Level 3, 33 Ord Street| West Perth WA 6005 | PO Box 186 West Perth WA 6872 t + 61 (8) 9481 4478 | f +61 (8) 9486 4833 | e [email protected] | www.pacificbauxite.com.au ACN: 112 914 459 PACIFIC BAUXITE TO ACQUIRE NEW BAUXITE PROJECT IN SOLOMON ISLANDS Pacific Bauxite Limited (ASX: PBX) (“Pacific Bauxite” or “the Company”) is pleased to announce it has received conditional approval from the Minerals Board of the Solomon Islands Government for the acquisition of the prospective Noro Bauxite Project, in the Solomon Islands. A Prospecting Licence application was made in the name of Australian Pacific Bauxite Pty Ltd, a wholly owned subsidiary of AU Capital Mining Pty Ltd, a joint venture between Pacific Bauxite Limited (50% ownership and operator) and private Australian entities. Conditional approval has now been granted for the Prospecting Licence, which covers the Noro Bauxite Project, situated on the western end of New Georgia Island (see Figures 1 and 2). The Company believes the Noro Bauxite Project is prospective for large tonnage, DSO, bauxite mineralisation. This style of mineralisation provides the opportunity for inexpensive resource definition and potentially a simple, low cost dig-load-ship style mining operation. The conditional approvals provided by the Solomon Island Government include a Letter of Intent which allows the Company to negotiate standard surface access agreements with traditional land owners and stake holders within the licence area. Upon successful completion of surface access agreements, the documents will be submitted to the Department of Mines, Minerals and Rural Electrification for final approval. The Company intends to commence field exploration activities including auger drilling once the Prospecting Licence is granted, which is anticipated to occur in the current quarter. ASX ANNOUNCEMENT 27 APRIL 2017 HIGHLIGHTS Pacific Bauxite to expand its DSO-prospective bauxite project area in the Solomon Islands via acquisition of a new project. The Company’s Solomon Islands JV has received conditional approval for a new Prospecting Licence on the western end of New Georgia Island, known as the Noro Bauxite Project. Pacific Bauxite will now proceed to complete standard land access negotiations with traditional land owners, to enable commencement of exploration. Historic exploration in the area indicates widespread DSO grade bauxite, similar to that being targeted at the Company’s Nendo Bauxite Project. The Noro Bauxite Project has advantageous infrastructure and complements the existing Nendo Bauxite Project. Next phase of exploration at the Nendo Bauxite Project to commence during current quarter – proposed exploration activities at both projects fully funded.
Transcript
Level 3, 33 Ord Street| West Perth WA 6005 | PO Box 186 West Perth WA 6872
t + 61 (8) 9481 4478 | f +61 (8) 9486 4833 | e [email protected] | www.pacificbauxite.com.au
ACN: 112 914 459
ASX ANNOUNCEMENT
27 APRIL 2017
PACIFIC BAUXITE TO ACQUIRE NEW BAUXITE PROJECTIN SOLOMON ISLANDS
Pacific Bauxite Limited (ASX: PBX) (“Pacific Bauxite” or “the Company”) is pleased toannounce it has received conditional approval from the Minerals Board of the SolomonIslands Government for the acquisition of the prospective Noro Bauxite Project, in the SolomonIslands.
A Prospecting Licence application was made in the name of Australian Pacific Bauxite Pty Ltd,a wholly owned subsidiary of AU Capital Mining Pty Ltd, a joint venture between PacificBauxite Limited (50% ownership and operator) and private Australian entities.
Conditional approval has now been granted for the Prospecting Licence, which covers theNoro Bauxite Project, situated on the western end of New Georgia Island (see Figures 1 and 2).
The Company believes the Noro Bauxite Project is prospective for large tonnage, DSO, bauxitemineralisation. This style of mineralisation provides the opportunity for inexpensive resourcedefinition and potentially a simple, low cost dig-load-ship style mining operation.
