Emerging bauxite development company, Australian Bauxite Limited has bauxite tenements totalling more than 7,500 square kilometers covering the core of the Eastern Australian Bauxite Province. ABx considers its Tasmanian Project located within 100 kilometers of Bell Bay Port to be a state significant discovery of a major bauxite province which may come into production ahead of ABx's other mainland projects.
A 2 meters to 8 meters thick surface layer of gibbsite rich, low silica bauxite occurs in moderate sized blocks over the Tasmanian northern midlands area in the hinterland of Bell Bay where Australia's first alumina refinery and first aluminium smelter were established. In early 2012, ABx identified bauxite in Tasmanian locations which are suitable for production. Drilling commenced in late August and will continue throughout 2013 to extend the areas of bauxite drill testing. Only 7% of targeted areas have been drilled to date and contain the following maiden resources
The resource is based on 377 holes totalling 2,652 meters averaging 7 meters depth. Typically there is 3.5 to 4 meters of bauxite beneath 0.5 to 2 meters of soil and overburden which will be selectively removed and replaced over mined-out areas to ensure that seeds and soils remain viable. Approximately 50% of the bauxite layer is DSO grade Bauxite2 which can be mined and directly shipped.
However, if bauxite production proceeds successfully other parts of the deposits will be extracted, screened and blended into the stockpile at the port. Once the screening and blending is established, a high quality gibbsite rich bauxite product suitable for low temperature alumina refineries can be exported, probably from Bell Bay, Tasmania.
Central Northern Tasmania has good infrastructure, with operating rail lines and heavy duty haulage highways passing through the bauxite areas, linking directly to efficient operating mineral export ports at Burnie and Bell Bay that have spare port capacity. Tasmania has a well-developed electric power grid based mainly on hydroelectric power and has ample water supplies. Natural gas from the Bass Strait field is distributed throughout Tasmania and there are many well established population centres.
Tasmania has a proud mining heritage. Coal mining occurs in the Fingal Valley area east of the main bauxite areas and large cement works are operating in the area south of Devonport to the west of the bauxite areas. The Bell Bay aluminium smelter is operated by Rio Tinto Alcan.
Central Northern Tasmania has some of Australia's best steel fabrication and heavy machinery workshops as well as highly experienced earth moving, transport and construction contractors.
In summary, the Tasmanian bauxite project areas in central northern Tasmania are supplied with power water, communications and transport infrastructure, near industrial centers serviced by efficient mineral export ports that operate all year round without seasonal interruptions.
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