QUARTERLY ACTIVITIES REPORT - PERIOD ENDING 31 MARCH 2018

Transcription

1 ASX ASX ANNOUNCEMENT ANNOUNCEMENT APRIL APRIL QUARTERLY ACTIVITIES REPORT - PERIOD ENDING 31 MARCH 2018 PERIOD OVERVIEW - EXPLORATION Initial Explratin Target cnfirmed at Suth West New Gergia Bauxite Prject (SWNG) in the Slmn Islands: Explratin Target f 5.92Mt 41.0% 48.0% Al2O3 and 9.5% % SiO2; Multiple large high-grade targets with DSO quality bauxite characteristics have been defined, including three high-grade bauxite targets; Testing in these areas returned average-grade bauxite results f abve 45% Al2O3, with peak results f +55% Al2O3; Large areas f SWNG prspective fr bauxite remain untested, prviding significant ptential explratin upside; and Resurce definitin prgram will be undertaken as a pririty cnsultants CSA Glbal engaged t manage and cmplete Resurce definitin. Pacific Bauxite acquired the Darling Range Bauxite Prject (Darling Range) in Western Australia: Darling Range prvides a lw-cst entry pint t a large bauxite resurce in an established, glbally recgnised bauxite regin; Cmprises tw Explratin Licence Applicatins ver a ttal area f 405 km 2, apprximately 60 km nrtheast f Perth; Hsts a JORC 2004 Inferred Resurce f % Al2O3; and Upgrading resurces t JORC 2012 cmpliance t be cmpleted subsequent t the granting f the leases. Explratin has cmmenced at Nend Bauxite Prject in the Slmn Islands CORPORATE Explratin targeting identified high grade znes f bauxite mineralisatin has been designed t deliver an Explratin Target fllwed by a maiden Resurce Estimate; Activities include lw-impact hand-auger drilling and detailed site surveys that are expected t result in Explratin Target and Resurce estimatins; and Cmpany s highly successful, nging cmmunity awareness and engagement prgrams have paved the way fr cntinued prspecting. Mr. Peter Lewis was appinted t the Bard as a Nn-Executive Directr Mr. Andrew Harwd f CSA Glbal appinted as Prject Manager (pst-quarter), t advance the Cmpany s Slmn Islands bauxite prjects

2 Pacific Bauxite Ltd (Pacific Bauxite r Cmpany) (ASX: PBX) is pleased t present its Quarterly Activities Reprt fr the perid ending 31 March During the Quarter, the Cmpany s activities resulted in the establishment f an initial Explratin Target at its Suth West New Gergia Bauxite Prject (SWNG) in the Western prvince f the Slmn Islands, and acquisitin f the Darling Range Bauxite Prject Darling Range) in Western Australia. Fllwing extensive explratin at SWNG, the Cmpany was pleased t annunce a large initial Explratin Target* f 5.92Mt 41.0% 48.0% Al2O3 (alumina) and 9.5% % SiO2 (silica), estimated at the Kindu and Dunde prspects. These tw targets are nw the pririty fcus fr Resurce definitin wrk at SWNG, scheduled t cmmence in the near future. Pst-Quarter, the Cmpany was pleased t annunce the cmmencement f the next phase f drilling at the Nend Bauxite Prject (Nend). Explratin will target high grade znes f bauxite mineralisatin identified in the Cmpany s previus phase f explratin at the Prject. The current phase f wrk is designed t generate sufficient data t cnfirm an Explratin Target. Bth prjects are lcated in the Slmn Islands and have prvided the Cmpany with enrmus scpe t identify and develp significant bauxite depsits within the Slmn Islands regin, where the Cmpany is seeking t establish premium grade bauxite mining peratins fr exprt int the Asian market. Darling Range is lcated in the Darling Ranges apprximately 60 km nrtheast f Perth, Western Australia (Acquisitin), and cmprises tw Explratin Licence Applicatins (ELA 70/5111 and ELA 70/5112) cvering a ttal area f 405 km 2. The Prject area hsts a JORC 2004 inferred mineral Resurce estimate f 41.75% ttal Al2O3 and 4.43% reactive SiO2, inclusive f nine main resurce areas ver a strike f apprximately 75 km. The Acquisitin is cnsistent with the Cmpany s strategy f building high quality bauxite asset prtfli in targeted jurisdictins. The Cmpany is targeting DSO-quality bauxite peratins in bth Australia and the Slmn Islands, with grades f 40% - 45% ttal Al2O3 and 5% -10% ttal SiO2 in rder t psitin itself t help satisfy the frecasted near term grwth in glbal bauxite demand. SOLOMON ISLANDS PROJECT SUMMARY Initial Explratin Target Defined During the Quarter, the Cmpany was pleased t annunce a large initial Explratin Target at its Suth West New Gergia Bauxite Prject (SWNG) in the Western prvince f the Slmn Islands. The Cmpany s explratin activities resulted in the definitin f large areas f high-tenr bauxitic sils, grading +40% Al2O3, (alumina) (Figure 1). Distinct high-grade targets, with characteristics suitable fr DSO quality bauxite, have been identified thrughut the SWNG area in this recent phase f explratin.