The conditional approvals provided by the Solomon Island Government include a Letter ofIntent which allows the Company to negotiate standard surface access agreements withtraditional land owners and stake holders within the licence area. Upon successful completionof surface access agreements, the documents will be submitted to the Department of Mines,Minerals and Rural Electrification for final approval.
The Company intends to commence field exploration activities including auger drilling oncethe Prospecting Licence is granted, which is anticipated to occur in the current quarter.
ASX ANNOUNCEMENT
27 APRIL 2017
HIGHLIGHTS
Pacific Bauxite to expand its DSO-prospective bauxite project area in theSolomon Islands via acquisition of a new project.
The Company’s Solomon Islands JV has received conditional approval for a newProspecting Licence on the western end of New Georgia Island, known as theNoro Bauxite Project.
Pacific Bauxite will now proceed to complete standard land access negotiationswith traditional land owners, to enable commencement of exploration.
Historic exploration in the area indicates widespread DSO grade bauxite, similarto that being targeted at the Company’s Nendo Bauxite Project.
The Noro Bauxite Project has advantageous infrastructure and complements theexisting Nendo Bauxite Project.
Next phase of exploration at the Nendo Bauxite Project to commence duringcurrent quarter – proposed exploration activities at both projects fully funded.
Level 3, 33 Ord Street| West Perth WA 6005 | PO Box 186 West Perth WA 6872
t + 61 (8) 9481 4478 | f +61 (8) 9486 4833 | e [email protected] | www.pacificbauxite.com.au
ACN: 112 914 459
ASX ANNOUNCEMENT
27 APRIL 2017
Noro Bauxite ProjectThe Noro Bauxite Project Prospecting Licence application covers an area of 236km² andtargets uplifted limestone reef, analogous in nature to the Company’s lead asset, the NendoBauxite Project, also in the Solomon Islands (ASX announcement, 27 September 2016). TheNoro Bauxite Project is adjacent to commercial port facilities which offer significantinfrastructure advantages for any future export mining operation. The Noro Port canaccommodate Handymax and Supermax bulk cargo ships.
Exploration over much of the tenure is undocumented, however local geologists haveidentified significant exploration opportunity for the Company. This early work demonstratedbauxite occurrences related to an ancient uplifted coral lagoon, similar in style to the Rennell,Nendo and Vaghena bauxite deposits within the Solomon Islands.
Prior exploration by Australian companies in the early 1970’s identified extensive areas ofbauxite mineralisation close to the coast and postulated potential for economic deposits. Thiswork targeted the southern part of the application, north of the town of Munda, and includedseveral hand-auger drilling and test pitting programs (refer to Table 2 for details).
The main historical drilling campaign focused on an area of approximately 3.5km by 1km andincluded 39 auger holes for 101 samples. Substantial tonnages of material were identified, withgrades of between 40% and 45% total Al2O3 and 5% to 10% total SiO2. The tenor of thismineralisation is in line with that expected of DSO bauxite in the Asia-Pacific region andcomparable to that defined at the Company’s Nendo Bauxite Project (Table 1).
Nendo Bauxite Project – Next Phase of Exploration to CommenceThe Nendo Bauxite Project has demonstrated extensive areas of potentially high-grade DSObauxite mineralisation (ASX announcement, 27 September 2016). While much of the projectarea remains unexplored, the Company has delineated an initial priority target area ofapproximately 12km by 2km.
The Company is pleased to advise that its next phase of exploration at the Nendo BauxiteProject will commence in the immediate future.
This phase of exploration will target higher grade areas of bauxite and provide sufficient datato allow determination of an exploration target, and possibly interim resource estimates.Exploration will also continue to test prospective new areas with auger drilling.
Level 3, 33 Ord Street| West Perth WA 6005 | PO Box 186 West Perth WA 6872
t + 61 (8) 9481 4478 | f +61 (8) 9486 4833 | e [email protected] | www.pacificbauxite.com.au
ACN: 112 914 459
ASX ANNOUNCEMENT
27 APRIL 2017
Table 1 – Nendo Bauxite Project average of auger sample resultsfor Field and Lab assays as reported in ASX announcement dated27th September 2016.
