Drilling completed at Wenlock bauxite deposit
A major upgrade is expected early in the New Year for Cape Alumina Pty Ltd’s Wenlock Plateau Bauxite Deposit in Cape York following positive results from a just completed extensive drilling program.Cape Alumina – a 40% owned associate of Metallica Minerals Ltd - is assessing the viability of mining and exporting bauxite to China and is planning an IPO and ASX listing in mid 2008.Metallica Minerals said that the completion of Cape Alumina’s recent bauxite drilling program at Wenlock located approximately 50km northeast of Weipa in Cape York, Queensland, had considerably extended the size of the deposit outside the maiden resource reported in January, 2007.“Approximately 1,600 holes were recently completed on EPM15278 and we are very pleased with the results which show broad zones of thick pisolitic bauxite,” CapeAlumina’s CEO, Dr Paul Messenger, said. “Over 50 tonnes of bauxite samples have been dispatched to Brisbane for analysis with all results expected by early in January 2008,” Dr Messenger said. “Resource modelling will commence shortly after and a revised expanded resource model and JORC statement is expected to be completed and released in February 2008.”CapeAlumina’s Exploration Manager, John Cameron, said the drilling program was shortened due to the impact of Cyclone Guba which crossed the coast of Cape York on November 19. “We are pleased that nearly all of the drilling planned for the Wenlock portion of the plateau on EPM15278 was completed as planned, however, drilling of the expansive plateau areas to the northeast will be deferred until the 2008 field season” Mr Cameron said.To date, based on drilling late in 2006, Cape Alumina has identified an initial 54 million tonne combined indicated (32Mt at 53.2% Al2O3, 12.8% total SiO2) and Inferred (22Mt at 52.6 % Al2O3, 12.9% total SiO2) bauxite resource estimated toyield 34 Mt of washed bauxite on a dry basis with an average beneficiated grade of 52.9% Al2O3, 12.8% total SiO2.Cape Alumina is targeting between 100 and 130 million tonnes of bauxite at the Wenlock Plateau tenements.