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Highlights
- Western Yilgarn (ASX:WYX) is advancing its Julimar West bauxite project in the northern Darling Range with a significant maiden resource estimation.
- The company is focused on expanding exploration and aims to initiate a prefeasibility study by year-end, leveraging strategic location advantages.
- Bauxite prices are on the rise due to supply constraints and increased demand, positioning Western Yilgarn favorably in the market.
Western Yilgarn is pioneering efforts to establish what could be Australia's next prominent bauxite mine amid a favorable pricing landscape. The company recently reported a maiden resource estimate for its Julimar West project, situated just 90 kilometers northeast of Perth in the Darling Range. At a 25% aluminium oxide cut-off, this inferred resource totals 168.3 million tonnes at 36.1% aluminium oxide and 14.7% total silicon dioxide. Taking a more conservative approach with a 35% cut-off grade, the resource adjusts to 97.1 million tonnes at 40.5% aluminium oxide and 11.3% total silicon dioxide. This resource assessment, based on historical drilling data with over 5,700 holes, reveals extensive surface-level bauxite deposits, averaging depths between zero and eight meters.
Ambitious Exploration Strategy
Western Yilgarn has outlined an aggressive exploration plan, set to advance its resource base significantly. Early-stage drilling initiatives, including vacuum and reverse circulation methods, will target four primary zones, each with a strike length ranging from six to twenty-two kilometers. The potential for growth is substantial, with only around 60% of the allotted exploration area having been examined thus far. The company anticipates bolstering its current estimate of 168 million tonnes to over 200 million tonnes as additional drilling commences.
Leveraging Strategic Advantages
Located in proximity to key infrastructure such as roads, power, rail, and major ports, Julimar West benefits from logistical synergies crucial for a bulk commodity operation. Western Yilgarn is also set to commence a scoping study and advance permitting processes, aiming to kick off a prefeasibility study by the end of the current year. The project is further advantaged by favorable geological features, including its gibbsite-rich bauxite formation, which enjoys preference due to lower silica content, thereby simplifying the refinement process.
Market Dynamics and Strategic Positioning
Bauxite markets have witnessed robust price movement, recently surpassing the spot price of iron ore. The Australian bauxite price, as reported by the Shanghai Metals Market, averaged US$87 per tonne this month. Global market conditions remain tight due to factors like Indonesia's export bans, declining Chinese output, and supply disruptions in Guinea, a nation that accounts for a significant portion of China's imports. These dynamics underscore strong demand intersecting with constrained supply, a scenario that positions Western Yilgarn advantageously.
Western Yilgarn is poised for growth within an evolving market landscape. High-grade bauxite and strategic logistical positioning, coupled with a robust forecast for aluminium demand as a green energy metal, provide a strong foundation for the company's future endeavors.
