Anglo Aluminum Corp.

TSX VENTURE : ALU


Anglo Aluminum Corp.

November 04, 2010 00:30 ET

Bauxite Resources Grow 46% at Anglo Aluminum's Koba Bauxite Project, Guinea

KAMLOOPS, BRITISH COLUMBIA--(Marketwire - Nov. 4, 2010) - Anglo Aluminum Corp. (TSX VENTURE:ALU) is pleased to report that Indicated Resources for the Koba Bauxite Project have increased 46% to 501 million tonnes having an average grade of 42.90% Al2O3, 2.79% SiO2, and 27.81% Fe2O3. The Inferred Resource of 65.3 million tonnes remains unchanged from the 2009 resource estimate. Additionally, a new Indicated Resource of 129.8 million tonnes grading 48.40% Al2O3, 1.90% SiO2, and 19.80% Fe2O3 has been estimated for the Koumbia Bauxite Project, located approximately 40 kilometres north of Koba. Koba and Koumbia are located in the prolific Boké Bauxite Belt of northwestern Guinea, West Africa.

Table 1: Total Indicated Bauxite Resources, Koba – Koumbia Bauxite Project
INDICATED RESOURCES  
PERMIT Tonnes Al2O3 Fe2O3 SiO2 TiO2 CaO MgO
Koba 501,000,000 42.90 27.81 2.79 2.36 0.01 0.03
Koumbia 129,800,000 48.40 19.80 1.90 3.90 0.02 0.02
INFERRED RESOURCES  
Koba 65,100,000 43.69 26.91 2.75 2.46 0.01 0.03

Coffey Mining of Perth, Australia ("Coffey") updated the resource estimate using additional data acquired since the initial resource estimate was completed in January of 2009, including recently completed auger drilling at Koumbia. The updated estimate by Coffey added to the initial resource estimate completed by Scott Wilson Roscoe Postle Associates Inc. ("SWRPA"), part of the Scott Wilson Mining Group. Both estimates conform to Canadian National Instrument 43-101, Standards for Disclosure of Mineral Projects. 

Mineral resources were estimated using cut-off grades of >35% Al2O3, <35% Fe2O3, <6% SiO2, <5% TiO2, <0.2% CaO, <0.2% MgO, and Al2O3/SiO2 >10. A minimum mining thickness of 2 metres and a maximum stripping ratio of 3:1, waste: ore were also used in the estimation process. Resources are classified as Indicated based on drill holes spaced 150 metres apart. Inferred resources are based on drill hole spaced 300 metres apart. 

Koumbia Bauxite Project

Auger drilling completed in May 2010 totalled 2,869 metres in 190 holes infilling earlier drilling on the Kounsidji Plateau. All 57 aircore drill holes in that initial program in 2008 intersected between 3 metres and 17 metres of bauxite, averaging 11.46 metres. Drill holes were spaced 300 metres apart (see Anglo Aluminum Corp. News Release, February 18, 2010). 2010 auger drilling tightened the drill hole spacing to 150 metres. In addition, 4 auger drill holes twinned existing aircore drill holes. Bulk densities were determined from samples collected from hand-dug pits at Kounsidji. Table 2 summarizes the indicated bauxite resource calculated by Coffey.

Table 2: Indicated Bauxite Resources, Koumbia Bauxite Project
Plateau Tonnage Al2O3 Fe2O3 SiO2 TiO2 CaO MgO
KOUMBIA - NORTH            
Kounsidji 129,800,000 48.40 19.80 1.90 3.90 0.02 0.02
TOTAL 129,800,000 48.40 19.80 1.90 3.90 0.02 0.02

Koba Bauxite Project

Bauxite resources at Koba were initially estimated by SWRPA using only data available as of October 31, 2008. As a result, only 58% of the holes from Kouraidendeli, 82% from Nomo, and 0% from Sapi, Kounsitikhe, and Tenkere were included in the 2009 estimate. Since that date, additional assay data from those 5 plateaux were received and incorporated into the resource models. Coffey then updated the resource estimates for each of those 5 plateaux (Tables 3 & 4). 

Table 3: Indicated Bauxite Resources, Koba Bauxite Project
INDICATED RESOURCES            
Plateau Tonnage Al2O3 Fe2O3 SiO2 TiO2 CaO MgO
KOBA - EASTERN PLATEAUS            
Farenya 32,000,000 41.28 29.49 2.93 3.01 0.01 0.04
Madina Diang 100,800,000 41.65 29.53 2.69 2.57 0.01 0.04
Nomo 154,300,000 43.20 27.60 2.60 2.30 0.01 0.03
Ouda 43,400,000 43.73 26.86 2.84 2.20 0.01 0.02
Subtotal 330,500,000 42.61 28.27 2.69 2.44 0.01 0.03
KOBA - CENTRAL PLATEAUS            
Kounsitokhe 5,800,000 40.10 32.10 2.70 2.10 0.01 0.01
Tenkere 11,400,000 42.20 29.60 2.40 2.10 0.01 0.01
Subtotal 17,200,000 41.49 30.44 2.50 2.10 0.01 0.01
KOBA - WESTERN PLATEAUS            
Foye 14,800,000 42.58 26.94 3.72 2.07 0.01 0.03
Kouraidendeli 106,900,000 43.70 26.70 2.90 2.30 0.01 0.03
Sapi N & S 31,600,000 44.20 25.70 3.20 2.10 0.01 0.02
Subtotal 153,300,000 43.69 26.52 3.04 2.24 0.01 0.03
TOTAL 501,000,000 42.90 27.81 2.79 2.36 0.01 0.03
 
