Cape Alumina achieves 28 MT maiden JORC Inferred Resource for Bauxite Hills

 

 

This represents a major milestone for the Bauxite Hills mine and port project as Cape Alumina continues to develop its second major project in the western Cape York bauxite province, Queensland.

 

 

The project’s resource base is expected to increase significantly based on further assay results from the extension drilling undertaken at BH1 and the exploration of BH2 and BH6 deposits due to be released in early 2012.

 

 

The bauxite in the project area is proving to be high quality and export-grade and is in line with the company's expectations. The project is strategically located close to the Asian markets.

 

 

Cape Alumina believes the area is set to become the world’s largest source of export bauxite which is estimated to contain over 3 billion tonnes.

 

 

Rio Tinto Alcan has been the only Weipa bauxite producer for over 50 years and remains the only exporter of Australian bauxite. The company is bullish that the resource at BH1 will have a very high conversion to a reserve will be able to develop a major export operation in the coming years.

 

 

Demand for bauxite is expected to increase over the coming years, especially for the Bauxite Hills products as the bauxite at BH1 appears to include bauxite zones suitable for both high and low temperature refineries, but more analysis will be required to determine the split between the products.

 

 

The Bauxite Hills mine and port project is situated 95 kilometers north of Weipa on Queensland’s Cape York Peninsula and 5 kilometers South East of the port at Skardon River. Western Cape York is world renowned for its deposits of high quality, export grade bauxite.

 

 

The company is planning a reconnaissance and hand auger sampling program at the project’s BH7 plateau, scheduled to start in early December. Detailed environmental studies for the Bauxite Hills project are underway, and community engagement with Traditional Land Owners is ongoing. Planning has also begun for an infill drilling program for the 2012 dry season.

 

 

Further assay results of the near-surface, pisolitic, bauxite rich units from resource extension drilling undertaken at BH1 and the exploration of the project’s BH2 and BH6 deposits are due to be released early next year and are expected to significantly increase the project’s resource base.