Queensland Bauxite (ASX:QBL) is moving ahead on a number of fronts at the South Johnstone Bauxite Project in north Queensland, with plans to upgrade the existing JORC initial Inferred Resource as well as receiving more enquiries for off take.
Shares in the company are likely to firm on the news.
The upgrading of the initial resource to Indicated & Measured category would feed into a scoping study and feasibility study to look at mining options at the project.
Intriguingly, the company had said it had received "further unsolicited approaches in regard to potential off take."
Initial and preliminary discussions with potential off takers have commenced it said.
Also notable the company was looking to obtain additional bauxite tenements on the east coast of Australia given the strong outlook for bauxite at present.
Preliminary discussions had been held with regards to Port options for the potential export of the resources in the project area. These were positive the company said toward developing a "significant bauxite export business."
Higher grade zones
In addition work will identify within the resource area higher grade zones that could form part of a large higher grade resource of the types of grades that should be able to attract significantly higher prices on the international export market.
Parts of the existing resource returned available alumina results of approximately 32% and reactive silica results at less than 2%. Which at a ratio of over 16:1 available alumina to reactive silica would be an attractive ore for many refineries.
The company will be working towards calculating and proving resources of that higher quality within the wider resource areas to increase even further the company's potential export options.
In addition as noted previously the company said it was confident based on results to date that the bauxite ore is primarily gibbsite which is the most desirable of bauxite ores for processing in refineries.
Off take interest is continuing to be strong. In addition, initial port discussions appear to be positive.
In this, QBL is blessed with closeness to a deep water port as well as vicinity to Asian markets which would stand the project in good stead on the potential Capex costs as well as Opex costs for an export operation.
Strong progress is apparent on a number of fronts.
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