Bauxite Resources increases Fortuna

THE DRILL SERGEANT: Bauxite Resources (ASX: BAU) has released a Resource upgrade for the company’s Fortuna bauxite deposit in the Darling Range, in Western Australia.

The Fortuna resource has been increased by 47 per cent to 39.5 million tonnes at 37.3 per cent aluminium (28.8 per cent available at 148°C), 5.2 per cent silicon (1.6 per cent reactive at 148°C) (all grades are unbeneficiated).

 

Bauxite Resources and Partner resource growth. Source: Company announcement

 

The company said the increase from the previous resource estimate of 26.8 million tonnes had resulted from the inclusion of an additional 220 vacuum drill holes completed in June and July 2013, and from remodelling previously drilled property following reinterpretation of lower contact of the bauxite horizon.

Bauxite Resources said the low total of silicon in the Resource was also encouraging and it now plans to investigate the impact of high temperature digestion, and the resultant available alumina achieved.

“The 100 per cent Bauxite Resources-owned Fortuna bauxite resource offers the company a variety of opportunities for possible future development,” Bauxite Resources chief executive officer Peter Canterbury said in the company’s announcement to the Australian Securities Exchange.

“The resource is predominantly gibbsitic in nature and displays low reactive silica – attractive attributes for alumina refining.
 
“Alternatively, it may be possible to realise higher available alumina with a higher temperature digest, something the company is currently investigating.

“The resource is shallow with excellent infrastructure nearby.”

The company considers the resource it owns outside its joint venture arrangements can support the commercialisation of this bauxite into the international bauxite market, indicating additional drilling it has planned over the coming nine months at the Fortuna deposit has potential to substantially grow resources further.

Bauxite Resources is moving into a development phase with the evaluation of approvals, logistics and marketing of direct shipment of its 100 per cent-owned bauxite.

Fortuna lies to the southeast of the 147.3 million tonnes Felicitas resource.

The company said the combined resources of the two are now in excess of 180 million tonnes and confirm the northern Darling Range as a significant bauxite province.