Progress Report on South Johnstone Project – 10 September 2014
The Scoping Study is proceeding to assess the potential economic viability of the development of a bauxite mining operation at South Johnstone.
This study is being undertaken by an independent consultant and will produce capital and operating cost estimates for the major facets of the South Johnstone project.
Site visits have taken place which included discussions with relevant landowners, ports, councils and other authorities and to date they have all been favourable towards the development of the project.
The Scoping Study is anticipated to be completed in September/October 2014.
Drilling has recommenced at South Johnstone and seeks to upgrade the Inferred Resource inventory. Results will be released when at hand.
The completion of the Scoping Study will further strengthen the Company’s position in the discussions with potential off-take partners.
Update on South Johnstone Bauxite Project – 18 August 2014
Work is continuing at the South Johnstone Project in north Queensland.
A number of activities are being progressed that aim to deliver positive outcomes at the Project.
The Scoping Study is expected to be completed within the next six to eight weeks.
Quarter Activities – June 2014
Queensland Bauxite has been focused on defining significant bauxite resources to enable a feasibility study to be undertaken to develop a bauxite mining and export operation.
With the recent confirmed bauxite discovery at South Johnstone, the Company is evaluating the economics of developing a DSO bauxite export operation.
The Company is engaging independent consultants to prepare a scoping study to provide baseline data on development options.
The Company is currently looking at the potential economics of mining and shipping through Mourilyan Port.
CRU Group Bauxite Insight
CRU Group’s Insight article points to the major opportunities for bauxite producers in light of Indonesia’s ban on export of unprocessed minerals. The main points are as follows:
1. The ban is not temporary and import-based refineries in China are becoming increasingly concerned about future bauxite supplies.
2. Major opportunities exist for bauxite projects, particularly in Australia.
3. CRU predicts strong bauxite price growth and additional value generation in both bauxite and alumina moving forwards.
4. The probability of Indonesia deregulating bauxite exports is small for a number of reasons as outlined in CRU’s analysis paper.
Queensland Bauxite is excited to be at the right place at the right time.
Mining company strikes export deal for iron ore out of Port of Mourilyan