Bauxite Resources (ASX:BAU) has encountered bauxite horizon over a 385 hectares area and up to 13.5 metres in thickness at its Fortuna prospect in northern Darling Range tenement in Western Australia.
The exploration program comprised 302 vertical holes drilled for 2,857 metres across an area of approximately 385 hectares at a nominal 160 metres by 80 metres drill pattern.
A preliminary review of the data shows that significant bauxite grades and thicknesses are present, with approximately 65% of the holes containing available alumina grades of greater than or equal to 25%, with at least 2 metre thickness, reactive silica less than 5%, and maximum strip ratio of 1:1.
There was also thin overburden cover of less than 2 metres throughout majority of the mineralisation area with potential for lower mining excavation costs.
The Fortuna project area lies adjacent to the 73.3 million tonnes Felicitas bauxite resource to which Bauxite Resources retains 30% beneficial interest.
The project represents the southern extension of the Felicitas resource, and remains open to the east and south and further drilling is planned to commence in the June quarter.
A resource estimation study will be undertaken by RPM Global and once geological modelling is completed BRL expects to receive a JORC classified resource estimate during the June quarter 2013.
The company had a cash in hand of $45.3 million as of quarter ending December 2012. Its share price at $0.11 is trading at a significant discount to cash-backing of $0.192.
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