Anglo Aluminum Corp.
TSX VENTURE : ALU

Anglo Aluminum Corp.

February 18, 2010 14:07 ET

Anglo Aluminum Discovers New Bauxite at Koumbia, Guinea

KAMLOOPS, BRITISH COLUMBIA--(Marketwire - Feb. 18, 2010) - Anglo Aluminum Corp. (TSX VENTURE:ALU) is pleased to report results from the Gaoual permit on its Koumbia Bauxite Project located in the Boke Bauxite Belt of northwestern Guinea, West Africa. Fifty-seven aircore drill holes completed on the Kousidji plateau all intersected between 3 metres and 17 metres of bauxite, averaging 11.46 metres. Weighted average grades for the 57 holes are 50.01% Al2O3, with low silica (SiO2) at 2.07% and iron (Fe2O3) at 17.01%. Drill hole spacing is 300 metres.

Table 1 Phase 1 Results for Gaoual Plateaus, Koba Bauxite Project

  Prospect AC Holes Drill Metres Average Thickness Al2O3(%) SiO2(%) Fe2O3(%)
Gaoual Plateaus            
  Kousidji 57 1,026 11.46 50.01 2.18 17.01
  Bhoundoutchale 6 102 9.00 45.84 2.07 23.24

No resource estimate has yet been made for the Gaoual plateaus, which are 30 kilometres north of the current Koba bauxite resource. Henceforth, the 130 square kilometre Gaoual permit will be called the "KOUMBIA Project" and the southerly 406 square kilometre Telimele permit, which hosts the current N.I. 43-101 compliant resource, will be called the "KOBA Project".

In 2007 and 2008, Anglo Aluminum conducted property-wide drill testing of potentially bauxite-bearing plateaus on its Koba Bauxite Project, completing 2,147 drill holes totalling 36,759 metres in two phases of aircore drilling. Coffey Mining, managed the drill program on behalf of Anglo Aluminum and West African Drilling Services provided drill services. All drill samples were submitted to SGS Mineral Services (Guinee) SARL for sample preparation and transferred to SGS Canada Inc. for assay analysis by XRF.

Anglo Aluminum conducted a Quality Control / Quality Assurance program that consisted of inserting 5 different bauxite reference samples at a frequency of one in every 20 samples. Duplicate field samples were also collected every 20 samples, processed and analyzed in the same manner as the original and statistically analyzed. In addition, SGS employs their own internal quality control procedures.

Permit Status

On March 13, Navasota Resources Ltd., now Anglo Aluminum Corp., submitted a formal application to the Ministry of Mines in Guinea for the renewal of the permits for a 2 year period subject to a 50% reduction in the area of the permits. On March 27th, the Arrete was issued for permits covering the Telimele block (406 km2) and Gaoual block (130 km2). The Telimele permit covers all the resources identified in the 2009 estimate and the Gaoual permit covers the Kousidji plateau where recently received results suggest a significant resource of high quality bauxite may be located.

In early May 2009, Navasota Resources Ltd., now Anglo Aluminum entered into a Memorandum of Understanding with the Guinean Ministry of Mines, Energy and Water allowing for the sale of the project's mineral resources. Anglo Aluminum is working with the Ministry to identify acceptable, potential purchasers for its bauxite resources and endeavour to complete a sale in a timely manner. The Ministry shall provide all requisite approvals for the sale and, in consideration of this, Anglo Aluminum would pay 50% of net proceeds to the Ministry.

Current Project Status

The analysis of some 6787 samples by XRF is all but complete. Only 19 samples remain to be reported. The majority of these results cover portions of bauxitic plateaus not currently in the Koba resource estimate, including part of Kouraidendeli, Sapi North and South, and the Central plateaus with the remainder covering the Kousidji plateaus described above. Also, analyses completed after October 31, 2008 (not including the 6787 samples above) were not used for Koba resource modelling and these will also be included in an updated resource report for the Koba Project. 

A Preliminary Economic Assessment (PEA) is proposed to investigate the economics of building a mine at Koba and/or Koumbia.

  • update the resource estimate
  • complete grade continuity studies to facilitate upgrading resource classifications
  • targeted drilling to support grade continuity studies and generate samples for additional bulk density and mineralogical studies
  • further metallurgical test work
  • identify most prospective areas for initial development, i.e. starter pit(s)
  • identify and cost required infrastructure development, including roads, possible rail spurs, other transportation support, and mining infrastructure

Koba Resource Estimate

Scott Wilson Roscoe Postle Associates Inc. (SWRPA) completed the initial resource estimate based on 2147 drill holes totalling 36,759 metres. Total Indicated resources are estimated at 343,183,000 tonnes averaging 42.78% Al2O3, 2.85% SiO2, and 27.83% Fe2O3 (Table 1), and an additional 63,342,000 tonnes averaging 43.81% Al2O3, 2.74% SiO2, and 26.76% Fe2O3 classified as Inferred resources. 

