Bauxite Resource inks maiden bauxite resource WA

Friday, January 16, 2009 by Proactive Investors
Bauxite Resource inks maiden bauxite resource WA

Bauxite Resources (ASX:BAU) today announced a JORC‐Compliant Inferred bauxite resource of 18.2 million tonnes at 43.1% from the company's Darling Range project in Western Australia. 

This represents a major step forward for the company in achieving its Stage 1 objective of exporting Direct Shipping Ore (DSO) bauxite at an initial rate of 1 million tonnes per annum (Mtpa) in 2009, increasing to 3Mtpa in 2010.  Initial results from Mineralogical Characterisation studies on representative samples from the Bindoon region confirmed that mineralisation present is premium bauxite, being gibbsitic in nature with low reactive silica.

The company will target future exploration, testing for bauxite mineralisation continuity in areas with wider spaced drill patterns to define new areas with bauxite mineralisation. Wide spread areas of bauxite laterites remain to be drill tested for the establishment of DSO bauxite and the company remains confident for exploration potential in the area.

Bauxite Resources is establishing itself in the bauxite and alumina industries in Western Australia and is the only ASX‐listed small cap. explorer in the highly prospective Darling Range. This area in Western Australia is acknowledged as the largest producing alumina region in the world supplying approximately 18% of the world’s alumina and the location of Alcoa’s Huntly Mine, the largest producing bauxite mine in the world. The Darling Range is also the site of four alumina refineries; three of these are in the top five for lowest operating costs globally which is principally due to the gibbsite composition of the Darling Range bauxite, and it’s low reactive silica.

Bauxite Resources is primarily focused on defining an initial sustainable economic bauxite resource sufficient to support a >3Mtpa DSO bauxite project. In the longer term the Company is reviewing opportunities for the development of an alumina refinery and possible smelter.

Bauxite Resources was trading at 19 cents.

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