Table 4: Inferred Bauxite Resources, Koba Bauxite Project
INFERRED RESOURCES            
Plateau Tonnage Al2O3 Fe2O3 SiO2 TiO2 CaO MgO
KOBA - EASTERN PLATEAUS            
Akounedjande 1,900,000 39.65 31.92 2.80 2.83 0.01 0.01
Subtotal 1,900,000 39.65 31.92 2.80 2.83 0.01 0.01
KOBA - WESTERN PLATEAUS            
Fakkerefonye 32,000,000 44.87 25.08 2.82 2.50 0.01 0.03
Killikocco 7,900,000 41.41 30.19 2.54 2.73 0.02 0.02
Ore Pousse 1 1,100,000 41.33 30.27 2.79 1.91 0.02 0.03
Ore Pousse 2 7,400,000 44.18 26.33 2.87 2.32 0.02 0.04
Touguiwel Competa 14,800,000 42.84 28.49 2.63 2.29 0.01 0.05
Subtotal 63,200,000 43.82 26.76 2.75 2.45 0.01 0.03
TOTAL 65,100,000 43.69 26.91 2.75 2.46 0.01 0.03

The new resource estimate utilized the entire drill hole database of 36,759 metres in 2,147 drill holes in two phases of aircore drilling over 26 bauxite plateaus. Phase 1 drilling was designed to confirm the presence of bauxite mineralization on 26 target "plateaus" identified through Aster satellite imagery analyses. This initial phase of drilling totalled 10,666 metres and consisted of 558 shallow holes at 300 and 600-metre hole spacings. Phase 2 drilling, totalling 26,093 metres in 1,589 holes, reduced the drill spacing to 150-metres on 12 plateaus previously covered by Phase 1 drilling. Phase 2 drilling allowed SWRPA and Coffey to determine the continuity of bauxite mineralization, grade and thickness variability; necessary parameters for resource modelling. 

Technical Studies Initiated

A preliminary economic assessment (PEA) is underway for both of the Koba and Koumbia Bauxite Projects. That study will investigate the economics of establishing mining operations at Koba and Koumbia, both for direct-shipping of bauxite to offshore refineries and on-site refinery options. The PEA will utilize the updated resource estimates for Koba and Koumbia.

Quality Assurance / Quality Control (QA/QC)

Coffey managed the drill programs on behalf of Anglo Aluminum and West African Drilling Services ("WADS") provided aircore drill services. Toumnyne SARL of Guinea conducted the auger drilling on Kounsidji Plateau in spring 2010. All drill samples collected from Koba and the initial 57 drill holes at Koumbia were submitted to SGS Mineral Services (Guinea) SARL for sample preparation and transferred to SGS Canada Inc. for assay analysis by XRF. Samples collected from the auger drill program were sent to SGS South Africa (Pty) Ltd. for XRF analyses. A duplicate field sample was inserted for every 20 samples. One of 5 different bauxite standard samples was inserted in every 20 sample lot. SGS also inserted duplicates, standards, and blanks for internal QA/QC.

General Information

Anglo Aluminum has the right to earn a 100% interest in the Koba and Koumbia permits, which cover 532 square kilometres in the Télimélé and Gaoual prefectures of Guinea. These permit areas are located in the Boke Bauxite Belt, which hosts the world's largest and highest-quality bauxite deposits being mined by several of the world's major aluminum producers. 

Koba bauxite deposits are predominantly "blanket-type" and fall within the Gaoual deposit group of the Boke-Gaoual Bauxite District. The bauxite is primarily residual in nature, gibbsitic in composition, and containing 40-50% Al2O3 and 1-3% SiO2. Gibbsite is the most desirable aluminum hydroxide species as it can be processed at substantially lower temperatures than either boehmite or diaspore. The bauxite horizon is typically 5 to 8 metres thick but locally may reach 15 to 20 metres thickness.

Christopher J. Wild, P.Eng., COO and Vice-President of Exploration of Anglo Aluminum Corp., 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 Corp. and the Koba and Koumbia Bauxite Projects, please visit: www.angloaluminum.com.

On behalf of the Board of Directors

Anglo Aluminum Corp.

James T. Gillis, President & CEO

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

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