Metallica Minerals (ASX:MLM) has announced a first resource estimate at its Urquhart Bauxite project in Australia. The initial estimate contains 7.5 million tonnes at an average grade of 51% Aluminium oxide but there’s a higher grade zone of 4 million tonnes at 53.3% included in this estimate.
The quality test results on the resource are indicating this type of Bauxite might qualify as DSO bauxite and could be shipped without any processing at all. That’s a huge bonus and Metallica is now planning an internal scoping study to investigate the economics of what seems to be an 1.5-2 million tonne DSO operation.
You could expect the capital expenditures and the operating expenditures to be relatively low, but we’ll be mainly interested in the revenue per tonne of DSO Bauxite Metallica expects to receive.
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Disclosure: The author has no position in Metallica Minerals. Please see our disclaimer for current positions.
