Metallica Minerals conducting investigation into barge loading facility to enable bauxite export from Urquhart Project

The Australia-based minerals exploration company Metallica Minerals Limited (ASX: MLM) announces that it has undertaken an investigation along with its joint venture partner into access arrangements for a barge loading facility (BLF) to allow exporting bauxite from the Urquhart Bauxite Project. The Urquhart Bauxite Project forms a part of the Cape York Bauxite and Heavy Minerals Sands JV agreement. Also, Metallica Minerals manages and owns 50 percent of the project.

MLM said it has to negotiate for probable priority access to the BLF, held by Green Coast Resources at the Hey Point. In the middle of February 2019, a negotiation with the third-party owner of Hey Point had taken place but did not result in a feasible commercial contract that could enable practical use of the Hey Point Infrastructure this year. However, MLM is open to further discussions with the third party owner of the Hey Point facility.

MLM also mentioned of the deferment of mining operations that were communicated before the election of the new board and expressed disappointment. The new board concentrates on bauxite exports to the market in a safer way. The focus is on developing a logistics option that will maximise returns to shareholders, minimise reliance on third parties and thereby avoid or minimise complications that could threaten the performance of the Urquhart Bauxite Project.

Presently, MLM and its joint venture partner are continuing with the investigation work. Positive progress has already taken place on studies and designs for building a new BLF that should significantly lessen operating and shipping costs, potentially countervailing higher upfront capital and time delays. The outcomes of these new studies will become available and be released to the ASX in Q3 2019.