Table Notes:Al2O3 = Total AluminaAv_Al2O3 = Available Alumina = Gibbsite Alumina + Kaolinite Alumina =
Low Temperature Desilication ProducttotSiO2 = SiO2 = Total SilicarxSiO2 = Reactive Silica
Figure 1 – Project Locations
Level 3, 33 Ord Street| West Perth WA 6005 | PO Box 186 West Perth WA 6872
t + 61 (8) 9481 4478 | f +61 (8) 9486 4833 | e [email protected] | www.pacificbauxite.com.au
ACN: 112 914 459
ASX ANNOUNCEMENT
27 APRIL 2017
Figure 2 – Noro Bauxite Project Location
Bauxite in the Solomon IslandsThe presence of bauxite in the Solomon Islands has been known since shortly after World WarII. However, until recent mining on West Rennell Island by Asia Pacific Investment &Development Limited (APID), plans to develop these deposits has never proceeded furtherthan bulk samples for pilot plant test work.
Bauxite in the Solomon Islands is predominantly the favoured gibbsite (low-temperature,trihydrate) type of mineralisation. These bauxite deposits typically occur as discontinuouspockets that fill depressions within the uneven karst surface of the uplifted Pliestocene corallimestone basement. Bauxite profile depths vary considerably due to the uneven anddiscontinuous nature of the pockets, which are typically marked by fern clearings and not theusual tropical flora.
Level 3, 33 Ord Street| West Perth WA 6005 | PO Box 186 West Perth WA 6872
t + 61 (8) 9481 4478 | f +61 (8) 9486 4833 | e [email protected] | www.pacificbauxite.com.au
ACN: 112 914 459
ASX ANNOUNCEMENT
27 APRIL 2017
Exploration activity for this style of bauxite deposits has increased significantly in recent years,largely due to the increase in demand for bauxite to feed the growing alumina demand inChina and the Asia Pacific region.
In addition to the mining activity on Rennell Island by APID, Australian company South WestPacific Bauxite Pty Ltd recently received mining approvals for its Vaghena Bauxite Project,located approximately 110km northeast of the Noro Project. The Vaghena Project hasreported JORC 2012 resources of 30.1Mt at 46.9% Al2O3 and 3% total SiO2.
There remains enormous scope to explore and validate historically reported occurrences ofbauxite in the Solomon Islands with a view to establishing a premium grade DSO bauxiteoperation for export into the Asian market.
END
For further information, visit www.pacificbauxite.com.au or contact:
Mark Gwynne James MosesChairman Media and Investor RelationsPacific Bauxite Ltd. Mandate CorporateP: +61 (8) 9481 4478 M: +61 (0) 420 991 574E: [email protected] E: [email protected]
Competent Persons StatementThe information in this report that relates to Exploration Results and Targets is based on information compiled by MrBrett Smith, B.Sc Hons (Geol), Member AusIMM, Member AIG and an employee of Pacific Bauxite Limited. Mr Smithhas sufficient experience that is relevant to the style of mineralization and type of deposit under consideration andto the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the“Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Smith consents tothe inclusion in the report of the matters based on this information in the form and context in which it appears.
Forward Looking StatementsThis announcement contains certain statements that may constitute “forward looking statement”. Such statementsare only predictions and are subject to inherent risks and uncertainties, which could cause actual values, results,performance achievements to differ materially from those expressed, implied or projected in any forward lookingstatements.
Table 2: Checklist of Assessment and Reporting Criteria
Historical Exploration - Noro Project, Solomon Islands27th April 2017
1
Section 1 Sampling Techniques and DataCriteria JORC Code explanation Commentary
Samplingtechniques
Nature and quality of sampling (eg cut channels, random chips, orspecific specialised industry standard measurement tools appropriateto the minerals under investigation, such as down hole gammasondes, or handheld XRF instruments, etc). These examples shouldnot be taken as limiting the broad meaning of sampling.
Include reference to measures taken to ensure sample representivityand the appropriate calibration of any measurement tools or systemsused.
Aspects of the determination of mineralisation that are Material to thePublic Report.
