Australian Bauxite Limited (ASX:ABZ) 5.7 Million Tonnes Maiden Tasmanian Resource Near Bell Bay Port

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Sydney, Australia, Nov 8, 2012 - (ABN Newswire) - Emerging bauxite development company, Australian Bauxite Limited (ASX:ABZ.AX - News) has bauxite tenements totalling more than 7,500 km2 covering the core of the Eastern Australian Bauxite Province (see Figure 6). ABx considers its Tasmanian Project located within 100 km of Bell Bay Port to be a state significant discovery of a major bauxite province, which may come into production ahead of ABx's other mainland projects.

A 2 to 8 metres thick surface layer of gibbsite-rich, low silica bauxite occurs in moderate-sized blocks over the Tasmanian northern midlands area in the hinterland of Bell Bay where Australia's first alumina refinery and first aluminium smelter were established. In early 2012, ABx identified bauxite in Tasmanian locations, which are suitable for production. Drilling commenced in late August and will continue throughout 2013 to extend the areas of bauxite drill testing. Only 7% of targeted areas have been drilled to date and contain the following maiden resources (see link below):

The resource is based on 377 holes totalling 2,652 metres, averaging 7 metres depth.

Typically there is 3.5 to 4 metres of bauxite beneath 0.5 to 2 metres of soil and overburden which will be selectively removed and replaced over mined-out areas to ensure that seeds and soils remain viable.

Approximately 50% of the bauxite layer is DSO grade Bauxite2 which can be mined and directly shipped.

DSO Bauxite Resources

Estimate of Direct Shipping Bauxite ("DSO Bauxite" - see Definitions) is shown in Table 2 (see link below):

DSO Bauxite would typically be the first bauxite shipped because it requires no processing on site.

However, if bauxite production proceeds successfully, other parts of the deposits will be extracted, screened and blended into the stockpile at the port. Once the screening and blending is established, a high quality gibbsite-rich bauxite product suitable for low-temperature alumina refineries can be exported, probably from Bell Bay, Tasmania.

PROJECT DESCRIPTION

Location and Infrastructure

Central Northern Tasmania has good infrastructure, with operating rail lines and heavy-duty haulage highways passing through the bauxite areas, linking 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. Natural gas from the Bass Strait field is distributed throughout Tasmania and there are many well-established population centres.

Tasmania has a proud mining heritage. 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. The Bell Bay aluminium smelter is operated by Rio Tinto Alcan (see Figure 2).

Central Northern Tasmania has some of Australia's best steel fabrication and heavy machinery workshops as well as highly experienced earth moving, transport and construction contractors.

In summary, the Tasmanian bauxite project areas in central northern Tasmania are supplied with power, water, communications and transport infrastructure, near industrial centres serviced by efficient mineral export ports that operate all year round without seasonal interruptions.

Environmental Baseline Work

Environmental baseline work has been commissioned to occur during the current Spring season in Tasmania. ABx is conducting negotiations regarding some pine forest areas and other intensive plantations of imported tree species which are unlikely to present socio-environmental impediments but they are being assessed by independent environmental experts nonetheless.

Recent drilling tested Bauxite Deposit DL-130 located 65 km south-south-west of Bell Bay deepwater port in a privately owned plantation that is under harvest. Thicker than expected bauxite has been encountered up to 6 metres thick over a wide area; this suggests that this project could commence production earlier than anticipated with minimal impacts, returning the land to plantation timber after extracting the surface layer of bauxite and replacing the thin soil layer.

Deposit Geology

The main deposits lie on plantation forests that are being harvested. Bauxite forms slight ridges with lesser quality, thin soils that are best suited for plantation forest development.

The bauxite is a layer that is interpreted as having formed on the volcanic rocks of the lower Tertiary era (40 to 55 million years old). Recent erosion, especially after the Ice Age has dissected the deposits and the remnant ridges of bauxite are typically 1 to 2 kilometres long but occur in clusters that represent an ancient continuous plateau.

Figures 4 and 5 show the geology of the main deposit, DL-130 (see link below).

View the complete Australian Bauxite announcement at the following link below:
http://media.abnnewswire.net/media/en/docs/ASX-ABZ-705389.pdf

About Australian Bauxite Limited:

Australian Bauxite Limited (ABx) (ASX:ABZ.AX - News) holds the core of the newly discovered Eastern Australian Bauxite Province. Its 37 bauxite tenements in Queensland, NSW and Tasmania covering 8,500 km2 were rigorously selected on 3 principles: 1. good quality bauxite; 2. proximity to infrastructure connected to export ports; and, 3. free of socio-environmental or native title land constraints.

All tenements are 100% owned and free of obligations for processing and third-party royalties. ABx has already discovered many bauxite deposits and new discoveries are still being made as knowledge and expertise grows.

The company's bauxite is high quality and can be processed into alumina at low temperature - the type that is in short-supply globally. Global resources declared to date are 68 million tonnes. At the company's first drilling prospect in Inverell, northern NSW, an interim resource of 35 million tonnes has been reported from drilling 15% to 20% of the area prospective for bauxite and a resource of 25 million tonnes of bauxite has been reported at the Taralga project in southern NSW. 6 million tonnes maiden resource was declared at Guyra. Results from the Binjour Plateau in central QLD confirm that ABx has discovered a significant bauxite deposit including some bauxite of outstandingly high quality. Australian Bauxite Limited aspires to identify large bauxite resources in the Eastern Australian Bauxite Province which is emerging as one of the world's best bauxite provinces.

ABx has the potential to create significant bauxite developments in three states - Queensland, New South Wales and Tasmania. Its bauxite deposits are favourably located for direct shipping of bauxite to both local and export customers.

Contact:

 
Australian Bauxite Limited
T: +61-2-9251-7177
F: +61-2-9251-7500
WWW: www.australianbauxite.com.au
 

Source:

Australian Bauxite Limited

Copyright (C) 2012 ABN Newswire. All rights reserved.

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