Cape Alumina reports higher bauxite resource at Pisolite Hills in renowned Weipa province

Bauxite developer Cape Alumina (ASX: CBX) has reported an increase of 30% in bauxite resource at the Pisolite Hills project in Cape York, Queensland.

Cape Alumina owns the largest tenement holding, outside the Rio Tinto Alcan mining leases in the world renowned Weipa Bauxite Province in Cape York.

Cape Alumina has international support from Chinese alumina majors including Xinfa, one of China’s largest aluminium and alumina producers.

With the upgrade in resource to 130 mt, the Pisolite Hills project would have a 12 to 15 year initial mine life. A Bankable Feasibility Study (BFS) is due to commence in September incorporating the revised parameters.

Cape Alumina CEO Dr Paul Messenger said “We see potential for an initial 12-15 year operation at Pisolite Hills at a target production rate of 7 Mtpa. There’s a growing market for the resource as the bauxite is suitable as a blending feed for the new breed of low-temperature Bayer-process refineries in China."

on a dry tonne basis, the expected yield after wet benefication is 86.1 Mt including Measured (20.1Mt), Indicated (37.9Mt) and Inferred (28 Mt) Resources at an average grade of 53.1% Al2O3.

Further drilling to upgrade resource categories planned for the 2009 field season.

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