In cases where ‘industry standard’ work has been done this would berelatively simple (eg ‘reverse circulation drilling was used to obtain 1m samples from which 3 kg was pulverised to produce a 30 g chargefor fire assay’). In other cases more explanation may be required,such as where there is coarse gold that has inherent samplingproblems. Unusual commodities or mineralisation types (egsubmarine nodules) may warrant disclosure of detailed information.
Historical Auger Drilling SamplingSeveral exploration campaigns were conducted on the Noro Project inthe early 1970’s by Australian company SOL Explorations Pty Ltd.
This work is recorded in hardcopy reports retained by the Department ofMines, Minerals and Rural Electrification, in Honiara, the SolomonIslands.
Samples were taken from pits (hand dug) or hand auger drills. Typically,the augers were 2 inches in diameter and tested to maximum depths of 8feet. Some of the early reconnaissance augering only tested to amaximum of 3 feet in depth.
Sampled intervals were typically 3 feet maximum.
Samples were shipped to Australian Mineral Development Laboratories(AMDEL) in Frewville, South Australia.
Samples were dried and split and analysed for Total Alumina (Al3O2) andSoluble Silica (SiO2).
Duplicate samples were reportedly stored in Honiara. So possibly therewas a field split of the original whole sample.
Drillingtechniques
Drill type (eg core, reverse circulation, open-hole hammer, rotary airblast, auger, Bangka, sonic, etc) and details (eg core diameter, tripleor standard tube, depth of diamond tails, face-sampling bit or othertype, whether core is oriented and if so, by what method, etc).
Hand auger drilling. An auger drill with 3 foot extension rods (1.5 inchdiameter) and with a spiral steel bit (2 inch diameter).
It is presumed the auger bit was not cased and as such the sample wouldbe subject to contamination from the walls of the drill hole.
Drill samplerecovery
Method of recording and assessing core and chip sample recoveriesand results assessed.
Measures taken to maximise sample recovery and ensurerepresentative nature of the samples.
Information is not available; however, it is accepted that this method ofdrilling and the shallow depths, would result in good sample recoveries.
Table 2: Checklist of Assessment and Reporting Criteria
Historical Exploration - Noro Project, Solomon Islands27th April 2017
2
Criteria JORC Code explanation Commentary
Whether a relationship exists between sample recovery and gradeand whether sample bias may have occurred due to preferentialloss/gain of fine/coarse material.
Logging Whether core and chip samples have been geologically andgeotechnically logged to a level of detail to support appropriateMineral Resource estimation, mining studies and metallurgicalstudies.
Whether logging is qualitative or quantitative in nature. Core (orcostean, channel, etc) photography.
The total length and percentage of the relevant intersections logged.
Samples were logged by a geologist. Information includes colour,moisture, texture and content of the soil material.
Sub-samplingtechniquesand samplepreparation
If core, whether cut or sawn and whether quarter, half or all coretaken.
If non-core, whether riffled, tube sampled, rotary split, etc andwhether sampled wet or dry.
For all sample types, the nature, quality and appropriateness of thesample preparation technique.
Quality control procedures adopted for all sub-sampling stages tomaximise representivity of samples.
Measures taken to ensure that the sampling is representative of the insitu material collected, including for instance results for fieldduplicate/second-half sampling.
Whether sample sizes are appropriate to the grain size of the materialbeing sampled.
Duplicate samples were reportedly stored in Honiara. So possibly therewas a field split of the original whole sample.
There is no record of the methodology for this sampling.
Samples would have been wet/moist until dried in the laboratory inAustralia.
It is assumed the sample grain size of the soil would have been very fineand that the analysis of the sample would have been a good/fairrepresentation of the grade of that sample.
Quality ofassay dataandlaboratorytests
The nature, quality and appropriateness of the assaying andlaboratory procedures used and whether the technique is consideredpartial or total.
For geophysical tools, spectrometers, handheld XRF instruments, etc,the parameters used in determining the analysis including instrumentmake and model, reading times, calibrations factors applied and theirderivation, etc.
