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Lindian Resources Limited (ASX: LIN) today confirmed the high-grade potential of Guiena Bauxite Project on receiving the compelling first pass assays in its ongoing due diligence process.
This tracks back to the exclusive option agreement the company signed in April 2019 with KB Bauxite Guinea SARLU and KBâs sole shareholder Guinea Bauxite Pty Ltd to purchase Gauoal Bauxite Project, comprising ~332km2 in Guinea.
The company stated that as part of the due diligence program, XRF results from samples have now been verified by independent assay verification confirming the high-grade nature of the Project in line with other nearby production projects in Guinea.
As per the agreement, Lindian has an exclusive option to purchase 51% interest in the project initially by putting US$1 million over the period of 2 years, with the right to extend the ownership to 75%.
The report read that the 27 bauxite samples collected have reportedly averaged 56.6% Al2O3 with 2.25% SiO2 with the XRF and 53.57% Al2O3 with 1.82% SiO2 with the independent assays completed through Bureau Veritas. The results have given the significant amount of geological confidence to the company as it progresses towards the completion of technical due diligence for Gauoal Bauxite Project.
Lindian Director Steve Formica commented: âThese are very compelling first pass assays and they are a very important step in the companyâs due diligence program which is progressing very well under the stewardship of Bob Adam.â
Lindian further intends to provide a more comprehensive update shortly on progress in Guinea as well as report on the excellent progress the company is now making in Tanzania with its drilling program.
Former CEO and Project Director of Alliance Mining Commodities Limitedâs (AMC) Bob Adam has been reportedly appointed as a technical consultant for Lindian Resources to review the opportunities across Gauoal Bauxite Project as well as advance the companyâs development work at its Lushoto and Pare bauxite projects in Tanzania. AMC is an owner of the nearby Koumbia Bauxite Project. The other world-class deposit adjoining Gauoal Bauxite Project includes Société des Bauxites de Guinéeâs (CBG) joint venture between the Government of Guinea and the Halco Joint Venture comprising of Alcoa, Rio Tinto and Dadco.
Guinea has the worldâs largest bauxite resources with over 40 billion tonnes and accounts for ~40% of global bauxite reserves. The region is home to high-quality bauxite due to the inherent nature of the in situ bauxite and its tropical location.
The favourable assay results positions Lindian to be a world first producer of high-grade bauxite ore from both the east and west coast of Africa providing potential strategic partners and off-taker a distinctive opportunity to capitalise on range of logistical advantages.
LIN stock price plunged by 7.692% to last trade at $0.012 on 8 May 2019. Over the past 12 months, the stock has declined by 18.75% despite the positive price change of 8.33% recorded in the past three months.
Also Read: Lindian Resources Presented Quarterly Activity Report for December Quarter
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