Table 2: Indicated Bauxite Resources, Koba Bauxite Project

Plateau Tonnage Al2O3 (%) Fe2O3 (%) SiO2 (%) TiO2 (%) CaO
(%)
MgO
(%)
Eastern Plateaus              
  Farenya 32,020,000 41.28 29.49 2.93 3.01 0.01 0.04
  Madina Diang+Tito 100,836,000 41.65 29.53 2.69 2.57 0.01 0.04
  Nomo 120,553,000 43.58 26.77 2.74 2.29 0.01 0.03
  Ouda 43,411,000 43.73 26.86 2.84 2.20 0.01 0.02
Western Plateaus              
  Foye 14,802,000 42.58 26.94 3.72 2.08 0.01 0.03
  Kouraidendeli 31,561,000 43.62 26.52 3.33 2.07 0.02 0.03
TOTAL 343,183,000 42.78 27.83 2.85 2.40 0.01 0.03

Table 3: Inferred Bauxite Resources, Koba Bauxite Project

Plateau Tonnage Al2O3 (%) Fe2O3 (%) SiO2 (%) TiO2 (%) CaO
(%)
MgO
(%)
Eastern Plateaus              
  Akounedjande 1,942,000 39.65 31.92 2.80 2.83 0.01 0.01
Western Plateaus              
  Fakkerefonye 31,970,000 44.87 25.08 2.82 2.50 0.01 0.03
  Killikocco 7,944,000 41.41 30.19 2.54 2.73 0.02 0.02
  Ore Pousse 1 1,137,000 41.33 30.27 2.79 1.91 0.02 0.03
  Ore Pousse 2 7,439,000 44.18 26.33 2.87 2.32 0.02 0.04
  Touguiwel Competa 14,852,000 42.84 28.49 2.63 2.29 0.01 0.05
TOTAL 63,342,000 43.81 26.76 2.74 2.44 0.01 0.03
  • CIM definitions for Mineral Resources were used.
  • Cut-off criteria:   Al2O3               >35%
                               Fe2O3              <35%
                               SiO2                 <6%
                               TiO2                 <5%
                               CaO                 <0.2%
                               MgO                 <0.2%
                               Al2O3/SiO2       >10
  • Minimum mining thickness 2 metres
  • Maximum strip ratio (waste to ore) 3:1

Based on this work, SWRPA concluded the following:

  • Drill spacing of 300m x 300m - Inferred resources; 150m x 150m - Indicated resources
  • Additional bulk density work is warranted. 
  • Determine Available Bayer Extractable Alumina (ABEA) and reactive silica (R SiO2). 
  • There is excellent potential to expand resources at Nomo, Kouraidendeli, Sapi North, and Sapi South.

SWRPA recommended the following:

Phase 1

  • Update the mineral resource estimates once the outstanding assay data is available.
  • Conduct a Preliminary Economic Assessment (PEA) based on two scenarios:
    • bauxite mining with sale of bauxite to a third party
    • integrated mine/refinery complex
  • Develop an accurate topographic base map

Bomb Tests

Twelve samples were shipped to UltraTrace Laboratories in Perth Australia to carry out Bayer Bomb Tests. The point of the tests is to provide some understanding on how Koba bauxite may perform metallurgically. The tests measure the amount of available alumina (Av Al2O3) and reactive silica (R SiO2), both key figures in bauxite metallurgy. The 12 samples were each tested 3 times for a total of 36 determinations (see Table below). Key major element constituents such as TiO2 and Fe2O3 were measured by ICP methods. Results appear to be very favourable to the recovery of aluminum from Koba bauxite.

Table 4: Summary of Bomb Test Results

SAMPLE ID Run #1 Run #2 Run #3 AVERAGE
Av Al2O3% RSiO2% Av Al2O3% RSiO2% Av Al2O3% RSiO2% Av Al2O3% RSiO2%
BT 001 47.40 0.60 48.00 0.70 48.20 0.70 47.87 0.67
BT 002 45.90 0.80 46.80 0.90 46.80 0.80 46.50 0.83
BT 003 46.80 1.20 48.50 1.20 48.70 1.20 48.00 1.20
BT 004 48.00 1.00 48.70 1.00 48.90 1.10 48.53 1.03
BT 005 44.40 1.80 45.50 1.80 45.70 1.80 45.20 1.80
BT 006 37.40 1.50 38.00 1.50 38.20 1.50 37.87 1.50
BT 007 43.80 3.00 45.10 3.10 45.00 3.10 44.63 3.07
BT 008 39.30 3.10 40.00 3.10 39.90 3.10 39.73 3.10
BT 009 41.70 0.40 42.70 0.50 42.50 0.50 42.30 0.47
BT 010 34.20 1.90 35.50 2.00 35.50 2.10 35.07 2.00
BT 011 41.60 1.70 41.90 1.70 42.10 1.70 41.87 1.70
BT 012 46.10 1.10 46.80 1.20 47.20 1.20 46.70 1.17
Average 43.05 1.51 43.96 1.56 44.06 1.57 43.69 1.54

Social and Environmental

A high level preliminary environmental and social review (PER) of the project area was completed in late 2008 by Scott Wilson, London office. A 12-page letter report recommended the following be initiated with an economic assessment:

  • Environmental and Social Impact Assessment (screening, scoping, and ESIA)
  • Resettlement Action Plan (RAP)
  • Baseline Studies covering ecological and social surveys be initiated with stakeholder engagement.

The final report identified the Guinean administrative and regulatory framework, the international regulatory framework, and the natural and human environment of the project area.

Christopher J. Wild, P.Eng., Vice-President and Director of Anglo Aluminum., and a Qualified Person as defined by Canadian National Instrument 43-101, has reviewed and approved the technical disclosure contained in this news release.

For more information on Anglo Aluminum and the Koba Bauxite Project, please visit: www.angloaluminum.com.

On behalf of the Board of Directors
James T. Gillis, President
Anglo Aluminum Corp.

Neither the TSX Venture Exchange nor any other regulatory body has approved or disapproved of the information contained therein.

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