ASX-listed aspiring West Africa bauxite developer, Lindian Resources, has completed the acquisition of its 75 per cent interest in the leviathan Lelouma bauxite project in Guinea following shareholder approval.
The Perth-based company recently reported Lelouma’s near-surface resource had been increased to 900 million tonnes of ore grading 45 per cent aluminium oxide and 2.1 per cent silica containing a higher-grade portion totalling 398 million tonnes at 48.1 per cent aluminium oxide and 2 per cent silica.
Lindian’s acquisition, which received the go-ahead from shareholders at its annual general meeting last week, involves the issuing of 30.67 million of Lindian shares to private outfit, Sarmin Bauxite, which is the overarching company that holds the ownership rights over the Lelouma project.
Under the terms of the deal with Sarmin’s shareholders, Lindian has agreed to fund all project expenditures until the completion of a definitive feasibility study on a potential project development at Lelouma. The company will also take over as manager of the project.
Lelouma sits approximately 40km east of the Gaoual conglomerate bauxite project. Lindian recently released a maiden indicated resource estimate for Gaoual of 101.5 million tonnes of ore going 49.8 per cent aluminium oxide and 11.5 per cent silica containing a higher-grade portion of 84 million tonnes at 51.2 per cent aluminium oxide and 11 per cent silica.
The company says both projects are located within haulage distance of existing rail infrastructure and related shipping ports.
Lindian Resources Chairman, Asimwe Kabunga said: “This acquisition, combined with our Gaoual and Woula projects, gives Lindian a significant landholding in the premier bauxite jurisdiction of Africa and reinforces the company’s vision to become a bauxite producer.”
According to Lindian, more than US$10 million has been spent on exploration work and drill testing at Lelouma by previous owners, including Japan-based Mitsubishi Corporation between 2007 and 2009.
Last month’s updated measured, indicated and inferred mineral resource estimate for Lelouma came after SRK Consulting (UK) group sifted through the historical exploration and drilling data as well as the results from Sarmin’s drilling campaign totalling of more than 4,000m that was carried out this year.
Lindian points out that no pit optimisation was used to constrain the JORC-compliant mineral resource due to the very shallow nature of the deposit and its low stripping ratio – a maximum of one to one.
Should it be developed, the company envisages the Lelouma resource being exploited via conventional open-cut mining methods to produce a direct shipping or “DSO” slated for potential export to Atlantic or Pacific markets.
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By Matt Birney
