New Bauxite Resource at Dionysus Project, Northern Darling Range
Perth, Mar 24, 2014 AEST (ABN Newswire) - Bauxite Resources Limited (
ASX:BAU) (BXRDF:OTCMKTS) is pleased to announce that a maiden resource estimate has been completed on the Company's new Dionysus project, northern Darling Range, Western Australia.
The resource is located on one private landholding in predominantly cleared farmland, approximately 100km north east of Perth, and situated 12km from existing rail infrastructure providing a link to Kwinana Port.
Dionysus is contained within the Company's joint venture with HD Mining & Investments Pty Ltd, (HDM) the wholly owned subsidiary of Shandong Bureau No.1 Institute for Prospecting of Geology & Minerals (Shandong).
Table 1: Total Dionysus Deposit Resource Classification (JORC Inferred)
-------------------------------------Quantity (Mt) 20.3Al2O3 % (total) 42.1Al2O3 % (available at 148 degC) 32.6SiO2 % (reactive at 148 degC) 3.4SiO2 % (total) 12-------------------------------------
* Note - all grades are unbeneficiated
BRL's CEO Peter Canterbury commented on the resource:
"This is an excellent result for BRL and our joint venture partner HD Mining. Dionysus is a completely new resource in the northern Darling Range, with excellent grades and low reactive silica. Whilst North of the Fortuna and Felicitas deposits it is still on the same rail infrastructure corridor. Our geologists are currently reviewing other properties in the region with a view to carry out further drilling next field season and build on the existing new resource. Dionysus is located on large private farmland and is in close proximity to existing rail infrastructure."
Under the terms of the JV agreement with HD Mining (a wholly-owned subsidiary of the Shandong Bureau No1 Institute for Prospecting of Geology & Minerals (Shandong)) signed in 2010 HD Mining funds 100% of exploration and feasibility costs for HD Mining to earn up to a 60% of the bauxite rights upon a decision to mine.
In addition to the resources announce at Dionysus the Company has also undertaken further follow-up infill drilling at the Athena deposit, in the Wandering Pingelly area. The company is currently undertaking resource modelling on this deposit and expects to make a further resource announcement in the coming weeks.
Bauxite Market Update
China continues to import record amounts of bauxite with January 2014 imports reaching 8.0 million tonnes, a 56% increase to the same period last year. In January 2014 Indonesia placed a ban on bauxite exports out of the country, which will require new sources of bauxite to fill this void. Australia is well placed to supply this demand and Western Australia is currently the largest bauxite producing region in the world. With BRL’s bauxite resources located near existing rail infrastructure and close to the Chinese market (4,300nm) compared to many other bauxite producing regions, this provides an opportunity for low capital cost and nearer term start-up of direct shipment export of bauxite from Western Australia. Australia’s proximity to China means Australia has a logistical advantage to many other alternative supply sources and therefore positions the Company well to take advantage of the increase in demand for Australian bauxite.
Resource Details
Drilling was completed on a nominal 160m x 160m or 160m x 320m spaced grid pattern, over 9km strike length. The resource has been modelled at three locations. In the north, six lodes have been interpreted across a strike length of 1.4km. Two lodes have been interpreted in the central area of drilling over a strike of 3.5km, and a further three lodes interpreted in the southern area, over 1.6km strike. The geological setting is laterite over a predominantly granitic basement. Mineralisation comprises flat lying pods formed by the weathering of the basement rocks. The deposit is similar in style to many other bauxite deposits in the Darling Range. The resource comprises a bauxite horizon up to 8.5m thick (average 3m) that is typically covered by <2m of loose overburden. A total of 229 vacuum holes were drilled for 1,602m (Figure 2), with 87 holes for 261m within the resource wireframe. The estimate was completed by RungePincockMinarco (RPM). All holes were drilled vertically, with intersected thicknesses considered as true thickness given the relatively flat lying nature of mineralisation. The available alumina and reactive silica quoted are based on low temperature (148°) caustic digestion (BOMB) and analysis by ICP-OES using 1.0 ± 0.04g samples. Total alumina and total silica are based on Fourier Transform Infra Red (FTIR) analysis, with approximately 10% of samples validated by X Ray Fluorescence Spectrometry (XRF).
Wireframes for the resource study were generated using cross sectional interpretations based on mineralised envelopes constructed using down hole geochemistry and associated lithological logging. Inverse distance to the power of 2 (ID2) was used to estimate the resource. Full details are attached below. The resource is likely to be mined by conventional open cut mining methods. No assumptions have been made regarding metallurgy other than the material could be refined using the industry recognised Bayer processing method.
To view diagrams and figures, please visit:
http://media.abnnewswire.net/media/en/docs/76789-ASX-BAU-671888.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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