3 Tw areas in the suthern part f the SWNG Prspecting Licence - the Kindu and Dunde prspects - were identified as pririty targets due t the high grade Al2O3 and lw-silica cntent. An initial Explratin Target* f 5.92Mt 41.0% 48.0% Al2O3 and 9.5% % SiO2 (Tables 1 and 2) has been estimated at the Kindu and Dunde prspects. These tw targets are nw the pririty fcus fr Resurce definitin wrk, scheduled t cmmence in the near future. Table 1 Initial Explratin Target fr the Kindu and Dunde Prspects, Suth West New Gergia Prject. *This Explratin Target is nt a Mineral Resurce as defined by JORC The target is cnceptual in nature and, t date, there has been insufficient explratin t define a Mineral Resurce and it is uncertain if further explratin will result in the determinatin f a Mineral Resurce. Additinal details defining the basis fr this target are presented within this dcument. The Explratin Target was defined using the results f the Cmpany s recently cmpleted extensive auger drilling and sampling prgram at the Prject. A ttal f 562 hand-auger hles were cmpleted, with 1092 samples taken; f these samples, 979 were analysed at the Cmpany s field labratry via hand-held XRF. Representative samples frm the recently cmpleted prgram will nw be sent t a certified Australian labratry fr detailed analysis. Suth West New Gergia Bauxite Prject The Suth West New Gergia (SWNG) Prspecting Licence cvers an area f 236km² and targets bauxitic clays n uplifted limestne reef (averaging mre than 100m abve sea level). Much f the tenure at SWNG appears unexplred, and represents a significant explratin pprtunity fr Pacific Bauxite. The area t be explred within the new Prspecting Licence is three times the area being targeted at Nend. Prir explratin by Australian cmpanies in the early 1970 s identified extensive areas f bauxite mineralisatin and pstulated the ptential fr ecnmic depsits at SWNG. Histrical wrk targeted the suthern part f the applicatin, nrth f the twn f Munda, and included several hand-auger drilling prgrams and test pitting. The main campaign f drilling fcused n an area f apprximately 3.5 km by 1 km and included 39 auger hles fr 101 samples. This wrk identified substantial tnnages f material with grades f between 40% and 45% ttal Al2O3 and 5% t 10% ttal SiO2. The Cmpany believes SWNG is prspective fr large tnnage, DSO bauxite mineralisatin, which appears analgus with depsits in the Slmn Islands Nend and Rennell Islands (Figure 2). This style f mineralisatin prvides the pprtunity fr quick, cst-effective resurce definitin and a simple, lw cst, dig-lad-ship style mining peratin.

4 Figure 1 Satellite Imagery f the SNWG Prject, including auger drilling lcatins clur cded with grade ranges fr field hand-held XRF Al2O3 results.

