First Bauxite Corporation
TSX VENTURE : FBX
FRANKFURT : FBI
BERLIN : FBI

First Bauxite Corporation

May 05, 2011 19:12 ET

Rio Tinto Mining and Exploration Ltd. and First Bauxite Corporation Terminate Their Option and Joint Venture Agreement Over the Essequibo-Demerara Bauxite Project in Guyana

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 5, 2011) -FIRST BAUXITE CORP. (TSX VENTURE:FBX)(FRANKFURT:FBI)(BERLIN:FBI) ("First Bauxite" or the "Company") First Bauxite Corporation is announcing that the Letter of Understanding between the Company and Rio Tinto Mining and Exploration Ltd. ("Rio Tinto") was terminated on February 17, 2011 with immediate effect. On May 23, 2008, Rio Tinto Exploration signed a Letter of Understanding with First Bauxite Corporation, in order to form a four-year joint venture with the purpose of exploring the northern portion of the coastal bauxite belt of Guyana for economic metallurgical bauxite resources. The Essequibo-Demerara PGGS (Permit for Geological and Geophysical Surveys) was granted in 2007 to Guyana Industrial Minerals Inc. ("GINMIN"), a wholly owned subsidiary of First Bauxite, and it is still valid till September 2012. The title covers a total area of 4,368 km2. All exploration data to date from the Essequibo project have now been delivered to the Company.

The President of the First Bauxite Yannis Tsitos commented: "First Bauxite and its management would like to thank Rio Tinto and its exploration personnel in South America for the work done at Essequibo as well as for the excellent professional relationship built between the two companies in the last three years. Our technical team is currently reviewing the exploration results over Essequibo and the management will soon define the project's future. However, I want to reiterate to the public that the main focus of the Company remains the Bonasika refractory bauxite project and its development. The Company's mission is to become a near-term, medium size producer and supplier of high quality, refractory grade sintered bauxite."

About First Bauxite

First Bauxite Corporation (TSX VENTURE:FBX) is a Canadian natural resources company engaged in the exploration and development of bauxite deposits, through resource discovery and mining within a niche industrial market. The company has its head-office in Vancouver and its current assets in Guyana, South America and is managed by experienced geoscientists and business development professionals with worldwide experience in the exploration and mining business across a number of mineral commodities. The mission of First Bauxite is to become a near term, medium size producer and supplier of high quality refractory grade sintered (calcined) bauxite. First Bauxite controls a large land package in Guyana's historical coastal bauxite belt, including the Bonasika Mining License, the Waratilla-Cartwright Prospecting License and the Essequibo PGGS License. Bonasika and WarCart licenses cover deposits which host near surface high quality refractory grade bauxite. The Company has recently completed a Feasibility Study over the Bonasika Project and announced its results on July 29, 2010. 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, the construction of a washing plant facility, of a sintering plant and load out facilities at Sand Hills. The Mine will operate at a production rate of 298,500 metric tons ("tonnes") of raw, dry bauxite per year or 1,148 tonnes per day, the wash plant will produce 162,232 tonnes of washed bauxite concentrate and the two vertical pressurised shaft kilns will produce 100,000 tonnes per year of sintered bauxite final product. The Company drilled two bauxite deposits within the Waratilla Prospecting License. The NI 43-101 compliant Geological Resource outlined in the UWC deposit now called the Bonasika 6, was reported in the Bonasika Feasibility Study and the NI 43-101 compliant Geological Resource outlined in the LWC deposit, now called Bonasika 7 is reported in the Company's News Release of February 3, 2011. The Company also in 2010 acquired all of the issued and outstanding shares of Bauxite Corporation of Guyana Inc. ("BCGI") and accordingly, 100% of its interest in the contiguous Tarakuli and Tarakuli North-West Prospecting Licenses in Northeast Guyana, which host an historical inferred bauxite resource of significant size and quality. For further information on First Bauxite Corporation, please visit our corporate website at www.firstbauxite.com.

On behalf of The Board of Directors of First Bauxite Corporation

Ioannis (Yannis) Tsitos, President & Director

Hilbert N. Shields, CEO & Director

This document contains certain forward looking statements which involve known and unknown risks, delays, and uncertainties not under the Company's control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or expectation implied by these forward looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • First Bauxite Corporation
    Ioannis (Yannis) Tsitos
    President & Director
    604-806-0916
    604-806-0956 (FAX)
    www.firstbauxite.com