Auzex Resources Ltd reports an initial six-hole scout drilling program at its Khartoum Tin Project in north Queensland has produced "excellent results" including intersections of 104m at 0.21pc tin from 12m and 34m at 0.26pc tin from 99m.

All holes intersected mineralisation with individual metre assays up to 3.00pc tin.

Channel samples reported last year included results of 35m at 0.38pc tin and 5m at 1.0pc tin.

Given the correlation between the channel sample (surface) and drill results (sub-surface), directors say future delineation of mineralisation for resource drilling should be very cost-effective.

Similar zones of mineralisation have been mapped in the 2.8km by 2.5km area, which along with several tin soil anomalies in the larger 3km by 9km area, provide numerous targets for future resource drilling.

The directors note there is considerable potential to increase the scale of the Khartoum project within the company's tenement, outside the area defined by current exploration.

Although historical workings exist, the project area has not been the subject of modern exploration.

The company's focus remains on completion of the feasibility study for development of the Kingsgate molybdenum-bismuth project (Glen Innes, NSW).

However, the directors say the Khartoum tin results are compelling and, although the project is in its infancy, could lead to arguably the most significant new tin discovery for many years. – RWE