5 The Prspecting Licence has been granted t Pacific Bauxite by the Slmn Islands Gvernment s Ministry f Mines, Energy and Rural Electrificatin (MMERE) fr an initial perid f three years and can be extended fr tw years upn applicatin. A further extensin f tw years may be applied fr, ttaling seven years. The Cmpany has received verwhelming widespread lcal supprt fr its prpsed prspecting activities at SWNG. The Prspecting Licence was granted fllwed the Cmpany s extensive Awareness Prgram invlving all stakehlders including traditinal landwners, lcal cmmunities, and bth Prvincial and Natinal Gvernment representatives. High-grade bauxite regins identified at SWNG The Cmpany has identified three high-grade bauxite targets during its recnnaissancesampling prgram. The sampling prgram included 199 hand-auger drill hles and 40 shallw test-pits, fr a ttal f 239 samples. Hand-held XRF results have been cmpleted fr all samples, with 130 (54%) samples returning results f mre than 40% Al2O3. The prgram resulted in the discvery f three distinct high grade targets, each returning peak results f between 55% and 57% Al2O3 (Figure 1). Sampling t date indicates the mineralisatin at SWNG cntains higher SiO2 cntent than the Cmpany s Nend Prject. Hwever, with results as lw as less than 1% ttal SiO2 and almst ne third f the samples cntaining belw 16% ttal SiO2, there is ptential t delineate significant tnnages f DSO quality, high value material with lwer SiO2 cntent. The critical reactive silica cntent is expected t be substantially less than the ttal SiO2 cntent measured by the hand held XRF. As the reactive silica and available alumina analysis fr these samples cannt be tested with the handheld XRF tl, representative samples have been sent t a certified Australian labratry fr analysis. Results will be annunced when received. Significant infrastructure requirements in place SWNG is adjacent t cmmercial prt facilities ffering significant infrastructure advantages fr any future exprt mining peratins. The Nr Prt can accmmdate Handymax and Supermax bulk carg ships and is subject t an infrastructure upgrade prgram in the near term. The SWNG prject is well serviced by daily dmestic flights frm Hniara t Munda Airprt, which is currently being upgraded t accmmdate internatinal flights. Access within the prject appears gd with extensive lgging tracks crisscrssing the Prspecting Licence. Nend Bauxite Prject Cmmencement f Next Phase f Drilling The Nend Bauxite Prject (Nend) lcated in the Slmn Islands (Figure 2) has demnstrated extensive areas f ptentially high-grade direct shipping re (DSO) bauxite mineralisatin (ASX annuncement 27 September 2016). While much f the prject area remains unexplred, the Cmpany has delineated an initial pririty target area f apprximately 12 km by 2 km. Pst-Quarter, the Cmpany was pleased t annunce the cmmencement f the next phase f drilling at Nend.

6 Explratin will target high grade znes f bauxite mineralisatin identified in the Cmpany s previus phase f explratin at the Prject. The current phase f wrk is designed t generate sufficient data t cnfirm an Explratin Target. Subject t results, this wuld be fllwed by a maiden Resurce estimate. Pacific Bauxite s previus explratin prgrams at Nend have cnfirmed the presence f extensive, high-quality bauxitic sils. Cncurrently, the Cmpany has wrked with lcal cmmunities t establish landwner cnsultatin grups and cmmunity trusts, empwering stakehlders t be fully engaged in the explratin prcess. This cmmunity engagement has, and will cntinue t, include training and emplyment pprtunities fr lcal peple. T date, the Cmpany has cmpleted first phase recnnaissance prspecting at Nend and has identified significant areas f bauxite mineralisatin (ASX annuncements 19 May, 7 July and 25 August 2016). The wrk undertaken included drilling shallw hand auger hles n a wide spaced pattern, with negligible envirnmental impact. Prspecting has been carried ut with the assistance and emplyment f lcal landwners, which prvided transparency f the Cmpany s activities and prvided the pprtunity t educate and infrm the lcal cmmunities f the resurces existing n their land. The current phase f explratin will target higher grade znes f bauxite mineralisatin; activities will include lw-impact hand-auger drilling, detailed site surveying, test pits and trenching, specific gravity and metallurgical test wrk. Samples will be sent t an accredited independent Australian labratry fr analysis. Field activities are expected t be cmpleted ver the next tw mnths, with results frm this wrk t be released t the market as they becme available. Figure 2 Slmn Prject Lcatins

