Bauxite Resources Releases Urban’s Maralla Road Silica Sand Maiden Resource Estimate

  • Apr 23, 2019 AEST
  • Team Kalkine
Bauxite Resources Releases Urban’s Maralla Road Silica Sand Maiden Resource Estimate

Bauxite Resources Limited (BRL) (ASX: BAU) is a mining company engaged in the exploration of minerals. The company is headquartered at Rokeby Rd, Subiaco, Western Australia.

Bauxite Resources Limited has announced the results of its Mineral Resource Estimate (MRE) for Urban Resources Pty Ltd’s Maralla Road Silica Sand deposit today.

The Silica Sand deposit is located to the north of Perth. An Inferred Mineral Resource of 10.7 million tonnes @ 99.8% SiO2 was reported in the MRE result.

A binding term sheet was executed by the company’s wholly owned subsidiary, Australian Silica Quartz Pty Ltd (ASQ) with Urban to collectively make use of Urban’s Maralla Road Silica Sand deposit situated in Bullsbrook, Western Australia.

Under the term sheet, the role of the ASQ will be to undertake the marketing and sales operations and to upgrade the current sand produced. For this, ASQ will fund the additional equipment up to $1.25 million for upgradation to meet the overseas markets requirements. Urban will work as a mine operator and will use its current staff and equipment for rendering their services with their cost and profits split equally.

According to the Chief Executive Officer of Bauxite Resources Limited, Mr Sam Middlemas, the MRE result shows that Urban’s Maralla Road deposit is a high-quality silica sand resource that will support in long term operations. He is of the view that ASQ will begin export of washed sand from the existing plant in the coming months and will later on switch to refined high-grade silica sand post upgradation.

The company is planning to begin with the silica sand export sales at a rate of 50-150 kilo-tonnes per annum.

The Urban’s Maralla Rd March 2019 Inferred Mineral Resource Estimate:

Source: ASX announcement dated 23rd April 2019

ASQ and Urban conducted metallurgical testwork that revealed that after washing, the mined sand is anticipated to produce a product with 99.93% silica and iron levels less than 0.012%.

The Inferred Mineral Resource has been generated from a combination of 27 historic vacuum drill holes for 220 m and 10 BRL vacuum drill holes for 105 m. The historic drill holes were located using traditional survey techniques while the BRL drill holes were located using GPS. Sampling was carried out at every 2m down the drilling in historic holes and every 1m down the drilling in BRL holes.

A.R.M Laboratories located in Geraldton and Intertek located in Perth used XRF and XRF + ICP to complete the historic drilling analysis and BRL drilling analysis respectively.

The sand deposits under examination are of the Bassendean Sand belonging to the Cainozoic sedimentary formation. This formation covers a large proportion of the Swan Coastal Plain that extends north and south as a long belt of approximately 20km width.

As per the agreement between Urban and Stefanelli Developments Pty Ltd., Urban has the right to conduct drilling on the mining lease M70/326. So, the inferred resource was drilled by the company with prior permission and approval.

The company’s stock last traded at AUD 0.058 (as on 17th April 2019), up by 9.43%.


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