Tasmanian Bauxite Project Update
Sydney, July 24, 2012 AEST (ABN Newswire) - Emerging bauxite exploration and development company, Australian Bauxite Limited (
ASX:ABZ) has received laboratory and exploration results from drilling and surface exploration at its newly consolidated 11 Tasmanian exploration tenements totalling 1,897 square kilometres in central Northern Tasmania (Figure 1, see link below).
334 drill holes and 1,521 surface samples (some of substantial size) have been completed in Tasmania over the past 18 months and all results have been carefully assessed so as to define areas that may be suitable for a bauxite extraction and export project on the basis of:
1. Sufficient tonnages of thick, good quality low-silica, gibbsite-rich bauxite
2. Nearness to high-capacity transport routes linked to nearby mineral export ports
3. Most importantly, as free as possible of socio-environmental constraints that might prevent investment in a new business in central Northern Tasmania
As a result of this assessment, 2 outlying tenements are to be relinquished and 2 new tenements secured in areas of quarrying and cleared lands that contain bauxite. 1 new tenement has been offered for grant and 2 applications are pending. Community consultation and expert advice has led to a greater level of confidence that bauxite extraction could be viable in several of these areas once sufficient resources are identified and required approvals obtained.
Australian Bauxite CEO Ian Levy said; "Investing in Tasmania is only done after careful consideration of the risk-rewards situation based on expert advice. It requires an understanding of Tasmania's special circumstances.
"We believe that with goodwill and common sense, ABx can develop a viable project in Tasmania."
Logistical Setting
Central Northern Tasmania has good infrastructure, with an operating rail line passing through the bauxite areas as well as heavy haulage highways. Both rail and road link directly to efficient operating mineral export ports at Burnie and Bell Bay that have spare port capacity (see Figure 2).
Tasmania has a well-developed electric power grid based mainly on hydroelectric power and has ample water supplies in most areas. Natural gas from the Bass Strait field is distributed throughout Tasmania and there are many well-established population centres throughout the region.
Coal mining occurs in the Fingal Valley area east of the main bauxite areas and large cement works are operating in the area south of Devonport to the west of the bauxite areas.
Central Northern Tasmania has some of Australia's best steel fabrication and heavy machinery workshops as well as highly experienced earth moving and construction contractors.
In summary, the Tasmanian bauxite project areas in central Northern Tasmania are near regional cities, power, water and a pro-development workforce.
Bauxite Quality
To date, 11 target areas have been identified, numbered 1 to 11 in Figure 3.
Table 1 shows the typical surface sample results from the DSO Bauxite (see definitions in link below) discovered in these locations. Table 2 shows some of the drillhole results from the bauxite zones targeted for follow-up drilling in the near future. These initial drillhole results confirm that potentially economic thicknesses and grades of bauxite occur within the bauxite discovery areas in Tasmania.
These holes demonstrate that there are high grade bauxite zones within the Tasmanian bauxite target areas. Not all of the areas have been drilled.
To view the complete Australian Bauxite announcement including Tables and Figures, pleae click the link below:
http://media.abnnewswire.net/media/en/docs/ASX-ABZ-687051.pdf
About ABx Group Limited
ABx Group Limited (ABx) (ASX:ABX) is a uniquely positioned Australian company delivering materials for a cleaner future.
The three priority projects are:
- Heavy rare earths: Supplying light and heavy rare earths from Tasmania into Western supply chains
o Processing Options Analysis conducted in partnership with external experts
- Clean fluorine chemical production: Producing industrial chemicals from aluminium smelter by-product (ALCORE)
o Continuous pilot plant under construction in Bell Bay, Tasmania
- Near-term bauxite production: Mining bauxite resources for the aluminium, cement and fertiliser industries
o Agreements executed with Good Importing International for bauxite projects in Queensland and New South Wales, and $2.7 million initial payment has been received
o Approvals well advanced for DL130 bauxite project in northern Tasmania
ABx endorses best practices on agricultural land and strives to leave land and environment better than we find it. We only operate where welcomed.
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