7 On-ging cmmunity engagement ASX ANNOUNCEMENT Prir t, and as a cnditin f, the granting f Prspecting Licences at Nend and SWNG, the Cmpany cmpleted extensive educatin and awareness presentatins with the lcal cmmunities and landwners. This activity was verseen, dcumented and phtgraphed by a representative f the MMERE (Natinal Gvernment). In supprt f this prcess, it is the Cmpany s plicy t prvide nging awareness prgrams and infrmatin t the lcal cmmunities t ensure that all stakehlders are fully infrmed f the Cmpany s activities n an nging basis. The Cmpany has nt cnducted sufficient wrk t warrant a decisin t mine bauxite n either f the prjects. Shuld this ccur, the Cmpany wuld be required t submit cmprehensive mining, scial and envirnmental studies fr scrutiny and apprval by the natinal and prvincial gvernments, as well as (and mst imprtantly) the landwners. As a matter f curse, fr the benefit f all stakehlders including Pacific Bauxite sharehlders, these requirements wuld be cmpleted t best practice standards as required in the Slmn Islands and Australia. Regardless f lcatin, the Cmpany addresses rehabilitatin and sustainability in any prpsal fr mining. It is ne f the Cmpany s beliefs - and a key scial and crprate respnsibility - that any successful mining peratin must identify and prvide n-ging, lngterm benefits fr the lcal cmmunities. The Cmpany s apprach wuld be based n lngterm sustainable land use, nt shrt-term gain. AUSTRALIAN PROJECT SUMMARY New Prject Acquisitin: Darling Range Bauxite Prject, Western Australia During the Quarter, the Cmpany annunced it had acquired the Darling Range Bauxite Prject (Darling Range) lcated in the Darling Ranges nrtheast f Perth, Western Australia. The Acquisitin is cnsistent with the Cmpany s strategy t build a prtfli f high quality bauxite assets in targeted jurisdictins, in rder t psitin itself t help satisfy the frecasted near term grwth in glbal bauxite demand. Darling Range cmprises tw Explratin Licence Applicatins (ELA 70/5111 and ELA 70/5112), which cver a ttal area f 405 km 2 within the Darling Ranges, apprximately 60 km nrtheast f Perth (Figure 3). The Darling Range prject area hsts a JORC 2004 Inferred Mineral Resurce estimate f 41.75% ttal Al2O3 and 4.43% reactive SiO2, inclusive f nine main resurce areas ver a strike f apprximately 75km. See Table 1, belw, fr Resurce details. Darling Range Ttal Inferred Resurce Tnnes (MT) Ttal Al2O3 % Available Al2O3 % Reactive SiO2% LOI % Table 1: Published JORC (2004) cmpliant Mineral Resurce estimate (IRM, 2011) at a cut-ff f 26% Available Al2O3. The tenements cvering Darling Range were previusly held by Pacific Bauxite (when it was named Irn Muntain Mining (ASX:IRM)). The Cmpany sld the Darling Range tenements t

8 Chinese-backed private mineral resurces investment cmpany Alpha Bauxite Pty Ltd (Alpha) in 2012 (IRM ASX annuncements, 6 March 2012 and 24 August 2012). Alpha subsequently surrendered its tenure in June Given the Cmpany s previus expsure and understanding f the Darling Range prject area, it viewed the pprtunity t acquire the asset as a highly attractive, lw-cst entry pint t a ptentially high quality, advanced bauxite prject with significant upside, in a majr, established bauxite regin. Figure 3 Darling Range Prject Lcatin The Darling Ranges hst extensive bauxite resurces and have a lng histry f explratin and mining. Prductin cmmenced in the regin in the 1960 s and it currently hsts majr bauxite mining peratins including Suth 32 s Wrsley Alumina and Alca. Prpsed Strategy and Activity Upn the successful granting f the Explratin Licence Applicatins by the Western Australia Department f Mines, Industry Regulatin and Safety, Pacific Bauxite plans t assess and review the JORC Mineral Resurce estimates, with a view t upgrading the Resurce t JORC 2012 cmpliance as a pririty. The Cmpany will als plan fieldwrk prgrams designed t define the extent f the mineralised znes.

