Bauxite
Resources (ASX: BAU)
ASX
RELEASE
27
January 2009
MINING TO COMMENCE AT
BRL?S SOUTH DARLING
RANGE BAUXITE PROJECT
HIGHLIGHTS
- Trial bauxite mining
scheduled to commence in February 2009 at South Darling Range Project
initially targeting 160,000 tonnes of DSO (Direct Shipping Ore)
quality bauxite
- Follows on from initial
JORC compliant Inferred Resource comprising 18.2 million tonnes at 43.1%
Total Al2O3, 31.6% Available Al2O3
and 3.2% Reactive SiO2.
- Underpinned by recent,
extremely positive drilling results as well as successful negotiations
with landowners and contract miners.
- Ore to be mined under
existing Extractive Industries Licence on private, sub-economic freehold
degraded farmland
- Ore
to be transported through existing infrastructure to a stockpile storage
area close to the Bunbury port for direct loading onto Handimax-class
ships.
Perth-based bauxite explorer Bauxite
Resources Ltd (ASX: BAU, ??BRL??) is pleased to announce that it will
commence bauxite mining at its South Darling Range Project, located
directly east of Bunbury, in mid to late February 2009, as the Company?s Direct
Shipping Ore (DSO) development strategy out of the Bunbury Port begins to ramp
up.
The decision to mine follows receipt
earlier this month of an initial JORC compliant Inferred Resource
comprising 18.2 million tonnes at 43.1% Total Al2O3,
31.6% Available Al2O3 and 3.2% Reactive SiO2
relating to the company?s North Darling Range Project. Recent, extremely
positive drilling results as well as successful negotiations with landowners
and contract miners have also underpinned the decision to commence mining.
BRL will initially undertake a trial
mining operation targeting 160,000 tonnes of bauxite (approximately four
shiploads) which will be transported to a stockpile storage area close to the
Bunbury port for direct loading to the ship loading conveyor and subsequent
loading onto Handimax-class ships.
The bauxite will be extracted from areas
of private, sub-economic freehold degraded farmland where earlier drill results
have indicated bauxite mineralisation at surface, with better results of total
AL 203 at 43% and reactive silica averaging 3%.
The South Darling Range Project lies
approximately 25km east of the Bunbury Port and forms part of BRL?s extensive
11,000 square kilometre tenement holdings in the Darling Range?s, Perth.
Commenting on the decision, BRL?s Managing
Director, Mr Daniel Tenardi, said: ?The decision to begin trial mining is a
very important milestone for the Company and will provide us with the early
cash flow required to fast track our full-scale development plans for a
sustainable +3Mtpa DSO bauxite operation.
?I think a lot of people would be very
surprised at how far we?ve come in such a short space of time and for a junior
company such as ourselves to be on the verge of production is a direct
consequence of the hard work and commitment of everyone involved with BRL.?
-ENDS-
For more information please contact:
Mr Dan
Tenardi
Mr Brad Farmer
Managing
Director
Public Affairs
Ph: +618 9221
5019
Ph: +618 9221 5019
Mobile:
0409 106 022
Mobile:
0413 031 870
email: dtenardi@bauxiteresources.com.au
email:
bfarmer@bauxiteresources.com.au
BACKGROUND
Bauxite Resources Limited was founded in May 2006
for the purpose of securing tenements over land deemed prospective for bauxite
mineralisation. BRL listed on the ASX on 22 October 2007 after closing
its A$7.5 million IPO early and oversubscribed.
The Company is establishing itself in the bauxite and alumina
industries in Western Australia
and is the only ASX-listed junior bauxite explorer in the highly prospective Darling
Range. This area in Western
Australia is acknowledged as the largest
producing alumina region in the world supplying approximately 18% of the
world?s alumina and the location of Alcoa?s Huntly Mine, the largest producing
bauxite mine in the world. The Darling Range is also the site of four alumina
refineries; three of these are in the top five for lowest operating costs
globally which is principally due to the gibbsite composition of the Darling
Range bauxite, and it?s low reactive silica.
To date, the WA-owned Company has applied for 60 tenements
in the four project areas of North Darling Range, South Darling Range, East
Darling Range and Kimberley.
The Darling Range tenements cover over 11,000km2 and the Kimberley
tenements cover approximately 1,100km2.
Bauxite Resources recently defined a maiden JORC compliant
Inferred Resource comprising 18.2 million tonnes at 43.1% Total Al2O3,
31.6% Available Al2O3 and 3.2% Reactive SiO2
and is targeting development of a >3Mtpa DSO bauxite project. In the longer
term the Company is reviewing opportunities for the development of an alumina
refinery and possible smelter.
The recent signing of MOU?s with state-sanctioned Chinese
interests has further strengthened BRL?s firm position as an emerging and
significant resource entity.
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In accordance
with the Australian Stock Exchange requirements, the technical information
contained in this report has been reviewed by Mr. Neil Lithgow, a director
of the company. The information in the report to which this statement is
attached that relates to Mineral Resources and Mineralisation is based on
information reviewed by Mr. Lithgow, who is a Member of the Australasian
Institute of Mining and Metallurgy. Mr. Lithgow has sufficient experience
which is relevant to the style of mineralisation and type of deposit under
consideration and to the activity which he is undertaking to qualify as a
Competent Person as defined in the 2004 Edition of the "Australasian
Code for Reporting of Exploration Results, Mineral Resources and Ore
Reserves.? Mr. Lithgow consents to the inclusion in the report of the
matters based on this information in the form and context in which it
appears.
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