Bauxite Resources declares 73-million tons initial resource at its Felicitas project

ASX-listed Bauxite Resources has declared an initial resource of some 73-million tons at its Felicitas project, in Western Australia.

The resource, which is less than 5 km from existing rail infrastructure, fell within the company’s bauxite alumina joint venture (BAJV) with Yankuang Resources.

Bauxite Resources said on Tuesday that the Felicitas project is estimated to host an indicated resource of 20.9-million tons, at 39.2% aluminium oxide, and an inferred resource of 52.4-million tons, also at 39.2% aluminium oxide.

The new resource provided a 143% increase to the total bauxite resource which Bauxite Resources has in interest, the company said.

It added that the new Felicitas resource advanced the prospects of the BAJV, achieving its first stated aim of defining a maximum of 90-million tons of refinery grade bauxite to underpin the prospects of development of a long-term aluminium refinery for the JV.

Bauxite Resources said that while considerable effort would still be required to achieve this objective, the company was pleased with the results so far, adding that the resource had the potential to increase with further exploration drilling.

The BAJV was also planning to complete a feasibility study on the viability of building a 1.1-million ton a year refinery in Western Australia. The proposed refinery was subject to a bankable feasibility study, site selection, all regulatory approvals substantial start within five years and five months of the agreement date.

As part of the financing assistance, Yankuang has committed to an offtake of 50% of Bauxite Resources’ share of alumina production for a period of ten years.