Bauxite resources limited positive export DSO bauxite scoping study results received for 100% BRL Fortuna Project

Highlights
• Existing Mineral Resource and rail logistic chain can support a Direct Shipping Ore (DSO) production target rate of 3Mtpa for a 12 year mine life
• FOB operating cash costs estimated at A$30 (US$26) per tonne excluding royalties and landowner compensation*
• A$26M capital expenditure (excluding port capital expenditure)
• Level 2 environmental baseline studies underway
• Contractor selection underway for desk top hydrogeology, hydrology and aquatic ecology studies
• Conventional, shallow open cut mining method with no requirement for beneficiation
• BRL retains 100% of project
• Company well funded to advance project

Scoping Study Outcomes
Bauxite Resources Limited is pleased to advise that the pit-to-port scoping study on the Company’s 100% owned Fortuna bauxite resource has been completed. The study was completed by well regarded, independent mining consultant, AMC Consultants (AMC), who provided mining, engineering, logistics and economic assessment.

The study shows the current Mineral Resources can support an annual production target after ramp up of 3 million tonne per annum (Mtpa), with a total mine life of 12 years.

Based on a forecast average A$/US$ exchange rate of 0.85 the FOB cash cost estimate will be US$26 per dry tonne of bauxite (product) excluding royalties and landowner compensation (estimate of FOB costs may vary depending on the ultimate port solution).

BRL CEO, Peter Canterbury said “Whilst the study conducted by AMC is at a scoping level it does shows the project can support a production target rate of 3Mtpa. The study shows sound rail transport logistic options for the project, critical for a commodity such as bauxite. We have secured additional land access which provides an opportunity to grow the resource further and potentially extend the forecast mine life, or increase production rates. Mining will be by conventional, shallow open cut methods and our resource, unlike many of our peers, does not require beneficiation. We are encouraged by the predicted global demand for bauxite and the current upward trend in bauxite pricing.”

“The study does identify further development work to be undertaken to ensure port access is achievable in a reasonable timeframe, materials handling at the port, and associated capital requirements. The current preferred option is transhipping, with the Company having commenced engaging with consultants to detail this option which is expected to enable sea transport by Cape size vessels,” he added.

Forward Plan
Following the receipt of the scoping study results from AMC, a number of follow-up studies are recommended from the study.

Port and port logistics studies will be commenced shortly on the options for loading small Capesize vessels via transloading. In addition, the Company is currently working with our existing land owners where we have exploration access agreements to convert these to mining access agreements that will be required for mining.

The Company is also working with its joint venture partner Bauxite Alumina Joint Venture (“BAJV”) in commencing the community engagement program to develop both the Felicitas and Fortuna bauxite deposits that border each other and are likely to utilise the same infrastructure.

Studies on infill drilling for mine planning and materials handling will also be undertaken shortly to provide further detail on the project.

Off-take discussions will continue with selected refineries to assist and confirm volume and pricing assumptions.

Subject to continuing favourable project economics and regulatory approvals, the Company intends to undertake the additional activities on the Fortuna DSO bauxite project with a targeted development timeframe from now (subject to economics, regulatory approvals and final investment decision) of around 2 to 3 years.

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