Australian Bauxite (ASX: ABZ) has confirmed the Inferred Resource of 3.5 million tonnes of bauxite at Mining Lease ML80126 in Queensland.
This allows the company to define a resource size consideration for concluding final agreements to purchase the mining lease and commence early mine production to supply the buoyant bauxite market.
The acquisition will also increase the company’s global bauxite resource to 116 million tonnes.
About half the resource, or about 1.7 million tonnes, is direct shipping bauxite while the lease is located close to regional infrastructure that connects to Bundaberg Port.
There is a well-developed state electric power grid and ample water supplies while natural gas pipelines connect from the Surat Basin to Gladstone through this district.
There are well-established regional population centres at Mundubbera and Gayndah and the company’s large Binjour bauxite project is located between these two regional centres.
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