Bauxite Resources reports a significant increase in resource estimate

Bauxite Resources boasts the highest cash to market cap ratio of any ASX bauxite company. And it has resources of almost 400 million tonnes of bauxite.

The company holds over $24 million, and is capitalised at $27 million.

In September, BAU notched a significant increase in resource estimate quality for the Felicitas bauxite deposit in the Darling Range, Western Australia.

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

There was also an increase in the total tonnage of the resource that now totals 227.9 million tonnes at 39.7% total alumina, 31.3% available alumina at low temperature (148oC), and 2% reactive silica.

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

Fittingly, this represents together with BAU’s Fortuna resource of 40.2 million tonnes in the same precinct, the largest single bauxite resource in Australia outside of current producers. In addition both of these deposits are located adjacent to existing rail facilities which connect to the existing bulk export ports of Kwinana and Bunbury.

This is timely given the strong forward demand credentials for bauxite in the years ahead.