Metro Mining reports 398% increase in its bauxite hills ore reserve

The ore reserve at Metro Mining Ltd’s Bauxite Hills Project near Weipa has increased by 398% – from 12.1 million tonnes to 48.2 million tonnes.

The company requested a share trading halt yesterday (Monday 1 June 2015) pending an announcement to the ASX today.

Geological modelling updates provided by the Brisbane based miner to the ASX show a Proved Ore Reserve of 41.8 million tonne coupled with a 6.4 million tonne Probable Ore Reserve.

Metro Mining says latest technical data also extends the mine life from 21.5 to 27 years.

Earlier the company announced a Total Direct Shipping Ore Reserve – Measured, Indicated and Inferred – of 56.3 million tonnes with a significantly improved resource quality.

Metro Mining CEO Simon Finnis says today’s announcements are “fantastic news for Far North Queensland, our company and the industry in general.”

“Bauxite Hills is well and truly on track to commence operations in the third quarter of next year,” Mr Finnis said.

Bauxite Hills, 95km north of Weipa, is expected to produce up to 2 million tonnes of Direct Shipping Bauxite per year.

Western Cape York is world-renowned for its deposits of high-quality, export-grade bauxite. Metro Mining’s tenements cover approximately 1,300 square kilometres.

Mr Finnis says the low capital expenditure to establish the Project, combined with a simple operating strategy delivers a low cost, long-term project, with excellent margins. “Importantly, we avoid costs associated with the beneficiation of the bauxite. “International demand for bauxite, thanks to Indonesia’s ban on raw material exports, is increasing and our proposed mine is located close to international shipping routes with low freight costs to China,” Mr Finnis said.