Click a tenement on the map for detailed information

The ABx Project Tenements consist of 29 tenements and applications for license covering 7,000km2 across four states.  All areas contain identified areas of bauxite mineralisation. All tenements are new, with the oldest having been granted in December 2007.

Key factors for the potential economics of bauxite developments are bauxite quality, volume (thickness) and logistical-infrastructure setting, including proximity to port.

Drilling Program
The 2010 drilling program commenced in April 2010.  After 3 months of drilling, as at rig-shutdown on 15 July, approximately 430 holes totalling 4,250 metres of air-core sampling had been completed.  The program is ahead of schedule, the target being 1,000 holes by 3 December 2010.  The program was accelerated due to

• drill rig speed and simplicity
• few delays due to weather and rig maintenance and
• no land access delays.

The program objective is to first identify the bauxite layer and better define its boundary. Then, additional holes are drilled to test for the consistency of the bauxite.

Landholder support has been positive in all areas.

Samples from all drilling completed in the June quarter have been submitted to for analysis.

Results to date have been satisfactory, in line with expectations and in some places, better than expected. 

ABx Timetable at July 2010 - weather and access permitting

Drilling Results

High Quality
Generally, initial bauxite samples indicate relatively low reactive silica content and relatively high proportion of tri-hydrate gibbsite (Al2O3, 3H2O), which is the most valuable alumina ore mineral, being suited to low temperature processing to recover alumina. Iron content is typically elevated but some areas represent low iron bauxite targets.

Iron Reduction
In some of ABx’s bauxite areas sampled to date, the iron occurs as relatively coarse-grained, discrete iron mineral grains so that removal of iron by simple, cheap physical simple processing methods is possible.

Thickness
Some areas are known to contain thin bauxite layers however the first area tested at Inverell has drill-proven thicknesses of more than 9.5 metres with drill indications that typical thicknesses range from 5 to 7 metres. This is relatively thick, high quality bauxite.

Targets
ABx has an objective to locate in eastern Australia, several deposits or groups of deposits containing 100 to 200 million tonnes of premium export-quality bauxite in several development zones; each zone with established transport links to major export ports.

ABx TENEMENTS

Tenement No	Project	Size Sq km
New South Wales
ABx1 Pty Ltd
EL 6997	Inverell	297
EL 7268	Pindaroi	138
EL 7361	Guyra	300
EL 7344	Yarrowitch	279
ELA 3626*	Merriwa	1,272
ABx2 Pty Ltd
EL 7269	Windellama	270
EL 7279	Wingello West	21
ELA 4038**	Wingello Extended	39
EL 7357	Taralga	300
EL 7360	Trundle	252
ELA 4024**	Trundle Extension	228
ELA 3740*	Bungonia	276
EL 7546	Penrose	33
		3,705
Queensland
ABx3 Pty Ltd
EPM 17790	Hampton	336
EPM 17800	Red Hill	300
EPM 17801	Red Hill South	300
EPM 17830	Haden	264
EPM 17831	Hillgrove	267
EPM 18014	Binjour	150
EPMA 18772**	Binjour Extension	123
		1,740
Tasmania
ABx4 Pty Ltd
EL 4/2010**	Evandale	197
EL 5/2010**	Powranna	234
EL 6/2010**	Cleveland	209
EL 7/2010**	Conara	238
EL 8/2010**	Cranbrook	220
EL 9/2010**	Deloraine	224
EL 14/ 2010**	Myalla	80
EL 13/2010**	Mawbanna	39
		1,441
Victoria
ABx5 Pty Ltd
EL 5279	Rokeby	153
		153
TOTAL  KM2		7,039
* Offered ** Application pending

 

Inverell EL 6997
Program Update to June 2010: 
162 holes completed; Average bauxite thickness 4.8 metres;
maximum thickness 9.4 metres

Total drilling completed at Inverell in 2009 and 2010 is 280 drillholes totalling 3,400 metres averaging 4.8 to 5.4 metres of bauxite thickness.

The thickest bauxite intercept in the 2010 drill campaign has been 9.4 metres – a similar result to the 9.5 metres maximum thickness encountered in the 2009 drill campaign at the southern end of the tenement.

Results at Inverell are confirming that the main deposits have the shape and high degree of consistency that was originally interpreted for these deposits. Barring any unexpected surprises in the assay results, which are still awaited, the Inverell deposits are relatively consistent and very extensive.

Inverell is now moving into a resource estimation stage.  The deposits are relatively consistent and very extensive. A major resource drilling program is considered the likely next step for this substantial bauxite resource area.

A Review of Environmental Factors was submitted to the Department of Industry and Investment and approval obtained to drill a further 780 holes over the next 3 years (in association with Pindaroi).

Previous resource indications:
Thick bauxite layer with indicative bauxite grades of:

• Raw: 35 – 55% total Al2O3
• Screened: 30 – 50% total Al2O3
• Screened 30 – 45% available Al2O3
• 1.5 – 9% total SiO2
• screened 1.0 – 3.5% SiO2
• approximately 85% of the silica is reactive.

