Sign up Australia
Proactive Investors - Run By Investors For Investors

Queensland Bauxite fast tracks resource drilling

Queensland Bauxite fast tracks resource drilling

Queensland Bauxite (ASX:QBL) is fast tracking its goal of upgrading the current Indicated Resource at its flagship South Johnstone project near Innisfail in Queensland to Measured status with two drilling programs underway.

Drilling will also be used to finalise the initial mine plan for submission to the Queensland Department of Natural Resources and Mines for an initial Mining Development Lease Application.

Samples are being sent progressively to ALS Laboratories for assaying.

The MDLA is to be submitted as soon as practical after assay results are received and modelled.

Environmental and mining engineering studies are being undertaken concurrently at the project area and are expected to conclude at the same time as the Initial Resource Mine Plan is completed, for submission to the DNRM for the MDLA.

South Johnstone is located just 15-25 kilometres from the Port of Mourilyan, which has current available capacity to support a 800,000 to 1,200,000 tonne export project.
   

Independent Market Analysis of South Johnstone Bauxite


Independent bauxite industry consultant group CM Group (CM) has provided a market analysis of bauxite from South Johnstone as analysed by ALS Laboratories.

CM Group stated:

“The South Johnstone bauxite is suitable for low temperature Bayer processing as a single source feed to a refinery or it could equally be blended with other low temperature bauxites as a feed to refineries.

“On the Total Available Alumina (TAA) and Reactive Silica (RS) figures, the South Johnstone bauxite has similar grade characteristics to the bauxites of the Darling Ranges in Western Australia, which form the basis for Western Australia’s world-class alumina industry.

“The economics of South Johnstone bauxite were evaluated for both high temperature and low temperature Chinese refineries, the result being that low temperature processing is optimal for this bauxite.

“Being low temperature bauxite opens the market for the South Johnstone product to approximately 82% of the current Chinese merchant refinery capacity and increases the potential customer base.”

“When QBL-supplied costs for South Johnstone are considered on a ViU-adjusted pricing basis (relative to the CBIX price index forecast), the South Johnstone bauxite project is positioned in Q2 of the China import margin curve, again sandwiched between Malaysia and Australia.

“In other words, on a ViU-adjusted basis, relative to CBIX, South Johnstone bauxite could be treated at a lower cost than Malaysian bauxite, but a higher cost than Weipa bauxite.”

“The Chinese value quality bauxite, a diversified supply base, consistent supply and grades, and a SE Asia or Oceania location (to minimize freight costs). In this respect, if the South Johnstone project can provide a consistent quality of product, it will satisfy all of the value criteria. Thus the South Johnstone project is well placed to supply the Chinese market.”

The Company is looking at a 2015 commencement to mining and production at South Johnstone, given infrastructure does not need to be built, 15-25 kilometre proximity to the Port of Mourilyan which has available capacity for a bauxite export operation.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

View full QBL profile View Profile

Queensland Bauxite Ltd Timeline

Related Articles

1523526822_gold_bars,_sized.png
April 12 2018
The Silver Cloud project lies on one of the world's richest gold belts
mine
February 08 2018
The Gunnison Copper Project is slated for commercial production in the second half of this year
1531391169_Kincora---team-overlooking.jpg
July 12 2018
Series of off-market transactions have seen a 28.7% interest and strategic position in Mongolian copper-gold explorer Kincora transition from weak to strong hands, strengthening its existing exploration and expansion strategy. Despite significant uncertainty and shareholder overhang removed following new cornerstone investor Kincora’s share price has not re-rated – yet.

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use