Australian Bauxite Limited (ASX:ABZ) 3.5 Million Tonnes Maiden Resource - Granted QLD Mining Leas

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Sydney, Australia, Dec 3, 2012 - (ABN Newswire) - Bauxite development company, Australian Bauxite Limited (ASX:ABZ.AX - News) has completed investigative drilling as part of its due diligence with respect to Mining Lease ML80126, located 25 km south of Mundubbera and 155 km southwest of Bundaberg Port in central Queensland (see Figure 1). ABx confirms that the Inferred Resource of bauxite identified is 3.5 Million tonnes.

Establishing the resource size provides the resource size consideration for concluding final agreements to purchase the mining lease and commence early mine production to supply the buoyant bauxite market, which is currently seriously short of this type of gibbsite bauxite.

This granted, long-term mining lease ML80126 may be a fast-track route to the commencement of ABx's large Binjour Bauxite Project located 115 km southwest of Bundaberg Export Port, Queensland - see Figure 1.

Strategically significant

ABx CEO, Ian Levy said; "The discovery of a good bauxite deposit on this granted long-term Mining Lease is one of the final jigsaw pieces in establishing the first modern bauxite business in Australia since the 1960s. Production from this mining lease may commence early and kick-start the large Binjour Project several years earlier than we previously thought."
Summary of Resource

A gibbsite-rich bauxite layer, 1 to 7 metres thick, totalling 5 million tonnes has been discovered beneath a shallow layer of soil and overburden red clay at the Toondoon Mining Lease ML80126. A total of 14 drillholes totalling 186 metres were drilled and revealed a consistent, continuous deposit (see Figure 2) and enabled the estimation of an Inferred Resource.

Two estimates based on two cut-off grades were competed and are reported in Table 1 (refer to link below).

Raw In-Situ DSO Bauxite

It is common to commence operations based on those bauxite zones that contain bauxite in the ground ("in-situ") that is "DSO Bauxite" which can be exported directly (see definitions) and to stockpile the bauxite that requires screening for processing in later years. Approximately 50% of the bauxite meets DSO grades and requires no upgrade.

The estimate of DSO Bauxite is approximately 50% of the bauxite deposit as reported in Table 2 (refer to link below).

PROJECT DESCRIPTION

Location and Infrastructure

The North Burnett region of Central Queensland has rural infrastructure, with regional highways passing through the bauxite areas, connecting to an export port at Bundaberg, which has ample spare port capacity (Figure 3). Shipping into and out of Bundaberg Port is via deep, sandbottomed shipping channels connected to the eastern Australian deepwater shipping lanes and does not pass over any part of the Great Barrier Reef or ecologically sensitive seafloors.

There is a well-developed state electric power grid and ample water supplies.

Natural gas pipelines connect from the Surat Basin to Gladstone through this district.

Coal mining occurs to the north and south of this region and there are several mineral deposits being assessed in the region.

There are well-established regional population centres at Mundubbera and Gayndah and ABx's large Binjour bauxite project is located between these two regional centres (see locations in Figure 1).

Gladstone (see Figure 4 below) is a major bauxite processing centre with two alumina refineries and an aluminium smelter. Gladstone is a major mineral port (coal, bauxite, coal seam gas, chemicals) that services the Queensland Alumina Limited (QAL) and Yarwun alumina refineries and Australia's largest aluminium smelter at Boyne Island. Both alumina refineries and the Boyne Island aluminium smelter at Gladstone are operated by Rio Tinto Alcan.

This part of Queensland has major steel fabrication and heavy machinery workshops as well as highly experienced contractors in earth moving, mining, transport and construction.

In summary, the ABx bauxite project areas in central Queensland are supplied with power, water, communications and transport infrastructure, near well-serviced industrial centres and near to two efficient export ports that operate all year round without seasonal interruptions.

Environmental Setting

ML80126 is a fully-granted, long-term Mining Lease located in an area that is unaffected by Queensland's strategic cropping land maps.

The Mining Lease is unlikely to be affected by socio-environmental impediments.

View the full Australian Bauxite announcement including Tables and Figures at the link below:
http://media.abnnewswire.net/media/en/docs/ASX-ABZ-710089.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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