Bauxite Resources lifts grade, confidence level at Felicitas Project

Bauxite Resources has notched a significant increase in resource estimate quality for the Felicitas bauxite deposit in the Darling Range, Western Australia.

The upgrade of the current resource estimate has resulted from the drilling of an additional 992 vacuum drill holes across the deposit, and reinterpretation of the resource wireframes.

There was also a small increase in the total tonnage of the resource that now totals 227.9 million tonnes (unbeneficiated), at 39.7% Al2O3 (total), 31.3% Al2O3 (available at low temperature) and 2.0% SiO2 (reactive).

The previous resource estimate, announced in October 2013, stood at 218.7 million tonnes of which 157.2 million tonnes was classified as indicated or measured.

A total of 88% of total resource or 199.8 million tonnes resides in the Indicated and Measured category. The Measured Category increased by 131% to 122.7 million tonnes.

Fittingly, this represents the largest single bauxite resource in Australia outside of current producers. This is timely given the strong forward demand credentials for bauxite in the years ahead.

Project Background

The resource is situated on a small number of large private landholdings located approximately 60 kilometres north east of Perth.

It is located close to existing rail infrastructure providing a direct link to Kwinana Port being approximately 120 kilometres away.

The Felicitas resource is contained within the Company’s Bauxite Alumina Joint Ventures (BAJV) joint venture with Yankuang Resources Ltd.

Mineralisation is yet to be constrained by drilling and as such potential remains, subject to achieving additional land access, to further enlarge the resource.

The Company has a number of studies underway to assess a range of possible mining and transport options and an environmental constraints survey is planned for this spring.

Bill Moss, BAJV General Manager, commented on this resource upgrade, “While this upgrade is modest in terms of tonnage increase, it has provided a significant upgrade in the quality parameters of the bauxite as well as higher confidence levels in the resource.

"The Felicitas resource is of the scale and quality required to support a significant alumina refinery, which is envisaged under the joint venture between BRL and Yankuang.

"We are now undertaking targeted pre-feasibility work in preparation for the bankable feasibility study and to allow more meaningful engagement with the communities around the mine.”

Peter Canterbury, CEO of Bauxite Resources, said, “Felicitas is the flagship resource for BRL and its joint venture partner Yankuang. The parties are currently discussing how best to move forward this world scale resource under both the Resource and Alumina Refinery joint ventures.

"To support the projects development both BRL and BAJV are planning over the coming months further environmental and development studies on both the Felicitas deposit and the adjoining 100% BRL Fortuna deposit which will assist the commercialisation of these resources to supply the projected market shortages of both bauxite and alumina over the coming years.”

Resource Details

The Felicitas resource extends over a strike length of 18.5 kilometres. A total of 8,931 drill holes have been completed at Felicitas for a total of 61,867 metres.

A total of 5,523 vacuum holes intersected the interpreted bauxite zones for a total of 19,850 metres within the resource wireframes.

All holes were drilled vertically, with intersected thicknesses considered as true thickness, given the relatively flat lying nature of mineralisation.

The geological setting is laterite over a granite - greenstone basement with mineralised zones formed by the weathering of the underlying basement rocks. The deposit is similar in style to many other bauxite deposits in the region. The deposit displays a bauxite zone up to 16 metres in thickness (average 4m).

Results reported as available alumina and reactive silica represent partial extraction methods aimed at mimicking the Bayer process.

Analysis

The Felicitas bauxite deposit in the Darling Range, Western Australia, is the largest single bauxite resource in Australia outside of current producers.

Today's upgrade while modest in terms of tonnage increase, has provided a significant upgrade in the quality parameters of the bauxite as well as higher confidence levels in the resource.

Felicitas has the scale required to support a significant alumina refinery, which is envisaged under the joint venture between BRL and Yankuang.

Bauxite Resources is undertaking a targeted pre-feasibility work in preparation for the bankable feasibility study.

With the projected market shortages of both bauxite and alumina over the coming years, the timing could not be better.