06/10/2020 - 16:20

Lindian’s new monster bauxite resource increased

06/10/2020 - 16:20

Bookmark

Upgrade your subscription to use this feature.

ASX-listed West Africa bauxite hopeful, Lindian Resources, has unveiled a 53-million-tonne increase in the resource estimate at the Lelouma bauxite project in Guinea to a monster 900 million tonnes going 45 per cent alumina as the company looks to demonstrate it could be sitting on one of the highest-quality undeveloped bauxite projects in the world.

ASX-listed West Africa bauxite hopeful, Lindian Resources, has unveiled a 53-million-tonne increase in the resource estimate at the Lelouma bauxite project in Guinea to a monster 900 million tonnes going 45 per cent alumina as the company looks to demonstrate it could be sitting on one of the highest-quality undeveloped bauxite projects in the world.

Perth-based Lindian last month entered into an agreement to acquire 75 per cent of the Lelouma project from Sarmin Bauxite. While the deal remains subject to regulatory approvals, Lindian has been busy trawling through extensive historical exploration data and results from a recent – predominantly auger – drilling program totalling 4,033m undertaken by Sarmin to build its confidence in the project.

The updated measured and indicated mineral resource estimate for Lelouma of 900Mt at 45 per cent, up from 847Mt at 45.1 per cent, was prepared for Sarmin by SRK Consulting (UK) Ltd and includes an increased higher-grade component of 398Mt grading 48.1 per cent alumina which contains continuous zones of exceptional quality material of above 50 per cent alumina.

In addition, the low silica content and absence of contaminants within the Lelouma resource may be engendering warm fuzzy feelings among Lindian’s leadership group in relation to the possibility of producing a premium-quality direct shipping ore without the need for processing or beneficiation, for sale to Atlantic and Pacific refinery markets.

Lindian Resources Chief Executive, Danny Keating said: “This mineral resource estimate confirms the stunning quality of the Lelouma deposit with both the increase in the resource from 847Mt to 900Mt and defining an exceptional high-grade portion. The ability to rapidly define a measured mineral resource demonstrates the value of the historical data that was acquired as part of the Lelouma transaction.”

“The measured mineral resource gives confidence to the mine planning process, as well as for our work with alumina refineries who are seeking long-term supply of high-quality bauxite. Management will now focus on the joint road and rail infrastructure options for the combined development of the Gaoual and the Lelouma projects.”

Lelouma is located only 40km from Lindian’s existing very high-grade Gaoual conglomerate bauxite project, with both projects within haulage distance of existing rail infrastructure and shipping ports.

The company is currently assessing the merits of a couple of development options, including an ore-combination strategy encompassing a blending of Gaoual’s high-grade alumina ore with the low-silica Lelouma alumina ore to supply an optimal range of bauxite sales products to alumina refineries.

The company is also looking at possible stand-alone developments. Top of mind will be the most CAPEX and operating cost-efficient development given Gaoual’s proximity to existing infrastructure.

Guinea, which has a mature mining industry, is renowned for its bauxite deposits hosting about one-third of the world’s bauxite reserves.

Gaoual is located in north-western Guinea about 80 km north-east of the Sangaredi mining centre. It hosts the same type of conglomerate ore initially discovered at the Tier 1 Sangaredi bauxite deposit, which is owned by CBG, Guinea’s largest bauxite producer for the past 30 years.

Lelouma lies about 100km north-east of Sangaredi. The rail line from Sangaredi runs a further 100km south-west through to the Kamsar port and the Kamsar alumina refinery on Guinea’s coast, presenting a clear pathway to potential processing and shipping facilities for Lindian.

Is your ASX listed company doing something interesting? Contact: matt.birney@businessnews.com.au 

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options