First Bauxite Corporation Files NI 43-101 Technical Report-Bankable Feasibility Study Update for the Bonasika Project
November 21 2011 - 9:00AM
Marketwired
First Bauxite Corporation (TSX
VENTURE:FBX)(FRANKFURT:FBI)(BERLIN:FBI) ("First Bauxite" or the
"Company") is pleased to announce that the NI 43-101 Technical
Report - Bankable Feasibility Study Update ("BFSU") for its Bauxite
Project in Guyana, South America, prepared by the independent
engineering firm, Met-Chem Canada Inc., has been filed on SEDAR at
www.sedar.com and can also be found on the Company's website at
www.firstbauxite.com.
As previously announced on October 6, 2011, the significantly
improved results in the BFSU over the NI 43-101 Technical Report -
Feasibility Study filed in September 2010, are the result of the
addition of the Bonasika 6 and 7 Mineral Reserves in the economic
analysis.
The proposed development plan is to now commence operations at
the Bonasika 7 deposit, followed by the Bonasika 6 deposit (the
"Project"). All Project financial information below relates only to
the Bonasika 6 & 7 deposits. As such, the financial value of
the Bonasika 1, 2 and 5 deposits, as previously announced in
September 2010, are not included in the information below and,
therefore, indicate future value for the Company and its
stakeholders.
The before tax NPV of the Project (Bonasika 6 & 7 deposits)
now stands at $157 million, which is a 279% increase over the
previous reported NPV of $41 million (Bonasika 1, 2 and 5
deposits).
Highlights from the BFSU and the filed NI43-101 Technical Report
include:
-- Exploration supervised by Aluminpro on all five (5) Bonasika deposits
demonstrated the existence of 13.1 million tonnes of Measured and
Indicated Mineral Resources.
-- The development plan calls for mining of 8.6 million tonnes of Probable
Mineral Reserves from the Bonasika 6 and 7 deposits, representing a 36
year mine life.
-- The Sand Hills processing plant is designed for an annual production
level of 100,000 tonnes of sintered refractory bauxite, trademarked
Guysin®.
-- The Initial Capital Costs for the Project are estimated at $123.9
million.
-- The Sustaining Capital Costs for the Project are estimated at $36.9
million.
-- The average Project Operating Costs of Guysin® over the 36 year mine
life are estimated at $211/tonne.
-- The financial analysis of the Project has demonstrated that, at an
average sale price of $475/tonne, the IRR is 18.7% before taxes and
17.7% after taxes.
-- The Project NPV before tax is estimated at $157 million using a 7.5%
discount rate.
-- The payback period is estimated at five (5) years (undiscounted).
-- Selective mining of the Bonasika 7 deposit high grade core produces two
(2) separate concentrates that can be blended under controlled
conditions to achieve a chemically consistent sinter plant feed, reduce
wash plant capacity and improve recovery:
-- Direct Feed Bauxite ("DFB") material that can be directly fed to the
blend point after proper crushing and thus by-passes the wash plant;
-- Regular Grade Bauxite ("RGB") material that will be upgraded by
crushing and washing, then re-combined with crushed DFB at the blend
point ahead of sintering to produce a consistent quality,
homogenized sinter plant feed.
-- The independent market study concluded that:
-- First Bauxite production will provide consumers a new supply source
of premium product;
-- The global demand for bauxite is likely to grow steadily over the
next 10 to 15 years; and
-- The nominal and real refractory grade bauxite prices are expected to
rise over the next ten (10) years.
"Having illustrated the significant economic value of the
Bonasika deposits, we are aggressively developing the Bonasika
Project into a major, low-cost, long-life producer," stated Hilbert
N. Shields, CEO. "The Company will now focus on its next major
milestones of implementing a Project financing plan and
commissioning detailed engineering and early stage infrastructure
development."
About First Bauxite Corporation
First Bauxite Corporation (TSX VENTURE:FBX) is a Canadian
natural resource company engaged in the exploration and development
of bauxite deposits in Guyana, South America. The Company has its
head office in Vancouver 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
Permit. The Company also holds the Tarakuli and contiguous Tarakuli
North-West Prospecting Licenses in Northeast Guyana. The Company's
Bankable Feasibility Study Update defines and confirms the economic
viability of an operation based on sequential mining of the two (2)
bauxite deposits (Bonasika 6 and Bonasika 7), and the construction
of a washing plant facility, a sintering plant, and load out
facilities, at Sand Hills. The Bonasika 1, 2 and 5 deposits are
additional value and would increase the mine of life from 36 years
to 44.5 years. For further information on First Bauxite
Corporation, please visit our corporate website at
www.firstbauxite.com.
Qualified Person's Statement
Mr. Daniel Houde, Eng., of Met-Chem Canada Inc., a qualified
person under NI 43-101, is independent of the Corporation and has
reviewed the scientific and technical information in this news
release and found it conform to the Feasibility Study Update Report
and the NI 43-101 Compliant Technical Report.
On behalf of The Board of Directors of First Bauxite
Corporation
Hilbert N. Shields, CEO & Director
Ioannis (Yannis) Tsitos, President & 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 achievement of the Company to be materially
different from the results, performance or expectation implied by
these forward looking statements.
Neither the 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.
Contacts: First Bauxite Corporation Ioannis (Yannis) Tsitos
President & Director 604-806-0916 604-806-0956
(FAX)www.firstbauxite.com
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