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BAUXITE MINING PLANNED FOR QLD – NEAR FRASER COAST

June 19th, 2010

MORE MINES PLANNED FOR FRASER COAST??

Australian Bauxite Limited (ASX:ABZ)

EXECUTIVE SUMMARY

Australian Bauxite Limited (ASX: ABZ) is an exploration company holding the core of the Eastern Australian Bauxite Province.  Bauxite is the ore of aluminium.

The company’s 17 initial tenements covering 5,000km2 in Queensland and NSW were selected to meet 3 principles:

  • Good quality bauxite
  • Proximity to infrastructure
  • No socio-environmental constraints.

The company’s bauxite is high quality – able to be processed at low temperature – which is in short supply globally. The company’s first drilling prospect revealed a maiden resource of 22 million tonnes from drilling less than 10% of the identified deposit. The company aspires to identify bauxite resources in excess of 200 million tonnes in one of the world’s best bauxite provinces.

From its listing on ASX on 24 December 2009, the company is already creating shareholder value – and the best is yet to come.

COMPETITIVE ADVANTAGES

  • Highest quality bauxite – high alumina – low silica.
  • Alumina mineral is the best – Gibbsite (alumin-trihydrate “THA” only).
  • Strong demand for bauxite able to be processed into alumina at low temperature.
  • 22 million tonnes identified from drilling <10% of one tenement suggest large tonnage potential.
  • Close to existing infrastructure – transport, coal mines, industrial centres and ports on the east coast.
  • 100%-owned tenements with no restrictions on bauxite exports.
  • Aspires to identify resource in excess of 200 million tonnes.
  • Controls the core of the eastern Australian bauxite province.

KEY INVESTMENT HIGHLIGHTS

  • Low discovery risk – deposits have been identified – more to come.
  • Low entry point into a growing market with a growing company.
  • Deposit asset is of greater value than market capitalisation (favourable peer comparison).
  • 22 million tonnes JORC resource identified in <10% of one tenement – more to come.
  • Aggressive drilling program scheduled throughout 2010 to prove assets in excess of 200 million tonnes.
  • Highly experienced management team.
  • 17 tenements control the core of the eastern Australia bauxite province.
  • Listed on 24 December 2009 at 0.20c per share, closed at 0.35c end February 2010.
  • Bauxite is easily mined (no overburden) and easily processed.
  • Global demand is rising, especially from China, which has no bauxite.

BOARD & MANAGEMENT

Mr Peter J. Meers BA (Economics) FAIB – Chairman

Significant experience in consumer, commercial and investment banking, securities trading and origination, mining and exploration. 25 years experience at ANZ bank in Australia and Asia, holding senior executive positions and portfolio management roles.

Ian Levy BSc (Hons) MSc DIC FAusIMM FAIG – CEO

30 years senior management experience with small to large mining companies. Chairman of Dynasty Metals Australia and a former Director of Gloucester Coal. Member of the Joint Ore Reserves Committee (JORC) for 11 years including 4 years as Vice Chairman and Federal President, Australian Institute of Geoscientists.

Jacob Rebek – Director & Chief Geologist

Geologist with 40 years experience in exploration, including 30 years at CRA and Rio Tinto, both across Australia and internationally.

CORPORATE STRUCTURE

Fast growing, dynamic publicly-listed company managed by an experienced team of mining professionals and managers with significant resource development experience in Australia and internationally. Chief Geologist Jacob Rebek drives the technical programs.

EXIT STRATEGY

Sell into rising demand for this stock. Approx timeframe – current and continuing for at least two years. Ultimate exit is possibly a merger with or takeover by a major aluminium company.

FURTHER INFORMATION

For further information please visit ASX website: CLICK HERE

Sourced and published by Henry Sapiecha


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