rush of 1867 and home to some of the major mining sites from the large firms like BHP Billiton Limited (NASDAQ - BHP) and Rio Tinto (NASDAQ - RIO).
The deposit is described as alluvial grade sand and gravel resource with a varying depth of resource within a continuous surface area of 1600 ha. The earliest geological reports identified a tertiary glacial till that is prominent in both the ARX site and area where the majority of the alluvial deposits occur and surveys have indicated the presence of gold. The recoverable grade is contained within paleo channels of alluvial sand, gravel and conglomerate associated with gravel beds of old alluvium and minor alluvial deposits. Alluvial deposits, or placer deposits, are a loose accumulation of stream-deposited sediments, including sands, silts, clays or gravels. These deposits typically contain gold, platinum and other gemstones.
The average depth of resources estimated from extensive drilling is at between 15 m to 20 m. The targeted recovery from the resource is dependent upon operational factors once the project is in production and the consistent average recovery of the targeted yield.
The shallow depth, combined with the Company’s extraction methods, ARX should be able to begin stockpiling material for processing and later production in very short order, relative to typical projects. This is a major advantage for the Company.
The ARX site was previously owned by a variety of companies via fragmented licenses and the site and area has a history of intermittent working by small-scale mining and various private operators. Today, the site is now owned exclusively by ARX with a secured and renewable license. The area has a strong history of reserves and existing reserves are backed by extensive assays. Based on company test results management has adopted a potential recovery per tonne of between 0.9 gpt to 1.8 gpt depending on production and operational factors.
The size of the ARX opportunity is simply huge. If the 350,000,000 tons of material available for mining for an estimated 20 year production life is processed and fully exploited, it could mean billions in cash flow.
