Bauxite Resources (ASX: BAU) and China's Shandong Bureau have discovered significant bauxite mineralisation at their Darling Range tenements in Western Australia.
The new discovery named "Dionysus" bauxite project was made in the northern Darling Range, and on a number of properties in the Wandering - Pingelly region.
Which is timely, as the Indonesian Government is putting into place its ban on bauxite exports from Indonesia opening the way for other suppliers.
Placing Bauxite Resources as a potential viable supplier with existing infrastructure already in place at its tenements.
Vacuum drilling completed in December 2013 identified significant bauxite mineralisation on the new Dionysus project in the northern Darling Range, and on a number of properties in the eastern Darling Range.
Several significant intersections included 7 metres at 38.3% available alumina, 43.6% total alumina, and 2.9% reactive silica from 0.5 metres. Overburden was generally less than 2 metres.
The exploration project areas are contained within a joint venture between HD Mining & Investments, a wholly owned subsidiary of Shandong Bureau No.1 Institute for Prospecting of Geology & Minerals.
Of note is the fact that Bauxite Resources retains 100% rights to all other minerals discovered on the joint ventured properties.
The tenement holdings are privately held and located close to existing rail infrastructure.
So Darling Range bauxite could be expected to be highly sought after by Chinese refineries as a long term alternative supply source after Indonesian bauxite export bans became effective on 12th January.
If all of that isn't enough, there is around $42 million in cash in the bank against a market cap. of just $28 million.
Why is the share price out of kilter with the market cap.? Stay tuned.
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