Nature of quality control procedures adopted (eg standards, blanks,duplicates, external laboratory checks) and whether acceptable levels
No information is provided for this criteria. The reporting of standards andquality control measures in the 1970’s is considered substandard to thatrequired today.
Table 2: Checklist of Assessment and Reporting Criteria
Historical Exploration - Noro Project, Solomon Islands27th April 2017
3
Criteria JORC Code explanation Commentary
of accuracy (ie lack of bias) and precision have been established.
Verification ofsampling andassaying
The verification of significant intersections by either independent oralternative company personnel.
The use of twinned holes. Documentation of primary data, data entry procedures, data
verification, data storage (physical and electronic) protocols. Discuss any adjustment to assay data.
No information is provided in the historical reports for this criteria.
Location ofdata points
Accuracy and quality of surveys used to locate drill holes (collar anddown-hole surveys), trenches, mine workings and other locationsused in Mineral Resource estimation.
Specification of the grid system used. Quality and adequacy of topographic control.
Location of sampled sites are very descriptive and no real-worldcoordinates have been provided.
Caution is required with respect to the location of samples and targetswithin the historical reports.
In general, the description of the areas and their location with respect tomajor landmarks is considered reliable.
Data spacinganddistribution
Data spacing for reporting of Exploration Results. Whether the data spacing and distribution is sufficient to establish the
degree of geological and grade continuity appropriate for the MineralResource and Ore Reserve estimation procedure(s) andclassifications applied.
Whether sample compositing has been applied.
No information is provided in the historical reports for this criteria.
Auger drill hole spacing is consistent with exploration that would beconsidered reconnaissance in nature.
Whether the orientation of sampling achieves unbiased sampling ofpossible structures and the extent to which this is known, consideringthe deposit type.
If the relationship between the drilling orientation and the orientationof key mineralised structures is considered to have introduced asampling bias, this should be assessed and reported if material.
Wide-spaced vertical hand-auger drilling was completed.
No directional bias was identified.
Samplesecurity
The measures taken to ensure sample security. No information is provided in the historical reports for this criteria.
Table 2: Checklist of Assessment and Reporting Criteria
Historical Exploration - Noro Project, Solomon Islands27th April 2017
4
Criteria JORC Code explanation Commentary
Audits orreviews
The results of any audits or reviews of sampling techniques and data. No information is provided in the historical reports for this criteria.
Section 2 Reporting of Exploration Results(Criteria listed in the preceding section also apply to this section.)
Criteria JORC Code explanation Commentary
Mineraltenement andland tenurestatus
Type, reference name/number, location and ownership includingagreements or material issues with third parties such as jointventures, partnerships, overriding royalties, native title interests,historical sites, wilderness or national park and environmentalsettings.
The security of the tenure held at the time of reporting along with anyknown impediments to obtaining a licence to operate in the area.
Secure mineral tenure has yet to be granted.
A Prospecting Licence application was made in the name of AustralianPacific Bauxite Pty Ltd, a wholly owned subsidiary of AU Capital MiningPty Ltd, a joint venture between Pacific Bauxite Limited (50% ownershipand management) and private Australian entities.
The conditional approvals provided by the Department of Mines,Minerals and Rural Electrification consists of a Letter of Intent whichallows the Company to negotiate Surface Access Agreements withtraditional land owners and stake holders within the licence area. Uponsuccessful completion of surface access agreements, these documentsare submitted to the Department of Mines, Minerals and RuralElectrification for final approval.
Explorationdone by otherparties
Acknowledgment and appraisal of exploration by other parties. Several exploration campaigns were conducted on the Noro Project inthe early 1970’s by Australian company SOL Explorations Pty Ltd.
This work is recorded in hardcopy reports retained by the Department ofMines, Minerals and Rural Electrification, in Honiara, the SolomonIslands.
