Join our daily newsletter At The Bell to receive exclusive market insights
- Lindian Resources (LIN) has updated the Mineral Resource Estimate (MRE) for the Lelouma Bauxite Project
- The company recently announced plants to purchase the project in Guinea, by buying a 75 per cent stake in owner Sarmin Bauxite
- The MRE for Lelouma now sits at 900 million tonnes at 45 per cent aluminium oxide (Al2O3) and 2.1 per cent silicon dioxide (SiO2)
- While the high-grade portion has also been increased to 398 million tonnes at 48.1 per cent aluminium oxide
- Lindian says the low silica and absence of contaminants means it could sell the product at a premium
- Shares in LIN are trading grey at 2.4 cents each
Mining stock Lindian Resources (LIN) has announced an update to the Mineral Resource Estimate (MRE) for its Lelouma Bauxite Project in Guinea.
The company only recently acquired a controlling stake in the project, by signing an agreement to buy 75 per cent of its owner Sarmin Bauxite — though the deal is still awaiting regulatory approval.
The MRE
Lindian Resources has now revealed the project’s MRE totals 900 million tonnes at 45 per cent aluminium oxide (Al2O3) and 2.1 per cent silicon dioxide (SiO2).
This includes an upgraded high-grade portion of 398 Mt at 48.1 per cent Al2O3, which contains continuous zones of exceptional quality material.
It also includes the definition of 155 Mt Measured Mineral Resources at 47.9 per cent Al2O3 and 1.8 per cent SiO2 — including 115 Mt at 49.6 per cent Al2O3 and 1.8 per cent SiO2.
The upgrade to Lelouma’s MRE comes after an extensive drilling campaign was carried at the site by its previous owner.
All up, Sarmin and other owners are estimated to have already spent around US$10 million (roughly A$13.9 million) on the Bauxite Project.
The Response
Lindian Resources has welcomed the MRE upgrade, stating the low silica and absence of contaminants suggests the product has a high value.
It expects the resource to produce Direct Shipping Ore without a requirement for processing or beneficiation, ready for sale in the Atlantic and Pacific markets.
Speaking about the MRE update, Lindian Resources CEO Danny Keating said it shows Lelouma is one of the highest quality undeveloped bauxite projects in the world.
“The Measured Mineral Resource gives confidence to the mine planning process, as well as for our work with alumina refineries who are seeking long term supply of high quality bauxite,” Danny said.
“Having defined the high confidence Measured Mineral Resources at the project, the management team will now focus on the joint road & rail infrastructure options for the combined development of the Gaoual and the Lelouma Projects,” he added.
Shares in LIN are currently trading grey for 2.4 cents per share at 1:56 pm AEST.
