Australian Bauxite Ltd Announce 5 Mln Tons Bauxite Resource

Sep. 16, 2010 - Australian Bauxite Limited (ABx) has 30 bauxite tenements in eastern Australia covering more than 7,100 km2 and is well advanced in its program to complete first-pass exploratory drilling of all project areas during calendar year 2010 - 6 months ahead of schedule.
ABx is also preparing to enter into commercial discussions during the remainder of 2010 with potential partners and/or offtake customers for a few of its 30 project areas. Taralga EL 7357 located near Goulburn, southern NSW is one of those areas earmarked for discussions. A site visit is being conducted on Thursday 16th September and for that reason, ABx is announcing all information it has at hand including a small maiden resource that has been discovered to date from the preliminary, first-pass drilling.
A more extensive resource infill drilling program is planned for 1H 2011 but because of the discovery of very thick zones of good quality bauxite between 10 metres and 13 metres thick, some follow-up drilling has commenced at Taralga in the last few days. This may generate data sufficient for a resource upgrade later this year but the follow-up drilling program is primarily focussed on assessing the general potential for easily mined bauxite zones of Direct Shipping Ore grades. Taralga is located near a major railway line leading directly to Port Kembla export terminal. A Review of Environmental Factors is underway which will clear the way for a more extensive testing program.
ABx has applied for an exploration area adjacent to Taralga EL 7357 to ensure it covers the prospective ground for bauxite in this district.
The deposit lies at surface on topographic high point which have been largely left uncultivated because of the poor soil that develops on bauxite. The iron levels are generally highest in the top layer of iron-rich gravel (technically described as pisolite layers).
Parts of the deposit have been confirmed as high grade, Direct Shipping Grade ("DSO" bauxite) up to 13 metres thick and these areas will be assessed by the current follow-up drilling and drilled in more detail during the first half of 2011.