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Lindian Resources (ASX:LIN) upgrades Lelouma Mineral Resource

Mining
ASX:LIN      MCAP $167.0M
06 October 2020 15:27 (AEST)
Lindian Resources (ASX:LIN) - Former CEO, Danny Keating

Source: Lindian Resourcess

Mining stock Lindian Resources (LIN) has announced an update to the Mineral Resource Estimate (MRE) for its Lelouma Bauxite Project in Guinea.

The company only recently acquired a controlling stake in the project, by signing an agreement to buy 75 per cent of its owner Sarmin Bauxite — though the deal is still awaiting regulatory approval.

The MRE

Lindian Resources has now revealed the project’s MRE totals 900 million tonnes at 45 per cent aluminium oxide (Al2O3) and 2.1 per cent silicon dioxide (SiO2).

This includes an upgraded high-grade portion of 398 Mt at 48.1 per cent Al2O3, which contains continuous zones of exceptional quality material.

It also includes the definition of 155 Mt Measured Mineral Resources at 47.9 per cent Al2O3 and 1.8 per cent SiO2 — including 115 Mt at 49.6 per cent Al2O3 and 1.8 per cent SiO2.

The upgrade to Lelouma’s MRE comes after an extensive drilling campaign was carried at the site by its previous owner.

All up, Sarmin and other owners are estimated to have already spent around US$10 million (roughly A$13.9 million) on the Bauxite Project.

The Response

Lindian Resources has welcomed the MRE upgrade, stating the low silica and absence of contaminants suggests the product has a high value.

It expects the resource to produce Direct Shipping Ore without a requirement for processing or beneficiation, ready for sale in the Atlantic and Pacific markets.

Speaking about the MRE update, Lindian Resources CEO Danny Keating said it shows Lelouma is one of the highest quality undeveloped bauxite projects in the world.

“The Measured Mineral Resource gives confidence to the mine planning process, as well as for our work with alumina refineries who are seeking long term supply of high quality bauxite,” Danny said.

“Having defined the high confidence Measured Mineral Resources at the project, the management team will now focus on the joint road & rail infrastructure options for the combined development of the Gaoual and the Lelouma Projects,” he added.

Shares in LIN are currently trading grey for 2.4 cents per share at 1:56 pm AEST.

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