THE BOURSE WHISPERER: Bauxite development company, Australian Bauxite Limited (ASX: ABZ) has completed investigative drilling as part of the due diligence process in respect to the acquisition of Mining Lease ML80126.
The mining lease is located 25 kilometres south of Mundubbera and 155 kilometres southwest of Bundaberg Port in central Queensland.
Australian Bauxite tenements in Central Queensland, including ML80126 and the Binjour project. Source: Company announcement
Australian Bauxite said the drilling has enabled it to confirm the Inferred Resource of bauxite identified is 3.5 million tonnes.
The company said establishing the resource size provides it with the consideration for concluding final agreements to purchase the mining lease.
This will also allow the company to commence early mine production to supply, what it described to be “the currently-buoyant bauxite market”, which it considers to be currently seriously short of this type of gibbsite bauxite.
Australian Bauxite indicated the granted, long-term mining lease ML80126 may be a fast-track route to the commencement of the company’s Binjour bauxite project located 115km southwest of Bundaberg Export Port.
“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,” Australian Bauxite chief executive officer Ian Levy said in the copany’s announcement to the Australian Securities Exchange.
“Production from this mining lease may commence early and kick-start the large Binjour project several years earlier than we previously thought.”