9 The Darling Range tenements are subject t multiple and varied land-use stakehlders. The Cmpany will undertake an extensive review f any cnflicting land-uses, access issues and infrastructure in its assessment f the Prject s existing Resurce prir t the cmmencement f any grund disturbing fieldwrk. The Acquisitin The cnsideratin payable by Pacific Bauxite t Nearlgy Pty Ltd fr assistance in relatin t the Acquisitin cmprises the aggregate f: 1,000,000 fully paid rdinary shares in Pacific Bauxite, issued n settlement; A ne-ff cash payment f $30,000, with payment deferred subsequent t any future equity capital raising by Pacific Bauxite. Glden Camel Prject, Victria Pacific Bauxite retains a ryalty f A$2/t n all gld re mined after the first 20,000z has been prduced frm the Glden Camel Prject, which cntains a Measured, Indicated & Inferred JORC (2012) Resurce f 1.7g/t Au within Mining Licence Glden Camel Mining Pty Ltd (GCM) is develping the Glden Camel Prject and the Cmpany will reprt updates t the market as they are received frm GCM. Munt Richardsn Prject Cliffs Asia Pacific Irn Ore Pty Ltd is the wner f E29/571 fllwing the sale f the Mt Richardsn Prject n 13 July Pacific Bauxite retains a ryalty f 2% n average/tnne FOB sales value f irn re prduct that departs E29/571 as well as a ne ff payment f AUD 0.50 per dry metric tnne n tnnages in excess f independently evaluated Indicated r Measured Resurces f 10,000,000 tnnes. Rgetta Prject, Tasmania The Rgetta Prject (frmerly Blythe Irn Ore Prject) is wned and perated by Frward Mining Ltd. The Cmpany is entitled t a stream f milestne payments and ryalty benefits subject t mining cmmencing at Rgetta. Mining Lease ML1996P/M was granted n 4 June 2015 fr a prpsed magnetite irn re mine at Rgetta and is currently has an EPA Assessment in Prgress. CORPORATE Cash Psitin The Cmpany clsed the March 2018 Quarter with apprximately $284,000 in cash. Issue f Shares On 15 January 2018, the Cmpany advised it had issued 1,000,000 fully paid rdinary shares in relatin t the acquisitin f tw Explratin Licence Applicatins in Western Australia.

10 Bard Restructure ASX ANNOUNCEMENT On 30 January 2018, the Cmpany advised Mr. Peter Lewis was appinted t the Bard as a Nn-Executive Directr fllwing the resignatin f Mr. Mark Gwynne as Executive Directr. Pst-Quarter, the Cmpany advised f Mr. Gwynne s resignatin frm the rle f Chief Executive Officer t pursue ther pprtunities (ASX annuncement 30 April 2018). Mr. Gwynne played an instrumental rle in the develpment f the Cmpany s bauxite assets in the Slmn Islands, and the Bard thanks him fr his stewardship f the Cmpany during his tenure and wishes him well in his future endeavrs. The Bard will make a decisin regarding the vacant Chief Executive Officer psitin in due curse Slmn Islands Prject Manager Appinted Pst-Quarter, the Cmpany advised the appintment f Mr. Andrew Harwd f CSA Glbal as Prject Manager fr the Cmpany s prjects in the Slmn Islands (ASX annuncement 30 April 2018). Mr. Harwd has ver 30 years experience as a gelgist in explratin and mining acrss a range f depsit types and jurisdictins, including the Suth West Pacific regin. Mr. Harwd will be respnsible fr implementatin f the apprved strategies and all activities at the Cmpany s prjects in the Slmn Islands, including technical envirnmental, legal, finance, landhlder, and gvernment relatins. Mr. Harwd s appintment will be fr an initial shrt term basis with an ptin f becming a full-time emplyee f the Cmpany by mutual agreement. Ends. Fr further infrmatin, visit r cntact: Jhn Ciganek James Mses Nn-Executive Chairman Media and Investr Relatins Pacific Bauxite Ltd. Mandate Crprate P: +61 (8) M: +61 (0) E: inf@pacificbauxite.cm.au E: james@mandatecrprate.cm.au Cmpetent Persn Statement The infrmatin in this reprt that relates t Explratin Targets, Explratin Results, Mineral Resurces r Ore Reserves is based n infrmatin cmpiled by Mr Brett Smith, B.Sc Hns (Gel), Member AusIMM, Member AIG, Mr Smith is an emplyee and Directr f the cmpany. Mr Smith has sufficient experience that is relevant t the style f mineralisatin and type f depsit under cnsideratin and t the activity being undertaken t qualify as a Cmpetent Persn as defined in the 2012 Editin f the Australasian Cde fr Reprting f Explratin Results, Mineral Resurces and Ore Reserves. Mr Smith cnsents t the inclusin in the reprt f the matters based n his infrmatin in the frm and cntext in which it appears Frward Lking Statements

