Latest News Response to shareholders’ queries re resource quality
Dear Shareholders,
We have had several enquiries regarding the quality of the ore in our recent resource statement, particularly enquiring if this quality of ore is of good enough quality that one day may prove to be of economic value.
We would like to preface this response by saying that we have been advised by the ASX that we should not comment about the potential economic value of this discovery at this point until we have produced independent reports on the resource with the required information under the Listing Rules and Corporations Act.
That being said, we would like to comment on the bauxite industry in general, and the following comments relate to the bauxite industry in general how we understand it.
According to The International Committee for Study of Bauxite, Alumina & Aluminium as presented at the recent Bauxite and Alumina Conference in Miami in February 2014, the average Alumina content being processed in refineries in China is gradually decreasing, and as per the following diagram, fell to an average ratio of available Al2O3/reactive SiO2 (A/S Ratio) of just 5:1 in 2012. See the slide as presented by the ICSBAA at that conference. At the same conference, the Beijing General Research Institute presented that the average A:S ratio currently being processed in the Henan District in China is 4.5 to 5, with general falling A:S ratios throughout China. Therefore clearly ore that is of that ratio is used economically in the global market, the only question is the profit margins and how much these refineries are prepared to pay for that ore.
QBL Price at posting:
2.4¢ Sentiment: Hold Disclosure: Held
