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Bauxite Resources Limited Progress at Felicitas Bauxite Project
Edited by : AL CIRCLE
4 min read
Bauxite Resources Limited is pleased to provide an update on bauxite resource definition and development activities at its Felicitas project, in the Company's northern Darling Range tenement area in Western Australian. This follows an update from Bauxite Alumina Joint Ventures Pty Ltd, managers of the Felicitas Project, which forms part of the joint venture between BRL and Yankuang Resources Pty Ltd.
Following the announcement of an initial 73.3 million tonnes (Mt) bauxite resource at the Felicitas Project in June 2012, BAJV has engaged CSIRO to carry out preliminary bauxite characterisation analysis on all BAJV's northern Darling Range resources. This work has now been completed and the data is being analysed by independent consultants engaged by BAJV. Whilst too early to be definitive, the results viewed to date encourage the Company's positive view of the northern resources and the Felicitas deposit in particular.
In order to identify the extent of the mineralisation potentially available at the Felicitas deposit, a new phase of activity has commenced. A program of work consisting of 6029 holes on a 80x80 metre spacing for a total of 28,662 metres is scheduled from November 2012 to the end of June 2013.
The Company considers that extension of the Felicitas resource will assist the BAJV in achieving its stated aim of defining a refinery grade bauxite deposit to underpin the prospects of development of a long term alumina refinery for the joint venture. Whilst considerable effort will still be required to achieve this objective the Company is very pleased with the results achieved by the BAJV team thus far.
The Company also notes that portions of this deposit are likely to meet the minimum criteria for DSO bauxite suitable for direct sales to third parties either locally or via export to a growing market in China that has a demonstrated supply deficit. The above program will form an important part of detailed technical and economic studies aimed at defining direct shipping and refinery options for the Felicitas bauxite.
Location & Logistics
The Felicitas deposit is wholly contained within cleared farmland over which native title has been extinguished. It is approximately 10km north of Wundowie and 100km north northeast of Perth (Figure 1). The deposit is situated on a small number of large private landholdings readily accessible by road that have been cleared for farming and grazing, and which are located less than 5km from existing rail infrastructure and approximately 100km kilometres to the Kwinana port. Importantly, access to the existing rail infrastructure does not require significant access to local roads for haulage.
Bauxite Market Prospects
China is the Asia Pacific regions principal market for bauxite, alumina and aluminium. Up until May 2012, 79% of China's bauxite came from Indonesia, however, bauxite exports from Indonesia dramatically reduced with their government's introduction of restricted exports on a number of unprocessed minerals where mining licences were issued after 2009, as well as additional taxes on all minerals exports. This provides an opportunity for local Australian bauxite producers to provide a stable supply into Chinese markets.
Corporate & Joint Venture Details
BRL holds in excess of 25,000km2 of the highly prospective Darling Ranges in the southwest of Western Australia under granted tenure (15,441km2) and tenement application. As at 30 September 2012, BRL held $47.05 million (consolidated) at bank and retained no bank debt. The company is focussed on definition and development of bauxite resources within its granted tenement area.
On 1 April 2011, Bauxite Resources and Yankuang Group commenced the Bauxite Resources Joint Venture and the Alumina Refinery Joint Venture (collectively BAJV). The joint ventures aim to prove up a minimum of 90 million tonnes (Mt) of refinery grade bauxite resource and to complete a feasibility study into the viability of building a refinery in Western Australia capable of producing a minimum of 1.1 million tonnes per annum of alumina.
Following the announcement of an initial 73.3 million tonnes (Mt) bauxite resource at the Felicitas Project in June 2012, BAJV has engaged CSIRO to carry out preliminary bauxite characterisation analysis on all BAJV's northern Darling Range resources. This work has now been completed and the data is being analysed by independent consultants engaged by BAJV. Whilst too early to be definitive, the results viewed to date encourage the Company's positive view of the northern resources and the Felicitas deposit in particular.
In order to identify the extent of the mineralisation potentially available at the Felicitas deposit, a new phase of activity has commenced. A program of work consisting of 6029 holes on a 80x80 metre spacing for a total of 28,662 metres is scheduled from November 2012 to the end of June 2013.
The Company considers that extension of the Felicitas resource will assist the BAJV in achieving its stated aim of defining a refinery grade bauxite deposit to underpin the prospects of development of a long term alumina refinery for the joint venture. Whilst considerable effort will still be required to achieve this objective the Company is very pleased with the results achieved by the BAJV team thus far.
The Company also notes that portions of this deposit are likely to meet the minimum criteria for DSO bauxite suitable for direct sales to third parties either locally or via export to a growing market in China that has a demonstrated supply deficit. The above program will form an important part of detailed technical and economic studies aimed at defining direct shipping and refinery options for the Felicitas bauxite.
Location & Logistics
The Felicitas deposit is wholly contained within cleared farmland over which native title has been extinguished. It is approximately 10km north of Wundowie and 100km north northeast of Perth (Figure 1). The deposit is situated on a small number of large private landholdings readily accessible by road that have been cleared for farming and grazing, and which are located less than 5km from existing rail infrastructure and approximately 100km kilometres to the Kwinana port. Importantly, access to the existing rail infrastructure does not require significant access to local roads for haulage.
Bauxite Market Prospects
China is the Asia Pacific regions principal market for bauxite, alumina and aluminium. Up until May 2012, 79% of China's bauxite came from Indonesia, however, bauxite exports from Indonesia dramatically reduced with their government's introduction of restricted exports on a number of unprocessed minerals where mining licences were issued after 2009, as well as additional taxes on all minerals exports. This provides an opportunity for local Australian bauxite producers to provide a stable supply into Chinese markets.
Corporate & Joint Venture Details
BRL holds in excess of 25,000km2 of the highly prospective Darling Ranges in the southwest of Western Australia under granted tenure (15,441km2) and tenement application. As at 30 September 2012, BRL held $47.05 million (consolidated) at bank and retained no bank debt. The company is focussed on definition and development of bauxite resources within its granted tenement area.
On 1 April 2011, Bauxite Resources and Yankuang Group commenced the Bauxite Resources Joint Venture and the Alumina Refinery Joint Venture (collectively BAJV). The joint ventures aim to prove up a minimum of 90 million tonnes (Mt) of refinery grade bauxite resource and to complete a feasibility study into the viability of building a refinery in Western Australia capable of producing a minimum of 1.1 million tonnes per annum of alumina.
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