Ord River Resources ticking more boxes at Laos Aluminium Project

Ord River Resources （ASX: ORD） is continuing to make solid progress and build momentum in its feasibility study over its Laos Aluminium Project. ORD holds a 49% interest in Sino Australian Resources （Laos） Co., Ltd （SARCO）, a joint venture company between ORD and China Nonferrous Metal Industry’s Foreign Engineering and Construction Co., Ltd.

In the first week of June, project contractor Sinomine Resource Exploration Co., Ltd. has undertaken significant volume of project work including:

- Topographic Survey

- Built a temporary Camp

- Undertaken past drill hole analysis on 80 holes

- Exploration Drilling for ore blocks 2, 10 and 11; ore block 6 was 15% completed

- Sampling and processing for exploration drilling of ore blocks 10, 11 and 12 were 100 completed

Frank Zhu, coporate development chief at Ord River Resources said "the feasibility study was progressing well and the company would update market on further progress in Laos."

Laos Project ticking all the boxes

The JV partners SARCO 51% and Ord River 49% have managed to tick a significant number of boxes at the project, which they believe has bauxite potential estimated to be to 2 billion tonnes.

The Lao aluminium project has a JORC compliant resource of 130 million tons of quality bauxite resource

and the partners are building a 600,000 ton per annum capacity alumina refinery, which has received strong support from the Lao and Chinese governments.

Which ties in nicely as China represents 32% of the world’s alumina market.  One third of China’s bauxite needs are currently imported.  Laos’s location and large resources render the project attractive to China.  These pertinent facts have perhaps been lost amidst the current equities downturn, as to how important this project potentiall is to China.

A$5.3million feasibility study was commenced on 1 March 2010. The aim is to increase the overall resource and make a recommendation for mining and refinery investment. Ord maintains 49% interest in the JV with SARCO until end of feasibility study. A$500,000 has been set aside for ORD’s contribution to the study in the future. No cash impact in 2010FY.

Importantly, in an independent study valued the project at A$53million.

Ord is in a healthy financial position with A$5.2million in cash and no debt.