12:03 AEST Aug 22, 2011 ABN Newswire (C) 2004-2011 Asia Business News PL. All Rights Reserved.
Perth, Australia (ABN Newswire) - Perth-based bauxite explorer and developer, Bauxite Resources Ltd (ASX:BAU) ('BRL' or 'The Company') is pleased to announce an update to the bauxite resource base in the North Darling Range area. Resource modelling has been completed on recent drilling undertaken on the Cardea prospect that has produced a Maiden Inferred Resource of 6.4Mt, with a further 2.2Mt Maiden Inferred Resource for the Minerva prospect.
The Minerva area comes under the Bauxite Resource Joint Venture with Yankuang Group ('Yankuang'), with Bauxite Resources retaining a 30% bauxite interest, while the Cardea prospect is subject to a Farm In and Joint Venture Agreement between Bauxite Resources and HD Mining & Investment Pty Ltd (Shandong Provincial Bureau of Geology and Mineral Resources) ('Shandong') where Shandong may earn up to a 60% interest at the completion of certain milestones. Resource modelling for Minerva and Cardea has been conducted by Snowden Mining Industry Consultants Pty Ltd, and all results supersede previous resources announced by the Company.
Stage 3 of the Cardea resource is currently being modelled and two additional prospects, Pomona and Concordia, have been identified. First pass drilling is complete on several properties within these new prospect areas and resource modelling is planned for the second half of calendar year 2011 once all results have been returned.
In conjunction with the refinery scoping study that is underway, the Company is reviewing all resources for various cut-off grades with the objective of optimising the quality of potential refinery feed and Direct Shipping Ore ('DSO') potential.
North Darling Range Global Resource
The Company continues to build on the robust resource base in the North Darling Range with this announcement of two additional resource areas. Drilling is ongoing across selected tenements within the 49 tenements granted to date in the Darling Range.
Cardea Resource
The Cardea deposit is located in an area west of Toodyay in the Darling Range region of Western Australia. Not previously reported, the resource is based on first pass drilling conducted by the Company on tenement E70/3160.
The majority of the Cardea resource has been defined with drilling at 80m x 80m spacing. The next step in advancing the classification of this resource will be the design and implementation of a second phase drilling program to reduce the spacing down to 40m x 40m within the mineralised zones. Several bulk samples have been taken across the resource to assist in verification of drilling results, validity of geological domains and better definition of the geo-metallurgical characteristics of the ore body.
Modelling of Stage 3 is proposed to commence within the next month, as results from recent drilling are returned. Some of the significant intercepts within the Cardea Stage 3 drill program are listed below in Table 3 (see link at the bottom of the release).
Minerva Resource
The Minerva deposit is located in a region south west of Toodyay in Western Australia. Previously reported as Areas 3 and 18 by CSR in their Muchea Alumina Project report of 1975, this resource update is based on drilling undertaken by Bauxite Resources within the past 12 months on tenement E70/3598.
Previous resources reported for Areas 3 and 18 were based on historical drilling conducted by companies exploring the region in the 1960s and 70s. The reported resource covered a large area across several tenements that were pending at the time. The Company has since had some of this tenure granted and has drilled several properties in the central area of E70/3598. As such, this resource update supersedes all previously reported resources for this area.
Resource modelling has been completed on the first stage of drilling on the Minerva Prospect, and with further drilling continuing, additional resources are expected to be announced in the first half of calendar year 2012. This area to the west of Toodyay continues to show significant potential and is the focus of much of the Company's ongoing exploration drilling in the northern tenements over the next 2 to 3 months.
The above available alumina values represent the amount of alumina that may be extracted through standard low temperature Bayer Process refining. Further work is also underway to determine the amenability to higher temperature digestion. This method of processing bauxite is known to increase the amount of alumina that is available and still has a relatively low technical risk as it is commonly used elsewhere in the world. Early results at the Minerva Prospect indicate there is significant potential to increase the amount of available alumina and improve the quality of bauxite both for DSO or refinery feed, through the application of beneficiation techniques currently being investigated by BRL and the Bauxite Alumina Joint Ventures ('BAJV') companies. This may also increase the resource available through the inclusion of marginal or sub-economic material in the resource.
Previously Reported Resources
The above resources defined at Cardea and Minerva are in addition to the previously reported resources at the Aurora, Rusina, Juturna and Vallonia bauxite deposits.
Results are currently being returned for infill drilling at Aurora. This program of drilling was designed to allow further conversion of the Inferred resource at Aurora to Indicated status. The majority of results for the second phase of drilling at Rusina have also been received. This will not only facilitate improved definition within the existing resource but also has the potential to expand the lateral extent of the mineralised zone. Remodelling of both resources will be completed once all results have been returned and are expected to be finalised in the March quarter of 2012.
Pomona Prospect
Drilling has recently been completed on the first two stages of the Pomona prospect. The drilling programs intersected thicknesses of laterite in excess of 8m in several holes. Initial XRF results have been returned for more than 2,400m of drilling across 415 holes. Bauxite Resources is currently awaiting available alumina and reactive silica results from Bomb analyses. Modelling is scheduled to commence in the December quarter of 2011.
Concordia Prospect
A large drill program across the Concordia prospect was undertaken in early 2011. More than 5,300m of drilling was completed and although bauxitic intersections tended to be relatively shallow, the extent of lateritisation is very broad. Approximately half of the initial XRF results have been received with the remainder expected over the coming months along with Bomb analysis results for available alumina and reactive silica. Resource modelling of the Concordia prospect is anticipated to happen late in the calendar year 2011.
For the complete Bauxite Resources announcement including tables and figures, please refer to the following link:
http://media.abnnewswire.net/media/en/docs/ASX-BAU-553971.pdf
About Bauxite Resources Limited:
Bauxite Resources Limited (ASX:BAU) was launched in May 2006 to establish itself in the bauxite and alumina industries in Western Australia. The Company successfully listed on the Australian Stock Exchange in October 2007 and is the only ASX-listed bauxite explorer in the highly prospective Darling Range.
The Darling Range in south-west Western Australia is one of the most important bauxite and alumina producing regions in the world. This area produces 23% of the world's alumina and the refineries located here are amongst the most cost-efficient due principally to the quality of the Darling Range bauxite.
Bauxite Resources entered into Joint Ventures with Yankuang Group in April 2011 providing significant investment opportunities for mining and alumina refining in Western Australia.
These progressive joint ventures, Bauxite Alumina Joint Ventures embrace the opportunity to develop a sustainable, long term business asset that provides opportunities for the Western Australian community.
Source:
Bauxite Resources Limited
Contact:
Scott Donaldson
Chief Executive Officer
Bauxite Resources Limited
Tel: +61-8-9200-6300
Paul Fromson
Chief Financial Officer
Bauxite Resources Limited
Tel: +61-8-9200-6302
http://www.bauxiteresources.com.au
