West Africa-focused Anglo African Minerals (GXG:AAM) has unveiled a maiden mineral resource for its Toubal bauxite deposit in Guinea, which confirms the project's potential, the company said.
The inferred resource stands at 722 million tonnes with an average of 42.6% total alumina and 3.7% silica, within three main deposits: Sibiko, Soumbalako and Tiankounguelé.
These estimates are based on 744 holes completed during the 2011 exploration campaign.
Chief executive James Lumley said the resource estimate was an "important milestone", which gave the board, partners and shareholders confirmation of Toubal's potential.
"In addition, we are further encouraged by the fact that the very limited confirmatory exploration is required in order to upgrade the mineral resource into higher confidence categories, potentially in the measured and indicated categories."
"This project represents a large resource base in a location that is likely to benefit strongly from third-party infrastructure developments in the country."
Toubal lies within a 750 sq km exploration licence 100% around 300 km north-east of Conakry, the capital of Guinea in the Toungué prefecture.