Bauxite Resources Limited (ASX:BAU) Increases Global Bauxite Resource To 24.8Mt In North Darling Range
Perth, June 21, 2011 AEST (ABN Newswire) - Perth-based bauxite explorer Bauxite Resources Limited (
ASX:BAU) ("The Company") is pleased to announce an update to the bauxite resource base in its North Darling Range project area. Resource modelling has been completed on recent drilling undertaken on the Juturna prospect that has produced a Maiden Inferred Resource of 8.2Mt. In addition, remodelling of the Vallonia prospect has delineated an Inferred Resource of 1.5Mt. Both areas come under the Bauxite Resource Joint Venture with Yankuang Resources Pty ltd ("Yankuang"), with Bauxite Resources owning a 30% interest in bauxite and 100% of other minerals. Resource modelling for Juturna has been conducted by Snowden Mining Industry Consultants Pty Ltd. Resource modelling for Vallonia (formerly referred to as Avon) has been carried out by Bauxite Resources and all results supersede previous resources announced by the company.
Stage 1 of both the Minerva and Cardea prospects are 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 assay results have been received.
All resources announced to date have been analysed using low temperature digestion that approximates the Bayer process. In conjunction with the refinery scoping study that is currently underway, Bauxite Resources is reviewing all resources for amenability to higher temperature Bayer Process refining. 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.
The Company continues to build on the robust resource base in the North Darling Range with two Maiden Resources announced today, a further two Maiden Resources expected within 60 days and another two new resource areas identified. Drilling is ongoing within the 44 tenements granted to date in the Darling Range.
Juturna Resource
The Juturna resource is located in the Bakers Hill region of Western Australia. Not previously reported, the resource is based on first pass drilling conducted by the company on tenement E70/3002.
The majority of the Juturna 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 will also be 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.
Vallonia Resource
The Vallonia resource is located in the Gidgegannup region of Western Australia. Previously reported as Avon Area 4, 5 & 6, this resource update is based on drilling undertaken by Bauxite Resources within the past 12 months on tenement E70/3003.
Previous resources reported for Avon Area 4, 5 & 6 were based on historical drilling conducted by companies exploring the region in the 1960's and 70's. That reported resource covered a large area across several tenements that were pending at the time. Bauxite Resources has since had some of this tenure granted and has drilled several properties in the central area of E70/3003. As such this resource update supersedes all previously reported resources for this area.
Previously Reported Resources
The above resources defined at Juturna and Vallonia are in addition to the previously reported resources at Aurora and Rusina.
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 2011 December quarter.
Minerva Prospect
Resource modelling has commenced on the first stage of drilling on the Minerva Prospect and will be completed early in the 2011 September quarter. This area to the west of Toodyay shows potential and will be the focus of much of the company's ongoing exploration drilling over the next 3 to 6 months.
The available alumina values represent the amount of alumina that may be extracted through standard low temperature Bayer Process refining. Early results at the Minerva Prospect indicate there is significant potential to increase the amount of available alumina through the application of high temperature digestion in the Bayer Process. The Company is investigating if application of this technology that is aimed at either increasing the grade of available alumina or enabling the inclusion of marginal or sub-economic material in the resource.
Cardea Prospect
Resource modelling on the Cardea Prospect is well underway, with Stage 1 and Stage 2 expected to be completed by the end of the 2011 September quarter. This prospect is part of a joint venture between the Company and Shandong No. 1 Bureau of Geology ("Shandong"). Under the terms of this joint venture, Shandong may earn a 60% interest in bauxite rights by expending 100% of the costs to define a geological resource and successfully complete a feasibility study.
Modelling of Stage 3 is proposed to commence soon after, as results from recent drilling are returned.
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. The Company is currently awaiting available alumina and reactive silica results from laboratory analyses. Modelling is scheduled to commence in the December half 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 laboratory analysis results for available alumina and reactive silica. Resource modelling of the Concordia prospect is anticipated to be completed late in calendar year 2011.
For the complete Bauxite Resources Limited announcement including figures and resources tables, please refer to the following link:
http://www.abnnewswire.net/media/en/docs/546056.pdf
About Bauxite Resources Limited
Bauxite Resources (ASX:BAU) (OTCMKTS:BXRDF) was established with a substantial tenement holding in Western Australia to develop new bauxite supply for the global alumina/aluminium industry. The Company listed on the Australian Securities Exchange (ASX) in October 2007.
The Darling Range in the south-west of Western Australia (WA) is the world's largest bauxite mining and alumina refining region producing around 20% of the world's alumina. This area has mined bauxite and refined alumina since the 1960s. These industries are leaders in sustainable resource development and represent the fifth largest sector of WA's resource industry.
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