11 This annuncement cntains certain statements that may cnstitute frward lking statement. Such statements are nly predictins and are subject t inherent risks and uncertainties, which culd cause actual values, results, perfrmance achievements t differ materially frm thse expressed, implied r prjected in any frward lking statements. Frward-lking statements are statements that are nt histrical facts. Wrds such as expect(s), feel(s), believe(s), will, may, anticipate(s) and similar expressins are intended t identify frward-lking statements. These statements include, but are nt limited t statements regarding future prductin, resurces r reserves and explratin results. All such statements are subject t certain risks and uncertainties, many f which are difficult t predict and generally beynd the cntrl f the Cmpany, that culd cause actual results t differ materially frm thse expressed in, r implied r prjected by, the frward-lking infrmatin and statements. These risks and uncertainties include, but are nt limited t: (i) thse relating t the interpretatin f drill results, the gelgy, grade and cntinuity f mineral depsits and cnclusins f ecnmic evaluatins, (ii) risks relating t pssible variatins in reserves, grade, planned mining dilutin and re lss, r recvery rates and changes in prject parameters as plans cntinue t be refined, (iii) the ptential fr delays in explratin r develpment activities r the cmpletin f feasibility studies, (iv) risks related t cmmdity price and freign exchange rate fluctuatins, (v) risks related t failure t btain adequate financing n a timely basis and n acceptable terms r delays in btaining gvernmental apprvals r in the cmpletin f develpment r cnstructin activities, and (vi) ther risks and uncertainties related t the Cmpany s prspects, prperties and business strategy. Our audience is cautined nt t place undue reliance n these frward-lking statements that speak nly as f the date heref, and we d nt undertake any bligatin t revise and disseminate frward-lking statements t reflect events r circumstances after the date heref, r t reflect the ccurrence f r nn-ccurrence f any events. The Cmpany believes that it has a reasnable basis fr making the frward lking Statements in the annuncement based n the infrmatin cntained in this and previus ASX annuncements. The Cmpany is nt aware f any new infrmatin r data that materially affects the infrmatin included in this ASX release, and the Cmpany cnfirms that, t the best f its knwledge, all material assumptins and technical parameters underpinning the explratin results in this release cntinue t apply and have nt materially changed.

12 PBX SCHEDULE OF INTERESTE IN MINING TENEMENTS (as requried by ASX Listing Rule 5.3.3) Mining Tenements at 31 December 2017 Lcatin Tenement Name Hlder Equity Status Area Slmn Islands PL01/16 Nend Pacific Bauxite Ltd 50% Granted 447 km2 Slmn Islands PL04/17 Suth West New Gergia Pacific Bauxite Ltd 50% Granted 236 km2 Western Australia ELA 70/5111 ELA 70/5112 Darling Range Pacific Bauxite Ltd 100% Applicatins 405 km2 Mining Tenements Acquired During the Quarter Applicatins, ELA 70/5111 and ELA 70/5112, Darling Range Bauxite Prject, Western Australia. Mining Tenements Dispsed During the Quarter Nne t reprt.