Cape Alumina has doubled the inferred resource at its Bauxite Hills project on Cape York, Queensland to 60 million tonnes of bauxite and will proceed with a pre feasibility study. The company is working to start production from late 2014 when demand for bauxite in Asia is expected to pick up.
The Bauxite Hills resources which are of in situ, high quality, export grade bauxite are expected to be very shallow, free digging deposits with extremely low strip ratios. The project to yield 42 million tonnes of beneficiated, dry product bauxite at average grades of 51.6% alumina and 9.5% silica.
The underlying layer of low monohydrate bauxite at the BH1 area would attract a premium from producers operating low temperature refineries. Further exploration and development drilling is planned for the 2012 dry season.
The pre feasibility study will cover environmental studies; mine planning and scheduling, capital and operational costs; beneficiation process options and transhipment options.
The Bauxite Hills mine and port project is situated 95 kilometers north of Weipa on Queensland’s Cape York Peninsula and 5 kilometers south east of the port at Skardon River. Western Cape York is world renowned for its deposits of high quality, export grade bauxite.
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