Busy quarter for Bauxite Resources

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THE BOURSE WHISPERER: It was a busy June quarter for Australian bauxite exploration play Bauxite Resources with the announcement of two maiden resources.

The two resources have increased the company’s total bauxite resource to 24.8 million tonne at 41.1% Total Alumina, 30.6% Available Alumina with 3.9% Reactive Silica.

All of these resources are within the company’s Joint Venture with Yankuang Resources, a wholly owned subsidiary of Yankuang Group.

Bauxite Resources retains 30% ownership of any bauxite resource and 100% of any other minerals.

The company has also had 13 new exploration licences granted in Western Australia, resulting in 40% of its Darling Range tenements being granted.

The company has completed exploration drilling and resource modelling on a number of new areas with maiden resources modelled in Juturna, Cardea and Minerva.

Bauxite Resources now has eight separately identified bauxite deposits in the northern portion of its southwest Western Australian project area: Aurora, Rusina, Juturna, Cardea, Minerva, Vallonia, Pomona and Concordia.

Four maiden resources have been announced from this inventory with a further two due for release in the September quarter.

The company said it expects to receive further updates to resources at Rusina, Cardea, Pomona and Minerva in the December quarter.

The Cardea deposit is the only one of these deposits that does not sit within the company’s Joint Venture with Yankuang.

Cardea is part of the Joint Venture the company shares with Shandong No1 Bureau of Geology & Mineral Exploration, which can earn up to 60% of bauxite rights by sole funding of exploration to bankable feasibility status.

Bauxite Resources also received a pleasant cash sum of $9 million as reimbursement in accordance with the Alumina Refinery and Bauxite Resource joint venture agreements signed with Yankuang.

The payment of this final reimbursement amount triggers the earning by Yankuang, of a 70% interest in the bauxite rights in the nominated joint venture tenements, both pending and granted, held by Bauxite Resources in the Darling Range.

Bauxite Resources is currently holding $53 million cash as well as substantial property, plant and equipment assets.