High-grade bauxite deposit unearthed in Queensland

AIM listed IronRidge Resources has discovered a high-grade Direct Shipping Ore bauxite deposit in Queensland, Australia. IronRidge said its 16 sq km licence at its Monogorilby project where the deposit has been unearthed had the potential of becoming a new mineral hub with significant scale potential.

Bauxite, the principal ore of aluminium, is first refined to produce alumina which is then smelted to produce the primary metal.

According to the company sources, an initial 48-hole drilling program has already been started to define a maiden resource by first quarter 2016. Excavations so far had indicated an average 5 metre thick bauxite mineralisation, with highest indications up to 7 metre. The location of the ore deposit also indicated low stripping ratios.

Vincent Mascolo, chief executive at IronRidge, added the bauxite resource was also located less than 55km from a dormant rail system connected to the operational port of Bundaberg, which means, the company will have to invest little to facilitate easy transportation of the ore from the deposit to the port.

"Mineralisation is of high quality, with favourable gibbsite mineralogy. The material has been found at surface level. Low stripping ratios are implied, and the available alumina to reactive silica ratios are excellent. The extent and thickness of DSO bauxite mineralisation discovered is significant," Mascolo said.

Bauxite prices, unlike alumina and aluminium prices, are buoyant currently at US$$60/tonne.