Table 2: Checklist of Assessment and Reporting Criteria
Historical Exploration - Noro Project, Solomon Islands27th April 2017
5
Criteria JORC Code explanation Commentary
Geology Deposit type, geological setting and style of mineralisation. The style of mineralisation is bauxite as a residual soil over ancientlimestone reef (karst environment). Such deposits are also known asKarst or carbonate bauxites and are well documented throughout tropicaland sub-tropical regions. These deposits are formed by lateriticweathering and residual soils (clay) over or interbedded with limestone.Typically, deposits consist of low temperature gibbsite (trihydrate ortropical bauxite).
Bauxite is aluminium-rich ore that is used for aluminium production.
Drill holeInformation
A summary of all information material to the understanding of theexploration results including a tabulation of the following informationfor all Material drill holes:o easting and northing of the drill hole collaro elevation or RL (Reduced Level – elevation above sea level in
metres) of the drill hole collaro dip and azimuth of the holeo down hole length and interception deptho hole length.
If the exclusion of this information is justified on the basis that theinformation is not Material and this exclusion does not detract fromthe understanding of the report, the Competent Person should clearlyexplain why this is the case.
No information is provided with respect to accurate auger hole locationwithin the historical reports.
All auger holes were vertical.
Several campaign phases of auger drilling were conducted. Some of theearly phases were a maximum of 3 feet in depth.
The main auger programme, targeting a specified area, tested up to 8feet in depth.
.
Dataaggregationmethods
In reporting Exploration Results, weighting averaging techniques,maximum and/or minimum grade truncations (eg cutting of highgrades) and cut-off grades are usually Material and should be stated.
Where aggregate intercepts incorporate short lengths of high graderesults and longer lengths of low grade results, the procedure usedfor such aggregation should be stated and some typical examples ofsuch aggregations should be shown in detail.
The assumptions used for any reporting of metal equivalent valuesshould be clearly stated.
Not applicable to this report
Relationshipbetween
These relationships are particularly important in the reporting ofExploration Results.
The bauxite deposits are flat lying.
Table 2: Checklist of Assessment and Reporting Criteria
Historical Exploration - Noro Project, Solomon Islands27th April 2017
6
Criteria JORC Code explanation Commentary
mineralisationwidths andinterceptlengths
If the geometry of the mineralisation with respect to the drill holeangle is known, its nature should be reported.
If it is not known and only the down hole lengths are reported, thereshould be a clear statement to this effect (eg ‘down hole length, truewidth not known’).
True total depth of these deposits have not been tested or recorded,unless the soil depth to basement was less than the length of the auger.
Diagrams Appropriate maps and sections (with scales) and tabulations ofintercepts should be included for any significant discovery beingreported These should include, but not be limited to a plan view ofdrill hole collar locations and appropriate sectional views.
Appropriate diagrams have been included in the announcement.
Balancedreporting
Where comprehensive reporting of all Exploration Results is notpracticable, representative reporting of both low and high gradesand/or widths should be practiced to avoid misleading reporting ofExploration Results.
The quantity and quality of historical exploration is accurately portrayedin this report.
Othersubstantiveexplorationdata
Other exploration data, if meaningful and material, should be reportedincluding (but not limited to): geological observations; geophysicalsurvey results; geochemical survey results; bulk samples – size andmethod of treatment; metallurgical test results; bulk density,groundwater, geotechnical and rock characteristics; potentialdeleterious or contaminating substances.
Further work The nature and scale of planned further work (eg tests for lateral
extensions or depth extensions or large-scale step-out drilling). Diagrams clearly highlighting the areas of possible extensions,
including the main geological interpretations and future drilling areas,provided this information is not commercially sensitive.
Exploration at Noro is expected to commence as soon as title is grantedfor the Prospecting Licence currently under application.
Initial work will focus on areas with known bauxite mineralisation andinclude Auger Drilling and hand-dug test pits.
![Radioactive elements in Bayer’s process bauxite residue and their … · [Bauxite Residue Technology Roadmap, 2000]. The use of waste bauxite residue was trialled in a test building](https://static.documents.pub/doc/80x56/602879d6aab73603de0ce827/radioactive-elements-in-bayeras-process-bauxite-residue-and-their-bauxite-residue.jpg)
