Cape Alumina (ASX: CBX) has doubled the inferred resource at its Bauxite Hills project on Cape York, Queensland, to 60 million tonnes of bauxite and will proceed with a pre-feasibility study.
The company is working to start production from late 2014 when demand for bauxite in Asia is expected to pick up.
The Bauxite Hills resources, which are of in-situ, high-quality, export-grade bauxite, are expected to be very shallow, free-digging deposits with extremely low strip ratios.
The project to yield 42 million tonnes of beneficiated, dry-product bauxite at average grades of 51.6% alumina and 9.5% silica.
Cape Alumina added the underlying layer of low monohydrate bauxite at the BH1 area would attract a premium from producers operating low temperature refineries.
Further exploration and development drilling is planned for the 2012 dry season.
The pre-feasibility study will cover environmental studies; mine planning and scheduling; capital and operational costs; beneficiation process options; and transhipment options.
The Bauxite Hills mine and port project is situated 95 kilometres north of Weipa on Queensland’s Cape York Peninsula and five kilometres south-east of the port at Skardon River. Western Cape York is world-renowned for its deposits of high-quality, export-grade bauxite.
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