Page 14 - Bauxite Resources Annual Report 2014

FORTUNA (BRL100%)
Bauxite Resources Ltd has focused on the development of the
Fortuna resource for which the Company has sole rights.
The Fortuna bauxite resource is located on private farmland
near the regional town of Wundowie, Western Australia,
with excellent road access to Perth, existing heavy rail
approximately 15km away, and Kwinana Port approximately
120km from the project area. BRL retains 100% beneficial
interest in the resource.
The resource estimate was updated in September 2013 and
again in June 2014. Critically, a portion of the resource is now
classified as Indicated Category. The deposit extends across
an area of 658 Ha (6.58km2), displaying a bauxite horizon of
up to 12m in thickness, typically covered by 0.5m - 2m of
loose overburden. The resource displays low reactive silica,
and a high available alumina to reactive silica ratio, properties
desirable for alumina refining.
The lateral extent of mineralisation has not yet been tested by
drilling and therefore is not considered to be closed off.
The Company determined that the Fortuna resource is at a
scale that could potentially support stand-alone development
and commenced studies to assess the viability of establishing
a DSO operation.
During the reporting period the Company commissioned
a flora, vegetation and fauna survey of the land where
the Fortuna deposit is located. No flora listed under the
Environmental Protection and Biodiversity Conservation Act
(EPBC) or gazetted as Threatened Flora under the Wildlife
Conservation Act were observed during field assessment, nor
was any conservation significant fauna. A Level Two survey
including spring time assessment will be required to support
any future mining proposal application.
A concept study is currently underway covering the geology,
mining, infrastructure and economics of the Fortuna Bauxite
Project based on a 2-4 million tonne per annum DSO
operation. At the same time a technical marketing evaluation
has commenced to target specific Chinese refineries on a
value in use basis.
The commercialisation of the Fortuna deposit is a key strategy
and focus for BRL with a development timeframe from now,
subject to economics, regulatory approvals and final investment
decision, of three years. Planned future activities include:
• Environmental Baseline studies – Q4 2014
• Commence Offtake discussions – Q4 2014
• Community Consultation – Q4 2014
• Infill/Expansion drilling at Fortuna – Q1 2015
• Preparation and submission of Mining Proposal –
Q1-Q2 2015
• Feasibility Study to support final investment decision –
Q3-Q4 2015
JORC
classification
Quantity
(Mt)
Al 2O3 %
(total)
Al2 O3 %
(available
at 148°)
SiO 2 %
(total)
SiO 2 %
(reactive
at 148°)
Measured - - - - -
Indicated 6.3 40.2 34.0 5.7 1.9
Inferred 33.9 38.5 31.8 5.6 1.7
Total 40.2 38.8 32.1 5.6 1.8
Details of the Fortuna resource (June 30, 2014). Note: all grades are unbeneficiated
12 | Bauxite Resources Annual Report 2014