A maiden resource of 22 million tonnes has been reported in Inverell from drilling less than 10% of the identified bauxite deposit. Very encouraging results were received from an accelerated program in 2009, designed to confirm a 200-300 Mt regional resource target. Bauxite has been confirmed in 75% of holes drilled, which is line with expectations for this extensively mineralised area. Average bauxite thickness is about 5.4 metres as logged, similar to average thickness of the maiden resource.

Premium quality bauxite is being targeted to offset the long transport required.

Pindaroi EL 7268
Program Update to June 2010: 
18 holes completed; Average bauxite thickness 5.5 metres;
maximum thickness 12 metres

The thickest bauxite intercept of 12 metres is quite remarkable and the fact that this is the same maximum thickness that was estimated from detailed mapping is considered encouraging.

Pindaroi has potential for large tonnage deposits.  Results have exceeded expectations – 12 metres of bauxite is uncommonly thick and the resource tonnage potential is high.
Activity is April and May was the first drill testing of Pindaroi.  The next likely step is second-pass infill drilling to assess continuity of thickness and grades.

A Review of Environmental Factors was submitted to the Department of Industry and Investment and approval obtained to drill a further 780 holes over the next 3 years (in association with Inverell).

Previous resource indications:
Thick bauxite layer with indicative bauxite grades of:

• Raw: 35 – 55% total Al2O3
• Screened: 30 – 50% total Al2O3
• Screened 30 – 45% available Al2O3
• 1.5 – 9% total SiO2
• screened 1.0 – 3.5% SiO2
• approximately 85% of the silica is reactive.

Guyra EL 7361, Yarrowitch EL 3644 & Merriwa ELA 3626: Outcrops of massive cemented bauxite layers have been found during initial reconnaissance trips.  Each tenement is close to rail lines.

Trundle ELA 3661: Outcrops of pisolitic and non-pisolitic bauxite surrounded by areas of no outcrop. Pisolites are pea-sized rounded nodules. Trundle lies inland but close to the major transnational rail line.

Taralga EL 7357, Windellama EL 7269, Bungonia ELA3740, Wingello West
EL 7279 & Penrose ELA 3774:
In June a Review of Environmental Factors was submitted to the Department of Industry and Investment for Windellama and is under consideration.

The tenements demonstrate outcrops of pisolitic bauxite underlain by non-pisolitic bauxite in Tertiary Volcanic areas.

Groups of outcrops of pisolitic bauxite underlain by non-pisolitic bauxite in Tertiary Volcanics have been found during initial reconnaissance trips. All within short haulage distance of the rail line to Port Kembla export port.

Red Hill EPM 17800 & EPM 17801: Outcrops of massive cemented bauxite layers in a Tertiary Volcanic area similar to those in EL 6997 at Inverell, NSW.

Haden EPM 17830
Program Update :
Drilling completed July; Bauxite thickness 3 to 5 metres; maximum thickness 10 metres

A new deposit colloquially called “Steam Engine” has recently been discovered near Haden, 15kms to the northwest of the Pechey-Geham deposits at Hampton. The new deposit averages 3 to 5 metres thick and up to 10 metres in places – still being drilled.

Land Access
This major bauxite drilling program is proceeding without interruption and with a 100% approval by landholders of the drill site rehabilitation work done by the ABx field crew. Landholder support has been positive in all areas, which has been gratefully acknowledged by ABx in local media, including the company statement that; “We pride ourselves in our dealings with landowners and we will become good corporate citizens in any region we work in.”

Because ABx is not limited to one or two project areas it is able to avoid land access risks such as native title, local landholder resistance or environmental legislation.

Hampton EPM 17790: Bauxite in thick red soil on a 3 kilometres wide plateau. Whilst close to Brisbane Port, alternative transport options warrant consideration.

Program Update to June 2010: 
125 holes completed; Average bauxite thickness 5.6 metres;
maximum thickness 13 metres

The Geham deposit is a relatively consistent bauxite layer whilst Pechey deposit has two layers. Laboratory results are awaited from this large program and assessments will commence in August.

Results at Pechey and Geham in the Hampton EPM tenement area in southern Queensland have confirmed that Pechey deposit and Geham deposits combined may contain a large tonnage of bauxite. However, early drilling results from the newly discovered “Steam Engine” bauxite deposit in the Haden EPM tenement area confirm that this area has abundant bauxite potential.

Hillgrove EPM 17830 & EPM 17831: Outcrops of a massive cemented bauxite layer.

Binjour EPM 18014: Bauxite in thick lateritic red soil profile developed on a wide plateau.
Material be transported to Gladstone via an old rail line that could be rehabilitated.

Program Update to June 2010: 
57 holes completed; Average bauxite thickness 5.3 metres;
maximum thickness 13 metres

A first-pass reconnaissance drilling program of 57 holes totalling 1,142 metres has been completed at Binjour Plateau and a flat-lying, relatively consistent bauxite horizon has been discovered, averaging 4.2 to 5.3 metres thick, with a maximum thickness of 13 metres. This set of results exceeded the company’s expectations for bauxite thickness but grade information is still awaited from the laboratory.

A second-pass drilling program is underway so that a second plateau with bauxite can be tested and to do some infill drilling so that continuity of thickness and grades can be assessed for both areas. Bauxite at Binjour is extensive and the prospect is proving to be encouraging, thus justifying additional drilling.

Binjour has the potential to be a project worthy of early development.