Australian Bauxite Limited (ASX:ABZ) Announce 16.8 Million Tonnes Maiden Binjour Resource
Resource estimates after application of cut-off grades for the drilled resource areas on the initial deposits tested at Binjour are summarised as follows, see link: http://media.abnnewswire.net/media/en/docs/ASX-ABZ-652373.pdf
The Binjour deposit lies near the top of a plateau which has been widely cleared for farming but large parts are now left uncultivated because of the dry, poor soil that develops on bauxite.
The bauxite in the resource area is consistently high quality and most is "Brown Sugar" bauxite, being a superior quality, low silica, gibbsite bauxite suitable for sweetening circuits in refineries.
New areas of bauxite have been discovered in recent months and are currently being drilled to expand resource extent.
Red diamonds (solid) = High grade holes
Red diamonds (open) = Resource holes
Grey dots = subgrade bauxite or no bauxite
Blue lines = High grade bauxite
Red lines = Bauxite resources
Comments about bauxite distribution
High grade bauxite results from a further 13 holes were received after the resource estimation process was well-in-hand. These will be included in the next Binjour resource update.
In places, otherwise good bauxite is rendered subgrade due to the presence of a white gelatinous-clay substance in the bauxite. Tests are underway to find a way to remove this material by simple washing methods.
If, after low cost washing, this material subsequently becomes bauxite-resource grade, the extent and continuity of Binjour bauxite resources will expand materially.
Recent discoveries of bauxite in outcrops suggests that several of the irregular resource outlines may coalesce into sizeable resource blocks when drilled in future.
Detailed mapping and reinterpretations suggest that there may be more than one bauxite layer at Binjour.
Additional drill rods are being sourced so that the geometric distribution of bauxite can be better defined.
Regional exploration has found more bauxite in the district - these areas are being assessed.
Core Zone of Very High Grade Bauxite
As part of this resource estimation process, a high-grade core zone of bauxite was identified and estimated to total 9.3 million tonnes as follows:
Should a project commence at Binjour, mining would probably commence on such material.
The Binjour bauxite project is located approximately 160kms inland from Bundaberg port. Australian Bauxite Limited is participating in a major transport study of the region to assess the alternative ways to transport this high quality bauxite to markets, either in Australia or overseas.
Further Work Planned
The bauxite deposit is open in many locations and many other deposits have been identified. Followup drilling of the Binjour plateau (25km x 10km in area) and surrounding new prospects is being scheduled over the coming months.
New Exploration Permit Applications
The bauxite deposit is concealed beneath a shallow surface clay layer but the company's exploration technology indicates that this high quality bauxite layer extends over a considerable distance. A new exploration permit application has been made to secure the extension areas for ABx. Once approved, exploration will accelerate even more in the Binjour district.
GROWTH IN TOTAL BAUXITE RESOURCES OVER TIME
In the 21 months since listing on the ASX on 24 December 2009, Australian Bauxite Limited has discovered, drilled and declared bauxite resources totalling 84 million tonnes 1,2,3,4, mainly of highquality, low silica gibbsite rich bauxite. The resource growth has already exceeded the company's target for calendar 2011 and shows no sign of slowing across the 37 tenements in QLD, NSW & Tasmania.
RESOURCE ESTIMATE METHOD
Reconnaissance and follow-up exploration drilling was done on a semi-random pattern governed by site availability across Binjour EPM 18014 and Binjour Extension EPM 18772 to test several of the many bauxite targets. By 30 September, 88 holes had intersected a consistently good quality bauxite layer concealed beneath a surface clay layer. High grade bauxite results from a further 13 holes arrived too late to be incorporated in this maiden resource estimation.
Drill samples were collected at 1 metre intervals from the aircore drillholes and analysed at ALS Laboratories in Brisbane including trihydrate (THA) available alumina ("Al2O3 Avl") and reactive silica ("Rx SiO2") measurements. Leach conditions to measure available alumina "Al2O3 Avl" and reactive silica "Rx SiO2" were 1g leached in 10ml of 90gpl NaOH at 143 degrees C for 30 minutes.
Estimation was done by geostatistical block modelling of bauxite intercepts, constrained within geological boundaries using Gemcom resource estimation software. The block size is 25m x 25m and drill spacing within the bauxite zones was typically at 75 to 150 metres spacings. Data interpolation of up to 300 metres was done, based on statistical assessments of continuity. Blocks with less than 5 datapoints within that 300 metre search ellipse were classified as Inferred Resources and the more heavily drilled blocks were classified as Indicated Resources.
Bauxite density was conservatively assumed at 1.85 dry tonnes per cubic metre in situ even though this bauxite layer is generally unweathered due to protection from the overlying clay layer.
About Australian Bauxite Ltd
Australian Bauxite Limited (ABx) (ASX:ABX) has started its first bauxite mine in Tasmania and holds the core of the Eastern Australian Bauxite Province. ABx's 37 bauxite tenements in Queensland, New South Wales and Tasmania exceed 5,000 km2 and were rigorously selected for (1) good quality bauxite; (2) near infrastructure connected to export ports; and (3) free of socio-environmental constraints. All tenements are 100% owned, unencumbered & free of third-party royalties.
ABx's discovery rate is increasing as knowledge, technology and expertise grows.
The Company's bauxite is high quality gibbsite trihydrate (THA) bauxite and can be processed into alumina at low temperature.
ABx has declared large Mineral Resources at Inverell and Guyra in northern NSW, Taralga in southern NSW, Binjour in central QLD and in Tasmania confirming that ABx has discovered significant bauxite deposits including some of outstandingly high quality.
In Tasmania, at Bald Hill, the Company's first bauxite mine commenced operations on schedule on 9 December 2014 – the first new Australian bauxite mine for more than 35 years.
ABx aspires to identify large bauxite resources in the Eastern Australian Bauxite Province, which is emerging as a globally significant bauxite province. ABx has created significant bauxite developments in 3 states - Queensland, New South Wales and Tasmania. Its bauxite deposits are favourably located for direct shipping of bauxite to both local and export customers.
ABx endorses best practices on agricultural land, strives to leave land and environment better than we find it. We only operate where welcomed.
Australian Bauxite Ltd