Australian Bauxite Ltd.: Bauxite Discovery at New Portside Production Centre

Sydney, Australia (ABN Newswire) - Australian Bauxite Ltd. (ASX:ABX) has started its first bauxite mine in Tasmania and holds the core of the Eastern Australian Bauxite Province. ABx's 37 bauxite tenements in Queensland, New South Wales & Tasmania exceed 5,000 km2 and were rigorously selected for (1) good quality bauxite; (2) near infrastructure connected to export ports; & (3) free of socio-environmental constraints. All tenements are 100% owned, unencumbered & free of third-party royalties.

ABx's discovery rate is increasing as knowledge, technology & expertise grows.

The Company's bauxite is high quality gibbsite tri-hydrate (THA) bauxite & can be processed into alumina at low temperature - the type in short supply globally.


Bauxite Discovery at New Portside Production Centre

- Australian Bauxite Ltd. (ABx) has received high grade assays from drill hole samples into the PR-18 bauxite deposit located north of Launceston and close to the Bell Bay export port, northern Tasmania.

- Results are mainly high-grade, direct shipping bauxite (DSO)

- ABx considers this Portside area to be the most likely third Bauxite Production Centre. ABx's business plan is to produce from 3 production centres so as to maximise blending to produce consistent products

- ABx's first two production centres are (1) the Campbell Town production centre which includes ABx's operating mine at Bald Hill and (2) the DL-130 Production Centre west of Launceston - see Figure 1 in link below.

- Initial bauxite resources for the Campbell Town production centre total 3.5 million tonnes.

- ABx's total bauxite resources for all regions total 119 million tonnes, of which 9.2 million tonnes are in Tasmania.

- The drilling program for the DL-130 area has concluded for 2015 and revised resource estimation will be conducted over coming months

- Once all assays from the new PR-18 discovery are received and interpreted, additional drilling of several other known targets within the Portside Production Centre area will be undertaken as a matter of some urgency and in Spring, important base line environmental studies will be conducted to confirm the initial assessment that there are no socio-environmental barriers to development.

Australian Bauxite CEO Ian Levy said; "This discovery is a result of ABx's proprietary exploration technology and efficient drilling by the ABx exploration team.

Bauxite potential in this area was downgraded by early explorers because surface samples were low grade. ABx encountered similar surface results but the ABx exploration technology showed that good bauxite should exist in this area.

So ABx drilled 68 reconnaissance drill holes and the 18th hole discovered this excellent bauxite in an ideal location."


Three Tasmanian production centres taking shape

- ABx's business plan is to produce bauxite from 3 production centres to achieve a consistent product specification. Portside is the most likely 3rd production centre.

- Bell Bay is the largest export port in Tasmania and is the bulk export for bauxite.

- All highways, rail and port infrastructures have sufficient spare capacity for the planned bauxite exports.


Bauxite Drill Results

Sixty-eight (68) reverse circulation drill holes, holes PR001 to PR068 were drilled in the Portside area during March-April. A total of 715 metres were drilled, and 63 metres were in bauxite.

See Figure 2 in link below for drill hole distribution and locations.

Based on inspection, the bauxite layer occurs beneath an overlying layer of unconsolidated sediments ranging up to 12 metres thick in places which has concealed the majority of this bauxite deposit.

The bauxite formation is a flat-lying layer ranging in thickness from 2 to 4 metres.

After careful logging of the drill samples, 171 metres of samples have been sent to the ALS Laboratory in Brisbane. Results are pending.

Initial results received: To confirm that good quality bauxite had in fact been discovered, nine (9) representative samples of the bauxite were collected and dispatched to the ALS Laboratory for prompt assaying. The results from these 9 samples are shown in Table 1 in link below.

To view tables and figures, please visit:
http://media.abnnewswire.net/media/en/docs/80053-ASX-ABZ-20150528.pdf


About Australian Bauxite Limited:

Australian Bauxite Ltd. (ABx) (ASX:ABZ) holds the core of the newly discovered Eastern Australian Bauxite Province. Its 37 bauxite tenements in Queensland, NSW and Tasmania covering 8,500 km2 were rigorously selected on 3 principles: 1. good quality bauxite; 2. proximity to infrastructure connected to export ports; and, 3. free of socio-environmental or native title land constraints.

All tenements are 100% owned and free of obligations for processing and third-party royalties. ABx has already discovered many bauxite deposits and new discoveries are still being made as knowledge and expertise grows.

The company's bauxite is high quality and can be processed into alumina at low temperature – the type that is in short-supply globally. Global resources declared to date are 68 million tonnes. At the company's first drilling prospect in Inverell, northern NSW, an interim resource of 35 million tonnes has been reported from drilling 15% to 20% of the area prospective for bauxite and a resource of 25 million tonnes of bauxite has been reported at the Taralga project in southern NSW. 6 million tonnes maiden resource was declared at Guyra. Results from the Binjour Plateau in central QLD confirm that ABx has discovered a significant bauxite deposit including some bauxite of outstandingly high quality. Australian Bauxite Ltd. aspires to identify large bauxite resources in the Eastern Australian Bauxite Province which is emerging as one of the world's best bauxite provinces.

ABx has the potential to create significant bauxite developments in three states - Queensland, New South Wales and Tasmania. Its bauxite deposits are favourably located for direct shipping of bauxite to both local and export customers.



Contact:

Ian Levy, CEO and MD
Australian Bauxite Ltd.
Telephone: +61 (0) 2 9251 7177
Mobile: +61 (0) 407 189 122