IronRidge Resources (LON:IRR) has unearthed a high-grade Direct Shipping Ore bauxite deposit at its Monogorilby project in Queensland, Australia.
Bauxite is processed to produce aluminium and IronRidge said its 16 sq km licence had the potential to become a new mineralised province with significant scale potential.
An initial 48 hole drilling program is underway to define a maiden resource by first quarter 2016.
Cuttings so far had indicated an average 5m thick bauxite mineralisation, with highest indications up to 7m.
The location of the deposit also indicated low stripping ratios.
Vincent Mascolo, chief executive, added the resource was also located less than 55km from a dormant rail system connected to the operational port of Bundaberg.
"Mineralisation is of high quality, with favourable gibbsite mineralogy. The material has been found at surface level. Low stripping ratios are implied, and the available alumina to reactive silica ratios are excellent."
"The extent and thickness of DSO bauxite mineralisation discovered is significant. “
IronRidge added that bauxite prices are buoyant currently at US$$60/tonne.