First Bauxite Announces Feasibility Study Results for Its Bauxite Project

July 30, 2010 - First Bauxite Corporation announced the positive Feasibility Study (F") results for its 100% owned, Bonasika refractory grade bauxite project located in Guyana, South America. The FS was based on the bauxite reserves of the Bonasika 1, 2 & 5 deposits, which are within the Bonasika Mining License. In addition a NI 43-101 Compliant Mineral Resource estimate was also completed for the Upper Waratilla-Cartwright (UWC) deposit located within the Waratilla-Cartwright Prospecting License (WCPL). Met-Chem Canada Inc (Met-Chem) of Montreal, Canada was the lead author of the FS with participation and contribution of several industry experts and consultants.
The FS commenced in September 2009 and has considered all aspects related to development of the Project, including in-situ geology, mining, metallurgy, processing and engineering, economics, marketing, social and environmental considerations. The Feasibility Study defines and confirms the viability of an operation based on sequential mining of the three (3) bauxite deposits located on the Bonasika Mining License by open-pit, truck and excavator mining, with the mined ore trucked for processing at a central wash plant facility located less than 2 km from the Bonasika 1 & 2 pits. The wash plant concentrate will be transported 23 km to the sintering plant and load out facilities at Sand Hills. The Mine will operate at a production rate of 298,500 metric tons of raw, dry bauxite per year or 1,148 tones per day, the wash plant will produce 162,232 tones of washed bauxite concentrate and the two vertical pressurized shaft kilns will produce 100,000 tones per year of sintered bauxite final product. The Bonasika proven bauxite reserves support a mine life of 8.4 years at an average cash operating cost of US$182 per tone of sintered bauxite.
Incorporating UWC and WCPL into the current mine plan will potentially extend the current mine life, reduce operating costs and enable project expansion to be considered.
Yannis Tsitos, the Company's President & Director, stated: "This Feasibility Study substantiates the quality of our bauxite assets in Guyana and represents a solid foundation upon which we will build and expand First Bauxite Corporation. Today, we have taken another major step towards realizing our vision of building a financially robust refractory grade bauxite operation in Guyana. Backed with the Mineral Reserves of Bonasika and the additional Indicated bauxite resource from upper Waratilla, the development of the Bonasika Project will unlock value not only for the shareholders of the Company, but for all related Project stakeholders and especially the local communities and the people of Guyana."
Hilbert Shields, the Company's CEO & Director, stated: "The challenge facing a new supplier of refractory grade bauxite is to convince the customer that he can be assured of a reliable supply of consistent quality product at a cost that allows him to be globally competitive. With completion of our Feasibility Study, where our approach has been to technically engineer the raw bauxite feed for our modern vertical pressurized shaft kilns, First Bauxite has overcome this challenge and now seeks to further enhance project economics. Guysin-90, First Bauxite's proprietary product, will boast superior chemical and density qualities since the natural in homogeneities found in all raw bauxites, including the traditionally high quality Guyana ores, is minimized through the micronization of the raw bauxite for enhanced liberation of accessory impurities, and subsequent controlled, blended aggregation into dense briquettes to feed an energy efficient, zero dust emission, German engineered vertical pressurized shaft kiln. This project is exciting to develop since it "moves refractory bauxite production out of the stone age" (paraphrased after Bill McCracken) and introduces new, energy efficient and environmentally friendly technology by creating a new value added product to complement Guyana's traditional spectrum of quality refractory bauxites."